Galaxy Digital Inc. (NASDAQ: GLXY), a firm focused on digital assets and blockchain technology, has announced significant updates, reinforcing its position as a key player in the web3 and crypto ecosystem.
From securing a $175 million venture fund to expanding its operational scope through partnerships and public offerings, Galaxy is navigating a challenging market with strategies aimed at fostering innovation and institutional adoption of blockchain technology.
On June 26, 2025, Galaxy Asset Management, an affiliate of Galaxy Digital, announced the final close of its oversubscribed Galaxy Ventures Fund I, LP, raising over $175 million, surpassing its initial $150 million target.
This marks the first time Galaxy has accepted external capital for its venture investments, a shift from its prior reliance on balance sheet funding since 2018.
The fund, led by Will Nuelle and Mike Giampapa, attracted a diverse group of limited partners, including institutional investors, family offices, and strategic digital asset businesses.
With a portfolio backing over 120 companies, including startups like Ethena, Monad, and Yellow Card, the fund focuses on early-stage firms developing blockchain infrastructure, stablecoins, tokenization, and digital payment systems.
CEO Mike Novogratz highlighted the fund’s success amid a tough fundraising climate, stating:
“Closing above target showcases our team’s unique edge in the market.”
This milestone underscores growing investor confidence in blockchain’s transformative potential.
In parallel, Galaxy Digital strengthened its financial position through a public offering of common stock.
On May 27, 2025, the company announced an underwritten offering of 29 million shares of Class A common stock, with 24.15 million shares offered by Galaxy and 4.85 million by certain stockholders.
The offering, upsized due to strong demand, was priced on May 29, 2025, raising significant capital to fuel Galaxy’s expansion.
This move aligns with its Nasdaq listing in May 2025, which broadened its investor base and boosted its stock by 15% on debut.
Despite a volatile crypto market, the offering reflects Galaxy’s ability to attract investor interest, leveraging its diversified operations in asset management, trading, and mining.
However, Galaxy faced challenges in Q1 2025, reporting a $295 million net loss, primarily due to falling crypto prices and costs from restructuring its mining arm.
Despite this, the company managed $7 billion in assets under management, maintaining its stature as a crypto conglomerate with exposure to Bitcoin ETFs, trading, and venture investing.
Galaxy’s shift toward software and infrastructure, including AI-based data centers and tokenization frameworks, signals a strategic pivot away from hardware-heavy ventures.
This aligns with Novogratz’s vision that “the second generation of blockchain products will redefine capital markets and consumer finance.”
Further enhancing its ecosystem, Galaxy partnered with Zodia Custody on May 29, 2025, to offer institutional clients access to staking, liquidity, and financing solutions.
This collaboration leverages Zodia’s custody expertise and Galaxy’s trading and lending capabilities, providing seamless access to digital asset markets.
The partnership strengthens Galaxy’s institutional offerings, catering to the demand for secure, scalable blockchain solutions.
Despite setbacks, such as its removal from the S&P Global BMI Index in June 2025, Galaxy’s strategic initiatives demonstrate resilience.
The $175 million venture fund, coupled with its public offering and partnerships, positions Galaxy to capitalize on emerging trends like stablecoins and tokenized assets, which saw $1.3 trillion in transaction volumes in Q1 2025.
With over 550 employees and a global presence, Galaxy’s hands-on support for portfolio companies and its market insight aim to set it apart from traditional venture capital firms.
As regulatory clarity improves and institutional adoption grows, Galaxy Digital is poised to help with the next wave of blockchain innovation, bridging Web3 and traditional finance.