Key Takeaways
- • Michael Novogratz donated 8.6 million Class B limited partnership units of Galaxy Digital Holdings LP valued at approximately C$202.1 million (US$159 million) to a donor advised fund on December 31, 2021, representing 2.73% of the company's issued and outstanding ordinary shares on a fully converted basis.
- • Following the donation, Novogratz's ownership stake in Galaxy Digital decreased from approximately 67.95% to 65.22% of issued and outstanding ordinary shares (assuming full conversion of partnership units), though he remains the controlling shareholder and Founder/CEO.
- • The partnership units are exchangeable for ordinary shares on a one-for-one basis, subject to standard adjustments for stock splits, dividends, and reclassifications under the terms of the GDH LP Fourth Amended and Restated Limited Partnership Agreement.
- • Prior to the donation, Novogratz beneficially owned 213.7 million partnership units and 522,945 ordinary shares; post-donation, he controls 205.6 million ordinary shares on a fully converted basis.
Summary
Michael Novogratz, Founder and CEO of Galaxy Digital Holdings Ltd. (TSX: GLXY), announced on December 31, 2021, that an entity he beneficially owns—Galaxy Group Investments LLC—donated 8.6 million Class B limited partnership units of Galaxy Digital Holdings LP to a donor advised fund. The donation was valued at approximately C$202.1 million (US$159 million) based on the closing price of Galaxy Digital's ordinary shares on December 30, 2021.
The Class B partnership units are exchangeable for ordinary shares of Galaxy Digital on a one-for-one basis, subject to customary adjustments for stock splits, stock dividends, and reclassifications. The donation represented approximately 2.73% of the company's issued and outstanding ordinary shares as of year-end 2021, calculated on a fully converted basis.
The charitable contribution reduced Novogratz's ownership stake in Galaxy Digital. Prior to the donation, he beneficially owned 213.7 million partnership units and 522,945 ordinary shares, representing approximately 67.95% of outstanding ordinary shares assuming full conversion. Following the donation, Novogratz owns and controls 205.6 million ordinary shares on a fully converted basis, representing approximately 65.22% of issued and outstanding ordinary shares as of December 31, 2021. Despite this reduction, Novogratz maintains controlling interest in the cryptocurrency investment firm he founded.
The donation to the donor advised fund represents a significant philanthropic commitment by Novogratz, who serves as Founder and Co-Chair of Galaxy Gives and maintains board positions at multiple charitable and social justice organizations including The Bail Project and REFORM Alliance. This transaction demonstrates both the scale of his wealth concentration in Galaxy Digital and his continued involvement in charitable giving through structured giving vehicles.
The Class B partnership units are exchangeable for ordinary shares of Galaxy Digital on a one-for-one basis, subject to customary adjustments for stock splits, stock dividends, and reclassifications. The donation represented approximately 2.73% of the company's issued and outstanding ordinary shares as of year-end 2021, calculated on a fully converted basis.
The charitable contribution reduced Novogratz's ownership stake in Galaxy Digital. Prior to the donation, he beneficially owned 213.7 million partnership units and 522,945 ordinary shares, representing approximately 67.95% of outstanding ordinary shares assuming full conversion. Following the donation, Novogratz owns and controls 205.6 million ordinary shares on a fully converted basis, representing approximately 65.22% of issued and outstanding ordinary shares as of December 31, 2021. Despite this reduction, Novogratz maintains controlling interest in the cryptocurrency investment firm he founded.
The donation to the donor advised fund represents a significant philanthropic commitment by Novogratz, who serves as Founder and Co-Chair of Galaxy Gives and maintains board positions at multiple charitable and social justice organizations including The Bail Project and REFORM Alliance. This transaction demonstrates both the scale of his wealth concentration in Galaxy Digital and his continued involvement in charitable giving through structured giving vehicles.
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