Key Takeaways
- • Galaxy Digital (GLXY), led by Mike Novogratz, is preparing a $100 million hedge fund targeting digital assets and fintech, according to the Financial Times.
- • The fund is expected to launch in the first quarter of 2026 and will allocate up to 30% to crypto tokens and the remainder to financial services stocks.
- • The strategy will take both long and short positions, aiming to profit from market shifts in both directions.
- • Fund manager Joe Armao cites potential Federal Reserve rate cuts and expanding cryptocurrency use as reasons the timing is opportune.
- • The fund has backing from family offices, high-net-worth individuals and institutions, and Galaxy is seeding it with an undisclosed amount.
Summary
Galaxy Digital, the digital asset investment firm led by Mike Novogratz, is working on a $100 million hedge fund aimed at profiting from turbulence across the digital assets and fintech industries, the Financial Times reported. The fund is expected to start in the first quarter of 2026 and will take both long and short positions, allowing it to generate returns whether prices rise or fall.
Under the planned structure, up to 30% of capital will be allocated to crypto tokens, including Bitcoin and Solana according to publisher reporting. The remainder will target financial services stocks that Galaxy believes are being reshaped by digital asset technologies and shifting regulations. The fund has secured backing from family offices, high-net-worth individuals and institutions, and Galaxy is also seeding the vehicle with an undisclosed amount of its own capital.
The fund's manager, Joe Armao, told the FT that structural shifts, including potential interest-rate cuts by the Federal Reserve and expanding use of cryptocurrencies, make this an opportune moment to launch. Galaxy reported over $500 million in profit in third-quarter 2025, and the firm currently oversees $17 billion in assets. Novogratz has a record of adjusting Galaxy's strategy to market conditions; he initially conceived Galaxy as a hedge fund nearly a decade ago before steering it toward asset management.
Separately, the firm recently secured approval from Texas grid operator ERCOT to add 830 megawatts of power capacity to its Helios data center campus in West Texas, following completion of a required large-load interconnection study. Galaxy Digital's shares fell more than 6.4% on Tuesday amid a broader market selloff.
Under the planned structure, up to 30% of capital will be allocated to crypto tokens, including Bitcoin and Solana according to publisher reporting. The remainder will target financial services stocks that Galaxy believes are being reshaped by digital asset technologies and shifting regulations. The fund has secured backing from family offices, high-net-worth individuals and institutions, and Galaxy is also seeding the vehicle with an undisclosed amount of its own capital.
The fund's manager, Joe Armao, told the FT that structural shifts, including potential interest-rate cuts by the Federal Reserve and expanding use of cryptocurrencies, make this an opportune moment to launch. Galaxy reported over $500 million in profit in third-quarter 2025, and the firm currently oversees $17 billion in assets. Novogratz has a record of adjusting Galaxy's strategy to market conditions; he initially conceived Galaxy as a hedge fund nearly a decade ago before steering it toward asset management.
Separately, the firm recently secured approval from Texas grid operator ERCOT to add 830 megawatts of power capacity to its Helios data center campus in West Texas, following completion of a required large-load interconnection study. Galaxy Digital's shares fell more than 6.4% on Tuesday amid a broader market selloff.
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