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.
- • The donation represented 2.73% of Galaxy Digital's issued and outstanding ordinary shares on a fully converted basis, reducing Novogratz's ownership from 67.95% to 65.22% following the transaction.
- • Galaxy Group Investments LLC, an entity beneficially owned by Novogratz, executed the donation; each Partnership Unit is exchangeable for ordinary shares on a one-for-one basis subject to customary adjustments.
- • Following the donation, Novogratz retained direct or indirect control of 205.6 million ordinary shares (on a fully converted basis), maintaining dominant control of the cryptocurrency investment firm he founded.
Summary
Michael Novogratz, Founder and CEO of Galaxy Digital Holdings Ltd. (TSX: GLXY), reported a substantial charitable gift on the final day of 2021. Through Galaxy Group Investments LLC, an entity he beneficially owns, Novogratz donated 8.6 million Class B limited partnership units of Galaxy Digital Holdings LP to a donor advised fund. The units carried a valuation of approximately C$202.1 million (US$159 million) based on the closing price of Galaxy Digital's ordinary shares on December 30, 2021.
The partnership units are exchangeable for ordinary shares of Galaxy Digital on a one-for-one basis, subject to customary adjustments for stock splits, dividends, and similar corporate events. The donation represented approximately 2.73% of the company's issued and outstanding ordinary shares, calculated on a fully converted basis as of December 31, 2021. Prior to the donation, Novogratz beneficially owned 213.7 million partnership units and 522,945 ordinary shares, representing approximately 67.95% of the company's fully converted share base.
Following the charitable contribution, Novogratz's ownership position declined to approximately 65.22% of Galaxy Digital's ordinary shares on a fully converted basis, comprising 205.6 million shares. This transaction demonstrates a significant philanthropic commitment while maintaining Novogratz's substantial controlling interest in the cryptocurrency and digital asset investment firm. The donation to a donor advised fund provides flexibility in the timing and allocation of charitable distributions while potentially offering tax benefits to the Galaxy Digital founder.
The partnership units are exchangeable for ordinary shares of Galaxy Digital on a one-for-one basis, subject to customary adjustments for stock splits, dividends, and similar corporate events. The donation represented approximately 2.73% of the company's issued and outstanding ordinary shares, calculated on a fully converted basis as of December 31, 2021. Prior to the donation, Novogratz beneficially owned 213.7 million partnership units and 522,945 ordinary shares, representing approximately 67.95% of the company's fully converted share base.
Following the charitable contribution, Novogratz's ownership position declined to approximately 65.22% of Galaxy Digital's ordinary shares on a fully converted basis, comprising 205.6 million shares. This transaction demonstrates a significant philanthropic commitment while maintaining Novogratz's substantial controlling interest in the cryptocurrency and digital asset investment firm. The donation to a donor advised fund provides flexibility in the timing and allocation of charitable distributions while potentially offering tax benefits to the Galaxy Digital founder.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.