“Bitcoin Bull Is Not Over” – Novogratz Raises $250 Million For Crypto Merchant Bank

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In late-December, former Fortress macro fund manager and crytpo-billionaire, Mike Novogratz shelved plans to launch his crypto-currency fund because he “didn’t like market conditions,” noting that Bitcoin may drop to $8,000 in the short-term… but adding that the bull market is not over.

By:  Tyler Durden

This article first appeared at ZeroHedge

“We didn’t like market conditions and we wanted to re-evaluate what we’re doing…I look pretty smart pressing the pause button right now.”

image courtesy of CoinTelegraph

Novogratz was correct. Bitcoin tumbled since he spoke, dropping back below $8,000…

And now, as Bloomberg reports, Novogratz has opportunistically raised about $250 million for his cryptocurrency merchant bank during one of the biggest routs yet in Bitcoin, according to a person familiar with the deal.

Unlike in an IPO, Galaxy is raising money privately as part of a series of transactions that will allow it go public without disclosing financial statements.

The process also involves a reverse takeover of a Canadian shell company, Bradmer Pharmaceuticals Inc.

Terry Gou, the billionaire chief executive officer of China’s Foxconn, is among the investors in the private placement, said the person, who asked not to be identified because the transaction isn’t public.

Investors committed to buy shares of Novogratz’s firm, Galaxy Digital LP, through a holding company that eventually will trade on Toronto’s TSX Venture Exchange, according to the person.

Novogratz announced the private placement and listing plans in a statement last month.

As Novogratz detailed previously, Galaxy is building out a full fledged crypto merchant bank.

“I have over 30 percent of my net worth in crypto assets.  We have venture bets, ICOs, tokens, investments in funds, mining and advisory.  We also trade very actively.  We are making a large long term bet on crypto.

We wonder if the ramp off the sub-$6000 lows ahead of the regulatory hearings was the hand of Mike putting some of that newly found AUM to work?

This article first appeared at ZeroHedge