Galaxy Digital (“Galaxy”) is a diversified merchant bank dedicated to the digital assets and blockchain space. Founded by Michael Novogratz, the firm’s principals have been investing in digital assets since 2013 and began doing so on behalf of clients in 2018 when establishing the firm’s asset management division, Galaxy Digital Capital Management (“GDCM”).

With $500 million in assets under management, GDCM invests client capital across various digital asset strategies, which include investments in bitcoin.

Cryptocurrency Catches On

As you’ve probably noticed, interest in cryptocurrency across all investor types is growing along with the acceleration of digitization. MasterCard plans to enable digital asset purchases for all merchants. Apple Pay will now get support from the digital asset card payment system, BitPay. We have also closely followed the revamped yet still significant plans to launch the Facebook-backed Libra project and bring digital wallets to Facebook’s 2.5 billion users.

We believe in a future where digital money (USD, Chinese RMB), digital payments (Libra), and digital stores of value (bitcoin) will exist side-by-side. Each of these projects will require sustained investment in digital payment rails and infrastructure, a reality offering material support to bitcoin as a digital store of value thesis.

Corrections are common in crypto, and there is no circuit breaker or lender of last resort to step in and save the day when markets are volatile. Rates won’t be artificially suppressed, and no additional BTC will be printed to inject liquidity into the system. The long-term value proposition of decentralized, public blockchains remains strong, and the fact that corrections can occur, and markets can rebound on their own, shows the power of a truly free market in a still-volatile asset class.

We’re still early in the crypto-adoption story. The principles of decentralization, self-sovereignty, and trust-minimization continue to inspire. These principles are powered by one of the most revolutionary technological innovations in human history and buoyed by monetary debasement, major demographic shifts, and declining institutional trust.

Public blockchains represent one of the most revolutionary innovations in human history, and there’s no putting the toothpaste back in the tube. Disruptive innovation is disruptive—it’s bumpy. And sometimes it feels like a rollercoaster.

As the crypto markets experience volatility, hear directly from Galaxy Digital’s Founder and CEO, Mike Novogratz, who has invested through countless market cycles. He explains why volatility is normal and that bitcoin’s fundamentals remain strong. Despite the volatility, buyers are surfacing, and investors see an opportunity in buying the dip. As new entities enter the market, Galaxy expects the market to make a full recovery before long.

If you have any questions or are curious to learn how digital assets may fit into your portfolio, please don’t hesitate to contact your Bradley Wealth team at [email protected].

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