Galaxy Digital, which is a crypto merchant bank founded by Michael Novogratz, the former hedge fund manager, has sold its shares in, the maker of the EOS blockchain, for $71.2 million. This news was announced in one press release on the 21st of May.

The tender offer of

According to the announcement of Galaxy Digital, it closed the transaction on Monday, the 20th of May right after a tender offer for its position in has been made on the 18th of April. The firm also claimed it made a 123% return on its initial investment and right after the transaction, its remaining shares in is no longer going to maintain a material investment position.

In one statement, the founder and CEO of Galaxy Digital, Novogratz, outlined that the acceptance of the tender offer of reflected a decision to rebalance the portfolio, to maintain an appropriate level of diversification right after the position increased because of the substantial out-performance relative to the remainder of the portfolio.

He also underscored that the deal doesn’t indicate an end to the close relationship of the bank with They continue to work closely with as a critical partner across many of their business lines, which include Galaxy EOS VC Fund, which primarily backs startups which are developing applications on the EOS blockchain network, and remain excited about the EOS.IO protocol too.

Increasing the shares of Galaxy Digital in January 2019

Just like it was previously reported in December of last year, the joint Galaxy EOS VC Fund of Galaxy Digital and led a $30 million Series “A” investment round in the U.S. neo-banking platform Good Money.

Their corporation even includes the entering of the joint venture in January of last year to launch the EOS.IO Ecosystem Fund with $325 million. In January of this year, Novogratz, who is also the former partner of Goldman Sachs, increased his shares of Galaxy Digital to 79.3%.

Also, in April, Galaxy Digital revealed it had posted a net loss of about $272.7 million during the last year, ostensibly as the slump in crypto prices took its toll. In November, the company reported a loss of about $136 million in the first three quarters of that year, pointing to an effective doubling of its losses in the space of the last three months of the previous year.

The buyback offer of

Last year in July, received investment from several big-name investors like the co-founder of PayPal, named Peter Thiel, and the co-founder of Bitmain named Jihan Wu. The exit of Galaxy Digital comes as part of the buyback program of of 10% of its company shares.

According to some reports, the buyback offer of values itself at almost $2.3 billion, up nearly 66 times from what it has been valued at in a 2017 seed funding round. The repurchase price for the buyback is about $1,500 per share. It has been offered at $22.5 per share during the round in 2017.

According to those same reports, had about $3 billion in assets, including investments and cash at the end of February, based on an email from the 19th of March that sent to shareholders and seen by the news outlet too. holds as many as 140,000 Bitcoin, according to those reports.


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