Latest news with #Novogratz
Yahoo
22-05-2025
- Business
- Yahoo
Billionaire CEO claims Trump's policy unleashes ‘animal spirits'
Mike Novogratz, the CEO of Galaxy Digital, states that the economic turmoil in the U.S. and crypto's acceptance by the Trump administration continue to create a significant tailwind for Bitcoin and digital assets. When speaking to Bloomberg about the current state of crypto regulations, Novogratz also shed light on the stifling role of the SEC under Gary Gensler. The SEC Marketplace Rules for Nasdaq listings require listing firms to follow corporate governance rules 4350, 4351, and 4360. According to Novogratz, getting approval from the SEC took over 300 days. He called it "un-American". Galaxy Digital Holdings Ltd. (TSX: GLXY) finally became listed on the Nasdaq Global Select Market on May 16. According to Novogratz, transitioning from regulatory hostility under ex-SEC chair Gary Gensler to a more favorable regulatory environment under President Donald Trump is meaningful. 'The Trump administration has just embraced our industry, and that freed up the animal spirit, both here and abroad,' said Novogratz. He also credits BlackRock CEO Larry Fink's public endorsement of Bitcoin as the turning point for institutional adoption. 'When he got orange-pilled, the largest asset manager in the world said 'this is a real asset'… and lots of other companies followed suit.' The billionaire investor also mentioned rising U.S. debt as a primary driver behind Bitcoin's strength. "We are in a challenging position as a country," Novogratz said. "We have this kind of debt, yield curves are selling off everywhere, the dollar is under pressure, and all those things are very good for Bitcoin and crypto assets." Novogratz thinks "regulatory clarity" is here as stablecoin legislation has been passed, and a bill on market structure is almost finished. "Now, it's up to the crypto industry to build something America wants," he stated. Sign in to access your portfolio
Yahoo
21-05-2025
- Business
- Yahoo
Philanthropy CEO: Silicon Valley entrepreneurs who think they can cure poverty are a red flag
Jacqueline Novogratz, founder and CEO of Acumen, says she is wary of philanthropy entrepreneurs who think they can cure poverty using a Silicon Valley model. 'The biggest point of failure when we're looking at entrepreneurs … is they come in thinking they have this solution,' Novogratz said at Fortune's Most Powerful Women Summit in Riyadh. 'That, for me, is a big red flag.' Acumen, has invested $260 million in 215 portfolio companies that provide affordable education, health care, clean water, energy, and sanitation. It's not just billionaires like Bill Gates and Jeff Bezos who are giving away their wealth to those more in need. Entrepreneurs and wealthy Gen Zers are also getting in on the action—often from the comfort of their cushy abodes. For ex-Wall Street analyst-turned-philanthropy CEO Jacqueline Novogratz, that's a big red flag. 'I think the biggest point of failure when we're looking at entrepreneurs—and remember, these are entrepreneurs that are solving problems of poverty, like people who often have, not only know very little income, but very little confidence—is they come in thinking they have this solution,' Novogratz said at Fortune's Most Powerful Women Summit in Riyadh. She is the founder and CEO of Acumen. 'That, for me, is a big red flag.' 'If you haven't immersed, gotten close, and understood the problem from the perspective of the people that you are there to serve, game over.' The 64-year-old American entrepreneur, author, and pioneering figure in social impact investing, added that young people who think 'I really want to have purpose and build a business that's going to make change,' but look to Silicon Valley for their models, is another cause for concern. Under her leadership, the nonprofit capital venture, Acumen, has invested $260 million in 215 portfolio companies around the world. These companies have brought basic services like affordable education, health care, clean water, energy, and sanitation to more than 648 million people. Novogratz said on stage that many privileged young people who've 'never operated anything in their lives' ask her how they too can become impact investors. 'What I tell them is to go work in operating companies, we have 2000 of them across the world,' she advised. 'They're in rural areas. You're not going to get paid anything.' 'What it means to work on the line, actually go into villages, to work in a place where you don't speak the language, you might actually contribute to something. You'll be forever changed.' Novogratz's work began in 1986 when she quit her analyst job at Chase Manhattan Bank on Wall Street to venture into the world of philanthropy. She started out working across Africa as a consultant for the World Bank and UNICEF, where she helped found Rwanda's first microfinance institution, Duterimbere, at just 25 years old. 'One of the greatest gifts of my life was getting to live in Africa when I was very young.' 'Get the little things right,' Shamina Singh, founder and president of Mastercard Center for Inclusive Growth, also said on stage. 'People tend to focus on maybe a big picture of a Silicon Valley company. But the thing is, also focus on the details.' 'When people say no, I just say no to their no,' Emon Shakoor, founder and CEO of Blossom Accelerator, said. 'There's a saying in Arabic, which means between me and you is just time. When I first started out, people would say no, I was like, I am going to come back, you're going to say yes, between me and you is this time. So I think it's just having that grit.' This story was originally featured on
Yahoo
20-05-2025
- Business
- Yahoo
The Bull Case for Galaxy Digital Is AI Data Centers Not Bitcoin Mining, Research Firm Says
When Galaxy Digital (GLXY) CEO Mike Novogratz bought Argos' Helios data center in late 2022, at the depths of the post-FTX crypto winter, the company thought they were bailing out a desperate bitcoin (BTC) miner on the brink of bankruptcy. This, however, was before ChatGPT had become mainstream. Novogratz and co. had no idea that this data center would be a strategic asset as the growing Artificial Intelligence (AI) industry clamours for more data center space, thanks to the explosive growth of Large Language Models (LLMs). As analysts from Rittenhouse Research outlined in a new note, Galaxy's lucky find, which instigated the company's move out of BTC mining altogether, might now be crypto's most lucrative pivot, as they make the case that the infrastructure used to mine digital gold is better used to process AI algorithms, and firms that shift away from BTC mining towards AI infrastructure are set to be the next growth stocks. Analysts from Rittenhouse argue that AI data centers represent a significantly more lucrative business model than BTC mining because they generate stable, long-term cash flows with minimal ongoing capital expenditures, contrasting sharply with the volatility and capital intensity of bitcoin mining. BTC mining revenues inherently decline by approximately 50% every four years due to the scheduled halvinings. Effectively, the play for a miner is being a long-term bull on BTC's price and the ability for semiconductor fabs and designers to develop chips that are perpetually more efficient, and, for an investor, that's a lot of variables. In contrast, AI data centers like Galaxy's Helios facility earn consistent, high-margin revenue through long-term, triple net leases to hyperscaler tenants (a large-scale cloud computing provider), without needing continuous investment in mining equipment. 'Galaxy stumbled upon Helios by virtue of good luck,' Rittenhouse wrote in their note. While competitors such as Riot Platforms and Cipher Mining have publicly tried to "rewrite history," retroactively suggesting their business was always broader than BTC mining, analysts say, 'in reality, these miners had zero intentions to do anything besides mine BTC until ChatGPT was launched.' Galaxy's transition reflects a broader trend as BTC miners attempt to pivot toward AI and cloud computing. Yet, analysts underscore Galaxy's significant advantage, stemming from its superior balance sheet ($1.8 billion of net cash and investments), successful execution record, and credibility established through the CoreWeave lease. While some have raised concerns over CoreWeave's creditworthiness, causing Galaxy's shares to trade at a significant discount, Rittenhouse analysts say these fears are significantly overblown, highlighting CoreWeave's exceptional revenue stability from long-term contracts accounting for 96% of its revenues and its strong institutional backing. The analysts emphasize that CoreWeave's debt is carefully structured through delayed draw term loans, utilized specifically to finance infrastructure directly linked to secured customer agreements, dramatically reducing default risk. Rittenhouse also notes that Galaxy has gone fully in on AI, and now doesn't have any exposure to mining. "Galaxy has completely exited all bitcoin mining activities to focus solely on its AI data center ambitions, which sends a positive signal to potential hyperscaler tenants," analysts wrote. As Rittenhouse writes, Cipher Mining's CEO Tyler Page recently acknowledged the uphill battle miners face when approaching major AI customers. "It's not lost on us that if we're talking to a counterparty with a $1 trillion market cap... One drawback for bitcoin miners is that major counterparties say, 'wow, that's a big obligation for you guys to backstop for such an important investment for us,'" Page said on the company's Q1 2025 earnings call. Galaxy doesn't have that problem. With this Helios deal in place and Novogratz's company totally out of mining, Galaxy's accidental pivot might just turn out to be crypto's best strategic move in years – if Rittenhouse's thesis is correct.
Business Mayor
17-05-2025
- Business
- Business Mayor
Novogratz's Galaxy Digital opens trading on the Nasdaq at $23.50 per share
Mike Novogratz's crypto firm Galaxy Digital started trading on the Nasdaq on Friday under the ticker GLXY. The stock opened at $23.50 per share on the U.S. exchange. Galaxy Digital, which has been traded on the Toronto Stock Exchange since 2020, shifted its shares to the Nasdaq through a direct listing — a move that follows a grueling, multiyear battle with U.S. regulators. Novogratz told CNBC's 'Squawk Box' on Friday that Galaxy's value now hinges on two high-growth areas: crypto and artificial intelligence. 'These are the two most exciting growth areas in markets, right. AI and the infrastructure needed for AI to exist and crypto finally … at the brink of institutional adoption,' he said. 'We have built our company for this moment, so I couldn't be more excited.' Novogratz said Galaxy is effectively two businesses now: 'We are a data center company and a crypto company.' The Nasdaq listing comes after four years of regulatory delays, with Galaxy spending more than $25 million and enduring nine rounds of back-and-forth comments with the U.S. Securities and Exchange Commission, according to Novogratz. What should have taken at most, 90 days, stretched to 1,320, he said. 'You needed to be very well capitalized — and a pretty big, strong company — just to stay in the game,' Novogratz told CNBC. The billionaire also pointed to the U.S. market's unmatched depth, saying Galaxy's visibility in Canada was one-thirtieth of what it could achieve in the United States. 'If we had been in the U.S. markets those four years, we'd be a different company,' he said. The listing follows eToro 's successful Nasdaq debut this week, signaling renewed investor appetite for crypto-adjacent firms after years of regulatory caution. READ SOURCE
CNBC
16-05-2025
- Business
- CNBC
Novogratz' Galaxy Digital opens trading on the Nasdaq at $23.50 per share
Mike Novogratz' crypto firm Galaxy Digital started trading on the Nasdaq Friday under the ticker GLXY. The stock opened at $23.50 per share on the U.S. exchange. Galaxy Digital, which has been traded on the Toronto Stock Exchange since 2020, shifted its shares to the Nasdaq through a direct listing — a move that follows a grueling, multi-year battle with U.S. regulators. Novogratz told CNBC's "Squawk Box" Friday that Galaxy's value now hinges on two high-growth areas: crypto and artificial intelligence. "These are the two most exciting growth areas in markets, right. AI and the infrastructure needed for AI to exist and crypto finally ... at the brink of institutional adoption," he said. "We have built our company for this moment, so I couldn't be more excited." This self-driving car technology stock could pop by more than 400%, say three analysts Looking for alternatives to Nvidia? Futurum CEO names 3 he's bullish on for 2024 Bernstein tech analyst's best idea for 2024 is to short Tesla Morgan Stanley picks 'alpha' opportunities in China tech - giving one 52% upside Novogratz said Galaxy is effectively two businesses now: "We are a data center company and a crypto company." The Nasdaq listing comes after four years of regulatory delays, with Galaxy spending more than $25 million and enduring nine rounds of back-and-forth comments with the U.S. Securities and Exchange Commission, according to Novogratz. What should have taken at most, 90 days, stretched to 1,320, he said. "You needed to be very well capitalized — and a pretty big, strong company — just to stay in the game," Novogratz told CNBC. The billionaire also pointed to the U.S. market's unmatched depth, saying Galaxy's visibility in Canada was one-thirtieth of what it could achieve in the United States. "If we had been in the U.S. markets those four years, we'd be a different company," he said. The listing follows eToro's successful Nasdaq debut this week, signaling renewed investor appetite for crypto-adjacent firms after years of regulatory caution.
