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This week I decided to add a new category of posts. These posts are my investing ideas, and reasons I find them interesting. As always, these posts on the website are just my thoughts. They should not be considered advice.
This website and podcast are here to provide some information and ideas. The website and podcast topics are based on things I have read, seen, or dreamed up!
While I have previously written about different crypto coins, this post, and related idea posts, are more of a thesis about why I have made, or might make, a specific investment myself. I will also discuss how I came about my decision.
To kick off this new post category, I have decided to write about my recent investment in Galaxy Digital Bank stock.
For those of you listening to the voice podcast, you can find these idea posts on the average joe crypto website, under the investing ideas menu tab.
Those of you who have seen my past tweets, or read my website, have probably noticed that in the past I have tweeted and written about Mike Novogratz, and Galaxy Digital.
Mike Novogratz is a billionaire banker, turned crypto enthusiast. He was once roomates with Joseph Lubin, of Ethereum and Consensys fame. Mike learned about Crypto, and specifically Ethereum, from Lubin, and made his first Ethereum buy for under $1.
Since that time, Novogratz has been the speaker at numerous crypto conferences, made multiple TV appearances on CNBC and Bloomberg, has opined on Crypto’s future, and made some bold price predictions. Even in this current Crypto Winter, we can see from Twitter that he is still bullish.
Quote, – Looks pretty sideways to me. But basing. Next move higher.— @novogratz March 18, 2019
Last year he launched Galaxy Digital Bank in Canada. Which he did through a reverse merger with a shell company, this was done to speed up the process of launching and listing the stock.
Galaxy Digital Bank has 4 specific strategies and operations. They are listed here direct from their website:
1. Asset Management. – Build and manage institutional quality digital asset products on behalf of our clients.
2. Principal Investments. – Directly invest in liquid crypto assets, early-stage venture, late-stage venture, special situations and extend credit to borrowers operating in the blockchain industry.
3. Trading. – Utilize premier infrastructure to execute macro, quantitative, and OTC trading strategies.
4. Advisory Services. – Bridge the gap between technology and markets by advising our clients on emerging opportunities in the digital landscape.
My decision to buy some stock in Galaxy Digital Bank was based on a few reasons and thoughts. These investment reasons are as follows:
1. Mike Novogratz is a Billionaire, who believes in Crypto.
2. He has plenty of ties, and connections, to traditional banking and Wall Street institutions. They may use Galaxy’s services.
3. I see this is a Crypto play for investors that don’t want to directly own coins like Bitcoin or Ethereum. Or want a different sort of exposure to Crypto but through the markets.
4. If he morphs Galaxy Digital Bank into a traditional type of investment bank but one that strictly serves the Crypto community, I can see great future value and appreciation if they become a dominant player in Crypto.
5. If my above point holds true, and we get more regulations, perhaps one of the large traditional banks buys them out at some point which would also drive up the stock price.
6. They are investing in a number of Crypto companies, if those companies become successful it should improve Galaxy Digital’s balance sheet and future.
These are some of the simple reasons that I purchased Galaxy Digital stock. I averaged in to the stock on a few occasions, mostly on the dips after it first launched and plunged down in price. Since that time it has had a good run. I still believe it has more upside and is worth a look.
The downside to this stock is mainly Crypto prices and where Crypto goes next. If things go well, my guess is that Galaxy will do excellent. But if things go badly in Crypto, then Galaxy would most likely have to to pivot the business, or fold up completely.
There is only 1 analyst currently covering Galaxy Digital Stock, however I do not follow, nor have I read, any analyst reports about the stock. The stock trades in Canada and The United States. The official ticker in Canada is on the Toronto stock exchange, under GLXY. In the United States you will most likely purchase the stock under the ticker symbol BRPHF. Remember that the first stock price is in Canadian dollars, and the latter is in US dollars.
I realize that some of you, like me, might question if the traditional people and institutions entering Crypto, will ruin the original spirit and concept of the Bitcoin movement. Should we even embrace Wall Street types, or will they just ruin the whole thing? I don’t have that answer at the moment, though I will tackle the subject at a later date. Right now my primary goal is to try and grow my investments, whether it be in Crypto or dollars.
To date, I have made approximately 55% return on the stock, however I am holding this investment for the longer term. Unless I see something going on in Crypto that changes my mind, I assume Crypto will rebound in some way, and is here to stay. Thus I think a bank, like Galaxy Digital, will be here to stay too.
Once again, this is not advice. Thanks for reading, or listening to this post. Feel free to comment on this post and let me know what you think about Galaxy Digital Bank.