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GLXY stock listing on the NASDAQ still waiting on SEC approval
Investors are tired of the SEC dragging its feet on the Galaxy Digital Stock listing here in the United States.
Updated S4 filings, and more investor conferences, may indicate some movement on the NASDAQ up-listing. Currently the stocks trades on the TSX in Canada under GLXY and in the US on the pink sheets under the BRPHF stock ticker. GLXY is the proposed ticker for the NASDAQ listing according to filings.
What is the Status of GLXY NASDAQ Listing
Way back in July of 2020 I wrote that I hoped the GLXY stock would list in the US and on the NASDAQ. At the time the stock had just hit $2 and I crossed my fingers that someday it would be a U.S. listed company and my research and patience would pay off. While I am no oracle, that U.S. listing hope started to come true in 2021.
Galaxy Digital announced in March 2021 that it wanted to become a U.S. listed public company. At the time they hoped to clear SEC review by the end of of 2021. Galaxy first filed paperwork to go public in the U.S. with the SEC in October 2021. As we know the listing did not happen in 2021, or 2022, and so here we are in 2023!
To date, Galaxy Digital has reportedly faced repeated rounds of questions from SEC staff about its business.
According to WSJ sources, “the SEC didn’t set out to stop the companies from going public.” I personally don’t believe that, as the SEC also have failed to approve any Bitcoin Spot ETF’s for years now. I think many at the SEC, in Congress, and at the White House, have all conspired to hold back Crypto in any way possible. They are trying to do it without outright banning it, or confronting the millions of Crypto investors. Some like Senator Warren have attacked it constantly, not trying to hide their disdain.
I think Mike Novogratz has gotten a few things wrong over the past few years, among them thinking the SEC Chair Gary Gensler would be any good at all for Crypto. He also thought that Republicans were worse for Crypto than Democrats would be. According to my tally, the majority of attacks overall have been from the Left, with more support coming from the Right.
The SEC has still, after years, refused to clear up confusion around Crypto. This has kept many larger and institutional investors at bay. Which keeps the price lower than it could be. The SEC and CFTC can’t even agree on who should oversee what assets. Most Crypto firms say digital assets aren’t securities, and therefore they don’t need to comply with investor-protection rules. SEC Chair Gensler disagrees and contends that much of the industry is non compliant.
Galaxy, which first filed paperwork to go public in the U.S. with the SEC in October 2021, received one letter from the SEC with more than 90 questions, according to a person familiar with the matter. Galaxy, whose shares on the Toronto Stock Exchange are down about 80% from their peak over the past year, expects it will be able to eventually clear the SEC’s hurdles, a person familiar with the company said.
Mike Novogratz said on an August 2022 conference call that it has “been frustrating that it’s taken as long as it has.” A Galaxy spokesman declined to comment further. If you are a GLXY investor I am sure you agree that the SEC games have become beyond frustrating. I would personally like to see Galaxy take on the SEC like some others are starting to do. I understand many companies shy away from this, but if the industry just started to file a massive amount of lawsuits I think the SEC would very quickly change its course from all the pressure and media attention that would accompany such actions.
A few months ago Galaxy Digital filed an S4 and just this past week filed some updated S4 filings. These are related to reorganization and common for stock listings. Along with the updated filings, Galaxy Digital has announced 4 events in March that they will be speaking at. One might think that this is the beginning of a roadshow to get some investors interested in the forthcoming listing. I would also imagine with the recent bullish Crypto prices that Galaxy would want to get this listing out if there is a sustained bull run and money starts to flow into Crypto once again…
NEW YORK, February 16, 2023 – Galaxy Digital Holdings today announced its investor conference participation
schedule for March. Mike Novogratz, Founder and CEO, and Chris Ferraro, President and CIO,
will be speaking broadly to the latest trends:
• Chris Ferraro speaking at the 2023 KBW Fintech & Payments Conference on Wednesday, March 1stat 3:40pm ET in New York City
• Mike Novogratz speaking at the JMP Securities Technology Conference on Monday, March 6th at 10:30am PT in San Francisco
• Mike Novogratz speaking at the Morgan Stanley Technology, Media & Telecom Conference on Tuesday, March 7th at 12:55pm PT in San Francisco
• Mike Novogratz speaking at the Barclays Crypto & Blockchain Summit on Thursday, March 30th, at 9:40am ET virtually
Should you buy GLXY now or wait until the NASDAQ listing?
As you may know if you have been here for a few minutes, I bought Galaxy Digital stock years ago. I remember at the time I couldn’t even find the stock on the Pink Sheet using google, and I had to call my broker to get the BRPHF ticker. There was almost no coverage of the stock and no analysts at the time. I just viewed it as another way to invest in Crypto markets and hoped maybe someday it would be listed in the U.S. and I wanted to try and get in early.
For many people it is easier and more assuring to wait for the stock to list on the NASDAQ. If you really like the stock maybe you want to pick it up now, as the price is beaten down from the previous levels. If I am going long a stock of course I always want to purchase it at the lows. However, once it lists there could be other factors that impact the price, and while it could be bullish, it could also continue to under perform. Much of this will have to do with the overall price of Crypto. There is no crystal ball here, you just have to weigh out your risk factors and time horizon.
There is also no guarantee the stock will list on the NASDAQ, it is just a major assumption.
The Goldman of Crypto
Galaxy Digital has been referred to as the potential Goldman of Crypto. I have stated that, and you can find multiple media companies who have written something similar over the years.
Do I think that Galaxy Digital could be the next Goldman Sachs? Oc course, and that is exactly what I hope happens. I think that is the way I think about this company and what they are trying to build. Unfortunately all of this is just talking much longer than I had hoped. Things move slowly, and the bad companies in Crypto running around for years with zero oversight and guidance keep setting us back.
I do believe that Crypto, despite all the attacks and setbacks, will remain. There will need to be a few big players at the top. That could include traditional players, like Fidelity and Goldman, or perhaps a Crypto only company like Galaxy will be at the top of the hill. If that happens the market cap of Galaxy could be mind blowing and finally pay off for all of us long term holders. Of course, there is no way for us to know. We just have to do our homework, make our picks, and hope that our diligence pays off down the road.
My own view is that this is finally happening and a NASDAQ listing could be coming soon!
You can find all my past Galaxy Digital posts going back a few years here
As always, none of the above is financial advice. I am not a professional and this is just my own personal opinions. Do your own research and consult with professionals for advice.