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Galaxy Digital has successfully raised $175 million for its inaugural externally backed venture fund, signaling a strategic shift towards supporting early-stage crypto startups focused on real-world blockchain applications.
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This new fund surpasses its initial $150 million target and represents Galaxy’s first venture capital initiative involving outside investors, marking a significant evolution from its previous self-funded approach.
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General Partner Mike Giampapa emphasized to COINOTAG that the fund aims to invest in projects advancing stablecoins, decentralized finance (DeFi), and blockchain technologies with tangible utility beyond mere speculation.
Galaxy Digital raises $175M for its first external venture fund, targeting early-stage crypto startups in stablecoins, DeFi, and blockchain innovation beyond speculation.
Galaxy Digital’s Strategic Expansion of Venture Capital Post-FTX Collapse
Following the fallout from the FTX collapse, Galaxy Digital identified a pivotal opportunity to scale its venture capital operations beyond its traditional balance sheet investments. According to General Partner Mike Giampapa, the timing aligned with a broader industry stabilization and a “stablecoin revolution” that underscored the growing maturity of blockchain use cases. This fund, anchored by Galaxy itself and supported by institutional investors such as family offices and fund-of-funds, reflects a deliberate move to deepen exposure to early-stage projects that demonstrate practical blockchain applications.
Focus on Early-Stage Innovation in Stablecoins and DeFi
The $175 million fund has already deployed $50 million across promising startups including Monad, a blockchain platform optimized for performance, and Ethena, which issues a yield-bearing stablecoin. Giampapa highlighted the fund’s focus on companies that are developing solutions with measurable impact, moving away from speculative ventures toward sustainable blockchain ecosystems. This strategic direction aligns with Galaxy’s broader vision of fostering innovation that drives real-world adoption and utility.
Galaxy Digital’s Growth into a Leading Crypto Conglomerate
Since its founding in 2018 by former Goldman Sachs partner Mike Novogratz, Galaxy Digital has expanded into a multifaceted crypto enterprise encompassing asset management, Bitcoin ETFs, mining operations, and venture capital. The company’s listing on Nasdaq in May 2024 and management of $7 billion in assets underscore its significant market presence. Despite a challenging first quarter in 2025 marked by a $295 million loss due to market volatility and mining restructuring, Galaxy continues to leverage its diversified portfolio to maintain industry leadership.
Market Impact and Notable Milestones
Galaxy Digital’s influence was notably demonstrated on November 5, 2024, coinciding with the U.S. presidential election results, when the firm recorded its largest trading day of the year. This surge contributed to a substantial increase in founder Mike Novogratz’s net worth, reflecting the company’s capacity to capitalize on market dynamics. Such milestones reinforce Galaxy’s position as a key player in the evolving crypto landscape.
Conclusion
Galaxy Digital’s $175 million externally backed venture fund marks a strategic milestone, enabling the firm to scale investments in early-stage crypto startups focused on stablecoins, DeFi, and practical blockchain applications. This move not only diversifies Galaxy’s investment approach but also signals confidence in the maturation of the crypto sector post-FTX. As the company continues to navigate market challenges and capitalize on emerging opportunities, its expanded venture arm is poised to play a critical role in shaping the future of blockchain innovation.
