Galaxy Digital Holdings, the registered crypto broker dealer, has just announced that it will issue and sell $500 million in exchangeable senior notes. The money raised will go towards accelerating its business growth and also to the launching of a new fund.
The company has used the method of offering 5-year convertible bonds in return for stock in Galaxy Digital. The notes that are sold would give the holder 3% interest and would be set to mature in 2026.
Galaxy Digital offers financial services to institutional and individual professional investors who wish to gain exposure to the crypto market. The company manages more than $3.1 billion in assets, among which is its suite of Canadian ETFs (Exchange Traded Funds).
The Senator Investment Group, NZ Funds, and Arca, are among those who will be buying the notes in a private placement.
The funds are reportedly to expand Galaxy Digital’s asset management business, as well as to set up a new fund. New hires will also be on the agenda.
The announcement has been made to coincide with another, which sees Galaxy Digital moving its headquarters from its existing Cayman Islands base, to a new centre in New York.
Only last month, Galaxy Digital opened another fund, after a $325 million raise. This Galaxy Interactive Fund was put together in order to invest in the fast growth areas of crypto gaming and arts.
$150 million of this fund has already been invested into Mythical Games, and Master Works, which is a fractionalised art project.
Yet another fund was launched in the Summer. This one concentrated on the DeFi space and was named the “Bloomberg Galaxy DeFi Index. It invested on behalf of professional investors in such platforms as Sushiswap, Maker, Aave, Yearn, Compound, and Uniswap among others, all blue-chip DeFi projects.