Yesterday, cryptocurrency-focused merchant bank Galaxy Digital Holdings Ltd. (GLXY) started trading on the Toronto Stock Exchange. The stock lost a lot of momentum but closed the day in the green.
Galaxy Digital TSX Stock Movement
According to TMXMoney, Galaxy Digital Holdings started trading at $2.09 a share and ended the day at $2.30. The stock gained $0.21 (+10.04%) yesterday.
Yesterday, GLXY reached a peak of $2.49 a share and a low of $1.92, losing over -22.89%. Days after billionaire Mike Novogratz revealed Galaxy Digital, the crypto market bank lost $134 million during Q1.
Complications
Regulatory scrutiny delayed Novogratz from listing his company sooner. The regulations forced the founder to purchase a Canadian shell company that was previously listed on the TSXV. During the time of purchasing the shell company, the cryptocurrency market dropped substantially.
“If I knew what I know now, knew the crypto markets were going to swoon as much, and it was going to take so long, I might have stayed private for another year or so and then gone public,” Novogratz said in the days preceding the firm’s listing. “But I don’t think it’s a mistake.”
It was inevitable that GLXY would experience a less-than-enthusiastic welcome to the exchange, seeing as most blockchain stocks took a nosedive with the cryptocurrency market too.
Purchasing a previously listed shell company has been a common trait in the junior mining industry, and many blockchain/crypto and cannabis companies have adopted the new tactic to jump ahead.
Novogratz funded GLXY with $320 million worth of his own crypto assets in the very beginning and still is seeing his decision as a positive one, despite its sharp drop yesterday.
I’m excited to close our transaction in Canada. Our mission is to institutionalize the space, and promote the advancement of the underlying ecosystem and technology behind digital assets and blockchain. I am proud of our team and grateful for the support we’ve received. Onward!
— Michael Novogratz (@novogratz) August 1, 2018
GLXY closed its second day of trading at $2.49 a share, up $0.19 (8.26%).
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