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Mike Novogratz: ‘It Sucks to Build a Business in a Bear Market’

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Bear With Gold Bitcoin Cryptocurrency In Mouth On Computer Motherboard. Bear Market Wall Street Financial Concept With Copy Space.

Former Goldman Sachs partner and Fortress hedge fund manager Mike Novogratz is hoping for Bitcoin to bottom out. The cryptocurrency has lost over 75 percent of its value this year, which is challenging for people like him, who are trying to build businesses based on digital assets. Mike intends to create the “Goldman Sachs of Crypto” by establishing a merchant bank that will draw institutional money into the crypto markets.

What’s Happening for Galaxy Digital?

For Novogratz, Galaxy Digital is a big deal since his entire $302 million crypto portfolio has been contributed to the company. Galaxy is set to raise more money in the future to improve its profile. A dual listing in Frankfurt will also help the firm fulfill its objectives and bring European investors in the mix as well.

Galaxy started the year with a loss, amounting to $134 million in the first quarter of the financial year. It has $85.5 million in unrealized losses on its crypt assets and $13.5 million of losses in its trading business. In the second quarter, the situation has improved with $35 million in net income and 1.1 million of losses at the trading arm. It also has $44.8 million of unrealized gains in its principal investments business.

Recently Galaxy has invested in BitGo crypto wallet and blockchain gaming firm Mythical Games as well.

The Challenge of 2018

Novogratz commented on the bearish markets in 2018 and said:

“2017 was just fun, it was almost stupid. “[But] this year has been challenging. It sucks to build a business in a bear market.”

Galaxy Digital expanded worldwide with offices in Tokyo, London, and Hong Kong. However, since raising $242 million and listing on the Toronto Venture Exchange, its price has dropped 37 percent. The firm is currently offering advisory services to cryptocurrency companies, including mergers and acquisitions and also actively invests in crypto businesses.

It also has a trading arm, and Galaxy’s asset management division has over $460 million worth of assets under management. Though Galaxy is one of the biggest projects in its newly developed industry, it is not designed for the conservative folks. Novogratz described it as follows:

“[Staff] anxiety levels go up when crypto goes down. In most traditional business, [such as] Goldman Sachs, you don’t worry. There’s not an existential threat out there.”

He believes, however, that the markets will “flip next year” and the prices will begin a fresh move, maintaining his bullish projections.

Mike Novogratz: ‘It Sucks to Build a Business in a Bear Market’ was originally found on [blokt] – Blockchain, Bitcoin & Cryptocurrency News.