coindesk.com
Galaxy Digital (GLXY), the digital asset investment firm led by Mike Novogratz, is working on a $100 million hedge fund aimed at profiting from the turbulence roiling the digital assets and fintech industries, the Financial Times reported.
The fund, expected to start up in the first quarter, will take both long and short positions, meaning it plans to make money both when prices go up and when they fall, the FT said.
About 30% of the capital will be allocated to crypto tokens. The rest will target financial services stocks Galaxy believes are being reshaped by digital asset technologies and shifting regulations. It has secured backing from family offices, high-net-worth individuals and institutions and is also seeding the fund itself with an undisclosed amount.
The fund's manager, Joe Armao, told the newspaper that structural shifts, such as potential interest-rate cuts by the Federal Reserve and expanding use of cryptocurrencies make this an opportune moment.
Galaxy made over $500 million in profit in third-quarter 2025, and Novogratz has a track record of pivoting Galaxy’s strategy based on market conditions. He had initially conceived Galaxy as a hedge fund nearly a decade ago before steering it toward asset management. The company now oversees $17 billion in assets.
The firm also recently secured approval to add 830 megawatts of power capacity to its Helios data center campus in West Taxes. The approval from Texas’ electric grid operator ERCOT followed completion of a required large-load interconnection study.
Galaxy Digital’s shares dropped more than 6.4% on Tuesday amid a wider market selloff.