Moving Beyond Speculation: A New Era for Blockchain Startups

Unlike its previous investments, which were solely funded from its own balance sheet, Galaxy’s new fund brings in external capital for the first time. The fund focuses on projects offering real-world utility, such as stablecoin infrastructure, DeFi applications, and innovative blockchain use cases that go far beyond speculative trading.

Mike Giampapa, General Partner at Galaxy Digital, emphasized this shift:

“We’re entering a phase where blockchain technology is being used for more tangible and practical solutions — not just hype-driven speculation.”

Strategic Growth Post-FTX Collapse

Although the idea of launching an external fund had been in the works for some time, Galaxy chose to act after the collapse of FTX, which reshaped the landscape for crypto investments.

“While the market was stabilizing, we witnessed the silent rise of the stablecoin revolution. That’s when we knew it was time to expand our venture strategy,” Giampapa said.

The fund is anchored by Galaxy itself, holding both General Partner (GP) and Limited Partner (LP) stakes. While other investors remain unnamed, they reportedly include family offices and fund-of-funds associated with Galaxy’s asset management clients.

$50 Million Already Deployed

Galaxy held its first close at $113 million in July 2024 and has already allocated $50 million across promising startups. Notable investments include Monad, a performance-centric blockchain, and Ethena, a yield-generating stablecoin platform.

Galaxy Digital’s Expanding Footprint

Founded in 2018 by ex-Goldman Sachs partner Mike Novogratz, Galaxy Digital has grown into a diversified crypto powerhouse. The firm now spans asset management, Bitcoin ETFs, mining operations, and a robust venture capital arm.

Despite reporting a $295 million loss in Q1 2025 due to restructuring and market conditions, the company boasts $7 billion in assets under management. Galaxy also saw its largest trading volume on November 5, 2024 — the day of the U.S. presidential election — when Novogratz’s net worth reportedly surged by $600 million to reach $4.6 billion.

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