The crypto group Galaxy Digital wants to raise $ 500 million on the debt market

Galaxy Digital, the crypto finance service company founded by Mike Novogratz, tries to 500 million

The group based on the Kaiman Islands is one of the largest players on cryptocurrency markets, with activities such as asset management, trade, investment banking and the reduction of new tokens. The planned remedial procurement takes place after the crypto trading platform Coinbase has a bond of $ 1.5 billion in September.

Galaxy tries to procure the funds through a five -year change bond in which the owners can exchange the debts in shares.

Novogramm, a former manager of the Fortress Investment Group, said Galaxy Strebe approaches Goldman Sachs of cryptocurrency. The company is growing quickly and the net profit rose to $ 517 million in the third quarter, from $ 41.5 million in the same three months of the previous year. The increase was due to price gains for digital assets and the group's trading business, where the net profit rose by $ 361 million.

The price of Bitcoin, the most popular cryptocurrency, has increased by more than 200 percent to around $ 57,000 in the past 12 months.

According to a source near the deal, Galaxy plans to use the proceeds from the remedial procurement for the expansion of his asset management business with the letting a new fund as well as for the expansion of its mining activities and the financing of its rapidly growing number of employees. The group expects to employ 850 employees by the end of the year, significantly more compared to 222 in December 2020.

Part of the newly raised funds will also flow into the expansion of Galaxy's commercial and market business, where the company plans to expand its derivative category. Galaxy only serves professional investors and, according to the person familiar with his plans, has no plans to penetrate retail markets.

The company also applied for the US stock exchange supervisory authority Securities and Exchange Commission to become a company based in the United States based in New York, at a time when the US regulatory authorities and the legislator still lay the basics of the rules for the crypto industry.

Galaxy expects the company structure to be completed by the end of the first quarter. The convertible bond deal, which will be handled via a private placement, is to be completed in December of this year, subject to approval by the Toronto Stock Exchange, where the shares of Galaxy are noted.