tl;dr
Galaxy Digital, led by CEO Mike Novogratz, sold 80,000 Bitcoin for a single client, one of the largest Bitcoin sales ever, coinciding with strong buying activity from Bitcoin treasury firms. Corporate Bitcoin accumulation has increased in 2024, with notable buyers like Strategy and Trump Media acqui...
Galaxy Digital, an institutional crypto firm led by CEO Mike Novogratz, recently executed one of the largest Bitcoin sales in history, selling 80,000 Bitcoin on behalf of a single client. This sale coincided with a surge in buying activity, primarily from Bitcoin treasury firms, allowing for rapid absorption of the massive supply. Novogratz credited the favorable outcomes to a mix of timing, market conditions, and strong demand from these balance sheet companies.
Some publicly traded companies have been accumulating Bitcoin since 2020, but this year has seen an influx of new corporate Bitcoin buyers driving prices higher. Notable buyers include Strategy (formerly MicroStrategy), which purchased 21,000 Bitcoin valued at $2.3 billion, and the Trump Media and Technology Group, owner of the Truth Social platform, which recently acquired 18,400 Bitcoin worth $2 billion. According to Novogratz, the alignment of supply and demand from these entities is a positive indicator for cryptocurrency prices.
Ethereum is experiencing similar demand spikes, with firms like SharpLink Gaming and BitMine Immersion investing hundreds of millions weekly. The sizable Bitcoin sale by Galaxy originated from an early Satoshi-era investor choosing to exit the market—a significant event signaling shifting dynamics in crypto asset ownership.
Galaxy Digital, which went public on Nasdaq in May, saw its shares dip 5.6% to $27.29 recently but maintain a 13% gain year-to-date. Despite posting a second-quarter profit of $30.7 million, the figure fell short of analyst expectations of $85 million. Nevertheless, Galaxy reported that July was its best-ever month for digital asset operations, fueled by partnerships with over 20 crypto asset treasury firms. These partnerships have brought nearly $2 billion in on-platform assets, generating recurring income and underscoring Galaxy’s expanding role in crypto asset management and capital execution services.