Galaxy Digital Holdings unloads 9.75mn new shares!

Hi HODLers, Hiveans and Lions,

I have been previously writing about Galaxy Digital Holdings as a good way to get exposure to crypto companies and Bitcoin mining through the stock market. I have reviewed the Q4-2024 Earnings documents and it looked like things were trending the right way.

Previous blog here: Galaxy Digital Holdings is pushing the crypto boundaries!

As you know, I am also bullish on Crypto, Web3 and Bitcoin.

I am still unsure if Mike Novogratz is a good guy in this crypto ecosystem or some kind of grifter... I am now starting to wonder.

Today, we learned that Galaxy Digital will sell 9,750,000 shares at $14 to be placed into the market.

This is equivalent to a 9/10% capital increase.

Galaxy Digital (TSX:GLXY:CA) Tuesday announced that it has entered into an agreement with Canaccord Genuity as sole underwriter, pursuant to which the Cannacord has agreed to purchase, on a bought deal basis, 9,750,000 ordinary shares of the company at a price of C$14.00 each, for aggregate gross proceeds of C$136.5 mln.

I guess, this is not a great sign as if the CEO and Shareholders were thinking that the share price will triple in the next year, would they unload shares to the market? Not sure.

On the opposite side, this will increase liquidity, giving it a better valuation as the stock is more liquid. In addition, we all know that they have been trying to get listed on the Nasdaq for a while. Having a bigger Mkt Cap and fire power to do acquisitions are usually a positive, so that could also be an incentive for the company shareholders to do this.

Another positive is that Canaccord Genuity agreed to take them on their book, meaning they think they will have buyers for these to resell to.

Following this news, the stock tanked to C$13.36 (-17%).