Galaxy Digital officially closed its first publicly raised crypto-focused venture fund at $175M, which was over its $150M target. Founded back in 2018 by former Goldman Sachs partner Mike Novogratz, the firm seeks to unify traditional finance and digital asset innovation.
This fund marks Galaxy’s initial foray into accepting outside capital while continuing to use its balance sheet as a foundational contributor. The newly raised capital will be allocated toward startups developing practical applications in stablecoins, decentralized finance (DeFi), and other blockchain utilities.
General partner Mike Giampapa confirmed Galaxy’s goal is to diversify into ventures that merge legacy financial systems with blockchain infrastructure. The firm has already invested $50 million of the total fund in projects like Monad, a trading-focused blockchain, and Ethena, a stablecoin protocol with crypto-backed yields.
In addition to its venture arm, Galaxy conducts other crypto-related operations, including asset management, Bitcoin mining, and an exchange-traded fund (ETF) for Bitcoin in association with Invesco. There is also an upcoming plan for an ETF on Solana.
Despite marking a $295 million net loss in Q1 2025, largely due to downtrending token prices and the shutdown of its mining operations, Galaxy still manages $7 billion worth of aggregate assets.
Stablecoin growth drives crypto market maturation
The fund also aligns strategically with Galaxy’s wider range of products. By connecting its institutional clients with venture-backed startups, Galaxy increases its penetration across the digital finance universe. Unlike adopting a corporate venture capital approach, the firm maintains its focus on financial returns.
Following the 2022 collapse of FTX, Galaxy saw an opportunity in the shifting blockchain narrative. Giampapa noted that the stablecoin market began to quietly mature as speculative assets lost momentum.
Galaxy begin its fundraising effort early in 2024 and controlled its first $113 million back in July 2024 from mostly institutional investors including family offices and fund-of-funds who are supportive of its asset management arm.
Now that it has committed the full $175 million under a clear-cut strategy, Galaxy prepares to take its next leap forward in integrating blockchain and finance.
