If you look hard enough, you can find a silver lining, but there’s no denying that billionaire Mike Novogratz has had a difficult week.
Days after revealing that Galaxy Digital, his cryptocurrency merchant bank, posted a $134 million loss during Q1, the firm took a massive hit in its stock market debut.
CNBC reports that Galaxy Digital, which trades under ticker symbol GLXY, saw its shares plunge by 20 percent during the first half hour that it was listed on the Canada-based TSX Venture Exchange (TSX-V).
The stock had opened at C$2.75, a full 45 percent below the C$5.00 at which investors had purchased it during a January private placement and began to careen downwards as soon as the markets opened. By 12:45 pm ET, they had dipped below the C$2.00 mark, and they ultimately declined as low as C$1.92 during intraday trading, which represented a 30 percent drop from the opening bell.
Thursday, however, brought a moderate recovery for GLXY shares, which traded as high as C$2.40 shortly after the market opened and were valued at C$2.27 at the time of writing at 12:20 pm ET.
Of course, the fact that Galaxy Digital’s stock began trading at all is its own silver lining. Regulatory scrutiny had delayed Novogratz’s listing plans — which involved purchasing a Canadian shell company that was already listed on TSX-V — for eight months. During that time the cryptocurrency markets cratered, making it inevitable that GLXY would experience a less-than-enthusiastic welcome to the exchange as the market sorted out the stock’s fair value.
“If I knew what I know now, knew the crypto markets were going to swoon as much, and it was going to take so long, I might have stayed private for another year or so and then gone public,” Novogratz said in the days preceding the firm’s listing. “But I don’t think it’s a mistake.”
Indeed, the former Fortress principal, who originally funded the bank with more than $320 million worth of his own cryptoassets, has maintained a positive outlook despite the stock’s rocky debut.
“I’m excited to close our transaction in Canada. Our mission is to institutionalize the space, and promote the advancement of the underlying ecosystem and technology behind digital assets and blockchain,” Novogratz said in a tweet on Wednesday. “I am proud of our team and grateful for the support we’ve received. Onward!”
Featured Image from YouTube/Bloomberg