Mike Novogratz’s crypto merchant bank, Galaxy Digital, is reportedly raising at least $250M for a fund aimed at helping floundering crypto firms, Business Insider reports.
Galaxy, which runs a business that spans trading and asset management, is preparing to launch a credit fund to provide loans to crypto-native firms struggling amidst the bear market. The fund is part of the firm’s asset management unit. A number of crypto companies raised money via so-called initial coin offerings, an ether-based way to raise funds by issuing a token. As the price of ether has tanked, so too have the treasuries of many crypto-native firms.