Galaxy Digital has raised $250 million credit fund for crypto startups. The firm which is owned by former hedge fund manager, Michael Novogratz has embarked on the project to aid crypto startups and firms amid the bear market.
Raising of 250 Million Dollars For Credit Fund
The crypto market bear has hurt the crypto space. Many firms have folded up because of the market conditions that have been prevalent for over a year now. The poor market condition has led to a great market shed of value as well as capital in the tune of over 90 per cent. Also, the trend has led many crypto firms downsizing their workforce to scale the market condition.
While restoration of the value that has been shed in the crypto market is being waited for by most crypto enthusiasts and startups, many are seeking means and measure to survive the harsh market condition which is inclusive of taking loans.
The goal of creating succour for crypto firms in need of loans has led the Galaxy digital to raise 250 million dollars credit fund to serve this purpose to various crypto startups and firms in need of it. According to the release made on Thursday, loans will be offered in US dollars to struggling crypto firms to enable their survival in the winter market.
According to the report the loans will be backed by collaterals which could be in the form of crypto tokens, crypto mining devices and property. The first round of the fundraising is expected to close by march
Galaxy Digital Losses and Commitment To Crypto Growth
The crypto winter market has equally taken a toll on the galaxy digital firm. The company has had its fair share of the crypto bear with a net loss of $76.65 million for the third quarter of 2018 which is more than a third of its nine months loss of $175.68 million as at September 2018.
Mike Novogratz, the founder of the galaxy digital, stated last November that the year 2018 was very tough for his firm and that it sucks to build a business in a bear market.
Despite the market condition and the experience of galaxy digital Novogratz, a former Goldman Sachs partner, has been very optimistic of a market recovery and has invested in many crypto projects even amid the bear market. This stance also ought to be taken by investors with a vision of the market.