Founded by the former hedge fund manager Mike Novogratz, the digital asset merchant bank Galaxy Digital has announced recently the acquisition of two major cryptocurrency trading companies. As per the announcement, the bank has purchased the proprietary trading company Blue Fire Capital which specializes in providing “two-sided liquidity” for crypto assets, and DrawBridge Lending, a company that provides services of lending and borrowing for digital assets.
With the acquisition of these two major crypto trading firms, Mike Novogratz’s bank has extended its investment portfolio as well as its operations further. The high-quality trading strategies of Blue Fire Capital combined together with the bank’s sources of liquidity will boost its relationships with major cryptocurrency exchanges across the entire globe. Moreover, the addition of Blue Fire Capital’s $36 billion annual derivatives trading volume will also develop a regional hub in Chicago while helping Galaxy Digital in strengthening its electronic trading as well as prime brokerage services. $150 million in third-party assets of DrawBridge will also now be added into Galaxy Digital as a result of this acquisition.
Jason Urban, the Co-Founder and Chief Executive Officer (CEO) of DrawBridge will now act as the Co-Head of Galaxy Digital Trading. While on the other hand, the CEO of Blue Fire Capital Andrew Karos will hold on to its previous position after joining Galaxy Digital.
Commenting on these acquisitions, the Chief Executive Officer and Founder of Galaxy Digital Mike Novogratz said that they continue to grasp in the investment strategies the significance of digital currency. “We are looking forward to seamlessly integrating DrawBridge and Blue Fire into Galaxy Digital Trading and strategically leveraging our world-class team, technology and solutions to help further meet what we believe will be an even bigger wave of institutional demand,” he added.
These acquisitions refer to the efforts made by the bank in bridging the gap between traditional finance and cryptocurrency worlds. Bringing the world of digital currency to the world of traditional finance and vice versa is the main goal of Galaxy Digital, said the bank’s President Christopher Ferraro. Adding more to it, he stated that these two new crypto firms will play a crucial role in strengthening the firm’s business in the coming years by bringing in their exceptional teams.