Galaxy Digital, DeFi Technologies List on Nasdaq for Broader Access

Galaxy Digital, a leading digital asset manager, has successfully listed its shares on the Nasdaq, marking a significant milestone after a lengthy process that spanned approximately 1,300 days. This development is expected to enhance the stock’s visibility, making it accessible to a broader range of investors, including those using platforms like Robinhood. The listing also opens the door for potential inclusion in major indexes such as the S&P, MSCI, and Russell, further boosting its market presence.

Galaxy Digital’s CEO, Mike Novogratz, highlighted that the Nasdaq listing will provide the firm with access to the deepest capital market in the world, enabling it to scale more effectively in the competitive crypto space. Historically, Galaxy’s growth has been internally funded through investing and trading profits, which limited its expansion. With the new listing, the company aims to leverage the capital market to accelerate its growth and pursue strategic acquisitions.

Novogratz emphasized that the firm plans to grow significantly, noting that "bigger is better in financial services." This strategic shift is expected to position Galaxy Digital more competitively in the rapidly evolving crypto landscape, where mergers and acquisitions (M&A) have been on the rise. Notable deals this year include Coinbase-Deribit, Kraken-NinjaTrader, and Ripple-Hidden Road, each valued at billions of dollars. Novogratz indicated that Galaxy Digital is now better positioned to explore acquisitions, given its more fairly-valued stock, which has historically traded below its book value.

In a similar move, DeFi Technologies Inc. has also listed on the Nasdaq, further expanding its market reach. The company, which has been publicly traded in Canada, aims to leverage the larger U.S. capital market to drive growth and attract more investors. DeFi Technologies’ CEO, Olivier Roussy Newton, underscored the importance of the U.S. market, stating that the world trades on U.S. capital markets. This listing is expected to enhance the company’s ability to raise capital and pursue strategic acquisitions, potentially leading to more significant growth in the DeFi space.

DeFi Technologies has ambitious plans to list 100 crypto investment products by the end of the year. The company has already made strategic acquisitions, including ETP issuer Valour in 2021, and Reflexivity Research and crypto liquidity provider Stillman Digital in the previous year. Newton hinted at future acquisitions, noting the potential for private trading technology companies in the digital asset space to access capital market equity financings and other derivatives mechanisms.

Both Galaxy Digital and DeFi Technologies are poised to benefit from the Nasdaq listings, which will enhance their visibility and credibility in the digital asset sector. As more traditional financial giants enter the crypto space, these firms will need to leverage their scale and product breadth to stay competitive. Galaxy Digital, in particular, is focusing on tokenization as a key area of growth, aiming to build a moat through domain expertise, customer relationships, and staying ahead of competitors.

The tokenization of shares, as pursued by Galaxy Digital, represents a significant step towards integrating traditional financial instruments with the DeFi ecosystem. This initiative aims to provide investors with greater flexibility and liquidity, allowing them to participate in various DeFi protocols and applications. The move underscores Galaxy Digital’s commitment to innovation and its leadership role in the digital asset space.

In summary, the Nasdaq listings of Galaxy Digital and DeFi Technologies mark a pivotal moment in the digital asset landscape. These developments are expected to spur greater interest and investment in the sector, as traditional financial markets increasingly recognize the potential of digital assets and blockchain technology. The integration of DeFi applications and the tokenization of shares are poised to revolutionize the way investors interact with digital assets, offering new opportunities for growth and innovation.