Galaxy Digital Lists on Nasdaq After 1,320-Day SEC Battle

Galaxy Digital, a prominent cryptocurrency company, has successfully navigated a challenging four-year journey to list on the Nasdaq, marking a significant milestone in the cryptocurrency industry. The company's CEO, Mike Novogratz, has openly expressed his frustrations with the regulatory process in the United States, describing it as "un-American, unfair, and infuriating."

Novogratz revealed that the process, which should have taken 45 to 90 days, was extended to 1,320 days due to nine rounds of discussions with the U.S. Securities and Exchange Commission (SEC). The high costs and lengthy delays have been a significant hurdle for Galaxy Digital, with the company spending over 25 million dollars in the process. Despite these challenges, Novogratz remains optimistic about the future of the company and the cryptocurrency industry as a whole.

Galaxy Digital's listing on the Nasdaq comes at a time when investor interest in cryptocurrency-related companies is resurging. This is evident from the recent successful listing of eToro, an Israeli trading platform, on the Nasdaq. The listing of these companies indicates a renewed interest from investors, despite years of regulatory caution and market volatility.

Novogratz highlighted that the auditing costs for Galaxy Digital were significantly higher than for traditional companies like Jefferies. He anticipates that these costs will decrease by up to 40% following the company's listing on the Nasdaq. The company's resilience and ability to navigate these challenges have made it stronger, according to Novogratz. He emphasized that the scarcity of such companies in the market has made Galaxy Digital more robust, with the company primarily funded through investment returns and trading.

Prior to its Nasdaq listing, Galaxy Digital was listed on the Toronto Stock Exchange (TSX) in 2020. The company chose the TSX due to the cautious stance of U.S. regulators towards the cryptocurrency industry at the time. Despite the proximity of U.S. investors and capital, the TSX served as a testing ground for digital asset companies, which struggled to gain recognition in the U.S. market. However, Novogratz sees the U.S. market as the key battleground for the company's growth, with the market depth being 30 times that of Canada.

Novogratz, a former hedge fund manager turned cryptocurrency entrepreneur, has been vocal about the industry's growing influence in Washington. He noted the presence of approximately 20 cryptocurrency CEOs at a recent event, highlighting the industry's increasing relevance in political discussions. He believes that a core group of Democrats is supportive of cryptocurrency legislation that benefits the U.S., aiming to remove the issue from election debates.

Novogratz witnessed a significant shift in political attitudes towards cryptocurrency following the election of Donald Trump. He observed that the outgoing administration became more supportive of the industry, leading to more open dialogues with regulators. Novogratz's meetings with Paul Atkins, the then-appointed SEC chairman, were particularly encouraging, as Atkins' stance on fair disclosure and pro-business policies aligned with Novogratz's vision for the industry.

Despite the challenges faced during the listing process, Novogratz views the Nasdaq listing as just the beginning for Galaxy Digital. He is optimistic about the company's future and the broader cryptocurrency industry, believing that the regulatory environment is improving and that investor interest is on the rise. The company's successful listing on the Nasdaq is a testament to its resilience and determination to navigate the complex regulatory landscape of the U.S. market.