Galaxy Digital Goes Public, Novogratz Sees $150,000 Bitcoin

Michael Novogratz, the founder and CEO of Galaxy Digital, marked a significant milestone as his firm went public on the Nasdaq under the ticker GLXY. During an interview on CNBC’s “Squawk Box,” Novogratz reflected on the company’s journey, stating that Galaxy initially aimed to become the “Goldman Sachs of crypto” by establishing a broker-dealer and asset management firm. He noted that the industry is now experiencing a surge in interest, with the “herd finally here.”

Galaxy’s public debut coincides with a strategic shift. While the company remains committed to the crypto sector, it has also ventured into the AI data center business. Novogratz described Galaxy as a “data center company plus a crypto company,” highlighting a substantial lease agreement with CoreWeave at the Helios site in Texas. This lease is expected to generate close to $14 billion in rent over the next 15 years. Novogratz views this expansion into AI as more than just a hedge, emphasizing that both AI and crypto represent the most exciting growth areas. He anticipates that by mid-next year, the first section of the data center will start generating significant cash flow.

On the policy front, Novogratz was forthright about his views on the political landscape. He criticized the Biden administration’s approach to crypto, describing the past four years as “un-American” and “misery” for the industry. However, he praised the efforts of Senators Warner and Gallego for their bipartisan push for legislation. Novogratz expressed optimism that a key bill will be passed soon, followed by a market structure bill, which he believes will lead to a quieter period for crypto in Washington.

Looking ahead, Novogratz predicted further gains for Bitcoin (BTC). He forecasted that Bitcoin could reach new highs, potentially hitting $150,000. He also compared the current market capitalization of crypto, which he estimated at $2 trillion, to gold’s $22 trillion market capitalization, suggesting that one day, crypto could equal gold in value. This prediction underscores his bullish outlook on the future of digital assets.