Galaxy Digital Secures SEC Approval for Nasdaq Listing

Galaxy Digital Holdings Ltd., a prominent crypto investment firm led by billionaire Michael Novogratz, has secured approval from the U.S. Securities and Exchange Commission to list directly on the Nasdaq Stock Exchange. This significant development comes as the company prepares for a shareholder vote on May 9, which will determine the next steps in its reorganization and redomiciliation from the Cayman Islands to Delaware. The move to Delaware is a strategic decision aimed at aligning with U.S. regulatory standards and enhancing the company's operational framework.

The approval from the SEC marks a pivotal moment for Galaxy Digital, as it paves the way for the firm to debut on one of the world's most prestigious stock exchanges. This listing is expected to provide Galaxy Digital with greater visibility, liquidity, and access to a broader range of investors. The company's decision to redomicile in Delaware is also a testament to its commitment to regulatory compliance and transparency, which are crucial for building trust in the crypto investment space.

Galaxy Digital's CEO, Michael Novogratz, expressed enthusiasm about the upcoming Nasdaq listing, stating that the company is on track to list shortly after the shareholder vote, contingent on completing the reorganization process. This development is likely to bolster investor confidence in Galaxy Digital and the broader crypto market, as it demonstrates the firm's ability to navigate regulatory challenges and achieve significant milestones.

The Nasdaq listing is a strategic move for Galaxy Digital, as it will allow the company to tap into a larger pool of capital and attract institutional investors. This, in turn, could fuel the firm's growth and expansion into new markets and investment opportunities. The listing is also expected to enhance Galaxy Digital's reputation as a leading player in the crypto investment landscape, further solidifying its position in the industry.

In the SEC Form S-4, first filed on March 27, Galaxy said it chose Delaware for the relocation because it would provide “a favorable corporate environment,” which would help it “compete more effectively with other publicly traded companies.” The firm also chose Delaware because it’s the “choice of domicile for many publicly traded corporations,” has an abundance of case law to assist in interpreting the Delaware General Corporation Law (DGCL), and lawmakers frequently update the DGCL to reflect current technology and legal trends. After the change, Novogratz will maintain control of the company with nearly 60% of voting power, according to the filing.

Galaxy Digital recently agreed to pay $200 million in a settlement related to its alleged promotion of the now-collapsed cryptocurrency Terra (LUNA). This settlement underscores the firm's commitment to resolving past issues and moving forward with a stronger regulatory framework. Other crypto firms are listed on the Nasdaq, including Coincheck Group, the parent company of Japanese crypto exchange Coincheck, which debuted on Dec. 11. Bitcoin-stacking investment firm Metaplanet has also been exploring a potential listing outside of Japan, such as the US, after CEO Simon Gerovich met with officials at the New York Stock Exchange and Nasdaq in March.

In summary, Galaxy Digital's SEC approval for a Nasdaq listing is a major achievement for the company and the crypto investment sector as a whole. The move to Delaware and the upcoming shareholder vote are critical steps in the firm's journey towards greater regulatory compliance and market access. As Galaxy Digital prepares for its Nasdaq debut, it is poised to become a more prominent and influential player in the global crypto market.