Despite the heavy bearish pressure on crypto investors and startups, the inexhaustible belief of Mike Novogratz, the hedge fund management guru, in the ultimate success of blockchain and digital assets are letting him earn money even now.
The expert investor is trying to raise $250 mln in order to make loans to crypto startups that are currently having a bad time, struggling to survive. Besides, apparently, under the current poor market conditions, such loans are now in high demand.
Terms of Novogratz funding crypto startups
Business Insider reports that Novogratz plans to take some kind of collateral for a loan, such as crypto, mining gear or property. The fund for crypto loans is expected to be a part of Galaxy Digital unit for managing assets.
On Wednesday, Bloomberg reported that Galaxy Digital also made an investment into Symbiont.io – a DLT startup that plans to use blockchain in the capital market sphere. The company has also received loans from Citigroup Inc. and Nasdaq Inc.
In January, Mike Novogratz increased his stake in the Galaxy Digital Holdings Ltd. He purchased 7.5 mln of the company’s ordinary shares with 7.42 mln CAD, now holding nearly 80 percent of the company’s shares.
Overall trend of investing in blockchain firms
Presently, quite a lot of Wall Street companies are rushing to invest in blockchain startups. Heavyweights, such as Ethereum or Binance, have even created their own funds and programs for supporting crypto startups with money.