The stocks of Galaxy Digital Holdings Ltd, a major cryptocurrency-oriented hedge fund owned by billionaire Mike Novogratz, has declined from a listing price of USD 3.03 to USD 0.90 as of today, 28 November.
Yesterday, 27 November, was a particularly harsh day for GLXY, with an 18.6% drop in less than two hours, which caused the Toronto Stock Exchange (TSX) to temporarily suspend the trading of GLXY. The fund went public on TSX under the ticker GLXY on 1 August 2018.
A press release was issued by Galaxy Digital following the trading suspension, asserting that nothing happened in the company internally to cause the trading halt. TSX is overseen by the IIROC, which has the power to halt trading on any stock in Canada to ensure a fair and orderly market.
Bitcoin was at USD 8,000 on 1 August when GLXY went live for trading, and has since then declined to about the USD 4,000 level, likely causing heavy losses for any cryptocurrency hedge fund. The alternative cryptocurrency markets have faired even worse, with the total crypto market cap declining from USD 273 billion on 1 August to USD 115 billion on 25 November. Galaxy Digital is known to have invested hundreds of millions of US dollars into cryptocurrency startup companies, just as market conditions for startups rapidly worsened. Particularly, Galaxy Digital invested USD 325 million into the EOS ecosystem, a cryptocurrency which has seen steady and sharp declines since the day it moved to its own blockchain.
GLXY now has a market cap of USD 57 million and since Galaxy Digital is likely classified as a technology company, this is dangerously close to the CAD 50 million minimum listing requirement for TSX.
Follow BitcoinNews.com on Twitter: @bitcoinnewscom
Telegram Alerts from BitcoinNews.com: https://t.me/bconews
Want to advertise or get published on BitcoinNews.com? – View our Media Kit PDF here.
Image Courtesy: Pixabay