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Mike Novogratz, the billionaire founder of cryptocurrency firm Galaxy Digital, recently shared his frustrations and triumphs regarding the lengthy process of taking his company public in the United States.
After nearly four years and over $25 million spent, Novogratz’s determination culminated in a significant milestone as Galaxy Digital officially listed on the Nasdaq under the ticker GLXY.
Challenges Faced By Galaxy Digital
In an interview with CNBC, Novogratz expressed his frustration with the regulatory journey, which he described as “un-American, unfair, and infuriating.” What should have been a straightforward process lasting 45 to 90 days extended to an exhausting 1,320 days, marked by nine rounds of comments with the Securities and Exchange Commission (SEC).
“One of the things that people didn’t understand about the crypto tax is that you needed to be very well capitalized— a pretty big, strong company—just to stay in the game,” he noted, highlighting the challenges faced by crypto companies in navigating regulatory hurdles.
Despite these obstacles, Novogratz rang the opening bell at the Nasdaq, marking Galaxy Digital debut on US public markets. Until now, the company had operated on the Toronto Stock Exchange, where it first went public in 2020 due to US regulatory caution surrounding cryptocurrencies.
Novogratz emphasized the importance of the US market, stating, “Our visibility, volume, and notoriety in the Canadian market versus the US is one to 30 — the US market is 30 times deeper.” He believes that had Galaxy been able to operate in the US from the start, it would have significantly changed the company’s trajectory.
The regulatory scrutiny that accompanied Galaxy Digital public listing resulted in higher auditing costs compared to traditional firms. However, Novogratz anticipates that these fees could drop by as much as 40% now that Galaxy is listed on the Nasdaq.
He noted that the arduous process ultimately strengthened the company, stating, “Scarcity makes you tougher. We funded our company mostly through investment gains and trading.”
Optimism For Crypto Regulations
Novogratz also acknowledged that Galaxy Digital was not alone in facing these challenges. He pointed to eToro whic also went public on Nasdaq recently, as a sign that investor interest in crypto-adjacent firms is returning after years of regulatory caution.
As Novogratz reflects on the evolution of cryptocurrency, he recalls witnessing its rise from a niche interest to a central issue in American politics. He noted a significant representation of crypto CEOs at political events, particularly during the inauguration of President Donald Trump.
“There was a core group of Democrats, probably the majority, that just want to pass crypto legislation that’s good for America, and move on,” he stated, emphasizing the growing influence of the crypto industry in Washington.
Galaxy Digital CEO recalls a pivotal meeting with incoming SEC Chair Paul Atkins, who expressed a pro-business, pro-risk approach to regulation. This shift in attitude has left Novogratz feeling optimistic about the future of cryptocurrency regulations.’
“Ringing the bell is kind of the starting line, not the finish line,” he remarked, indicating his belief that the journey for Galaxy Digital and the broader crypto industry is just beginning.
Featured image from DALL-E, chart from TradingView.com
