Institutional crypto firm Galaxy Digital recently executed one of the largest Bitcoin sales in history, selling 80,000 Bitcoin on behalf of a Satoshi-era investor. According to Galaxy Digital CEO Mike Novogratz, the sale was absorbed almost instantaneously by Bitcoin treasury firms, thanks to a surge in demand from companies like Strategy (formerly MicroStrategy) and Trump Media and Technology Group.
The Massive Bitcoin Sale
Galaxy Digital's sale, which amounted to $9 billion, was described as "one of the earliest and most significant exits from the digital asset market." Novogratz credited the smooth execution to the timing, coinciding with a wave of institutional buying.
Key Buyers Stepping In
- Strategy: Purchased 21,000 Bitcoin worth $2.3 billion.
- Trump Media: Acquired 18,400 Bitcoin worth $2 billion.
Novogratz emphasized that as long as this demand continues, crypto prices are likely to remain strong. He also noted that the trend extends to Ethereum, with companies like SharpLink Gaming and BitMine Immersion buying hundreds of millions of dollars worth of ETH weekly.
Galaxy's Financial Performance
Despite the successful sale, Galaxy's Q2 earnings fell short of expectations, posting a $30.7 million profit against an anticipated $85 million. However, July marked the best month on record for its digital assets operating business.
Partnerships with Crypto Treasury Firms
Galaxy has partnered with over 20 crypto asset treasury firms, providing services like asset management and capital execution. This has added close to $2 billion in assets to its platform, creating a steady stream of recurring income.
Market Implications
Novogratz's insights highlight the growing role of institutional buyers in stabilizing and driving the crypto market. With firms like Strategy and Trump Media continuing to accumulate Bitcoin, the demand-supply balance appears favorable for sustained price growth.
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