Galaxy Digital is preparing a new $100 million hedge fund that aims to benefit from increasing volatility in cryptocurrencies and financial technology. The Financial Times revealed the details of the plan of the company led by Mike Novogratz. According to the announced plan, the fund, which is expected to be operational in the first quarter, will be based on long and short position strategies that aim to make profits from both rising and falling periods of prices. The initiative coincided with a period when the volatility in the cryptocurrency market and the transformation in the financial services sector were simultaneously accelerating.
Structure of Galaxy Digital’s New Fund
The share of cryptocurrencies in the portfolio structure of the new hedge fund was determined to be approximately 30 percent. The remaining capital will be directed to the shares of financial services companies that are being reshaped by the impact of cryptocurrency technologies and changing regulations. Thus, the fund will focus not only on price movements in cryptocurrencies but also on the impact of Blockchain-based solutions on traditional finance.
Fund management will adopt an active positioning approach that aims to generate returns in both bullish and bearish scenarios. The structure, which is backed by family offices, high net worth individuals and institutional investors, will also receive seed capital from Galaxy Digital’s own balance sheet. This approach reflects the company’s confidence in the market and long-term strategic commitment.
Joe Armao, who manages the fund, pointed out that structural changes on a global scale are redefining the investment environment. Possible interest rate cuts and the expansion of the usage areas of cryptocurrencies are among the main factors supporting the timing of the fund. In particular, it is predicted that the possible loosening of Federal Reserve (Fed) policies may create new opportunities for risky assets.
Galaxy Digital’s Financial Performance and Infrastructure Moves
Galaxy Digital delivered a strong financial performance, reporting profits of over $500 million in the third quarter of 2025. The company’s total managed assets have reached 17 billion dollars. Novogratz’s past experience in changing strategies according to market conditions stands out as one of the most important trust factors behind the new fund.
In addition to its investment activities, the company is also taking growth steps on the infrastructure side. The necessary approval was received to provide 830 megawatts of additional energy capacity to the Helios data center campus located in western Texas. The permit was granted by ERCOT, which manages the Texas power grid, following the completion of extensive connection work.
Despite all these developments, Galaxy Digital shares lost more than 6.4 percent in the last trading day due to the effect of the sales wave in global markets. The decline in share performance is associated with the decline in general risk appetite rather than the company’s long-term strategic moves. The new hedge fund is expected to diversify Galaxy Digital’s income sources in this volatile environment.
