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Mike Novogratz (Still) Has A Fever, And The Only Prescription Is (Still) More Crypto

Mike Novogratz (Still) Has A Fever, And The Only Prescription Is (Still) More Crypto

Listen, if you were wondering whether Bitcoin’s recent trials and tribulations (which included falling below $7,000) had deterred Mike Novogratz from his plans to take over the world by first buying a Canadian crypto startup, then conducting a reverse merger with a Canadian pharmaceutical shell company, then renaming the combined entity “Galaxy Digital Holdings” which will have a stake in a crypto merchant bank Mike is setting up, then raising $200 million in a private placement, then listing that fucker on the TSX, the answer is definitively “no.”

And the reason he’s not changing those plans in light of the horrible start to the year that Bitcoin has had is simple. It’s because “guess what?!” Mike’s “got a fever.” And “the only prescription is more crytpo.

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I’ve been over Mike’s “fever” on more occasions that I can even remember at this point, but this whole reverse merger/merchant bank/public listing/raising $200 million (and not necessarily in that order) thing is relatively new. I originally documented it here, and the funny thing about it (I mean besides being objectively crazy), is that news of the convoluted plan came just two weeks-ish after he changed his mind about launching his long-rumored “Galaxy Digital Assets Fund”.

As you can see, that change of heart did not (according to Mike) stem from a bearish view on cryptocurrencies. Rather, it was due to Mike “not wanting to have to deal with the schizophrenic emotional side of it.” According to what Novogratz told Bloomberg, there were “just so many conflicts [and] it was going to be more complicated than I wanted.”

Now your guess is as good as anyone else’s as far as how the above mentioned “plan” (which according to friends, Mike describes in private as an effort to establish the “Goldman Sachs of crypto”) is any less “complicated” than the original “plan” he canceled in December, but I guess it doesn’t matter now because according to a new Bloomberg piece out this morning, Mike has now raised $250 million for the above-mentioned merchant bank.

And although there’s no way to know if this still involves the same series of transactions described above, it certainly sounds like the rough outline of the  “plan” hasn’t changed. Here’s Bloomberg:

Terry Gou, the billionaire chief executive officer of China’s Foxconn, is among the investors in the private placement, said the person, who asked not to be identified because the transaction isn’t public. Investors committed to buy shares of Novogratz’s firm, Galaxy Digital LP, through a holding company that eventually will trade on Toronto’s TSX Venture Exchange, according to the person.

Unlike in an IPO, Galaxy is raising money privately as part of a series of transactions that will allow it go public without disclosing financial statements. The process also involves a reverse takeover of a Canadian shell company, Bradmer Pharmaceuticals Inc.

What could go wrong with this? Well, in short, everything. Starting with the fact that the proposed “merchant bank” will be in the crypto trading business and will also “make principal investments”. So you can just kind of conjure up any list of possible disasters you want because the possibilities are literally endless in terms of things that could go horribly awry.

But hey, don’t blame Mike. He can’t help himself. It’s beyond his control. Because as noted above, he’s “got a fever” and “the only prescription is more crypto.”

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