Galaxy, a global leader in digital assets and data center infrastructure, owned by Michael Novogratz, intends to solidify its standing in the digital asset market. As such, they plan to implement a revenue-driven strategy by establishing a $100 million hedge fund.
The goal with this move is simple—to generate funds with crypto. Understanding the plan begins with the source of funding. The hedge fund is a pool of money for wealthy investors with a strategy and can adapt to volatility.
Galaxy plans to invest their funds in two ways, allocating around 30% of its total assets to crypto tokens and 70% to stocks of financial services firms. Galaxy will implement this strategy (70%) on firms that have been impacted by shifts in digital asset technologies and regulations.
According to reports, they have received funds of $100 million in investments from family offices, high-net-worth investors, and large institutions. Galaxy said it will also make a seed investment in the fund. However, the amount is not disclosed.
The move was reported after the price of Bitcoin hit a 26% low since an all-time high in October. The volatility of the market raised concerns among investors. Recent reports also highlighted that Bitcoin’s price drastically declined by approximately 5% this week, trading at around $89,207.26, down 1.92% in the last 24 hours.
The report also highlights that the recent drop projected the result of Trump’s announcement on imposing tariffs on eight countries of the European Union, a revenge over the refusal of the Greenland acquisition.
Joe Armao, head of the fund, told the media, “The ‘up only’ phase of this cycle is potentially coming to an end,” adding that he remains bullish on Bitcoin and other major cryptocurrencies such as ETH and Solana.
Galaxy has already made $505 million in profit in the third quarter of 2025, despite the challenges it faced. Armao praised the new fund idea following the report, mentioning that its effectiveness depends on a thorough analysis of both successful and unsuccessful firms.
He also emphasized that the strategy, according to him, must concentrate on emerging financial services, trends, and market disruptors.
Big crypto companies like Circle and Gemini secured their initial public offerings (IPO) last year, while many companies got globally listed.
Traditional finance firms are facing challenges due to changes in crypto, AI, and regulations. As a result, Armao warns about the significant shifts in the market that have yet to be fully acknowledged.
