Billionaire Mike Novogratz-operated cryptocurrency investment firm Galaxy Digital has gotten the green light from the U.S. regulator. The Securities and Exchange Commission (SEC) has approved Galaxy Digital’s listing on the Nasdaq stock market. The move is a big step for the company to increase its presence in U.S. financial markets.
Currently listed on the Toronto Stock Exchange (TSX), Galaxy Digital plans to relocate its corporate headquarters from the Cayman Islands to Delaware. This strategic move aims to make the company compliant with US corporate governance standards and increase its ability to compete with other publicly traded companies. Only a shareholder vote on May 9 will finalize the relocation and Nasdaq listing. If that happens, Galaxy expects to finish the process and go live on Nasdaq as “GLXY” in mid-May.
CEO Mike Novogratz showcased a spectacular event at the firm and stated, “I am confident that the reorganization will satisfy all the requirements for listing.”
The decision to redomicile in Delaware was deliberate. Galaxy said Delaware is a business-friendly place with strong laws and constantly updated regulations. In addition, it welcomes emerging technologies, making it a popular jurisdiction for U.S. companies.
Galaxy has received approval from Nasdaq after settling a payment of 200 million last October due to the failed Terra-Luna project. The company settled the civil charge but did not admit to or deny wrongdoing.
Even in the face of hurdles with crypto, Galaxy is still working to be a leader in digital asset investing and crypto trading, which powers AI and HPC things.
Once the listing is finalized, Novogratz is likely to maintain control of the company with almost 60% voting power.
After the announcement, Galaxy’s stock fell 8%, trading on the TSX at 12.30 Canadian dollars. Galaxy has been trading publicly since 2015. As Galaxy expands into the U.S. market, we expect the Nasdaq opening to create fresh growth opportunities and attract a wider range of investment.
