Galaxy Digital will launch a $100 million hedge fund focused on digital assets and fintech

Galaxy Digital, the digital asset investment firm led by Mike Novogratz, is preparing to launch a $100 million hedge fund. According to Financial Times, this initiative aims to capitalize on the opportunities generated by the current instability in cryptocurrency and fintech markets, combining long and short strategies to profit in both directions of the market.

Investment Structure and Capital Allocation

The fund will begin operations in the first quarter of 2026 with a clear architecture: 30% of its capital will be allocated to cryptocurrency tokens, while the remaining 70% will be directed to shares of financial services companies undergoing transformations due to digital asset technologies and regulatory changes. This composition reflects Galaxy’s view of where the greatest value opportunities are concentrated.

Investment manager Joe Armao explained that the company has secured financial backing from family offices, high-net-worth individuals, and institutions, in addition to contributing its own capital in an undisclosed amount for this investment vehicle.

The Right Moment for Expansion

Galaxy Digital’s leaders identify structural opportunities that favor the launch of the fund at this time. They highlight potential interest rate cuts that the U.S. Federal Reserve may implement, combined with the accelerated expansion of cryptocurrency use in institutional and corporate ecosystems. These factors create an environment that Galaxy perceives as optimal for a flexible investment strategy.

Track Record and Strength of Galaxy Digital

The firm has demonstrated the ability to adapt to changing market dynamics. During Q3 2025, Galaxy posted profits exceeding $500 million. Currently, the company manages around $17 billion in assets under management. Novogratz originally conceived Galaxy as a hedge fund nearly a decade ago before reorienting the company toward comprehensive asset management, reflecting its strategic flexibility.

Expansion in Data Infrastructure

In addition to the $100 million investment fund initiative, Galaxy Digital recently received approval from the Texas Electric Reliability Council (ERCOT) to expand its Helios data center campus with an additional 830 megawatts of energy capacity. This approval followed the completion of an interconnection study for large-scale loads, positioning Galaxy to scale critical operations in mining and data processing.

Current Market Context

Galaxy Digital’s shares experienced a decline of more than 6.4% in recent sessions, in line with a broad market sell-off. However, the launch of the $100 million fund suggests that the company maintains confidence in its medium- and long-term vision, seeking to capitalize on volatility through specialized instruments that combine exposure to crypto and investments in companies transformed by digital asset technologies.