Mike Novogratz’s digital asset management firm Galaxy Digital Holdings has sold a portion of its Block.one stake in the company, netting the firm $71.2 million, a 123% return on investment, according to a press release on May 21.
Though Novogratz’s firm sold its majority stake, the digital assets firm is still in partnership with Block.one, the development firm behind the EOS protocol.
Galaxy Digital accepted a tender offer on its ordinary shares in Block.one in an effort to rebalance and diversify its portfolio because the shares outperformed other areas of Galaxy’s investments.
Galaxy Digital and Block.one Are Still Partners
According to Novogratz, the selling of these shares does not impact Galaxy’s relationship with Block.one, as they will continue to act as a key partner to the firm.
Adding to this, he said:
“We continue to work closely with Block.one as a key partner across a number of our business lines, including the Galaxy EOS VC Fund, which invests in companies building on the EOS.IO protocol, and remain excited about the EOS.IO protocol.”
The two companies have been partners since January 2018, when they entered a joint venture to launch the EOS.IO ecosystem fund with a combined investment of $325 million into the EOS ecosystem.
Moreover, according to reports from Bloomberg, Galaxy Digital’s exit was part of Block.one’s buyback program of 10% of the company’s shares. This move by Galaxy is said to net its earliest investors as much as a 6,567% return.
Do you think there’s another reason as to why Galaxy Digital sold Block.one shares? Are they losing faith in EOS? Let us know what you think in the comment section below.