Mike Novogratz’s Galaxy Digital expands in Europe
Galaxy Digital, the New York-based cryptocurrency financial services company founded by Mike Novogratz, is expanding its presence in Europe by appointing Leon Marshall as its first European CEO.
Marshall, who currently serves as the global head of sales for Galaxy Digital, will take on the additional role of CEO for the European region as the company seeks to strengthen its operations and growth in Europe.
“This part of Galaxy’s aim to aggressively scale our operations in the U.K. and Europe – a region that has committed to embracing the digital asset future and creating the necessary regulatory frameworks for our industry to operate within,” Novogratz said.
The expansion comes at a tumultuous time as US regulators set their sights on the industry due to the recent catastrophic incidents, including downfall of FTX. Furthermore, US crypto-friendly banks, such as Silvergate and Signature Bank, fell into bankruptcy after running into financial troubles.
Many US cryptocurrency companies, including major players like Gemini and Coinbase, have been focusing on expanding their operations in Europe recently. This expansion is, in part, driven by the comparatively clearer regulatory environment provided by the European Union and the United Kingdom regarding cryptocurrencies and blockchain technology.
Coinbase CEO Brian Armstrong said that crypto firms in Europe will soon have a clear rulebook for operating and also underlined the firm’s intentions for international growth as an “existential priority”. He stated that Europe is already several steps further down the road, with its Markets in Crypto-Assets (MiCA) regulation set to come into force later this year.
In Q2 2023, Galaxy Digital reported a significantly reduced net loss of $46 million, which marks a substantial improvement from the approximately $555 million loss reported during the same period in the previous year. This positive financial result is attributed to the resurgence in cryptocurrency prices.
Earlier in June, a US federal judge relieved Galaxy Digital of any obligation to pay damages following the dismissal of a lawsuit related to its terminated merger with crypto asset custodian BitGo. The firm, run by Wall Street stalwart Mike Novogratz, exercised its right to terminate the acquisition agreement, citing BitGo’s failure to deliver, by July 31, 2022, audited financial statements for 2021.
The court sided the crypto lender’s decision to cancel its planned $1.2 billion acquisition, removing the potential financial burden associated with the abandoned tie-up. However, BitGo said it plans to appeal the court’s ruling as it believes that Galaxy wrongfully terminated the agreement and will continue to pursue the same position through the appeals process.