NOVOGRATZ ATTRACTS FUNDING FOR THE PROVISION OF CRYPTOCURRENCY LOANS
Crypto Bank of Mike Novograts Galaxy Digital attracts $250 million to finance the expansion of the business: the Bank intends to offer cryptocurrency loans to companies of the blockchain industry, taking as guarantees crypto assets and equipment for mining, Business Insider reported.
Given the ongoing bear market for almost the whole last year, many crypto-companies face financial difficulties, so the demand for cryptocurrency loans, accepting crypto assets and mining equipment as guarantees, is growing.
The platform for BlockFi loans, backed by Galaxy, announced a tenfold increase in profits and the number of clients. Salt Lending, another company in the market of cryptocurrency loans, also announces plans to expand its staff due to increased profits.
Like almost the entire cryptocurrency market, cryptocurrency trading bank of the billionaire Mike Novograc is also experiencing a decline in profits: Galaxy Digital Holdings reported a loss of $76.65 million for the third quarter of 2018 due to a significant decline in prices for digital assets in this period. Also in November, Mark Novograts noted that it is extremely difficult to develop a cryptocurrency business in the current environment.
Despite the difficulties, Novograz continues to invest: in October, Galaxy Digital Ventures, together with the Goldman Sachs Group Inc. have invested $15 million in the BitGo Holdings Inc cryptocurrency secure storage service, and this year Galaxy Digital participated in the investment round of the B series of the Symbiont blockchain startup.