Mike Novogratz, CEO of Galaxy Digital reportedly aims to raise at least $250 million to create a crypto credit fund, despite the recent gloomy bear market environment.
The fund is expected to help struggling companies amid the crypto winter. Acceptable collateral includes digital currencies, property and mining rigs. The first round of fundraising is expected to close in March, according to a report on Business Insider.
Galaxy Digital is a well known crypto-lending platform which has reportedly lent millions of dollars to dozens of cryptocurrency companies and startups. As the Financial Times reported in November, Novogratz admitted the firm has gone through ups and downs in 2018, stating it “sucks to build a business in a bear market.”
According to Bloomberg, lending businesses is still flourishing. BlockFi said it saw 10x growth in revenues and customer base since Galaxy Digital Ventures injected $52.5 million into the business in June 2018. Salt Lending, another crypto lender, is “hiring more every month as its revenue ticks higher.”