Shares of Crypto Galaxy Digital Dropped -22% on the TSX Yesterday

Galaxy Digital Holdings

Yesterday, cryptocurrency-focused merchant bank Galaxy Digital Holdings Ltd. (GLXY) started trading on the Toronto Stock Exchange. The stock lost a lot of momentum but closed the day in the green.

Galaxy Digital TSX Stock Movement

According to TMXMoney, Galaxy Digital Holdings started trading at $2.09 a share and ended the day at $2.30. The stock gained $0.21 (+10.04%) yesterday.

Yesterday, GLXY reached a peak of $2.49 a share and a low of $1.92, losing over -22.89%. Days after billionaire Mike Novogratz revealed Galaxy Digital, the crypto market bank lost $134 million during Q1.

Complications

Regulatory scrutiny delayed Novogratz from listing his company sooner. The regulations forced the founder to purchase a Canadian shell company that was previously listed on the TSXV. During the time of purchasing the shell company, the cryptocurrency market dropped substantially.

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“If I knew what I know now, knew the crypto markets were going to swoon as much, and it was going to take so long, I might have stayed private for another year or so and then gone public,” Novogratz said in the days preceding the firm’s listing. “But I don’t think it’s a mistake.”

It was inevitable that GLXY would experience a less-than-enthusiastic welcome to the exchange, seeing as most blockchain stocks took a nosedive with the cryptocurrency market too.

Purchasing a previously listed shell company has been a common trait in the junior mining industry, and many blockchain/crypto and cannabis companies have adopted the new tactic to jump ahead.

Novogratz funded GLXY with $320 million worth of his own crypto assets in the very beginning and still is seeing his decision as a positive one, despite its sharp drop yesterday.

GLXY closed its second day of trading at $2.49 a share, up $0.19 (8.26%).

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