"Bitcoin Bull Is Not Over" - Novogratz Raises $250 Million For Crypto Merchant Bank
Content adapted from this Zerohedge.com article : Source
by Tyler Durden
**In late-December, former Fortress macro fund manager and crytpo-billionaire, Mike Novogratz shelved plans to launch his crypto-currency fund because he "didn't like market conditions," **noting that Bitcoin may drop to $8,000 in the short-term... but adding that the bull market is not over.
To be clear, we delayed launching a hedge fund with outside investors capital last week because we didn't like market conditions for new investors. In no way does it mean we are less bullish the crypto markets.
— Michael Novogratz (@novogratz) December 22, 2017 > Looks to me like a short term top is in. My hunch is we consolidate between 10-16k for a while. Extreme would be 8k. Bull market isn't over. Just pausing.
— Michael Novogratz (@novogratz) December 22, 2017 > "We** didn't like market conditions and we wanted to re-evaluate what we're doing...I look pretty smart pressing the pause button right now**."
image courtesy of CoinTelegraph
Novogratz was correct. Bitcoin tumbled since he spoke, dropping back below $8,000... 
And now, as Bloomberg reports, **Novogratz has opportunistically raised about $250 million for his cryptocurrency merchant bank **during one of the biggest routs yet in Bitcoin, according to a person familiar with the deal.
Unlike in an IPO, Galaxy is raising money privately as part of a series of transactions that will allow it go public without disclosing financial statements.
The process also involves a reverse takeover of a Canadian shell company, Bradmer Pharmaceuticals Inc.
Terry Gou, the billionaire chief executive officer of China's Foxconn, is among the investors in the private placement, said the person, who asked not to be identified because the transaction isn't public.
Investors committed to buy shares of Novogratz's firm, Galaxy Digital LP, through a holding company that eventually will trade on Toronto's TSX Venture Exchange, according to the person.
Novogratz announced the private placement and listing plans in a statement last month.
As Novogratz detailed previously, **Galaxy is building out a full fledged crypto merchant bank. **
"I have over 30 percent of my net worth in crypto assets. We have venture bets, ICOs, tokens, investments in funds, mining and advisory. We also trade very actively. We are making a large long term bet on crypto."
We wonder if the ramp off the sub-$6000 lows ahead of the regulatory hearings was the hand of Mike putting some of that newly found AUM to work? 
Mike Novogratz is a smart and courageous investor, having 30% of his assets in the crypto space. Would I have listened to him in December, I would have been a lot better off.
Unfortunately my average price is higher than the current price, but I had the opportunity to build a substantial position through this downturn.
However, anybody who does not yet have a position in Crypto has the opportunity and start now at current low levels.
The chances that prices in BTC and ETH will double from here is far greater than them going to near zero.
Scale down buying according to your comfort level would be appropriate if we would have another setback to new lows. Of course you have to have the mental and financial ability to hold on through downturns.
@zer0hedge
@zer0hedge This guy is straight posting comments from the real source. He is straight plagiating. I really don't understand why you keep rewarding this copy-paste comments. I mean some of them are good, but they are obviously not his. For example this comment is from Dutti, see it here.
I will just leave this here. I will also upvote his punk-ass, so everyone can read this.
Investor and entrepreneur Mike Novogratz, known for his investments in Bitcoin, continues to pursue the pro-bitcoin stance. According to the news, Novogratz will keep the $ 500 million protection fund in crypto paralara, ICOs and companies operating on the market.
Famous investor, Bitcoin, "the biggest balloon we can see in our lives" will use the phrase, but investors still have the chance to win.
"Prices will go far beyond what you should have. This process can be profoundly profitable and that's exactly what I'm planning. "
We can say that Novogratz is brave about bitcoin and crypto money, and has a grip on it instantly. If we think that the crypto money has a big shake and that it has high volatility, we can deduce that the market environment is exactly the kind that Novogratz wants. The words of the famous investor confirm our assertion:
"I sold it at a price of $ 5,000 or $ 4980. Three weeks later, I saw 3,000 dollars and I chased the reception. If you're good at this area and you're an investment addict, it's definitely a lot of fun. " @zer0hedge
First thanks for sharing @zer0hedge.
And Novogratz like Goldman Sachs they always talk both sides of their mouths. While Novogratz was pumping Bitcoin to $20,000 by February, even a $40,000 potential, he was selling his Bitcoin positions and liquidated by December around the time futures started. Now he is selling his new Crypto bank venture with Goldman Sachs pumping Bitcoin but he is now contradicting its Goldman Sachs partners who have just stated that Cryptos will go down to ZERO.
Bitcoin needs to do double bottom testing at $3,500 (+/-) before any rally can be real and sustained.
The stock market and bonds bubble and the precious metals manipulation do not look appealing and are in dangerous territory but now the retail investors are finding out that even the blockchain and it crypto-currencies are not safe to invest any longer since the institutional predator hedge funds, rich in fiat currencies, have found the way to control cryptos with futures and deep pockets. Cash is king for now and hodl if you are already invested in cryptos.
it's pretty common because to IPO is the US the regulatory challenges would be incredibly onerous and inefficient. even in Canada.
it's why a lot of emerging sectors in general, whether cryptocurrency or cannabis, are flocking to the TSX.V and doing reverse mergers.
that said, I do agree with your sentiment... if you want do win over institutional investors, you'd be doing yourself a favour to just do traditional private placement with PE and then IPO it.
a few cryptos are doing this... there's 1 miner in Vancouver right now, they did a reverse merger, too. but the 2nd was is doing 2 rounds of PP and then IPOing and it's finding equity so far and the IPO I guess is on track so I'm not sure if Novo maybe underestimated the institutional demand.
that said, the aforementioned 1st miner has been crushed pretty bad recently (and never really got much of a 'December boom' and no 'Long Island Blockchain/Kodak-esque boom' either so not sure how the 2nd one is doing the last couple weeks haha..
@Zer0hedge..bro I'm convinced Bitcoin will double from here, just because of so many guys like you with unshakable faith in coinz and absolutely no gameplan except to allocate 100% and then HODL. All coming out of the woodwork now since the big correction and asking all the salivating noobs to do exactly the same. So my simple bet is on a litecoin cfd just so I can get out of dodge. Let the games begin. And remember, whatever happens, a loss isn't a loss until you sell dude That may be what eventually it ended up as. Had to by BTC or ETH first though. And cashing out, at this time woukd also have to convert back to BTC or ETH first.
Things may change though. Bittrex is regaining conversion to fiat like Gemini and Coinbase has. But bittrex has a ton more alt coins. Will they be the first where you can trade fiat for tokens and other lesser known alts.. thank you for sharing with us ..
good post dear thanks for sharing. your all.post so informative...
VERY GOOD TIPS BROTHER! Thank you for sharing with us. I am waiting for your next content @zer0hedge
Outstanding market analysis work. Keep sharing
Disclaimer: I am just a bot trying to be helpful.
a crypto bank is a great idea and it could help a lot in the exchange from crypto to FIAT, most banks are anti crypto so with the growing demand in the coin market this will be a big boost