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Galaxy nets 123% return after partial exit of its Block.one position

Aislinn Keely
Tim Plakas, once the leader of over-the-counter (OTC) trading at Coinbase, has left the exchange to bolster Galaxy Digital’s OTC efforts, according to a source close to the situation.The post Mike Novogratz's Galaxy Digital snags former Coinbase OTC head appeared first on The Block.

Galaxy Digital Holdings is selling a portion of its Block.one position, making it no longer a "material investor" in the company. Galaxy accepted a tender offer on its ordinary shares on May 20, according to a release.

Galaxy received $71.2 million in the deal, relinquishing its "material investor" position. Such a designation usually means a position of more than $100 million. Still, Galaxy said it takes multiple factors into account to determine if a position is “material.”

The company reported the sale of its shares, which it said yielded a 123% return on its investment in Block.one. Block.one is the main development firm behind EOS the protocol. 

Michael Novogratz, CEO and Founder of Galaxy Digital, said Block.one’s repurchasing of its tender was an effort to rebalance and appropriately diversify its portfolio as the shares outperformed other areas. The selling of the shares does not indicate an end to Galaxy’s relationship with Block.one, according to Novogratz.

"We continue to work closely with Block.one as a key partner across a number of our business lines, including the Galaxy EOS VC Fund, which invests in companies building on the EOS.IO protocol, and remain excited about the EOS.IO protocol,” he said in a statement.

Galaxy Digital and Block.one entered into a joint venture in 2018 to invest $325 million into the EOS ecosystem. 

Galaxy's exit was part of a broader share repurchase by Block.one in which its earliest investors could have seen as much as a 6,567% return, according to Bloomberg News

Reporting by Aislinn Keely.