Crypto asset banks set for fundraising
According to reports coming from Business insider, the cryptocurrency bank wants to give cryptocurrency collateralised loans to companies. There are anonymous sources that have reported that they are familiar with projects and that Galaxy digital will accept crypto-assets as well as mining hardware as collateral for loans.
Galaxy digital will also close the first round of fundraising for the projects in March 2019 according to the reports. The company already offers loans to cryptocurrency firms from its balance sheet.
The lending of cryptocurrencies has been considered from a few companies in the industry. It has not been the best method for using cryptocurrencies, as the lender would have to give up the benefits of holding the cryptocurrency in order to receive fiat-currencies. However, this has been a strategy that some companies have been able to utilize in order to further business operations smoothly. This has been especially since the bear market has left a few startups cash stressed for its operations. Which has provided market opportunities for loan providers.
According to BlockFi, which is a Galaxy-backed crypto lending platform that has reportedly seen revenues and customers grown ten-fold. Has started to lend from a crypto company named Salt and is planning to expand its workforce based on its increasing revenue streams.
Galaxy Digital has been moving forward in the crypto market
The company has seen a hard time during the bear market back in 2018. However, according to Goldman Sachs executive, Mike Novogratz, commented last November that it was not easy to build a successful business during a bear market run.
In November the company reported a net loss in the Q3 2018 of $76.65 million. With a total loss in September 2018 to over $175 million. The Galaxy digital company has participated in the $20 million Series B fundraising round for Blockchain startup firms Symbiont. This fundrasing is looking to bridge the gap between capital markets and cryptocurrencies.
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