• Mike Novogratz, CEO of Galaxy Digital Holdings, has stated that the current financial strain facing Digital Currency Group (DCG) and its related companies is unlikely to cause a further drop in crypto prices.
• Novogratz believes the issue will “play out” in the next quarter, but does not think it will cause significant selling.
• DCG is the owner and operator of Grayscale Investments, Genesis lending, Foundry advisory, crypto exchange Luno, and crypto media company CoinDesk.
Mike Novogratz, CEO of Galaxy Digital Holdings, has sought to ease the fears of cryptocurrency investors in light of the financial distress facing Digital Currency Group (DCG). In a Jan. 10 interview on CNBC’s Squawk Box, Novogratz stated that while the current situation is “not good news,” it is unlikely to cause a further drop in crypto prices.
DCG is a major crypto conglomerate that owns and operates Grayscale Investments, the world’s largest digital asset manager. It also owns institutional lending company Genesis, advisory company Foundry, crypto exchange Luno, and crypto media company CoinDesk. The company’s current financial struggles have caused some to worry that the situation could have a negative impact on the crypto market.
Novogratz, however, believes that these fears are unfounded. He said that he expects the issue to “play out” over the next quarter, but does not think it will cause significant selling. “I don’t think it will include a lot of selling, it’s just not good news,” he said.
The CEO also noted that the current outlook for the cryptocurrency market is not “horrible” but not “great” either. He pointed to the fact that there are now regulatory headwinds that the market did not have before, which could lead to cost-cutting measures in order to survive the transition period. Despite this, Novogratz was still optimistic, noting that “crypto is not going away.”
It remains to be seen how the situation with DCG will play out, but Novogratz’s comments should provide some reassurance to crypto investors concerned about the potential fallout. As he noted, crypto is unlikely to disappear anytime soon, and the current situation should not cause a major sell-off.