In a recent earnings call, Michael Novogratz, CEO of Galaxy Digital, discussed the state of the crypto market and the opportunities it presents, highlighting the potential end of the peak in creating new companies with crypto assets.
The Role of Crypto Treasuries in the Market
Novogratz expressed his view that the boom in creating companies with large crypto assets has likely come to an end. "We’ve probably gone through peak treasury company issuance of new companies," he noted. He indicated that the focus will now shift to which existing players can become industry "monsters". Many of the new firms followed the lead of Strategy (formerly MicroStrategy), which made headlines for prioritizing bitcoin purchases.
Future of Ethereum and Its Outlook
Novogratz also expressed confidence in Ethereum's short-term outlook. "I think Ethereum probably has a lot of chance to outperform Bitcoin in the next three to six months," he said. He added that Ethereum could soon reach the $4,000 mark. A recent poll found that 59% of participants expect ETH to set a new all-time high by the end of 2025.
Galaxy Digital's Q2 Financial Results
In Galaxy Digital's quarterly results, Novogratz reported a net income of $30.7 million for Q2, compared to a $177 million loss for the same period in 2024. The firm works with more than 20 crypto treasury investment firms, earning management fees for overseeing their token holdings. These partnerships have added roughly $2 billion in assets to Galaxy’s platform.
Throughout the discussion, Michael Novogratz emphasized that economic trends in the cryptocurrency industry continue to evolve. There is a growing interest in Ethereum, as well as new approaches to attracting investment in crypto assets, which may change the market in the future.
