Galaxy Digital launches a $100 million hedge fund: a strategy betting on cryptocurrency sector volatility

Galaxy Digital, an investment firm led by Mike Novogratz, is preparing to launch a new hedge fund with a volume of $100 million. This move marks the company’s return to its roots — exactly ten years ago, Novogratz conceived Galaxy as an investment fund before redirecting it to asset management. Today, managing a portfolio worth $17 billion, the company has decided to once again explore the potential of targeted speculative investing.

Architecture of the New Hedge Fund: Diversification of Risks and Opportunities

The new Galaxy investment fund will employ a classic scheme to generate profits in volatile markets — simultaneously opening positions on both the rise and fall of asset prices. Of the $100 million capital, one-third (30%) will be allocated to cryptocurrency tokens, while the remaining 70% will be invested in securities of financial services companies, which Galaxy believes are transformable under the influence of distributed ledger technologies.

The hedge fund launch is scheduled for the first quarter of 2026. In addition to Galaxy Digital’s own capital, funds are attracted from family offices of wealthy investors, high-net-worth individuals, and institutional market participants. The fund will be headed by Joe Armao, whose task will be active asset management aimed at maximizing returns amid market volatility.

Market Conditions Favor the New Initiative

The fund manager emphasized that the current moment is particularly favorable for launching such an investment instrument. Two key factors create optimal conditions: the Federal Reserve is on the verge of potentially lowering interest rates, and the use of cryptocurrencies and blockchain technologies is gaining wider recognition among institutional investors.

For Galaxy Digital, this initiative logically fits into its overall strategy. The company demonstrated resilience by earning more than $500 million in profit in Q3 2025. Novogratz has repeatedly shown the ability to adapt Galaxy’s investment course in accordance with changing market conditions, which is a key advantage in the volatile digital asset sector.

From Investments in Digital Assets to Infrastructure Expansion

In addition to developing the hedge fund, Galaxy Digital is actively strengthening its computing infrastructure. In mid-January 2026, the Texas electric grid operator ERCOT approved an increase in capacity at the Helios data center, located in the western part of the state, by 830 megawatts. This decision followed the completion of a mandatory study on integrating such a significant load into the power grid.

The expansion of Helios infrastructure is strategically important for attracting institutional clients who require a reliable and scalable computing base. Along with the new hedge fund, Galaxy demonstrates a multi-level approach to conquering leadership in the digital assets and financial technology ecosystem.

However, it is worth noting that the company’s shares (ticker GLXY) experienced pressure at the beginning of the week, falling by 6.4% amid broad sell-offs in the cryptocurrency and stock markets. Despite local fluctuations in quotes, Galaxy Digital’s long-term strategy remains focused on expanding its investment arsenal and infrastructure base.