In a significant development for the cryptocurrency and artificial intelligence investment sectors, Galaxy Digital has received approval from the US Securities and Exchange Commission (SEC) to list its shares on the Nasdaq stock exchange. The company, which is currently listed on the Toronto Stock Exchange (TSX), is set to make a strategic relocation from the Cayman Islands to Delaware, pending shareholder approval and authorization from the TSX.
Galaxy Digital’s CEO, Michael Novogratz, expressed enthusiasm regarding this milestone, stating, “Our registration statement is now effective with the SEC. We’re on track to list on the Nasdaq shortly after our shareholder vote on May 9, contingent on completing our reorganization. Let’s go!” This indicates that Galaxy is aiming for its shares to trade under the ticker symbol GLXY, with a targeted completion date of mid-May 2025, assuming all Nasdaq listing requirements are met.
Why Delaware?
In the SEC Form S-4 filed on March 27, Galaxy Digital articulated its rationale for transitioning its corporate domicile to Delaware. The firm cited Delaware’s favorable corporate environment as a crucial factor, allowing it to compete more effectively with other publicly traded entities. Additionally, Delaware is the domicile of choice for numerous public corporations due to its extensive case law relevant to corporate governance and its proactive updates to the Delaware General Corporation Law (DGCL) that align with contemporary legal and technological trends.
After the relocation, it is noted that Novogratz will maintain nearly 60% of the company’s voting power, ensuring his influential role in Galaxy’s future direction. Concurrently, Galaxy’s share price on the TSX witnessed an 8% decrease post-announcement, closing at $12.30 Canadian dollars ($8.70) after initially listing at nearly $50 Canadian dollars ($35) in November 2021.
This pivotal shift comes on the heels of Galaxy’s recent $200 million settlement regarding its involvement with the failed cryptocurrency Terra (LUNA). As Galaxy Digital prepares for this new chapter, it joins a trend of other cryptocurrency firms considering listings on major exchanges, as exemplified by Coincheck Group’s recent debut on the Nasdaq.
As the landscape of cryptocurrency investments continues to evolve, Galaxy Digital’s anticipated Nasdaq listing marks a significant step in solidifying its position within the expanding financial ecosystem.
