Mike Novogratz is prominent in the cryptocurrency space as the CEO of Galaxy Digital. Also, he’s one of the foremost crypto advocates with vast experience in finance. His journey towards becoming a billionaire initially led him to a brief stint as a helicopter pilot.
Novogratz is the founder and chairman of the non-profit organization “Beat the Streets.” However, occasioned by the huge impact of FTX crisis on the wealth of Mike Novogratz, no credible source can give a reliable figure about his exact net worth for now.
Nevertheless, multiple sources have over time, estimated his net worth to be between $1.5 billion to $2 billion. As of December 2022, the net worth of Mike Novogratz was estimated to be around $1.8 billion. According to our findings, he lost 66% of his net worth as a result of FTX’s collapse. His firm, Galaxy Digital lost $77 million to the demise of the crypto exchange as well.
Mike Novogratz made his first entering into the billionaire gathering in 2007. Then, Forbes listed him on the list of billionaires. He was ranked 317th after recording a $1.5 billion net worth. By 2008, his net worth recorded a massive fall following the decline in the stock of Fortress.
While addressing the New York Magazine in 2021, he unraveled how he got 85% of his wealth from cryptocurrency. He added, “it’s just that cryptos had a move that is a once-in-a-generation move, and I think people should understand that it’s not going to keep happening over and over.”
Mike Novogratz‘s Net Worth & Background
| Net Worth | $1.5 billion – $2 billion |
|---|---|
| Date of Birth | November 26, 1964 |
| Gender | Male |
| Profession | Investment Banker |
| Nationality | American |
Early Life
Mike Novogratz was birthed on November 26, 1964. He grew up in Alexandria, Virginia. His father, Robert Snr was a West Point football lineman with an incredible career. Novogratz followed in his father’s footsteps by dabbling into wrestling while at high school. On numerous occasions, he emerges as the runner-up in the school’s wrestling competition. At a time, Novogratz served as the captain of Princeton Wrestling.
Thereafter, he qualified for the National Collegiate Athletic Association (NCAA) wrestling championships in 1986 and 1987 (both at 150 pounds (68.0 kg)). His success as an amateur wrestler included a qualification to the round of 16 in the winners bracket. Although, he was later eliminated from the consolation bracket during the NCAA wrestling championship of 1987.
In 1987, Novogratz graduated from Fort Hunt High School bagging A.B. in economics. According to our findings, his journey to the billionaire league started coming to life after a brief stint in the New Jersey National Guard. There, he worked as a helicopter guard. In 1989, he moved to Goldman Sachs as a short-term bond salesman before moving to Tokyo in a similar capacity.
He lived in Tokyo for seven (7) years, working in various capacities for the organization. The height of his success with Goldman Sachs was his election as the President of the organization in Latin America. He was also elected as the head of fixed income, currencies, and commodities risk in Asia.
Fortress Investment Group
He joined the likes of Wesley Edens, Robert Kauffman, Randal Nardone, and Peter Briger, Jr at Fortress Investment in March 2002. During his time there, he served as Co-Chief Information Officer of Macro Funds at Fortress Investment Group LLC. Later on, he became the principal director of Fortress Credit Corporation in 2006.
It is worth noting that Fortress Investment Group has been in existence since 1998. With the arrival of Mike Novogratz, Fortress expanded into a hedge fund, real estate-related, and debt securities firm. This arm of the organization fell under the leadership of Mike Novogratz and Pete Briger who were former employees of Goldman Sachs. The firm enjoyed rapid and substantial growth under the duo. Then, its private equity funds netted 39.7%.
Additionally, the organization went public on February 9, 2007, via an initial public offering. It sold an 8% share to the public for $600 million. The firm set a record as the first largest private equity firm in the United States to be traded publicly with Goldman Sachs.
Meanwhile, Mike Novogratz made his first appearance on the Forbes billionaire list at the peak of Forest Investment Group. In September 2007, Novogratz was listed as 317 on the Forbes list with a net worth of $1.5 billion. The following year, he ranked 962 with a net worth of $1.2 billion.
The stock price of the firm soared massively, going as far as $35. However, the stock dipped in late 2008 to $1.87. The free-fall was triggered by the suspension of withdrawals by Novogratz’s Drawbridge Global Macro fund. By 2012, his net worth went as low as $500 million due to the decline of Fortress’ stock price.
The struggles of the firm fetched some top executives of the organization some unwanted records. Forbes listed Wesley Edens alongside two other Fortress Investment Group as the “biggest billionaire losers of 2008.”
Fortress almost went down the radar after Novogratz and his colleagues lost millions of dollars betting on the Swiss franc and Brazilian assets. Shortly after, Novogratz left the firm.
Galaxy Digital
Initially, Novogratz planned to establish a crypto investment organization named Galaxy Digital Assets Fund. The plan failed to manifest due to unfavourable market conditions. Finally, Mike Novogratz was able to establish the firm in January 2018.
The firm focused on institutionalizing the blockchain sphere and providing principal investment, asset management, and consultancy. During its first year, the firm recorded a loss of $272.7 million, alongside $136 million in crypto trading deficits in its first nine (9) months.
Despite the poor performance in its first operational year, Galaxy Digital recorded a huge boost in the following year. Its revenue went up by 75% due to the healthy condition of the crypto market at that time. During this period, Galaxy Digital grew massively, and at the end of the year, it saw a rise in patronage, recording over $407.4 million worth of virtual assets under its care.
While enjoying a rebounding crypto market, Galaxy Digital under the guidance of Mike Novogratz made moves towards expansion. The firm unveiled a strategy for CI Galaxy Bitcoin Fund; a Canadian closed-end investment fund created in partnership with CI Global Asset Management. It started trading on the Toronto Stock Exchange in December.
Meanwhile, in November 2018, Galaxy Digital made a move to initiate its real estate tokenization outlet. In line with that move, the company hired Ian Taylor, an erstwhile Goldman Sachs real estate broker. In 2021, the firm eventually made its move towards digital real estate after investing in Republic Realm.
Galaxy Digital in 2021 made significant progress after graduating from the Toronto Stock Exchange’s TSX sandbox. The platform is a regulatory simulation outlet for firms “that may not generally satisfy the requirements and guidelines of TSX.” Ever since, its shares have been trading on TSX.
In 2022, the firm recorded a massive loss owing to its exposure to Terra UST project and FTX. Recall that both Terra UST project and FTX crashed in 2022, plunging the industry into a bad market condition. The impact of the contagion forced Galaxy Digital to report losses in its 2022 Q2 report and further reduced the net worth of Mike Novogratz.
Mike Novogratz’s Mansions
The crypto mogul didn’t invest much in Real Estate, at a time, he lived in the Meatpacking District in Manhattan, New York City. In 2006, Novogratz bought actor Robert De Niro’s Tribeca duplex in Manhattan for $12.25 million. Novogratz and his wife also own a residence in Amagansett, New York.
Is Mike Novogratz Pro Crypto?
We can regard Mike Novogratz as a staunch advocate and evangelist of cryptocurrencies. Over time, he leveraged his influence as a notable figure in the industry to promote and drive the adoption of cryptocurrencies.
In one of his interviews in 2021, Novogratz was quoted saying, “There’s been a giant realization that crypto is not just Bitcoin being bought as a hedge against bad monetary and fiscal policy. More importantly, it’s the web 3.0. No investor wants to miss the next internet.”
In another interview, he urged investors to tap into the trends in the crypto world. According to him, “the amount of growth that we’re going to see in our space is staggering. We’re just getting started. Right now, total crypto wealth is roughly $2 trillion, so that’s one half of 1% of all wealth. If you don’t think in the next two to three years that can be 2% to 3%, you’re not paying attention to the trends.” These are just a few of the numerous remarks of the Novogratz on cryptocurrencies.
In recent times, Novogratz has deepened his love for crypto by promoting several projects. Although, one of the projects he promoted crashed, thereby making him a subject of numerous controversies. The project, Terra UST was one of Novogratz’s favourite cryptocurrencies. The Galaxy Digital owner promoted the project to the extent that he inscribed its logo on his left bicep.
Our background check on his Twitter account showed that he talked about the project up to 30 different times. At a time, he described it as “a horse to ride.” In 2021, he posted this: “To be clear, I think the $Terra ecosystem that @d0h0k1 is building is one of the most interesting things to follow and invest in globally.” Certainly, some of his posts about the project convinced many to invest in the project.
$LUNA is rocking. @junparked @baekkyoumkim @stablekwon pic.twitter.com/BSqfXlnwyH
— Mike Novogratz (@novogratz) November 3, 2021
However, in mid-2022, investors were left counting their losses after Terra UST recorded an unprecedented crash. According to findings, over $40 billion USD was lost in the crisis, thereby plunging the industry into a bear market.
As an investor in the project, particularly through his Galaxy Digital firm, Mike Novogratz lost billions of dollars, thereby impacting its 2022 net worth. Meanwhile, the crash heightened the call for stricter regulation of the industry. Also, it birthed several criticisms for Novogratz. In reaction to the crisis, he wrote, “My tattoo will be a constant reminder that venture investing requires humility.”
Beyond Cryptocurrencies, Novogratz also support NFT projects. He has, over time, flaunted the potential of the digital collectibles. At the 2021 NFT.NYC conference, he tipped NFTs to completely transform the way we interact in 10 years.
Mike Novogratz added that NFTs “don’t necessarily only have to be art. It’s just a non-fungible token that can have personal data on it. It can be money like bitcoin. It can be Quentin Tarantino’s scripts, gorgeous art or even someone’s song. It’s something digital [that] you can’t counterfeit and you know it is unique because it’s on the blockchain.”
In one of his interviews, he was quoted saying “Our [digital] wallets are going to be like our bank accounts. They’re going to have our healthcare records, our Bitcoin, our NFTs and our opera tickets. That’s the future we’re going towards and it’s happening faster than most of us can imagine.” Although Novogratz sees BTC and ETH as a better investment than NFTs.
Crypto and NFT Holdings of Mike Novogratz
As a staunch believer in the potential of cryptocurrencies, Mike Novogratz has a personal crypto portfolio. Although, as of the time of writing, the exact value or worth of his crypto portfolio is not in the public domain. But, we rely on the information he relayed about it in 2017.
Mike Novogratz in the interview said 20% of his net worth are in BTC and ETH. This thus means the Digital Galaxy CEO is in the list of famous Bitcoin investors around. Also, Mike Novogratz once boasted that he gained over $200 million of his net worth from his crypto investment, which consequently grew his net worth.
Prior to the collapse of Terra project in 2022, Novogratz certainly held the token in his crypto portfolio. Beyond his personal investment in the token, his company, Galaxy Digital also had $25 million exposure to the token. The collapse of the project contributed to the losses recorded by the firm in Q2 of 2022. According to Bloomberg Billionaires Index, the loss reduced the net worth of Mike Novogratz to $2.1 billion at that time.
Apart from cryptocurrencies, he also owns some NFTs in his portfolio. Although, information about the overall value of his NFT holdings is not in public domain. But, certainly, he is an investor in NFTs. At a time, he purchased CryptoPunks and flaunted it on social media.
Also, Novogratz leveraged his firm, Galaxy Digital to enter into the NFT ecosystem. Recently, he launched an NFT collection through the crypto firm. The collection was unveiled as $GLXY.
We started a $GLXY NFT collection. And yes, finally bought a punk! pic.twitter.com/CkyivRKix9
— Mike Novogratz (@novogratz) November 5, 2021
Similarly, a subsidiary of Galaxy also completed over $300 million for its NFT gaming project. It is worth noting that Mike Novogratz’s investment in the NFT sector is not limited to his firm, Galaxy Digital. In mid-2021, he became a co-founder of an NFT startup, Candy Digital. All these indicate the Galaxy Digital owner as an influential investor in the NFT industry.
Crypto Projects featuring Mike Novogratz
As of the time of writing, Mike Novogratz is yet to feature in any crypto project. However, he will soon feature on Wall Street Memes, like Sam-Bankman Fried, Changpeng Zhao, and others. Wall Street Memes might not be a new project but its popularity has, in recent times, been fueled by these exciting memes. Today, it enjoys the backing of an active social community on Twitter and Instagram. Wall Street Memes has a native meme coin token, $WSM. Currently, the token is at its presale stage and has recorded an overwhelming amount of funds raised. This success earned Wall Street Memes a place on the list of flourishing crypto presales. Participating in this presale is easy. Just visit wallstmemes.com.
Ongoing Lawsuit against Mike Novogratz and Galaxy Digital
Our findings show that there is an ongoing lawsuit against Novogratz and his crypto investment firm, Galaxy Digital. The lawsuit was filed by BitGo, a leading custodian of virtual assets in late 2022. In the filing, Novogratz’s Galaxy Digital was accused of abandoning its negotiation to acquire the digital asset custodian without following due diligence.
Late yesterday, BitGo filed a lawsuit against Galaxy Digital seeking damages of more than $100 million arising from Galaxy’s improper repudiation and intentional breach of its merger agreement with BitGo.
— BitGo (@BitGo) September 13, 2022
Recall that Galaxy Digital had earlier shown interest in purchasing Bitgo in a proposed $1.2 billion deal. Talks on the proposed deal commenced in 2021 and lingered till 2022 without any positive resolution. In late 2022, Galaxy Digital decided to call off the proposed deal, saying Bitgo had defaulted on one of the agreements by failing to submit its audited financial statement for 2021 on time.
In reaction, Bitgo headed to Delaware’s Chancery Court to file a lawsuit against Galaxy Digital and Novogratz. The firm employed Quinn Emanuel, a leading law firm to handle the case. Bitgo in the filing accused the defendants of “improper repudiation and intentional breach” of its merger deal. By virtue of this, Bitgo wants the court to direct Galaxy Digital and its executives to pay $100 million in damages for terminating the deal abruptly.
Novogratz, however, defended his company’s decision to call off the deal. Then, he maintained that the merger agreement empowers Galaxy Digital to call off the deal after Bitgo failed to provide the necessary documents. The billionaire CEO rubbished the lawsuit filed by the digital asset custodian, saying the allegation lacks merit and substance. He affirmed the commitment of the firm to fully defend its position in the Court.
At the moment, the legal battle is still ongoing and there is no end in sight at any time soon. Meanwhile, many believed Galaxy Digital and Novogratz halted the acquisition deal owing to the financial turmoil recorded by the firm in 2022. Recall that the crypto investment firm had exposure to the collapsed Terra UST project.
According to findings, the firm invested more than $20 million in the project, whose collapse, left thousands of investors in dilemma. Following the crisis, Galaxy Digital posted a $554 million loss in its Q2, 2022 report. With the loss report coming barely a week before the termination of the deal with Bitgo, it is believed the firm took the decision due to financial constraints.
There are possibilities that the case might later end up like that of Twitter. Recall that the executives of the social networking firm headed to Court after Elon Musk called off the acquisition deal. Musk’s also cited a breach of agreement as his reason for abandoning the $40 billion deal.
In a lawsuit by the executives, they urged the Court to direct payment of damages by Musk for calling off the deal. After a while, the saga took a new dimension as Elon Musk decided to return to the negotiation table with the Twitter board, thereby leading to the completion of the takeover deal.
Novogratz and his firm, Galaxy Digital might need to return to the negotiation table with Bitgo or risks losing $100 million in damages to the digital asset custodian. Against all odds, it is worth mentioning that the outcome of the lawsuit will slightly impact the financial status of Galaxy and the net worth of its CEO, Mike Novogratz.
Mike Novogratz’s Net Worth – Our Verdict
We have been able to break down the net worth of Mike Novogratz, with key emphasis on his assets and investments. Our findings show that the billionaire has amassed a part of his net worth through his investment in his crypto investment fund, Galaxy Digital.
However, it is not in doubt that the firm is currently facing a legal battle over its decision to halt the acquisition of Bitgo. There are possibilities that both firms might consider out of court settlements in resolving their differences. But, should the lawsuit be allowed to continue, its outcome will slightly impact the future net worth of Galaxy Digital and Mike Novogratz.
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FAQs
Is Mike Novogratz Pro Crypto?
Yes. Mike Novogratz has never hidden his admiration for cryptocurrencies. According to sources, he holds a significant amount of BTC and ETH in his portfolio. In one of his interviews, Novogratz hinted that 20% of his net worth are in BTC and ETH.
What is the relationship between Mike Novogratz and Galaxy Digital?
Mike Novogratz is the founder of Galaxy Digital. The firm came into the limelight to institutionalize the blockchain sphere and provide principal investment, asset management, and consultancy. During its first year, it recorded a loss of $272.7 million, alongside $136 million in crypto trading deficits in its first nine (9) months.
Did Mike Novogratz ever promote the Terra project?
Yes. Mike Novogratz was a major promoter of the Terra Luna and UST project before its demise in 2022. As a matter of fact, he designed the logo of the project as a tattoo on his left bicep.
