Cryptocurrencies

Galaxy Digital ditches EOS as part of portfolio rebalance

Galaxy Digital has sold its shares in EOS developer Block.One for a staggering $71.2 million in what CEO Mike Novogratz described as an attempt to “rebalance our portfolio”.

After the firm experienced losses of $272 million in 2018, Galaxy Digital accepted an EOS tender offer back in April, staking $32 million. Just over a month later, the crypto merchant bank has realised a 123% return on its initial investment following bullish price action.

“Took profit to rebalance our portfolio,” said Galaxy Digital CEO Michael Novogratz after the $40 million net gain.

Last month, Novogratz said that Bitcoin’s upside potential remains strong, and long-term investors would be smart to allocate a small percentage of BTC in their portfolio. Since then, he has been proven correct following Bitcoin’s market gains, but the sign of an EOS sell-off may be indicating that the so-called ‘alt-season’ was short-lived this cycle and may now even be over.

Still backing the Proof-of-Stake consensus blockchain

Despite Galaxy Digital deciding to sell its stake in EOS, Novogratz has come out to back the decentralised project and its burgeoning dApp ecosystem, saying that Galaxy Digital is still “a large holder of EOS tokens” and will remain as “shareholders in Block.One”.

Novogratz also added that he is looking forward to the project’s “June announcement” and he still has strong belief in the leadership of Block.One CEO Brendon Blumer and technical whiz Daniel Larimer.

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Nawaz Sulemanji

Nawaz has been hooked on crypto since buying his first Bitcoin’s in 2013. After studying maths in London, Nawaz initially spent the first eight years of his career working globally across corporate supply chain’s before transitioning into the decentralised finance industry as a margin-trader and consultant. He’s a fan of open-blockchains because “it enables self-sovereignty”.