Galaxy Digital Receives SEC Green Light for Nasdaq Listing, Shareholder Vote Set for May 9
Galaxy Digital, the crypto and artificial intelligence infrastructure firm led by CEO Mike Novogratz, has received approval from the US SEC
Live BTC/USD Chart
Galaxy Digital, the crypto and artificial intelligence infrastructure firm led by CEO Mike Novogratz, has received approval from the U.S. Securities and Exchange Commission (SEC) for its planned listing on the Nasdaq stock exchange. The company, currently listed on the Toronto Stock Exchange (TSX), is preparing to relocate its headquarters from the Cayman Islands to Delaware as part of this significant transition.
“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!” Novogratz announced on social media following the SEC’s decision.
Reorganization and Shareholder Vote
To ratify the reorganization, the firm has set a special shareholder meeting for May 9. Should approval be granted, Galaxy Digital intends to list on Nasdaq under the ticker “GLXY” shortly later; the change is scheduled to be finalized by mid-May.
File documentation state that all present Class A ordinary shares will convert on a one-for–one basis into Class A common stock “without redemption or cancellation,” under the reorganizing plan. Galaxy will keep twin listings on Nasdaq and the Toronto Stock Exchange for a transitional period.
After the restructure, Novogratz will keep control of the business with about 60% of voting power. The proposal also removes present limits on the voting rights of U.S. shareholders, hence perhaps increasing the company’s investment base.
Current Market Performance
After market closure on April 7, Galaxy Digital’s share price on the TSX dropped 8%. Trading at CA$12.30, or around US$8.70, First listed in July 2015, the stock peaked on November 12, 2021, during the last crypto bull market at about CA$50 (approximately US$35).
The action follows Galaxy’s agreement to pay $200 million in a settlement pertaining to claims of Terra’s (LUNA) advertising being responsible for their collapse. This decision removes one possible roadblock to their goals for U.S. growth.
Why Delaware?
Galaxy clarified in its March 27, SEC Form S-4 filing that Delaware was chosen because it offers “a favorable corporate environment” which would enable it “compete more effectively with other publicly traded companies.” Delaware is the “choice of domicile for many publicly traded corporations,” the company said, and has enough of case law to help interpret local corporate rules.
Galaxy also mentioned Delaware legislators’ regular changes to the Delaware General Corporation Law (DGCL) to suit modern technological and legal trends as another influence in their choice.
Industry Context
Galaxy Digital joins several crypto companies already on the Nasdaq, including Coincheck Group, the parent company of Japanese crypto exchange Coincheck, which debuted on December 11. Following discussions with authorities at the Nasdaq in March and the New York Stock Exchange, Bitcoin-oriented investment company Metaplanet has also been looking at possible U.S. listings.
The company’s development reflects rising institutional demand for controlled crypto products and services in the American market. Galaxy invests in and runs data centers supporting artificial intelligence and high-performance computing in addition to offering institutional services in crypto trading, asset management, and tokenizing.
“This marks an important milestone for Galaxy, as we take a significant step toward advancing our mission of driving innovation and growth across digital assets and artificial intelligence infrastructure,” Novogratz said in the official business announcement.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Related Articles
Comments
Sidebar rates
Related Posts
Save
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals