The crypto bank Galaxy Digital LP run by Mike Novogratz has recorded a 20% plunge in stock price at TSX.
According to the available data, the shares of Galaxy Digital LP was priced at CAD 2.75 per share ($2.11) at the trading start, but then their value collapsed by 20% just over an hour.
The crypto bank was listed on the exchange as Galaxy Digital Holdings Ltd under GLXY ticker. This is explained by the fact that the listing was realized via so-called reverse merger. In particular, facing the lack of 2-year audit needed for IPO in the USA, the management decided to buy crypto company Coin Capital and merged it with Canada’s Bradmer Pharmaceuticals that is already listed on the exchange.
For reference, the TSX platform is the leading stock exchange in Canada and the top-3 exchange in North America in terms of the market capitalization, following the New York stock exchange and NASDAQ.
It is worth mentioning that Galaxy Digital LP traded its shares at CAD 5 ($3.8) at the private listing in January.
The company faced heavy inspections by the Canadian authorities before its listing was green-lighted. As a result, the final schedule was changed from April till August.