Terry Gou, the billionaire chief of Taiwanese electronics giant Foxconn, is said to have invested in a cryptocurrency merchant bank being set up by Mike Novogratz, a former Wall Street macro hedge fund manager.
Citing a source familiar with the matter, Bloomberg reported that Novogratz has raised about US$250 million for his cryptocurrency merchant bank venture through a private placement.
Foxconn’s Gou is among those who took up some shares, according to the report.
Novogratz was able to raise capital for his firm, Galaxy Digital, even as bitcoin and other crypto units suffered steep falls in prices recently after a stupendous rally last year.
His New York-based merchant bank plans to trade crypto as well as make principal investments, manage assets for other clients and provide advice on blockchain-related ventures, according to Bloomberg.
Investors committed to buy shares of the firm through a holding company that eventually will trade on Toronto’s TSX Venture Exchange, the report said.
According to Bloomberg, Galaxy is raising money privately as part of a series of transactions that will allow it go public without disclosing financial statements. The process also involves a reverse takeover of a Canadian shell company, Bradmer Pharmaceuticals.