Strategic Expansion into Blockchain Infrastructure
Galaxy Digital, the publicly traded cryptocurrency firm led by Michael Novogratz, has announced the acquisition of nearly all assets of blockchain node operator CryptoManufaktur LLC (CMF). This strategic move aims to enhance Galaxy’s Ethereum staking capabilities and push deeper into blockchain infrastructure.
Details of the Acquisition
The agreement, revealed in a press release provided exclusively to CoinDesk, includes the acquisition of CMF’s operations, engineering teams, and associated assets. While the financial terms of the deal remain undisclosed, Galaxy’s serviced assets under stake will increase by approximately 43%.
Integration of CMF’s Team
As part of the acquisition, CMF founder Thorsten Behrens and his three-person engineering team will join Galaxy’s blockchain infrastructure team. This team is responsible for providing staking and blockchain validator services to qualified investors, protocols, and digital-asset platforms.
Background on CryptoManufaktur
Founded in 2020, CryptoManufaktur initially focused on building infrastructure for the blockchain oracle project Chainlink. It later expanded its operations to include automated proof-of-stake node deployment infrastructure on Ethereum. The acquisition includes around $1 billion worth of Ethereum assets under stake, bringing Galaxy’s total to $3.3 billion.
Expanding Blockchain Infrastructure
This acquisition marks a significant step in Galaxy Digital’s expansion into blockchain infrastructure. Traditionally known for its primary business lines in crypto trading and investment management, Galaxy is now solidifying its position in the technical and infrastructure sectors of the digital asset ecosystem.
Michael Novogratz, a well-known figure in the cryptocurrency industry and business media, continues to steer Galaxy Digital towards greater involvement in blockchain technology. Novogratz’s background includes significant roles at Goldman Sachs and Fortress Investment Group, which bolster his reputation and influence in the financial and crypto markets.
Enhancing Technical Expertise
Zane Glauber, head of Galaxy’s blockchain infrastructure team, emphasized the importance of this acquisition. “Galaxy is rapidly expanding its blockchain infrastructure and staking capabilities and capacity to provide enterprise-grade technical expertise and support to strategic corners of the digital-asset ecosystem. Our acquisition of CMF is an important milestone that significantly enhances our position as a leading technical partner to protocols and builders,” Glauber stated in the press release.
The acquisition of CryptoManufaktur’s assets by Galaxy Digital underscores the firm’s commitment to expanding its blockchain infrastructure capabilities. This move not only increases Galaxy’s Ethereum staking portfolio but also strengthens its technical expertise and support within the digital asset ecosystem. As Galaxy continues to grow, it positions itself as a key player in both the cryptocurrency trading and blockchain infrastructure sectors.
