Bloomberg Talks: Galaxy Digital Founder & CEO Mike Novogratz Talks Cryptocurrency, Bitcoin

Date: February 3, 2026
Host: Bloomberg
Guest: Mike Novogratz, Founder & CEO of Galaxy Digital

Episode Overview

In this episode, Bloomberg hosts interview Mike Novogratz following Galaxy Digital's earnings report amid a sharp drop in cryptocurrency markets. Novogratz discusses the state of the crypto market, Galaxy's strategic pivots, the outlook for regulation, and the evolving landscape of prediction markets and digital assets. Throughout, he maintains his trademark candidness—balancing realism about current market pain with optimism for the industry's future.

Key Discussion Points & Insights

1. Crypto Market Downturn and Galaxy Digital’s Results

• Galaxy Digital’s Stock & Losses:

  • Kicked off with Galaxy shares down ~15% after a nearly $500M loss due to the crypto crash and 40% drop in trading volumes.
  • [00:42] Mike Novogratz: “Unfortunately, unfortunately, fortunately, that’s true.” (On pain being endemic to the industry)

• Market Bottom & Range:

  • Uncertainty about when the market will bottom, but Novogratz suggests Bitcoin’s new range is between 70K-100K, currently near the bottom.
  • [00:47] Mike Novogratz: “I look at the chart, 70 to 100 is probably the new range. And, you know, we’re at 76. So I think we’re towards the bottom end… There’s a lot of pessimism out there.”

• Why the Drop?

  • Despite bullish macro indicators (gold, Nasdaq, lower rates, pro-crypto Trump administration), bitcoin still fell, confounding expectations.
  • Novogratz argues profit-taking after the 100K milestone and a “seller’s virus,” not quantum concerns, are the primary reasons for the sell-off.
  • “Bitcoin was not supposed to act like this… there’s been kind of like a seller’s virus.”

• Market Maturity:

  • The ecosystem is only about 16 years old, and still immature, leading to volatility and overreactions.

2. What Could Turn the Market Around?

• Catalysts for Recovery:

  • [02:51] Discussion on potential catalysts:

    • Passage of the market structure bill
    • Change in expectations around new Fed chair Kevin Warsh (currently perceived as more dovish than many believe)
    • Massive leverage already removed from the system

  • [03:02] Mike Novogratz: “Part of this acceleration recently, downwards, is the thought that Kevin Warsh is going to be very hawkish… but I do think, listen, he took out the tail risk, which is a good thing for America and not necessarily a good thing for gold, silver or bitcoin.”

3. Galaxy Digital’s Strategic Response

• New Hedge Fund & Business Focus:

  • Despite the downturn, Galaxy is launching a $100M fintech hedge fund, focused not just on crypto tokens but the whole digital ecosystem, and especially infrastructure.
  • Data Center Boom:
    • The data center segment now outperforms the crypto side.
    • [04:24] Novogratz: “We have this data center business, which is booming, thank God… that part of the business is really exciting. We’re leaning into it.”
  • Opportunities for partnerships with traditional finance, especially around digital wallets, staking, and tokenization of real-world assets.
  • “I haven’t seen more excitement since I started from the traditional players to get engaged in digital assets.”

• Spin-off or Sale of Data Centers?

  • Novogratz not eager to sell or spin off yet, given their recent 530MW Texas approval—the largest in the US for some time.
  • [06:50] Novogratz: “We are in the build mode on the data center business. We just got 530 megawatts of power approved down in Texas… I couldn’t be more excited about that.”
  • Will consider restructuring if it maximizes shareholder value.

4. State of the Crypto Market: “Crypto Winter”

• Bear Market Realities:
  • [08:06] Novogratz: “We were at 130,000 and we’re now at 76,000… That’s way through bear market and that feels awfully chilly. My question is, when is spring coming?”
  • Maintains hope that recovery is closer (“closer to spring than… the start of winter”).

5. Regulatory Outlook: The Crypto Market Structure Bill

• Sticking Points: Yield on Stablecoins

  • Banks have lobbied effectively against allowing stablecoin accounts to earn rewards, stoking Congressional fears of deposit flight from community banks.
  • [08:51] Novogratz: “It’s not a real story, but why not? It’s working. …Banks are strong in the lobby and… both Democrats and Republicans… are siding with big banks and not… the consumers.”

• Path to Compromise:

  • Expects a political compromise, given bipartisan stakes and increasing pressure from the crypto lobby (notably a $190M ‘bazooka’ PAC).
  • [11:09] Novogratz: “I think this is, you know, two weeks, it’s six weeks. And I think my hope is we have something done.”

6. Prediction Markets & Galaxy’s Involvement

• Regulation and Innovation:

  • The CFTC is trying to balance incumbent gambling and sports betting industry interests with the innovative drive of prediction markets.
  • [12:07] Novogratz: “I think the industry, not the prediction market industry, but the sports betting industry, the gambling industry, got caught off guard at the cftc… And so since then, there has been a furious lobbying effort by the casinos and the sports betting places to say, that’s not fair.”
  • New players like Polymarket (with big investments like ICE’s $2B) are rapidly growing, underscoring the industry’s momentum.

• Galaxy’s Approach:

  • Did not invest in early prediction market players, but now exploring infrastructure, market making, and providing liquidity.
  • [13:40] Novogratz: “We want to look at infrastructure, we want to be market makers, we want to… be providers of liquidity. And we’re just getting started.”

• Competitive Landscape:

  • Large HFT and trading firms (Susquehanna, Jump, etc.) expected to provide deep liquidity as the market grows.
  • [15:05] Novogratz: “These high frequency traders… will trade anything that moves and they’re good at it. …If retail comes, there will be plenty of institutions to pick up their pennies and nickels.”

Notable Quotes & Memorable Moments

• Market Wisdom:

  • “Unfortunately, unfortunately, fortunately, that’s true.” (On pain being part of crypto; Novogratz, 00:42)
  • “Bitcoin was not supposed to act like this… there’s been kind of like a seller’s virus that got into the market.” (00:47)
  • “I think we’re closer to spring than we are to the start of winter.” (08:06)

• On Regulation:

  • “It’s ironic that Washington, both Democrats and Republicans, are saying… let’s side with big banks and not… our constituents, but that’s exactly what’s happening.” (08:51)
  • “My hope is we have something done.” (11:09)

• Galaxy’s Strategy:

  • “If I didn’t have the data center business, I’d feel a lot worse. But our data center business is now, you know, worth more than our crypto business.” (04:24)
  • “We just got 530 megawatts of power approved down in Texas… I couldn’t be more excited about that.” (06:50)

Timestamps of Key Segments

• Crypto Market Dynamics & Galaxy Losses: 00:07 – 02:51
• Catalysts for Recovery & Fed Insight: 02:51 – 04:03
• Galaxy’s Hedge Fund and Data Center Business: 04:03 – 07:53
• Are We in a Crypto Winter?: 07:53 – 08:31
• The Market Structure Bill & Regulatory Headwinds: 08:31 – 11:45
• Prediction Markets, Regulation & Galaxy’s Involvement: 11:45 – 15:36

Conclusion

Through a candid, deeply informed discussion, Mike Novogratz offers listeners a front-row seat to the turbulence—and ongoing evolution—in crypto. Despite significant losses and a bearish market, optimism comes through in his observations about the growth of the digital asset ecosystem, new financial infrastructure, and optimism about pending US regulatory clarity. Galaxy Digital, under his stewardship, is betting big on both digital asset innovation and the infrastructure powering it, ready for when “crypto winter” passes and spring arrives.