Crypto Billionaire Mike Novogratz Buys Galaxy Shares Amid Tech Rout

Dow Jones11-06

Crypto billionaire Mike Novogratz said Thursday that he's buying more shares of his company as a broad tech sell-off batters the stock.

Galaxy Digital, the crypto financial services firm founded by Novogratz, expanded into the AI data-center business over the past few years. The company has a data-center campus in West Texas and has already leased capacity under long-term contracts to AI cloud providers.

Shares of Galaxy have plunged around 17% this week. On Tuesday, Democrat Gina Hinojosa defeated Republican incumbent Greg Abbott in the Texas gubernatorial election. Hinojosa has opposed the rapid expansion of data centers and pledged a moratorium on new construction.

"The blue wave has weighed on companies like ours. I get it. But let's not confuse politics with long-term fundamentals," Novogratz said in a post on X. "We've worked with legislators and local communities there for years, and we'll keep doing that with the new administration."

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