Novogratz on selling EOS shares: "Took profit to rebalance our portfolio"

23 May, 2019
News
Novogratz on selling EOS shares: Took profit to rebalance our portfolio

Following the new yesterday that Galaxy Digital sold their shares in EOS developer Block.One for a staggering $71.2 million, CEO Michael Novogratz commented on the reason for selling. 

Galaxy Digital CEO Michael Novogratz has explained the reasoning behind the massive $71.2 million sell off of Galaxy Digitals EOS shares. The news yesterday came as a surprise to many following the companies continued backing of EOS. 

Galaxy Digital accepted an EOS tender offer back in April, reports NewsWire. The transaction was closed on May 20th, with Galaxy Digital realizing a 123% return on its initial investment. Galaxy Digital therefor no longer has a material investment position in Block.One.

Novogratz stated that the reason for selling the shares was simply a matter of taking profit and rebalancing the books - "The acceptance of Block.one’s tender offer reflected a decision to rebalance the portfolio to maintain an appropriate level of diversification after the position increased due to its substantial outperformance relative to the remainder of the portfolio."

Novogratz also made it clear that Galaxy Digital is still heavily vested in Block.One, saying "We continue to work closely with Block.one as a key partner across a number of our business lines, including the Galaxy EOS VC Fund, which invests in companies building on the EOS.IO protocol, and remain excited about the EOS.IO protocol."

Novogratz continues to support the EOS ecosystem and while the sale of Block.One shares may seem troubling to many, the simple truth is that Galaxy Digital were taking profits off the table, following the bear market that saw the company lose $272 million in 2018 

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