Galaxy Digital Acquires Nearly $1 Billion in Ethereum in Deal with CryptoManufaktur

Galaxy Digital Holdings, a digital asset financial services company, has replenished its coffers with nearly $1 billion in ETH staked, just days before the spot Ethereum ETFs are should start to be negotiated in the USA

The company, owned by Michael Novogratz, said in a statement Friday that it took possession of the tokens in its acquisition of node operator CryptoManufaktur (CMF). It did not disclose terms of the deal.

This acquisition increased the total percentage of crypto tokens staked by Galaxy Digital by approximately 43%.

“Galaxy is rapidly expanding its staking capabilities and ability to provide enterprise-grade technical expertise and support to strategic sectors of the digital asset ecosystem,” Zane Glauber, who leads Galaxy’s blockchain infrastructure team, said in the statement Friday.

Galaxy Digital’s purchase of CMF brings its total assets at stake to approximately $3.3 billion, according to the company’s statement. Galaxy Digital did not immediately respond to a request for comment. Decryptrequest for comments on the terms and timing of the agreement.

ETFs Drive ETH Staking

Galaxy Digital’s move into CMF’s staked Ethereum tokens comes as U.S. regulators appear set to greenlight the first batch of spot Ethereum ETFs for trading next week.

It’s a development that could bring big returns to token holders: Bitwise’s chief investment officer Matt Hougan predicted Wednesday that fund approvals could push ETH price to $5,000.

Speculation that the price of ETH will skyrocket in the near future has led to a broader increase in the number of tokens locked on the Ethereum network. At the time of publication, over 33 million Ethereum tokens (worth $114 billion), or approximately 27% of the total ETH supplyis put into play and earns rewards, as shown by Coinbase data.

Edited by Andre Hayward

Editor’s note: This article was updated after publication to clarify that the acquisition increases Galaxy’s total staked crypto assets by 43%, not just Ethereum tokens.

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