Despite years of creative accounting and increasingly dubious complexity, he argues most crypto-native firms remain hopelessly entangled in Bitcoin’s love-hate saga. It’s the digital age’s most toxic relationship, and they can’t get enough.
Key Takeaways
- Crypto company revenues still dance to Bitcoin’s tune like it’s 1999-and the beat ain’t dying anytime soon.
- Even “diverse” crypto giants crumble during downturns because everything’s just a fee-for-fluff package deal.
- Galaxy Digital’s now playing data centers to dodge volatility like a crypto Kramer. Let’s see if it sticks.
- Despite recent stumbles, 2026 is practically a comeback tour if you like watching money do the cha-cha-ching dance.
In Novogratz’s view, crypto diversification is just a fancy buzzword for “we’re still clueless.” Even firms juggling asset management, trading, and staking are stuck in a tight-knit club where revenue and price swings share a bed-and a Tinder chat. This volatility fest is set to linger for years, like a bad DJ at a crypto mixer.
The illusion of diversification inside crypto
Novogratz insists the real problem isn’t balance sheets-it’s the entire business model. Imagine owning zero crypto but still getting whiplash when prices crash. Lower fees, weaker trades, and staking rewards suddenly feel poorer faster than a sugar-high toddler post-noon. It’s crypto’s version of Russian roulette, but the gun’s always loaded.
Crypto firms are fundamentally different from traditional banks, who kindly rely on lending and long-term contracts. Meanwhile, crypto’s accounting department is basically a Google Sheets filled with Bitcoin prices and existential dread. Downturns? Call it “economic acupuncture.”
Why Galaxy is leaning into infrastructure
To escape crypto’s rollercoaster (or at least get a seatbelt), Galaxy Digital is cozying up to data centers and servers. Who needs token prices when you can flip server racks? “steady demand tied to computing” now sounds like the chicken soup of blockchain.
Novogratz claims Galaxy’s infrastructure side is now roughly as valuable as its crypto obsessed self. Splitting into two companies isn’t outta the question, but let’s see if they can survive the messy custody battle that is crypto pivots.
Why he’s still optimistic on the cycle
Despite admitting crypto’s structural woes, Novogratz isn’t ready to throw in the towel. “Macro conditions” are suddenly his new mantra, especially if the Fed dusts off the “easy money” playbook. Lower rates and a tired dollar? More like holy water for crypto’s comeback.
He also notes crypto’s sad attempt to keep up with gold and silver, which have been partying harder since the ’70s. But hey, catch-up mode is just another phrase for “delayed egomaniacal ROI.”
The path forward
Right now, Novogratz sees no escape from Bitcoin’s gravitational pull. It’s crypto’s version of glitter-everywhere, unavoidable, and somehow the main character just adding chaos. But as infrastructure grows, who knows? Maybe Bitcoin’s chokehold will loosen faster than a hot crypto airdrop.
Until then, the industry remains a Bitcoin puppet show. Real independence? Still brewing in a digital tea kettle, 2020s-style.
WARNING: The above is about as financial advice as a pizza recipe from a squirrel in a Puma hat. Always consult a licensed adult before risking more than you’re willing to lose to a trust fund meme.
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2025-12-31 09:56