I wonder if we will ever find out eventually who it was?
That whale sold 80kBTC through Galaxy Digital, meaning Galaxy has all the details about that whale's identity. Because they are a New York based financial company, they comply with legal regulations such as AML. They will not help someone sell bitcoins if they do not know the origin of those bitcoins and the identity of the owner. So I believe we have a chance of knowing the identity of that whale, which will be revealed at some point in the more distant future, not now.
By the way, I also believe this is the reason why bitcoin price corrected to $115,000 last week.
It's actually a shell company registered in the Cayman Islands, with its main office listed in NYC. The company was created from a Reverse Takeover, which is when you buy a bankrupt company already listed on the stock exchange, so you don't need to go through the scrutiny of an IPO....
Just examine their financial statements from 2018, it's hilarious...... Whoever sold these BTC, more than likely got robbed in the process but you'll never know....
https://s201.q4cdn.com/407453138/files/doc_financials/2018/q3/Galaxy_Digital_Holdings_Ltd._FS_Q3_2018.pdfBased on the financial statements provided, there are several items that are not just suspicious, but are major red flags that point to a very specific and complex corporate event. This isn't a normal operating company's report; it's the financial footprint of a Reverse Takeover (RTO).
Here's a breakdown of the suspicious and highly unusual elements, from most to least critical:
Executive Summary: What Happened Here?
These financials don't show a company's normal operations. They show a publicly-listed shell company, Bradmer Pharmaceuticals Inc., being used as a vehicle for a large, private cryptocurrency firm, Galaxy Digital LP, to go public without a traditional IPO. The 2017 figures represent the old, mostly inactive pharma shell, while the 2018 figures represent the new, transformed entity. The "suspicious" elements are hallmarks of this type of complex transaction.
Key Suspicious Points and Red Flags:
1. The Complete Transformation of the Business (The RTO)
The Evidence: The company’s name changed from "Bradmer Pharmaceuticals Inc." to "Galaxy Digital Holdings Ltd." (Note 1). The entire business model changed from pharmaceuticals to a "full-service merchant banking business in the cryptocurrency and blockchain space."
Why it's Suspicious: This is the single most important event. A company doesn't just switch from pharma to crypto. This was a planned transaction where the private Galaxy Digital essentially "bought" the public listing of Bradmer. The history and financials of Bradmer from 2017 are almost completely irrelevant for understanding the new business. RTOs are often used by companies to get a public listing faster and with potentially less scrutiny than a formal IPO.
2. The Holding Company Structure is a Shell
The Evidence:
Balance Sheet: As of Sept 30, 2018, the public company (GDH Ltd.) has
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0 in Liabilities. Its only significant asset is a $218.8 million "Investment in associate."
Income Statement: The company has no real operations. Its administrative expenses are paid for by its associate ("Recoveries from associate" of $254,557).
Why it's Suspicious: Public shareholders own stock in GDH Ltd., but this company does nothing. It is a pass-through entity. All the business, all the risk, and all the operations happen in a separate entity, GDH LP, which the public company only has a 22.5% minority stake in (Note 5). You aren't investing in the company on the stock exchange; you're investing in a holding company that owns a piece of the real company.
3. Massive Losses in the Underlying Business
The Evidence: The public company's loss is driven entirely by its share of the associate's loss. Note 5 shows the "Equity loss from associate" was $16 million for the three months ended Sept 30, 2018.
The "Summarized Statements of Comprehensive Loss" for the actual operating business (GDH LP) are staggering:
Loss for the nine months: $175.7 million
Loss for the three months: $76.7 million
Why it's Suspicious: The company went public via this complex RTO and was immediately hemorrhaging money at the operational level. This reflects the "crypto winter" of 2018, but it's a massive loss for a newly public entity to be reporting.
4. The Confusing and Potentially Dilutive Share Structure
The Evidence: Note 4 and Note 9 describe a complex structure with Class A and Class B units.
The public company (GDH Ltd.) holds Class A units.
The insiders and original owners (like CEO Michael Novogratz's entity, GGI) hold Class B units.
Crucially, Class B units are exchangeable for the publicly traded shares of GDH Ltd.
Why it's Suspicious: As of Sept 30, 2018, there were ~62.6 million public shares outstanding. However, there were 248.2 million Class B units outstanding (Note 9). This represents a massive overhang of potential dilution. If the insiders decide to exchange their units for public shares, the value of the existing public shares could be significantly diluted.
5. Concentration of Control and Related-Party Issues
The Evidence:
The CEO of the public company (GDH Ltd.) controls the General Partner of the operating partnership (GDH LP) and is also its majority owner (Note 1, Note 6).
The public company only gets to appoint one person to the board of the operating partnership's general partner (Note 4).
Why it's Suspicious: There is a significant conflict of interest. The CEO effectively controls both the public holding company and the private operating company. Decisions can be made that benefit the insiders (Class B unitholders) at the expense of public shareholders (Class A unitholders via GDH Ltd.). Public shareholders have very little power here.
6. The Cash Flow Statement Tells the Whole RTO Story
The Evidence: The cash flow statement for the nine months ended Sept 30, 2018, is a perfect circle:
Financing: Raised $238.4 million from issuing stock (less $9.9 million in costs).
Investing: Immediately used that cash ($229.2 million) to buy the "Investment in associate."
Result: Net decrease in cash of $318,879, leaving a final cash balance of $0.
Why it's Suspicious: This clearly shows the public company was just a conduit. It raised money from the public and immediately funneled it into the private operating partnership controlled by the insiders, leaving itself with no cash to operate (because, as noted, the partnership pays all its bills).
Conclusion: Is it "Suspicious"?
Yes, absolutely. Not necessarily in the sense of being illegal or fraudulent, but in the sense that these are the financial statements of a highly complex, high-risk, and insider-controlled entity that has just gone public through the "back door" via a reverse takeover.
An average investor looking at these statements without understanding the RTO structure would be completely misled. They might think they are buying into a $218M company, without realizing it's a minority-stake holding company with no operations, no cash, no control, and massive potential for share dilution, all while the underlying business is losing huge amounts of money.