TORONTO (December 16, 2020) – CI Global Asset Management (“CI GAM”) announced today that it has completed the previously announced initial public offering of CI Galaxy Bitcoin Fund (the ”Fund”).
The initial public offering of the Fund consisted of Class A Units, Class C Units and Class F Units each at a price of US$10 per Unit or, in each case, C$12.88 per Unit (the “Offering”), for total gross proceeds of approximately US$72 million. All Class C Units and Class F Units were reclassified as Class A units based on the relative net asset value per unit of the applicable Class immediately following the closing of the Offering. The Fund’s Class A Units will commence trading in both U.S. dollars and Canadian dollars today on the Toronto Stock Exchange under the symbols “BTCG.U” and “BTCG.UN”, respectively.
“In launching CI Galaxy Bitcoin Fund, we are offering Canadian investors a simple way to access an important emergent asset class and easily integrate it into their portfolio and investment planning,” said Kurt MacAlpine, Chief Executive Officer of CI Financial Corp., the parent company of CI GAM. “This fund is the latest step in CI GAM’s strategy to modernize its business, which includes providing investors with the benefits of a broad choice of high-quality alternative investment options.”
The Fund is a closed-end investment fund that seeks to provide unitholders with exposure to bitcoin through an institutional-quality fund platform. The Fund will invest directly in bitcoin with the Fund’s holdings of bitcoin priced using the Bloomberg Galaxy Bitcoin Index (the “BTC”), which is designed to measure the performance of a single bitcoin traded in U.S. dollars. The BTC is owned and administered by Bloomberg Index Services Limited.
CI GAM is the manager of the Fund and Galaxy Digital Capital Management L.P. (“Galaxy Digital”) acts as the bitcoin sub-advisor for the Fund. As sub-advisor, Galaxy Digital will execute all bitcoin trading on behalf of the Fund.
Benefits of the Fund include:
- A streamlined means of access to digital assets for investors by virtue of owning Units of the Fund.
- Storage of bitcoin in a segregated cold storage system, protected in accordance with industry-leading protocol.
- Leveraging the experience of Galaxy Digital's veteran portfolio management team to execute the purchase and sale of bitcoin.
- Ability to redeem Units at net asset value on an annual basis.
"We are excited to partner with CI Global Asset Management to help bring viable bitcoin exposure to a greater number of investors," said Mike Novogratz, Chairman and CEO of Galaxy Digital. "CI Galaxy Bitcoin Fund offers investors a simplified path to gain exposure to bitcoin. We are grateful that Canada's progressive nature as a jurisdiction allows CI Galaxy Bitcoin Fund to come forward at this critical time."
The syndicate of agents for the Offering was led by CIBC Capital Markets and included BMO Nesbitt Burns Inc., Canaccord Genuity Corp., Industrial Alliance Securities Inc., Richardson Wealth Limited, Echelon Wealth Partners Inc., Hampton Securities Limited, Leede Jones Gable Inc., Mackie Research Capital Corporation and PI Financial Corp. (collectively, the “Agents”).