Category: Canada

Tech IPO market is finally showing signs of life

  • The public market debut of eToro on Wednesday and Hinge Health’s expected IPO next week are giving startup investors signs of hope.
  • After an extended drought, the IPO market appeared poised to open up early this year until President Donald Trump’s tariffs announcement in April sent stocks plummeting.
  • Fintech company Chime filed its prospectus this week after delaying its plans following the new tariffs.
Yoni Assia, co-founder and CEO of eToro Group Ltd., center, and Ronen Assia, co-founder of eToro Group Ltd., center left, ring the opening bell during the company’s initial public offering at the Nasdaq MarketSite in New York, May 15, 2025.
Yuki Iwamura | Bloomberg | Getty Images

The IPO market has repeatedly tricked investors into believing it’s reopening after an extended drought dating back to early 2022. There are, once again, signs of hope.

Shares of stock brokerage platform eToro jumped nearly 29% in their Nasdaq debut Wednesday after the Israel-based company priced its IPO above the expected range. That same day, in its first earnings report as a public company, artificial intelligence infrastructure provider CoreWeave reported 420% revenue growth, topping estimates.

CoreWeave shares rocketed about 60% this week and have doubled in value since the company’s March IPO.

It’s a big momentum swing from a month ago.

Early in President Donald Trump’s second White House term, bankers and venture investors were bullish on a reinvigorated IPO market. But after the rollout and subsequent pause of Trump’s sweeping tariff policy rocked the market in April, companies including online lender Klarna and ticket marketplace StubHub delayed their long-awaited offerings.

Exits for venture firms in the first quarter hit their highest quarterly value since the fourth quarter of 2021, but nearly 40% came from the CoreWeave IPO, according to the National Venture Capital Association and PitchBook.

“Although we anticipated a resurgence in IPO activity as the year progressed, that outlook has diminished due to the imposed tariffs,” the NVCA and PitchBook wrote in their first-quarter report in mid-April. “As public market investors shift toward less risky investments, many VC-backed companies may struggle to generate the demand necessary to meet their high market valuations.”

The second quarter is seeing more action.

Klarna and StubHub haven’t provided updates, and both companies declined to comment for this story. But the successful debut of eToro, which had also put its plans on hold, could encourage others to follow.

IPO market will pause for summer and pickup second half of Q3, says Axios' Dan Primack

Fintech company Chime on Tuesday filed its prospectus to go public on the Nasdaq, after it had delayed IPO plans following the tariffs announcement. Digital health company Omada Health filed to go public last week. 

“The market is going to come back,” Rachel Gerring, Ernst & Young’s Americas IPO leader, told CNBC. “It’s just a matter of when. It’s not a matter of if.” 

Gerring said optimism has started to rebound. Part of that is tied to Trump’s 90-day pause on its most stringent trade policies, and a drastic reduction on tariffs from China in the meantime.

However, there’s still plenty of uncertainty, which Gerring said can be difficult for companies to manage, especially as they’re preparing to hit the market. She’s advising clients to focus on preparedness so they’re able to capitalize on the market when the time is right.

Big week ahead

In digital health, all eyes next week will be on Hinge Health.

The virtual physical therapy company filed its initial prospectus in March. Hinge updated the document this week with an expected pricing range of $28 to $32, which would value the company at about $2.4 billion in the middle of the range, not including some of its potential outstanding shares.

Digital health has been a particularly tough market over the last few years, following a Covid-era pop, when consumers and patients shifted to virtual solutions. Growth has since slowed dramatically.

AI is a different story, and chipmaker Cerebras provided an update of sorts this week.

Cerebras filed to go public in September, but the process was slowed due to a review by the Treasury Department’s Committee on Foreign Investment in the U.S., or CFIUS. Cerebras CEO Andrew Feldman said Thursday at a company event that his “aspiration” is to take the chipmaker public this year now that it’s obtained necessary clearance from the committee.

And digital assets company Galaxy Digital started trading on the Nasdaq on Friday, switching over from the Toronto Stock Exchange. The New York-based firm went public in Canada in 2020, as U.S. regulators were wary of crypto. 

Galaxy CEO Mike Novogratz said the switch will help “enable us to attract a broader investor base,” according to a release. 

Still, for tech IPO activity to really pick up, more large-scale, growth-oriented companies need to come to market, Gerring said. 

“The IPO market might be one of the latter ones to return as the market starts to recover, just given the risk around IPOs,” Gerring said. “We’re trending in the right direction.”

WATCH: eToro CEO Yoni Assia on IPO debut, crypto ties and growth outlook

eToro CEO Yoni Assia on IPO debut, crypto ties and growth outlook

Bitcoin has been ‘report card on fiscal stewardship’: Mike Novogratz

00:00 Speaker A

Galaxy Digital makes its Nasdaq debut today. Trading under the ticker symbol GLXY. It is a significant milestone for the crypto financial services firm. It previously traded on the Toronto Stock Exchange, and we’re now joined by CEO Mike Novogratz. Mike, welcome on. What is, I know, a big day, Mike. So, Galaxy Digital starts trading this morning on the Nasdaq through a direct listing. To start, Mike, I’m just curious. Walk us through what this means for you, Mike, for the company, for the broader industry.

00:46 Mike Novogratz

Yeah, listen, it was an emotional day. It was surprising. I remember 15 years ago when we took Fortress Public. There was a lot of joy and cheering and high fives, and we had set out to do something that was very difficult and did it. Uh, I think partly because of my age, uh, partly because of just how hard crypto has been, you know, so many times, I mean, in 2018 there was a 96%, 97% fall from high to low. I mean, I mean, you know, I’ve never heard of a 96% fall. Uh, 2022, we had all the scandals and another huge fall. And so, uh, for my team, for my partners, our investors, you know, to kind of stick it out through thick and thin. It just felt like, so one, one part of it felt like, you know, you’re ringing the bell of the finish line. But then when I really thought about it, everything we built for was this institutional moment that’s here, and that bell is really the starting line. Um, you know, we have two great businesses now. We have a data center business, an AI data center business, mostly based in Texas, uh, that I think will be the largest data center in America by 2029, um, 2030. And it’s gonna grow beyond that. And so, that’s been fun. It was a great pivot, uh, from Bitcoin mining, and it’s gonna give a lot of shareholder value. And then we have a crypto business that was literally tailor built for this moment when institutions want to join. And we’re gonna get regular, we’re gonna get legislation done on Monday for stable coins down in D.C. I’m proud of the, uh, the Senators on both sides, especially the Democratic Senators because, you know, they had a far left wing that was squawking and didn’t want to do this. And, you know, to get any bipartisan legislation done right now, in this moment of complete divisiveness in the country, uh, is a testament to both, you know, the Senators on the right and left, right? That’s, you know, Senator Warner, uh, and Gigos, uh, really, you know, running the, the campaign on the Democratic side, and, and, uh, Tim Scott, but mostly, uh, Hagerty, uh, from Tennessee, who’s really pushed this thing through. Uh, and it’s great. And so, you know, all of a sudden, an industry that was hated for four years has a seat, SEC chair, uh, who’s pro crypto, the entire infrastructure from OCC to CFDC is pro crypto. They’re embracing us as opposed to chasing after us, uh, and prosecuting us. Uh, and now we’re getting legislation. And so, you know, it’s a huge tailwind for the industry, not just for Galaxy, but the whole industry, but, and we plan on taking advantage of it.

06:26 Speaker A

So, Mike, I’m curious, given the two business segments, as you pointed out there, uh, crypto and AI data center, who would you consider, Mike, your competitors here?

06:41 Mike Novogratz

I kind of think we’re a unicorn in that respect. Uh, listen, there are other crypto companies that do a great job, and we think we’re gonna compete head-to-head with them. Um, and there are data center companies, and there are other crypto mining companies that are pivoting to AI, but no one really doing both under the same roof. And so, you think of us as a holding company with two businesses that have some synergies in between. They’re both growth businesses. Uh, getting on the Nasdaq and having access to the deepest capital markets is an essential part of our success. And so we’re thrilled, we’re thrilled to be here. Uh, But yeah, I don’t see, you know, there’s, there’s not another company that’s kind of doing both at the scale we are.

07:56 Speaker A

Mike, I, I also have just a broader Bitcoin question for you. You know, you think about gold’s market cap. It’s roughly, let’s call it 22 trillion. Do you think someday, Mike,

08:20 Mike Novogratz

Yes.

08:21 Speaker A

Bitcoin could be half of that? Yeah. You’re getting ahead of me. But if yes, then here’s my next question. If yes, if Bitcoin could someday be half of that, let’s say, what does that depend on, Mike? Is that, does it get there through just current momentum? Would that depend on certain regulatory changes? Walk me through it.

08:54 Mike Novogratz

So when I bought Bitcoin at 100, uh, I, you know, spoke at a conference. I didn’t know the press was there, and they next thing you know, I was on the cover of the FT. And then I got asked over and over to come speak about this crazy invention, or digital money, or, you know, wacky, wacky dream of a bunch of Cypherpunks. Uh, and I started telling the story and trying to convince people why this made sense. And there were lots of other storytellers. In Bitcoin parlance, we call it orange pilling. Uh, when Larry Fink got orange pilled, when a skeptic became a prophet, uh, and he happened to be the CEO of the largest asset management company in the world, that was the tipping point. And why Bitcoin’s gonna just keep growing is adoption. You know, as more and more people are in the tent and say, this is a store of value for me, right? It’s not the technology that makes it a store of value. It’s the social construct that I think it’s got value. Larry thinks it has value. Lots of people think it has value. Therefore it has value. And you’re seeing it, right? I was in the Middle East, one of the big Sovereign Wealth funds, and after Donald Trump made his big speech at Nashville, at Bitcoin Nashville, he told me U.S. is getting in. I’m getting in. And sure enough, they end up buying, you know, over half a billion dollars. Um, that’s happening every day. And so the adoption snowball crested the hill and is now rolling downhill and picking up speed. And that’s it. We will be as big as gold one day. If you think about it, young people love Bitcoin, right? Warren Buffett doesn’t like it. Charlie Munger hated it. You know, old people, it just didn’t resonate with them. But old people are dying, rest in peace, Charlie. And that money gets passed down to younger generations. And so there’s gonna be a natural shift as the, the, the greatest concentration of wealth and the baby boomers gets passed down.

12:35 Speaker A

So that’s the bull case, Mike. I am curious to also get your take on, you know, I’m an investor, I’m listening to this, and I think Mike’s making great points. What are the risks I should think about though, as well? I was looking at Bitcoin volatility right now actually, actually looks kind of relatively tame if I compare it to a single stock leverage ETF. So is volatility the risk or, or how do you through those possibilities?

13:14 Mike Novogratz

Well, listen, I mean, ironically, what would slow its ascent down is if the U.S. government would get its act together and Scott Beson’s dream of 3% growth and 3% deficit came true. If our deficit went from seven to three instead of from seven to eight, if our debt went from 35 trillion and started heading back to 25 trillion, you wouldn’t need Bitcoin. You wouldn’t need to be long gold. Uh, it doesn’t mean it’s gonna crash at that point because there’s still adoption, and there are other countries that are profligate as heck. But Bitcoin has always been a report card on fiscal stewardship. And you know, as much as Scott wants a 3% deficit, uh, you’re looking at this, this tax bill coming up, you’re looking at tariffs, you’re looking at, you know, adding a trillion dollars to the military. It just doesn’t add up. And as an American, I pray that we end up getting sane fiscal and monetary policy. Um, but I don’t believe it’s gonna happen. It’s not for lack of trying. It’s really complicated.

14:59 Speaker A

So it’s not for lack of trying. So because in other words, Mike, if, if I could bend debt to GDP in a way that wasn’t so scary, that would be a risk. But it sounds like you’re making the case that that just is politically very tough to get done.

15:17 Mike Novogratz

You know, we have populism on the left and populism on the right. Uh, most of us Wall Streeters would, would die for a centrist president, right? Like we haven’t had one. We thought Biden was gonna be one. And he pivoted right to the left. Uh, and, and so yes, if debt to GDP started heading back to double digits, my story for Bitcoin would be a lot less exciting. And again, I don’t think it collapses because of adoption, but I would have been long gold if I knew debt to GDP was gonna be 95 in three years, I would have been long gold. And I wouldn’t be long digital gold. I just don’t believe it.

16:48 Speaker A

Mike, you mentioned that adoption curve. I want to ask you a different question, which is, um, going back to politics. The moves the Trump family makes in this space, in crypto ventures. Does that, Mike, does it help adoption of crypto? Does it hurt adoption of crypto? Does it do neither? Walk me through it.

17:19 Mike Novogratz

Yeah, listen, so to be clear, the Trump Administration has been nothing but good for crypto in terms of regulation. And now we’re gonna see the legislative agenda. And, and the last one was terrible. And I’m a Democrat. Um, what I have said, you know, consistently is, you know, the Trump kids have a right to participate in crypto, and they’re excited about it. And as long as they stay within the law, they should have the same right as everyone else. If they break the law, uh, just like if I break the law, they should be in trouble. I do think it gave the far left, Elizabeth Warren and her comrades, an excuse to say corruption, doesn’t, doesn’t feel good, and almost scuttled the stable coin bill. Because, you know, politics are politics. And that’s why I’m so proud of the senators, uh, in the center who kept this thing together. Because, listen, it’s a good political talking point. Uh, you know, the coin doesn’t feel right for the president to issue one. Uh, that’s very different than his, his kids setting up, you know, crypto businesses, uh, when you had Trump coin and Melania coin, it just was really hard to say that feels great. Um, and so, listen, with President Trump, you know, what we’ve all learned is he’s a different kind of president. You gotta take the good with the bad. Uh, you don’t have to take it. You don’t have to vote for him. But that’s what you’re gonna get. And, uh, and so net net, I think this administration has been great for crypto. Uh, do I wish we didn’t have Trump coin and Melania coin? Yeah, I do. Uh, but, you know, we’re gonna live with it.

19:57 Speaker A

Mike, thank you again so much for your time today. We appreciate, sir.

20:03 Mike Novogratz

Thanks a lot.

Bitcoin Adoption News: Top Win Rebrands, Steak N Shake Accepts BTC, Galaxy’s Nasdaq Debut

Galaxy Digital (GLXY) just debuted on the Nasdaq, but it appears the financial services company’s listing will be jostling for the attention of the crypto sphere’s hive mind.

Crypto X — still widely known as Crypto Twitter (CT) despite the platform’s name change — was abuzz with users sharing news of fast food company Steak n’ Shake starting to accept bitcoin BTC$103,903.80 payments over the Lightning network, having announced its plans to do so a week ago.

STORY CONTINUES BELOW

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A video posted on the social-media platform shows a customer completing an order at a self-service machine, choosing the “Pay With Bitcoin” option and scanning the QR code with their Lightning wallet in the Zeus app.

Another company raising the bitcoin flag is Top Win International (TOPW), a luxury watch wholesaler, which said it will change its name to AsiaStrategy and manage its treasury in digital assets. It is, in effect, following the model of Michael Saylor’s software company Strategy (MSTR), which now owns 568,840 BTC, more than 2.5% of all the bitcoin that will ever exist.

Hong Kong-based Top Win is partnering with crypto-backed venture capital firm Sora for its new pivot. Shares of the company rose as much as 45% before losing the gains to trade down 31% at $5.14.

Sora previously worked with Tokyo-based Metaplanet (3350), another company copying the Strategy model.

Galaxy’s Nasdaq Debut

Galaxy, the Toronto-based crypto-focused financial services firm led by Mike Novogratz, has commenced trading on Nasdaq Global Select Market.

Novogratz, who described the listing as a “pivotal moment” for Galaxy in a letter shared via email, rang the opening bell on the Nasdaq floor on Friday.

Galaxy announced its plans at the end of last month, in which it also said GLXY would remain listed on the Toronto Stock Exchange (TSX) “for a period of time following [its] intended listing on Nasdaq.”

GLXY shares traded at around $22.61 in early trading, 3.2% higher on the day. The Toronto-traded shares rose 2.98% to C$31.48 ($22.53).

Mike Novogratz’s Galaxy Digital debuts on Nasdaq in bumper week for crypto

By Hannah Lang

(Reuters) -Galaxy Digital, founded by Mike Novogratz, made its Nasdaq debut on Friday, capping off a momentous week for cryptocurrency in public markets, with Coinbase joining the S&P 500 and retail brokerage eToro also going public.

Galaxy Digital, a crypto investment company that also specializes in artificial intelligence data center infrastructure, had been listed on the Toronto Stock Exchange, but began trading on the Nasdaq on Friday at $23.50 per share after a lengthy transition period. Shares in the company were last trading at $24.89.

“I think we’re at the beginning of the race, not the end of the race,” said Novagratz, who is Galaxy’s CEO and a prominent crypto investor, in an interview with Reuters. “Sometimes it feels like it’s been such a struggle. You ring the bell and you’re crossing the finish line, but it really is the starting bell.”

Digital assets have enjoyed a resurgence under President Donald Trump, who courted cash from the crypto industry on the campaign trail by pledging to be a “crypto president.”

In his first week in office, Trump ordered creation of a cryptocurrency working group to propose digital asset regulations. In March, he signed an executive order to create a federal stockpile of bitcoin.

Those moves have buoyed cryptocurrency prices, including bitcoin, which is up more than 10% so far this year.

Robinhood rival eToro — which offers stocks and cryptocurrencies to retail investors — also made its Nasdaq debut this week, securing a valuation of $5.64 billion after its shares surged 34% on Wednesday.

Also this week, the S&P announced that Coinbase would be included in the S&P 500 index beginning May 19, becoming the first digital asset player to be included in the benchmark.

“I think we’re the beginning of what will be a trend of other (crypto) companies going public,” Novogratz said.

(Reporting by Hannah Lang in New York; editing by Pete Schroeder and Jane Merriman)

Galaxy Digital shares jump 15% on Nasdaq debut

Galaxy Digital shares jump 15% on Nasdaq debut

After four years, Galaxy leapt from Canadian listings to Nasdaq for greater US market exposure and growth.

Galaxy Digital shares jump 15% on Nasdaq debut

Key Takeaways

  • Galaxy Digital’s direct Nasdaq listing followed a lengthy 1,320-day regulatory process.
  • Galaxy Digital operates primarily in crypto and AI, aiming at institutional adoption.

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Galaxy Digital, a prominent financial services and investment management firm led by billionaire Mike Novogratz, started trading on Nasdaq Friday under the ticker GLXY.

The company’s stock opened at $23.50 and surpassed $25 at press time, according to CNBC data. Shares rose about 15% from the previous trading session.

Galaxy completed its long-anticipated move from the Toronto Stock Exchange to the Nasdaq via a direct listing. The entrance into the US public market followed an extensive regulatory process with the SEC, which took 1,320 days and cost the company over $25 million, according to CEO Mike Novogratz.

“This is more than just a corporate milestone,” said Novogratz in a Friday statement. “It’s the fulfillment of a deeply personal bet I made over a decade ago that the financial system was overdue for transformation.”

Galaxy reported a net loss of $295 million in Q1 during a downturn in the crypto market. Despite the loss, the company’s gross revenue rose to $12.9 billion, marking a 38% increase from the previous quarter.

Speaking on CNBC’s Squawk Box on Friday, Galaxy Digital CEO Mike Novogratz emphasized the strategic importance of US market access, stating that the firm’s visibility in Canada was just “one-thirtieth” of what it could achieve in the United States.

Novogratz also underscored Galaxy’s dual focus on crypto and artificial intelligence, calling them “the two most exciting growth areas in markets.”

In a separate interview with Bloomberg, Novogratz revealed that Galaxy is discussing plans with the SEC to tokenize its own stock and potentially other equities. The company has engaged with the SEC’s crypto task force to explore how its shares could eventually be registered and traded on a blockchain.

The long-term vision, he said, is to enable Galaxy shares, and eventually ETFs, bonds, and traditional stocks, to be used in decentralized finance (DeFi) applications such as lending and trading.

Galaxy’s Nasdaq listing follows the successful debut of crypto platform eToro, with its shares ending the first day up 30%.

Other major players like Kraken, Circle, and Gemini are also preparing to go public in a US regulatory environment that has grown more favorable to digital assets.

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Galaxy Digital on the Nasdaq, Novo ousts CEO, Virgin Galactic

00:00 Speaker A

It’s time for Yahoo! Finance’s Market Minute. Stocks edge higher as the S&P 500 is poised for a weekly gain here. Galaxy Digital is now trading on the Nasdaq under the ticker symbol GLXY, marking its transition to the U.S. public markets after listing on the Toronto Stock Exchange back in 2020. Shares rising, trading above its initial list price of $23.50. Eli Lilly shares rising as competitor Novo Nordisk ousts its CEO amid market challenges and poor stock performance. Eli Lilly first gained market leadership over Novo in the U.S. weight loss drug space in the first quarter. And Virgin Galactic shares soaring after announcing flight plans. The space tourism company says it will fly its first Delta class spaceships carrying payloads in the summer of 2026 and passenger flights in the fall. Virgin is raising prices for its passenger tickets from the previous $600,000. And that’s your Yahoo! Finance Market Minute. For more on what’s trending on Yahoo! Finance, scan the QR code below to track the best and worst performing stocks of the session.

Galaxy Digital Lands on Nasdaq, Opening at $23.50 per Share



Galaxy Digital Lands on Nasdaq, Opening at $23.50 per Share – Wall Street Pit






























  • Galaxy Digital (GLXY) debuted on the Nasdaq, opening at $23.50 per share and rising over 12% to $34.25, following a four-year, $25 million regulatory battle with the SEC.
  • Mike Novogratz highlighted Galaxy’s dual focus on cryptocurrency and AI infrastructure, positioning the firm to capitalize on institutional crypto adoption and growing demand for data centers.
  • The direct listing, transitioning from the Toronto Stock Exchange, enhances Galaxy’s U.S. market visibility, following eToro’s (ETOR) recent Nasdaq debut and signaling renewed investor interest in crypto-adjacent firms.

crypto

Galaxy Digital (GLXY), the cryptocurrency and digital asset firm led by Mike Novogratz, made its highly anticipated Nasdaq debut on Friday, opening at $23.50 per share and surging over 12% to $34.25, reflecting strong investor enthusiasm for its dual focus on crypto and artificial intelligence. The direct listing, a milestone following a four-year, $25 million regulatory saga with the U.S. Securities and Exchange Commission, marks a shift from its prior trading on the Toronto Stock Exchange since 2020. Novogratz, speaking on CNBC’s “Squawk Box,” emphasized that the grueling process, which spanned 1,320 days and nine rounds of SEC comments, far exceeded the typical 90-day timeline, requiring significant capital and resilience. He underscored the strategic importance of the U.S. market, noting that Galaxy’s visibility in Canada was a mere one-thirtieth of its potential in the U.S., positioning the Nasdaq listing as a catalyst for growth.

The company’s value proposition, as articulated by Novogratz, rests on its unique positioning in two high-growth sectors: cryptocurrency and AI infrastructure. Describing Galaxy as effectively two businesses – a crypto firm and a data center company—Novogratz highlighted its readiness to capitalize on institutional adoption of digital assets and the surging demand for AI -driven computing power. This strategic pivot aligns with Galaxy’s partnerships, such as its collaboration with cloud-computing firm CoreWeave (CRWV) to expand data center capacity for AI and high-performance computing, a move expected to generate significant revenue by 2026. The Nasdaq listing enhances Galaxy’s access to U.S. capital markets, boosting its profile and facilitating faster growth, as Novogratz noted during the company’s Q1 2025 earnings call. The debut follows eToro’s successful Nasdaq listing earlier in the week, signaling a thawing of regulatory caution and renewed investor appetite for crypto-adjacent firms amid a maturing digital asset ecosystem.

Galaxy’s journey to the Nasdaq underscores the evolving landscape for cryptocurrency firms seeking mainstream financial integration. The firm’s ability to navigate a costly and protracted SEC process, which Novogratz described as requiring a “big, strong company,” reflects the high barriers to entry for crypto enterprises in the U.S. Despite a reported $295 million net loss in Q1 2025, driven by digital asset price declines and a mining-related impairment charge, Galaxy’s stock performance on debut suggests investor confidence in its long-term vision. The transition to U.S. GAAP and operational streamlining, as part of its U.S. redomiciliation, further enhances financial transparency, positioning Galaxy to attract a broader investor base. With the stock climbing to $34.25, Galaxy Digital stands at a pivotal juncture, leveraging its Nasdaq platform to bridge crypto and AI innovation with traditional finance.

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Strathcona Resources aims to join oilsands ‘doppelgangers’ with MEG takeover bid

CALGARY – The executive chairman of Strathcona Resources Ltd. says his company aims to join two complementary oilsands players with its unsolicited takeover bid for MEG Energy Corp., but one analyst calls the $5.9 billion being offered an “affront” to shareholders. 

“I am actually not aware of two businesses of any scale in North America that share this level of complementary nature,” Adam Waterous told analysts on a conference call Friday. 

“These are doppelgangers, brothers from another mother … identical twins.”

Strathcona and MEG both extract bitumen using steam-driven techniques in eastern Alberta and don’t have fuel refining or retail businesses like some bigger oilsands players. 

Earlier this week, Strathcona signalled its plans to become a pure-play heavy oil company when it announced the sale of its Alberta shale natural gas operations in three separate deals with a total of $2.84 billion. 

It also said it has bought the Hardisty crude-by-rail rail terminal in Alberta for about $45 million.

A takeover of MEG would further that strategic shift, Waterous said. 

“If someone’s interested in a lower-risk, long-life, low-decline, high-free-cash-flow oil business of scale in North America, we think that this is going to be the business to own.”

Strathcona, which disclosed late Thursday it owns about a 9.2 per cent stake in MEG, said it sent a takeover offer to the MEG board of directors in April, but was rejected earlier this week.

“Strathcona respects the MEG board’s right to dismiss any offer made for MEG, and it has no reason to believe that its decision to dismiss Strathcona’s proposal was not made in good faith,” the company said in a late Thursday news release.

“However, Strathcona believes the benefits of a combination of Strathcona and MEG are significant enough that MEG Shareholders should have the opportunity to decide for themselves.”

MEG said Friday that its board of directors will consider and evaluate the Strathcona offer once it has been received and urged shareholders to take no action until it has made a recommendation.

Strathcona is offering 0.62 of a Strathcona share and $4.10 in cash per MEG share in the proposal worth $23.27 per MEG share based on the closing price of its shares on Thursday.

MEG shares shot higher in late-morning trading Friday, topping the implied value of the takeover offer and suggesting investors believed a higher bid might be possible.

MEG shares were up $3.66 or about 17 per cent at $24.96 in trading on the Toronto Stock Exchange.

Desjardins Securities analyst Chris MacCulloch said Strathcona is offering a “modest” 9.3 per cent premium and competing offers are likely to come from bigger oilsands players like Canadian Natural Resources Ltd., Cenovus Energy Inc., Suncor Energy Inc., Imperial Oil Ltd. or ConocoPhillips. 

“Although we are naturally supportive of further consolidation of the Canadian oilsands to create a stronger and more resilient sector, we view the (Strathcona) takeover offer as an affront to MEG shareholders and highly unlikely to be accepted,” he wrote in a note to clients. 

Strathcona said it is ready to engage with the MEG board and would also support a strategic alternatives process to determine if a superior transaction is available. 

“Strathcona would be willing to participate constructively and in good faith in such a process, including signing a mutual confidentiality agreement to share non-public information, provided it is not required to sign a standstill agreement,” the company said.

Strathcona said a combination with MEG would create Canada’s fifth largest oil producer and fourth largest steam-assisted gravity drainage producer, with among the largest proved oil reserves in North America. 

It said it has identified $175 million in annual synergy opportunities, including $50 million in overhead reduction costs, if the deal goes ahead.

The offer came as Strathcona raised its quarterly dividend and reported a first-quarter profit of $205.3 million or 96 cents per diluted share, up from $100.6 million or 47 cents per diluted share a year earlier.

The company said it will now pay a quarterly dividend of 30 cents per share, up from 26 cents per share.

Oil and natural gas revenue totalled $1.33 billion, up from $1.17 billion in the first quarter of 2024.

Production for the quarter totalled 194,609 barrels of oil equivalent per day for the quarter ended March 31, up from 185,122 a year earlier.

This report by The Canadian Press was first published May 16, 2025.

Companies in this story: (TSX: SCR, TSX: MEG, TSX: SU, TSX: IMO, TSX: CVE, TSX: CNQ)

Strathcona Resources to acquire MEG Energy through takeover bid

Strathcona Resources has announced its intention to commence a takeover bid to acquire all issued and outstanding common shares of MEG Energy not already owned by Strathcona or its affiliates.

The offer includes 0.62 of a Strathcona share and C$4.10 in cash per MEG share, representing a 9.3% premium based on the closing price on 15 May 2025.

The total consideration offered by Strathcona Resources for MEG Energy shares is C$23.27 each, based on the recent closing share price on the Toronto Stock Exchange (TSX).

The bid reflects a combination of 82.4% in Strathcona shares and 17.6% in cash.

The offer is not contingent on financing, with the cash portion expected to be covered by bridge financing from a syndicate of lenders.

Waterous Energy Fund, holding a significant portion of Strathcona shares, plans to further invest through Waterous Energy Fund III by subscribing for an additional 21.4 million shares.

Post-offer, Strathcona anticipates having around 379 million shares outstanding and C$1.5bn in net debt, with ownership distributed between existing Strathcona and MEG shareholders, and WEF III.

The proposed acquisition aims to merge two heavy oil producers with similar netbacks and reserve life indexes, creating Canada’s fifth-largest oil producer.

The combined entity is expected to have the financial scale for an investment-grade credit rating. Both Strathcona and MEG shareholders are projected to benefit from the merger, with significant accretion on key financial metrics and C$175m in identified annual synergies.

The Strathcona board of directors has unanimously approved the offer, and subject to TSX approval, shareholder consent for the share issuance is expected to be secured through WEF’s written consent.

Additionally, Strathcona Resources has entered into definitive agreements for the sale of its assets in Montney, Canada, for approximately C$2.84bn.

The transactions include the sale of the Kakwa, Grande Prairie and Groundbirch assets to ARC Resources and Tourmaline Oil.

The Kakwa sale to ARC Resources is valued at C$1.69bn, comprising C$1.65bn in cash and roughly C$45m in assumed lease obligations.

“Strathcona Resources to acquire MEG Energy through takeover bid” was originally created and published by Offshore Technology, a GlobalData owned brand.

 


The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.

Mike Novogratz describes ‘unfair, infuriating’ path to Galaxy Digital’s Nasdaq listing

  • Galaxy Digital will ring the opening bell at the Nasdaq, with the company trading on U.S. public markets for the first time in a direct listing.
  • Mike Novogratz described the U.S. listing process as “un-American, unfair, infuriating.”
  • The listing follows eToro’s successful Nasdaq debut this week, signaling renewed investor appetite for crypto-adjacent firms after years of regulatory caution.
Galaxy CEO Mike Novogratz: The Trump administration has been amazing for the crypto industry

TORONTO — Mike Novogratz said he spent nearly four years and more than $25 million trying to take crypto firm Galaxy Digital public in the United States.

“It felt un-American, unfair, infuriating,” Novogratz said.

Novogratz told CNBC that a process that should take 45 to 90 days stretched out to 1,320 days. He said it took nine rounds of comments with the Securities and Exchange Commission.

“One of the things that people didn’t understand about the crypto tax is that you needed to be very well capitalized — and a pretty big, strong company — just to stay in the game,” he said.

The billionaire crypto mogul will finally ring the opening bell at the Nasdaq Friday under the ticker GLXY with his company trading on U.S. public markets for the first time in a direct listing.

Novogratz said Galaxy’s auditing costs were significantly higher than those of firms like Jefferies — a consequence of the regulatory scrutiny that comes with being a crypto company. He said he expects those fees to drop by as much as 40% now that Galaxy is listed on the Nasdaq.

Yet instead of breaking Galaxy, the ordeal seemed to harden it.

“Scarcity makes you tougher,” Novogratz said. “We funded our company mostly through investment gains and trading.”

“We weren’t the only company that suffered,” Novogratz said, pointing to eToro, the Israeli trading platform, that went public on Nasdaq this week. Its listing was one of the first major fintech IPOs since 2021, signaling that investor appetite for crypto-adjacent firms is returning after years of regulatory caution and market volatility.

Galaxy CEO Mike Novogratz: We're starting to behave more like an emerging market

Until now, Galaxy Digital’s home on the public markets has been on the Toronto Stock Exchange, where the New York-based company went public in 2020, because U.S. regulators were too wary of crypto.

The TSX has become a testing ground for digital asset firms that couldn’t gain traction in American markets, even as U.S. investors and capital loomed just across the border.

But for Novogratz, whose ambitions were always bigger, the U.S. was the stage that mattered.

“Our visibility, volume, and notoriety in the Canadian market versus the U.S. is one to 30 — the U.S. market is 30 times deeper,” he said. “If we had been in the U.S. markets those four years, we’d be a different company.”

The former hedge fund manager turned crypto entrepreneur has built a reputation for direct and candid conversations. In Washington, he witnessed first-hand how crypto evolved from a fringe curiosity to a central issue in American politics.

“I was at the vice president’s inaugural ball as a representative Democrat,” Novogratz said.

In a room of roughly 300 attendees, he said he counted around 20 crypto CEOs — a striking show of the industry’s growing influence in Washington.

“I mean, it was shocking — the crypto representation down in D.C. over the inauguration — and Democrats noticed that. So I think, in earnest, there’s a core group of Democrats, and a big one, probably the majority of Democrats, that just want to pass crypto legislation that’s good for America, and move on, and, quite frankly, get crypto off the map as an electoral issue,” he said.

The turning point came with the election of President Donald Trump, a political shift that Novogratz saw unfolding in real-time.

“The flip got switched… the old regime knew the new regime was coming, and so they started to be much more supportive,” he said.

Conversations that had once been closed suddenly opened.

Novogratz met incoming SEC Chair Paul Atkins around the time of the inauguration. Atkins wasn’t yet in the role, but his stance was clear — he prioritized fair disclosure and leaned pro-business, pro-risk. Their conversation was high-level, focused on the regulator’s approach, but it left Novogratz with a sense of optimism.

“Ringing the bell is kind of the starting line, not the finish line,” said Novogratz.

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