Galaxy CEO: Bitcoin’s Bigger Risk Is Governance Not Quantum Tech

TLDR

• Novogratz says Bitcoin will adapt to quantum with code upgrades

• Galaxy CEO sees OG holders selling, breaking long-term HODLing trend

• Bitcoin is trading above $76,000 but has dropped 3% in 24 hours

• Galaxy Digital posted $241M net loss in 2025 but $426M gross profit

Galaxy Digital CEO Mike Novogratz said during the firm’s earnings call that quantum computing is not a long-term risk to Bitcoin. His statement came as investor concerns rise, with some citing quantum technology as a reason to reduce exposure to crypto assets.

Novogratz acknowledged the theoretical threat of quantum but emphasized that Bitcoin will evolve before any real threat emerges. “As we get closer to quantum, we’re gonna get closer to quantum-resistant,” he said. He also noted that core developers are already thinking about the necessary changes.

His remarks follow recent moves from large institutions. Jefferies removed its Bitcoin allocation due to quantum concerns. Meanwhile, the Ethereum Foundation formed a dedicated team for post-quantum security. Coinbase has also raised the issue in long-term risk assessments.

Despite this, Novogratz said that the actual quantum threat is distant.

OG Profit-Taking Could Shift Market Psychology

Novogratz also addressed a behavioral shift among long-term Bitcoin holders, often called “OGs.” He said these early adopters are starting to sell, and that could change the broader market tone. “Then you sell a little more, you sell a little more,” he said. “It is so hard to HODL.”

This follows Galaxy’s 2025 transaction where it helped a Satoshi-era holder sell over 80,000 BTC in a $9 billion deal. At the time, the firm said the sale was part of estate planning, but it stirred debate about whether early holders are losing conviction.

Novogratz said the culture of long-term holding has weakened. “There were a tremendous amount of these religious believers,” he said, “and somehow that fever broke.” He added that profit-taking becomes a cycle once it begins, especially during volatile periods.

Bitcoin’s Biggest Risk May Be Internal, Says Novogratz

Novogratz believes governance is a greater challenge than quantum computing. He said internal developer conflict could disrupt upgrades and long-term stability. However, he does not expect such breakdowns to happen anytime soon.

Bitcoin’s recent price drop to $76,000 was not, according to Novogratz, due to confidence loss. Instead, he said it was due to long-term holders selling and short-term rebalancing. The digital asset was down 3% in the past 24 hours, per CoinGecko data.

He said the crypto market may be closer to a local bottom than the beginning of a major decline. New regulatory frameworks in the U.S. could also bring more institutional inflows if passed soon.

Galaxy Reports Loss, But Maintains Strong Balance Sheet

Galaxy Digital reported a net loss of $241 million for the full year of 2025. In the final quarter alone, the company posted a loss of $482 million. This was partly due to crypto price declines and one-time restructuring costs of about $160 million.

Still, the company reported $426 million in adjusted gross profit for the year. It ended 2025 with $2.6 billion in cash and stablecoins, providing a strong liquidity position.

The firm’s asset management division added $2 billion in net inflows, bringing total assets under management to $12 billion. Novogratz reaffirmed his long-term bullish stance, saying Bitcoin has now become a macro asset held by both institutional and retail investors.

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