Institutional crypto firm Galaxy Digital experienced a Bitcoin outflow of 145 BTC, valued at approximately $16.2 million, from one of its addresses on August 27, according to on-chain data tracked by analytics platform CryptoQuant. The movement, while notable in a volatile market, had minimal immediate impact on Bitcoin’s price, which hovered around $111,200 with a slight 1.2% daily gain.
The outflow was flagged in real-time by CryptoQuant community analyst Maartunn on social media platform X, where it garnered modest attention with around 1,900 views and a handful of responses. One commenter described the transaction as “tiny” in scale, highlighting its relative insignificance compared to Galaxy’s larger historical dealings. This event comes amid broader institutional shifts in the cryptocurrency space, where whales—large holders—have been reallocating assets, often from Bitcoin to alternatives like Ether.
Galaxy Digital, founded by former Goldman Sachs partner Mike Novogratz, has been a key player in facilitating major Bitcoin transactions for institutional clients. In July 2025, the firm handled one of the largest Bitcoin sales on record, offloading over 80,000 BTC—worth around $9.5 billion at the time—from a dormant wallet dating back to Bitcoin’s early days under creator Satoshi Nakamoto. That sale, executed in batches across exchanges like Binance, OKX, and Bitstamp, caused only a brief 3% price dip before a quick recovery, underscoring the market’s growing ability to absorb substantial supply. Galaxy withdrew about $1.15 billion in stablecoin USDT following the transaction, suggesting it was acting as a broker for a client possibly engaged in estate planning.
In contrast, the recent 145 BTC outflow represents just a fraction—about 0.18%—of that July event. On-chain analysts speculate it could stem from internal wallet management, client facilitation via over-the-counter (OTC) trades, or minor liquidation amid ongoing market fluctuations. Bitcoin’s price has declined roughly 5% over the past week, dropping from highs near $116,000, influenced by factors including a separate 24,000 BTC whale dump between August 25 and 26 that triggered a $4,000 flash crash and over $550 million in liquidations. Despite this, spot Bitcoin exchange-traded funds (ETFs) saw $88 million in inflows on August 27, providing some counterbalance.
Galaxy’s financial health remains robust. In its second-quarter 2025 earnings report released earlier in August, the company posted a net income of $30.7 million, a stark turnaround from a $295 million loss in the first quarter. This profit was bolstered by a 33% increase in Bitcoin holdings to 17,102 BTC, valued at $1.95 billion as of June 30, alongside total equity of $2.6 billion. The firm also expanded its digital asset portfolio to $1.2 billion, up 40% from the prior quarter, though it trimmed positions in Ether and XRP while adding to Solana.
Market observers note a potential rotation from Bitcoin to Ether among institutions. On August 27, whales accumulated $456 million in ETH, with some transfers linked to Galaxy and other firms like FalconX. Ether-based spot ETFs have seen over $1 billion in inflows since August 21, offsetting earlier outflows, while Bitcoin ETFs faced a six-day outflow streak totaling $1.2 billion earlier in the month. Novogratz has publicly forecasted Bitcoin reaching $150,000 by year-end but suggested Ether might outperform in the short term.
This latest outflow aligns with Galaxy’s pivot toward diversified services, including AI and high-performance computing infrastructure. The company’s Helios data center is expanding to 3.5 gigawatts, shifting focus from Bitcoin mining to more stable revenue streams like AI hosting. Analysts at firms like Rittenhouse Research view this transition positively, emphasizing long-term cash flows over volatile crypto mining.
As cryptocurrency adoption grows, with Bitcoin’s market cap nearing $3.93 trillion, such institutional movements underscore the maturing ecosystem’s resilience. However, experts caution that while exchange reserves dropping can precede rallies, no definitive causality exists, and investors should monitor whale activity and ETF flows closely.
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