Milk Road AI Why Mike Novogratz Thinks We’re in an AI Bubble & How He’s Playing It
Nov 12, 2025
Mike Novogratz, the Founder and CEO of Galaxy Digital, shares his insights into the AI bubble. He describes a potential year-end rally and discusses his asymmetric investment strategies in both crypto and AI data centers. Novogratz emphasizes the importance of risk management and outlines Galaxy's transition toward real business opportunities. He highlights the growth potential in AI data centers and explains how these ventures can generate shareholder value. Additionally, he explores the significance of institutional adoption and the future of tokenization.
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AI Feels Like An Internet‑Scale Bubble
- Mike Novogratz says AI is creating a bubble similar to the internet boom but with deeper structural impact.
- He warns bubbles form around tech that reshapes life and can extend long before the symbolic end arrives.
Protect Your High Watermarks
- Protect gains when your portfolio hits new highs by rebalancing to cash and hedging with puts.
- Use short-dated options or long-dated tail options only when volatility and timing make them attractive.
Always Have An Exit And Correlated Hedges
- Always define exit strategies and correlated hedges before chasing parabolic moves.
- Buy protective instruments after big wins and consider credit hedges when spreads are compressed.
