Galaxy Digital, a cryptocurrency-focused financial services corporation, reported a net loss of $111.7 million for the quarter ending March 31, 2022.
Galaxy Digital takes a hit
In the first quarter of 2022, Galaxy Digital, a cryptocurrency investment firm run by billionaire Michael Novogratz, posted a loss of $111.7 million. The deficit is a considerable drop from the previous years 858.2 million dollars of benefits.
The aforementioned net loss, as detailed in the company’s quarterly report financial report during the months of January to March 2022, it was mainly due to the continuous volatility of the cryptocurrency market. As stated in the firm’s report.
The following are excerpts from the report:
“The decrease was mainly related to unrealized losses in digital assets and in investments in our Trading and the Principal Investment businesses, partially offset by profitability in our Investment Banking and Mining businesses and lower operating expenses.”
Galaxy Digital Asset Management (GDAM), the firm’s asset management division, reported $2.7 billion in assets under management, with $2 billion in Galaxy Fund Management products and $735 million in the Galaxy Interactive fund. This is more than double the $1.27 billion reported a year ago, but represents a 5% reduction from the fourth quarter of 2021.
Additionally, mining and investment banking increased 775 percent and 433 percent, respectively. The firm’s partners put up $2.6 billion in capital, but it fell 3% as net long digital positions suffered significant losses. In the first quarter, Partners Capital closed at $2.5 billion, up from $1.7 billion in 2021.
Most of the losses were caused by the 7% drop in the cryptocurrency market in the first quarter, according to the firm.
BTC/USD plummets to lowest since start of the year. Source: TradingView
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Michael Novogratz remains undeterred by the market
During Galaxy’s earnings call on Monday, CEO Michael Novogratz mentioned the downturn in the crypto and equity markets, but said he’s not “panicized by any means.” He also mentioned that “cryptocurrency as a tech game” is gaining traction, as evidenced by his recent meetings with investors.
Even if Bitcoin is down more than 50% from its November record high, it remains confident in the long-term prospects of cryptocurrencies due to the push from institutional adoptions. He cited BlackRock Inc., Blackstone Inc., Citadel and Apollo Global Management Inc. as examples of new institutional investors “entering with a very long-term focus.”
He is quoted as saying:
“Galaxy demonstrated another strong quarter against the backdrop of falling digital asset prices, and I am proud to see the durability and sustained profitability of our operating business lines, including record contributions from our investment banking and mining segments. ”.
He maintains that the company would continue to invest in the development of its digital financial services.
Related article | Galaxy Digital CEO: Bitcoin Dips Must Be Bought Despite BitMEX News
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Reference-bitcoinist.com