Galaxy Digital, a cryptocurrency-focused financial services corporation, reported a net loss of $111.7 million for the quarter ending March 31, 2022.
In the first quarter of 2022, Galaxy Digital, a cryptocurrency investment firm led by billionaire Michael Novogratz, recorded a loss of $111.7 million. The deficit is a considerable fall from the prior year’s $858.2 million profit.
The aforementioned net loss, as detailed in the company’s quarterly financial report for the months of January to March 2022, was mostly owing to the cryptocurrency market’s ongoing volatility. As stated in the report of the firm.
The following are excerpts from the report:
“The decrease was primarily related to unrealized losses on digital assets and on investments in our Tradingand 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 recorded a year ago, but represents a 5% reduction from Q4 2021.
Furthermore, mining and investment banking both increased by 775 percent and 433 percent, respectively. The firm’s partners put up $2.6 billion in capital, but it fell by 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.
The majority of the losses were caused by the cryptocurrency market’s 7% drop in the first quarter, according to the firm.
BTC/USD plummets to lowest since start of the year. Source: TradingView
Related article |Bitcoin Isn’t Good For Payments, Says Mike Novogratz
During Galaxy’s earnings call on Monday, CEO Michael Novogratz mentioned downturn in the crypto and equity markets, but said he isn’t “panicked by any stretch.” He also mentioned that “crypto as a tech play” is gaining traction, as evidenced by his recent investor meetings.
Even if Bitcoin is down more than 50% from its record high hit in November, he remains confident about crypto’s long-term prospects due to the momentum of institutional adoptions. He cited BlackRock Inc., Blackstone Inc., Citadel, and Apollo Global Management Inc. as examples of new institutional investors who are “coming in with a very long term focus.”
He is quoted saying:
“Galaxy demonstrated yet another strong quarter against the backdrop of digital asset price declines, and I am proud to see the durability and sustained profitability of our operational business lines, including record contributions from our Investment Banking and Mining segments.”
He maintains that the company would continue to invest in developing its digital financial services.
Related article |Galaxy Digital CEO: Bitcoin Dips Should Be Bought Despite BitMEX News
Featured image from Pixabay, Charts from TradingView
Standard Chartered Bank believes that Bitcoin could benefit from Trump's victory and the dominance of U.S. fiscal policy.
WeiliangAs the US braces for upcoming elections, the political landscape is witnessing a surge in discussions surrounding digital currency policies as well as over $102M raised by crypto PACs.
CatherineThe EU's controversial Anti-Money Laundering Regulation aims to bolster financial defenses but faces criticism for potentially infringing on privacy and stifling innovation. Globally, the cryptocurrency conundrum persists, as nations grapple with balancing financial security with individual liberties in regulating this evolving landscape.
AnaisEther traders reinforce short positions as Grayscale's ETF withdrawal fuels speculation over classification, ETF approvals, and Ethereum's future trends.
AlexBitpanda partners with Raiffeisen and opens a Dubai office, leveraging regulatory clarity in Europe and the UAE to fuel crypto adoption.
MiyukiAfter a $71 million wallet poisoning scam, hackers laundered funds through 400 wallets, making them difficult to trace, but investigators remain hot on their trail.
WeiliangSEC Chair Gary Gensler has garnered attention for his notably cautious yet controversial approach to crypto, along with spearheading an assertive enforcement campaign targeting prominent companies within the crypto sector.
KikyoSocial media platforms, particularly Meta's, are increasingly targeted by scammers worldwide, raising concerns about user safety and the effectiveness of platform moderation. Despite efforts to combat scams, Meta's response to fabricated news and inadequate safety measures underscore the ongoing challenge of protecting users from online threats.
WeatherlyBitcoin briefly dropped to $60,888, triggering a $140 million liquidation across the entire cryptocurrency market, while the U.S. Bitcoin spot ETF faced renewed capital outflow challenges.
AlexReporters from "China Business Journal" learned that on May 7th local time, TikTok and ByteDance filed a lawsuit in U.S. federal court, seeking a ruling that the "Restricting the Emergence of Security Threats that Risk Information and Communications Technology (RESTRICT) Act," which aims to ban TikTok, is unconstitutional, and to prevent the enforcement of the law. In the lawsuit, TikTok stated, "This is the first time in Congress's history that a law has been enacted to impose a permanent, nationwide ban on a specific speech platform."
Miyuki