According to Bloomberg, Galaxy Digital, a New York-based firm, reported a net loss of $94 million in the third quarter, compared to a loss of about $68 million in the same quarter last year. The company posted a loss of around $46 million in the second quarter, while consensus estimates had predicted that Galaxy's losses would remain broadly steady at $44 million. The firm offers businesses a range of services, including crypto trading, asset management, and mining.
Galaxy reported trading revenue of $14 million in the quarter, a decrease of $6 million from the second quarter, despite a 70% increase in trading volume over the same period. The average loan book size expanded to $553 million. However, the company stated that its financial situation had significantly improved since the quarter ended, recording $124 million in income before tax and $24 million in trading revenue in October. This was primarily driven by its market position and the appreciation of digital asset prices, with assets like Bitcoin having jumped in price by nearly 30% that month.
Management and performance fees from Galaxy's asset management business were $4.7 million in the period, representing an 11% quarterly increase. Meanwhile, preliminary assets under management were reported at approximately $3.9 billion as of September 30, a 58% increase on the second quarter. The business recorded an impairment expense of $44.9 million on its minority interest in Galaxy Digital Holdings LP during the period, compared to a reversal of impairment of $128.1 million recognized in the first and second quarters of this year. Shares of Galaxy are up 97% so far this year.
Galaxy's CEO, Mike Novogratz, has said he expects the US Securities and Exchange Commission will approve an exchange-traded fund that invests directly in Bitcoin by the end of 2023, after Galaxy partnered with Invesco on plans to launch such a product.
Miyuki
