Home Markets Galaxy Digital Loses $555 Million in Crypto Bear Market

Galaxy Digital Loses $555 Million in Crypto Bear Market

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Galaxy Digital Loses $555 Million in Crypto Bear Market
  • Galaxy Digital’s net losses worsened to $554.7 million in the second quarter.
  • The losses are more than triple those of last year for the same period.
  • The financial services firm cited the general downturn in crypto as the main reason for its downbeat earnings report.

Galaxy Digital reported a net loss of $554.7 million for the second quarter, about triple its losses for the same period in 2021.

The company said in a press release Monday that the crypto bear market dragged on earnings. However, CEO Mike Novogratz, who is a vocal crypto bull, said the company remains in a strong financial position.

“I am proud of Galaxy’s outperformance in a challenging market and macroeconomic environment,” Novogratz said in the statement. “Careful risk management, along with our commitment to rigorous credit standards, has allowed us to maintain over $1.5 billion in liquidity, including over $1.0 billion in cash.”

Galaxy Digital reported preliminary assets under management of nearly $1.7 billion for the end of the second quarter, down 40% from the first quarter.

The company’s investments fell about 25% sequentially to $753.9 million as valuations of some investments fell.

The broader cryptocurrency market, meanwhile, has been falling through 2022. The so-called crypto winter has led to a decline in the valuation of the entire market. $3 trillion to about $1.1 trillion in about nine months.

MicroStrategy’s Michael Saylor, another optimistic and enthusiastic digital asset executive, announced last week that he would resign as CEO and the transition to become the Executive Chairman.

His job change follows a $917.8 million digital asset impairment charge stemming from the company’s massive bet on bitcoin, which plunged from highs above $68,000 to around 24. $198.

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