- The resource the executives segment of Galaxy, Galaxy Digital Asset Management (GDAM), revealed $2.7 billion in resources under administration, with $2 billion in Galaxy Fund Management items and $735 million in the Galaxy Interactive fund.
- Mining and investment banking, meanwhile, grew by 775 percent and 433 percent, respectively. The firm’s partners put up $2.6 billion in cash, although it declined by 3% due to substantial losses in net long digital positions.
- Partners Capital closed at $2.5 billion in the first quarter, up from $1.7 billion in 2021. According to the organisation, the majority of the losses were driven by the cryptocurrency market’s 7% slump in the first quarter.
For the quarter ending March 31, 2022, Galaxy Digital, a cryptocurrency-focused financial services company, recorded a net loss of $111.7 million. Galaxy Digital, a cryptocurrency investment firm run by billionaire Michael Novogratz, lost $111.7 million in the first quarter of 2022. The misfortune is a huge drop from the earlier year’s benefit of $858.2 million.
Galaxy Digital Suffers A Setback
The company’s quarterly financial report for the months of January to March 2022 revealed that the aforementioned net loss was primarily due to the cryptocurrency market’s continuous volatility. As indicated in the firm’s report. Here are some extracts from the report: Unrealized losses on digital assets and investments in our Trading and Principal Investment companies contributed to the drop, which was somewhat offset by profitability in our Investment Banking and Mining businesses and lower operational expenditures.
The resource the executives segment of Galaxy, Galaxy Digital Asset Management (GDAM), revealed $2.7 billion in resources under administration, with $2 billion in Galaxy Fund Management items and $735 million in the Galaxy Interactive fund. This is more than double the $1.27 billion recorded a year ago, but it is a 5% decrease from Q4 2021.
Mining and investment banking, meanwhile, grew by 775 percent and 433 percent, respectively. The firm’s partners put up $2.6 billion in cash, although it declined by 3% due to substantial losses in net long digital positions. Partners Capital closed at $2.5 billion in the first quarter, up from $1.7 billion in 2021. According to the organisation, the majority of the losses were driven by the cryptocurrency market’s 7% slump in the first quarter.
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CEO Michael Novogratz noted the dip in the crypto and equity markets during Galaxy’s earnings call on Monday, but said he isn’t panicked by any stretch. As indicated by his recent investor meetings, he also said that crypto as a tech play is gaining popularity.
Michael Novogratz Is Unfazed By The Market
Despite the fact that Bitcoin is down more than 50% from its November high, he remains optimistic about crypto’s long-term prospects due to the momentum of institutional adoptions. New institutional investors such as BlackRock Inc., Blackstone Inc., Citadel, and Apollo Global Management Inc., he said, are coming in with a very long term emphasis.
He is reported to have said: Against the background of digital asset price reductions, Galaxy had another good quarter, and I am pleased to witness the durability and ongoing profitability of our operational business lines, including record contributions from our Investment Banking and Mining sectors. He says the corporation would keep investing in its digital financial services.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2022/05/10/mike-gets-no-love-galaxy-digital-loses-111-million-in-the-midst-of-the-crypto-bloodbath/