Galaxy Digital Holdings
Ltd, a US diversified financial services and investment management company,
recorded a $111.7 million net comprehensive loss during the first quarter of 2022
that ended March 31.
The holding company
disclosed this on Monday in a release containing its financial results for the
just ended quarter.
According to Galaxy, the
loss, which contrasts against the $858.2 million gain recorded in the same
period last year, was caused by “large digital asset price declines within the
quarter.”
Citing
CoinMarketCap.com, the company said there was a total cryptocurrency market
capitalization decrease of approximately 7% during the quarter.
Galaxy said the loss was
also fueled by decreases in Galaxy Digital Trading (GDT) and Galaxy Digital
Principal Investments (GDPI), its trading and private investment businesses, respectively.
For instance, GDT’s
counterparty trading volumes decreased by 30% from the quarter ended December
31, 2021, but increased over 50% year-over-year (YoY).
This is despite the fact
that GDT’s counterparty loan and yield portfolio grew 20% sequentially
quarter-over-quarter and 100% YoY to approximately $910 million.
On the other hand,
Galaxy Digital Investment Banking (GDIB) and Galaxy Digital Mining (GDM) saw
their net comprehensive income grow by 775% and 433% respectively when compared
to the first quarter of 2021.
While GDIB posted “record
revenue” of $8 million and net comprehensive income of $5.8 million, GDM hit
$9.8 million in revenue and a net comprehensive income of $5.0 million in the
quarter.
Following the release of the Q1 results, Galaxy’s shares, which are listed as GLXY on the Toronto Stock Exchange, at first declined by about 4% but further plummeted to almost 20%, Coindesk reports.
Offsetting the Loss
Galaxy said the
profitability of GDIB and GDM, its investment banking and
cryptocurrency-related businesses, partially helped to offset the net
comprehensive loss.
The company’s lower
operating expenses also contributed in this regard, Galaxy further said.
“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,” said Michael Novogratz,
Founder and CEO of Galaxy Digital.
“We continue to
invest in our people, platforms, and technology as we build the pre-eminent
technology-driven financial services and investment management firm,” Novogratz
added.
Galaxy and Digital Assets
Last year, Galaxy
entered an acquisition deal to takeover digital asset custodian, BitGo, for a
total sum of around $1.2 billion.
The deal was geared at
positioning Galaxy as one of the leading full-service crypto companies
targeting institutional clients.
Galaxy alongside
Bloomberg also launched the Bloomberg Galaxy DeFi Index in 2021 to meet the
growing demand for decentralized financial products.
The benchmark is owned
and administered by Bloomberg Index Services Limited and is co-branded by
Galaxy.
Galaxy Digital Holdings
Ltd, a US diversified financial services and investment management company,
recorded a $111.7 million net comprehensive loss during the first quarter of 2022
that ended March 31.
The holding company
disclosed this on Monday in a release containing its financial results for the
just ended quarter.
According to Galaxy, the
loss, which contrasts against the $858.2 million gain recorded in the same
period last year, was caused by “large digital asset price declines within the
quarter.”
Citing
CoinMarketCap.com, the company said there was a total cryptocurrency market
capitalization decrease of approximately 7% during the quarter.
Galaxy said the loss was
also fueled by decreases in Galaxy Digital Trading (GDT) and Galaxy Digital
Principal Investments (GDPI), its trading and private investment businesses, respectively.
For instance, GDT’s
counterparty trading volumes decreased by 30% from the quarter ended December
31, 2021, but increased over 50% year-over-year (YoY).
This is despite the fact
that GDT’s counterparty loan and yield portfolio grew 20% sequentially
quarter-over-quarter and 100% YoY to approximately $910 million.
On the other hand,
Galaxy Digital Investment Banking (GDIB) and Galaxy Digital Mining (GDM) saw
their net comprehensive income grow by 775% and 433% respectively when compared
to the first quarter of 2021.
While GDIB posted “record
revenue” of $8 million and net comprehensive income of $5.8 million, GDM hit
$9.8 million in revenue and a net comprehensive income of $5.0 million in the
quarter.
Following the release of the Q1 results, Galaxy’s shares, which are listed as GLXY on the Toronto Stock Exchange, at first declined by about 4% but further plummeted to almost 20%, Coindesk reports.
Offsetting the Loss
Galaxy said the
profitability of GDIB and GDM, its investment banking and
cryptocurrency-related businesses, partially helped to offset the net
comprehensive loss.
The company’s lower
operating expenses also contributed in this regard, Galaxy further said.
“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,” said Michael Novogratz,
Founder and CEO of Galaxy Digital.
“We continue to
invest in our people, platforms, and technology as we build the pre-eminent
technology-driven financial services and investment management firm,” Novogratz
added.
Galaxy and Digital Assets
Last year, Galaxy
entered an acquisition deal to takeover digital asset custodian, BitGo, for a
total sum of around $1.2 billion.
The deal was geared at
positioning Galaxy as one of the leading full-service crypto companies
targeting institutional clients.
Galaxy alongside
Bloomberg also launched the Bloomberg Galaxy DeFi Index in 2021 to meet the
growing demand for decentralized financial products.
The benchmark is owned
and administered by Bloomberg Index Services Limited and is co-branded by
Galaxy.
Source: https://www.financemagnates.com/fintech/galaxy-digital-sees-1117m-net-loss-as-digital-asset-price-falls-during-q1/