Blockchain News- Galaxy Digital has reported that $47.5 million is in the withdrawal process now.
- The firm claims it has $1.5 billion in liquidity despite the present crisis.
On its most recent quarterly earnings statement on November 9th, blockchain financial services company Galaxy Digital revealed that it has $76.8 million in cash and digital assets exposed to struggling cryptocurrency exchange FTX. Galaxy Digital has reported that $47.5 million is in the withdrawal process now.
After a consumer bank run and a disastrous price decrease in its native FTX Token FTT, which the exchange utilizes as collateral, FTX declared the day before that it has blocked all withdrawals due to a liquidity issue.
$1.5 Billion in Liquidity
Revenue for Galaxy Digital is generated via many sources, including advising fees, management fees, lending income, mining income, and changes in the fair value of assets and derivatives. Revenue for the third quarter dropped 84.9% year over year, to $32.7 million. This was because returns on capital expenditures were much lower than in the prior-year period.
Galaxy Digital claims it has $1.5 billion in liquidity despite the present crisis, including $1.0 billion in cash and an additional $235.8 million in stablecoins. For the three months ending September 30th, the company’s partner capital dropped by 12 percent year over year to $1.8 billion, with the falling value of the cryptocurrency market being the company’s stated reason.
The firm has announced that by the end of the following year it will have completed its restructuring and will have moved its stock listings from the Toronto Stock Exchange to the Nasdaq Stock Market in the United States.
Co-president Damian Vanderwilt plans to stand down and become an advisor and board member in the middle of January 2023. The company repurchased around 52% of its outstanding shares for roughly $52 million between May 16 and October 24 using cash on hand.
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Source: https://thenewscrypto.com/galaxy-digital-reveals-76-8m-exposure-to-ftx-exchange/