Galaxy Digital Records Q1 Loss of $111.7M Amid Fall in Crypto Prices

The loss compares to the $858.2 million gain recorded in the equivalent quarter a year ago.

AccessTimeIconMay 9, 2022 at 11:35 a.m. UTC
Updated May 11, 2023 at 5:41 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

Cryptocurrency-focused financial services firm Galaxy Digital (GLXY) recorded a net loss of $111.7 million for the quarter-ended March 31, 2022.

  • The loss compares to the $858.2 million gain recorded in the equivalent quarter a year ago.
  • Galaxy Digital attributed the loss to unrealized losses on digital assets and on investments in its trading and investments businesses in an announcement on Monday.
  • The firm's asset management business, Galaxy Digital Asset Management (GDAM), recorded assets under management of $2.7 billion, consisting of $2 billion in GDAM's Galaxy Fund Management products and $735 million in the Galaxy Interactive fund. This is more than double the figure of $1.27 billion recorded a year ago, but a 5% decrease compared to Q4 2021.
  • CEO Michael Novogratz highlighted weakness across crypto and equity markets during Galaxy's earnings call Monday, though said he isn't "panicked by any stretch." He added that his recent investor meetings point to growing adoption, and noted that "crypto as a tech play" is gaining momentum.
  • Volatility will continue, according to Novogratz, although he said he expects bitcoin to hold around the $30,000 level and ether to stick around the $2,000 level.
  • BTIG equity research analyst Mark Palmer lowered his price target on Monday afternoon on Galaxy's stock to $28.45 to $36.91 per share, citing the "more challenging market conditions" across the sector. Though Palmer says shares are "very inexpensive in light of the strength" of Galaxy's platform. He maintained a buy recommendation.
  • GLXY's Toronto-listed shares were trading down about 26% to $9.97 on Monday.
  • Digital Assets Are 'More Sensitive' to Interest Rate Hikes: Expert
    13:37
    Digital Assets Are 'More Sensitive' to Interest Rate Hikes: Expert
  • Could Solana's SOL Hit $200 by Month End?
    00:43
    Could Solana's SOL Hit $200 by Month End?
  • Genesis Set to Return $3B to Creditors; Craig Wright Lied to UK Court 'Extensively': Judge
    01:58
    Genesis Set to Return $3B to Creditors; Craig Wright Lied to UK Court 'Extensively': Judge
  • Metaverse Lets Users 'Defy Gravity': VBG Founder
    00:56
    Metaverse Lets Users 'Defy Gravity': VBG Founder
  • UPDATE (May 9, 20:01 UTC): Updates with analyst comment.

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Jamie Crawley

    Jamie Crawley is a CoinDesk news reporter based in London.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.



    Read more about