Galaxy Digital Sees Quarter-to-Date Loss of $300M

The Mike Novogratz-led firm said it has a liquidity position of around $1.6 billion, split 50/50 between cash and net digital assets.

AccessTimeIconMay 13, 2022 at 12:40 p.m. UTC
Updated Apr 14, 2024 at 10:28 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) said it expects its quarter-to-date loss through Wednesday to be about $300 million.

  • The Mike Novogratz-led firm posted the update Friday, "in light of recent market conditions."
  • Galaxy specified that its treasury does not utilize algorithmic stablecoins. The collapse in value of algorithmic stablecoin terraUSD (UST) and its sister token LUNA has been at the center of the sharp downturn in the crypto asset market in recent days.
  • The company has a liquidity position of around $1.6 billion, split 50/50 between cash and net digital assets, "with the majority of net digital assets in non-algorithmic stablecoins."
  • "Net comprehensive income is expected to be a loss of approximately $300 million, bringing partners' capital to $2.2 billion, a decline of 12% versus March 31, 2022," Galaxy announced.
  • Galaxy published its first quarter earnings at the start of this week, reporting a $111.7 million loss compared to a gain of $858.2 million for the corresponding quarter a year ago.
  • Toronto-listed GLXY shares closed Thursday at $7.72, down 43% against their value prior to the first quarter earnings report.

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