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.
May 13, 2022 at 12:40 p.m. UTCCryptocurrency-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.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
:format(webp)/s3.amazonaws.com/arc-authors/coindesk/008ae87f-5c6e-412b-816b-ded600ac5054.png)
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.