Mike Novogratz’s crypto merchant bank, Galaxy Digital Holdings, has reported a net loss of $76.65 million for the third quarter of 2018.
Galaxy Digital recorded a net realized loss for digital assets at $38 million in Q3, a major contributor to the overall net loss. It had total operating expenses of almost $30 million in the same period. The firm held digital assets or cryptocurrencies with a "fair value" of $123 million at the end of Q3.
Its total assets stood at $418.5 million at the end of September, up from $54.7 million at the close of 2017.
The firm said in the report that it engages in several trading strategies, including cross-exchange arbitrage, as well as "market neutral" trading strategies, across crypto assets and exchanges.
However, he predicted that financial institutions will transition from investing in cryptocurrency funds to investing in the cryptocurrencies themselves in the first quarter of next year.
“You’ll see that flip next year. That’s when prices start moving again,” he said.
Earlier this week, Galaxy Digital and nine other firms formed the Association for Digital Market Assets (ADAM) with the aim of standardizing a code of conduct for the still-nascent digital assets sector.
Mike Novogratz image via CoinDesk archive
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