Galaxy Digital’s Q2 loss triples to $555 million: Bitcoin to blame?
Michael Novogratz’s Galaxy Digital has been one of the top institutional HODLs of Bitcoin. Although the invested amount is still quite less than MicroStrategy and other top holders, Galaxy Digital has been able to maintain a position for itself in the top 10 list.
Per data from Bitcoin Treasuries, the firm owns about 4,000 BTC, worth about $96 million at the current market price of $24k. Over the past few weeks, companies HODLing Bitcoin have noted dents in their quarterly numbers due to HODLing Bitcoin. So, has Galaxy Digital followed suit?
Read more: Here’s how MicroStrategy’s Bitcoin holdings affect shareholders
Bitcoin HODLer Galaxy Digital reports a net loss of $554.7 million
On Monday, the technology-driven digital asset services and investment management firm released its second-quarter earnings report. Correspondingly, the company registered a net total loss of 554.7 million dollars, compared to a loss of 182.9 million dollars in the previous period. Without mentioning Bitcoin or other cryptos, the report noted,
“The increase in losses was primarily related to unrealized losses on digital assets and on investments in our trading and capital investment businesses, due to reduced digital asset prices, partially offset by profitability in our mining business.”
However, the company’s operative business areas investment banking and mining were profitably combined. Together, they contributed $1.1 million to the total profit for the quarter. Mining increased on its own by 204% compared to the same period last year.
In terms of liquidity, the company disclosed that it maintained $1 billion in cash and had a net digital asset position of $474.3 million. Notably, $256.2 million of the net digital asset position was held in non-algorithmic stablecoins. In fact, the statement further revealed,
“As of June 30, 2022, net digital assets were $474.3 million, compared to $910.5 million as of March 31, 2022. The decline in net digital asset position was primarily driven by the sale of certain liquid positions to increase our cash position, and general decline in digital asset prices.”
Novogratz assures that the company is “strong”
Well, Galaxy Digital’s report points out the fact that the company fell victim to macro volatility, like its peers. However, its chairman, Mike Novogratz, is “proud” of Galaxy Digital’s “outperformance” in a challenging market and macroeconomic environment.
To ensure the company is in a “strong enough” position to weather an extended period of uncertainty, the executive said,
“We remain in a strong position to withstand prolonged volatility, and to take advantage of strategic opportunities to grow Galaxy in a sustainable manner.”
Alongside, in the medium term, the company’s Toronto-listed shares have recovered. Over the past month, they have increased by nearly 30%, reflecting investors’ renewed confidence in the company.
