“There is more damage to be done,” insists Galaxy Digital’s Novogratz

Yesterday, Galaxy Digital reported a $111.7 million loss in Q1 due to unrealised losses on crypto holdings
Mike Novogratz expects volatile and testing crypto markets to continue over the next few quarters

Fintech and asset management firm Galaxy Digital on Monday reported that it recorded a loss in the first quarter of the year. The financial services firm explained that the downturn was largely due to the price volatility of crypto markets. Specifically, Galaxy Digital said it saw a net loss of $111.7 million for the quarterly period ended March 31, which overturned the $858.2 million net comprehensive income gain recorded in Q1 last year.

It was not all bad, or rather, it would have been worse were it not for its investment banking and mining operations. Galaxy Digital revealed that it logged a net comprehensive income eight times and five times greater than in the same time last year for these respective strategies. The firm’s mining arm recorded $5 million in net income, and it’s now on track to reach 2,500 petahashes per second this year.

“The decrease was primarily related to unrealised losses on digital assets and on investments in our Trading and Principal Investment businesses, partially offset by profitability in our Investment Banking and Mining businesses and lower operating expenses,” the report read.

The firm’s asset management arm, Galaxy Digital Asset Management (GDAM), booked a total of $2.7 billion in assets under management, a 5% decline over the last quarter. However, the figure also represents more than twofold the value of assets held in Q1 2021 – $1.27 billion. 

It will get worse before it gets better 

The lead digital asset, Bitcoin, is currently logging prices more than 50% off its all-time peak, a continuation of the trend that defined losses for Galaxy Digital during Q1. During an earnings conference call yesterday, Novogratz insisted that the co-movement of the Nasdaq and crypto markets will have continued effects over the coming quarters before markets regain stability.

 “Crypto probably trades correlated to the Nasdaq until we hit a new equilibrium. My instinct is there’s some more damage to be done, and that will trade in a very choppy, volatile, and difficult market for at least the next few quarters before people are getting some sense that we’re at an equilibrium,” he noted.

However, CEO Mike Novogratz remains unfazed by the market movement, citing the long-term potential of this market space. Novogratz insists there’s still more institutional adoption to come, and he promised continued investment in digital finance.

The post “There is more damage to be done,” insists Galaxy Digital’s Novogratz appeared first on The Home of Altcoins: All About Crypto, Bitcoin & Altcoins | Cointext.com.

Share this :
comments

post a comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Generated by Feedzy