Galaxy Digital’s Q2 loss triples to $555 million: Bitcoin to be blamed?


Michael Novogratz’s Galaxy Digital has been one of the top institutional HODLer of Bitcoin. Even though its invested amount remains fairly lesser than that of 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 around 4000 BTC, worth approximately $96 million at the current market price of $24k. Over the past few weeks, companies HODLing Bitcoin have noted dents in their quarterly figures because of HODLing Bitcoin. So, has Galaxy Digital followed the same path?

Read More: Here’s how MicroStrategy’s Bitcoin holding affects shareholders

Bitcoin HODLer Galaxy Digital reports a net loss of $554.7 million

On Monday, the tech-driven digital asset service and investment management firm released its Q2 performance report. Per the same, the company registered a net comprehensive loss of $554.7 million, relative to a $182.9 million loss in the prior year period. Without directly mentioning Bitcoin or other cryptos, the report noted,

“The increase in loss was primarily related to unrealized losses on digital assets and on investments in our Trading and Principal Investments businesses, due to decreased digital asset prices, partially offset by profitability in our Mining business.”

The company’s operating business lines of investment banking and mining were, however, profitable in aggregate. They contributed $1.1 million, in conjunction, to the net comprehensive income in the quarter. Mining single-handedly grew 204% compared to the same period last year.

As far as liquidity is concerned, the company revealed that it maintained $1 billion in cash and had a net digital asset position of $474.3 million. Notably, $256.2 million of that 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 decrease in net digital asset position was primarily driven by selling-out of certain liquid positions to increase our cash position, and overall decreases in digital asset prices.”

Novogratz assures that company is “strong”

Well, Galaxy Digital’s report release does point out the fact that the company did fall prey to macro instability, like its peers. Its executive, Mike Novogratz is, however, “proud” of Galaxy Digital’s “outperformance” during a challenging market and macroeconomic environment.

Assuring the company is in a “strong enough” position to tread through an extended period of uncertainty, the executive said,

“We remain in a strong position to weather prolonged volatility, and to take advantage of strategic opportunities to grow Galaxy in a sustainable manner.”

Alongside, in the mid-term frame, the company’s Toronto-listed shares have been recovering. Over the past month, they’re up by almost 30%, echoing investors’ re-budding confidence in the company.

Source: Google Finance