Galaxy Digital's quarterly loss triples amidst ongoing market instability

The New York-based crypto investment firm Galaxy Digital founded by billionaire Michael Novogratz reported a loss of more than $554 million for Q2 2022, which has tripled in value compared to the $182.9 million loss in the same period last year.

According to the statement published yesterday, the main reasons behind the increased losings are unrealized losses on digital assets and on investments in companies, trading, and principal investment businesses. The losses were partially offset by profitability in Galaxy Digital's mining business, the company specified in the report. The firm also claims it maintains a strong liquidity position of $1 billion in cash as well as a net digital asset position of $474.3 million as of June 30, 2022, compared to $910.5 million as of March 31, 2022.

Nevertheless, Mike Novogratz stated that he is “proud of Galaxy’s outperformance during a challenging market and macroeconomic environment”. "We remain in strong position to weather prolonged volatility, and to take advantage of strategic opportunities to grow Galaxy in a sustainable manner."

Last month during the Bloomberg Crypto Summit event, the billionaire, who was also an outspoken supporter of collapsed blockchain Terra, complained that the recent turmoil in the crypto sector specifically the LUNA token crash and the bankruptcies of Voyager, 3AC, and Celsius has made the industry look “like a bunch of idiots.”

“What I don’t think people expected was the magnitude of losses that would show up in professional institutions’ balance sheets and that caused the daisy chain of events. It turned into a full-fledged credit crisis with complete liquidation and huge damage on confidence in the space.”