Despite the many obstacles in 2022, Novogratz said the company continues to grow from a strong position, open for business to our customers and counterparties.
On Tuesday, March 28, Canadian investment firm Galaxy Digitalpowered by wall street giants Mike NovogratzReported pre-tax profit of $150 million from January 1, 2023 to March 24, 2023. This is a major sign of optimism for the crypto firm which last year reported $1 billion in net losses for 2022. Additionally, the company attributed the loss to an unrealized loss on investments of $496 million and an unrealized loss on digital assets of $659 million.
Commenting on the first quarter results, Mike Novogratz, President of Galaxy Digital Said,
“2022 was a formative year for Galaxy, and while we and our industry faced unprecedented macroeconomic events, we were able to stay the course and take advantage of strategic opportunities to build our operational businesses for the future were capable of. I have never had more confidence in our strategy, business and team going forward. The company continues to lead from a position of strength by remaining open for business to its customers and counterparties.
Galaxy Digital faced some of the biggest losses for 2022 with the $40 billion collapse of the Terra ecosystem. On May 19, 2022, just after the collapse of Terra, Novogratz said that he was “permanently humbled” with the Terra fall, while reiterating that the crypto industry “looks stronger than ever and will be back any time soon”. Time will not be far”.
Change of plans for Galaxy Digital in 2022
2022 witnessed one of the harshest crypto winters in the history of the crypto market. The first major collapse of Terra spread like a contagion to the wider crypto market, with popular crypto lenders like Celsius Network and Voyager Digital soon collapsing. Furthermore, a $3 billion crypto hedge fund also collapsed overnight at the same time.
As a result, Galaxy Digital had to withdraw from its previous plans. Back in August 2022, the company decided to cancel the IPO Planned and also closed its $100 million deal to acquire digital asset custodian BitGo. Later in November, Galaxy Digital also disclosed $77 million in exposure to the now-defunct crypto exchange. ftxOf which $48 million is locked in withdrawals.
However, despite these multiple setbacks, Mike Novogratz said the company has a strong liquidity position of $957 million. Seasoned investors have also remained bullish on bitcoin and other digital assets. Novogratz in a recent tweet wrote,
“Bitcoin is a report card on monetary policy and financial stability. In other words, it was made for these times. On a risk-adjusted basis, BTC is the best performing asset of the year, ahead of growth stocks, banks and major stocks. beating the benchmark.
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Bhushan is passionate about Fintech and has a good grasp of understanding the financial markets. His interest in economics and finance drew his attention to the newly emerging blockchain technology and cryptocurrency markets. He is in the process of continuous learning and keeps motivating himself by sharing his acquired knowledge. In his spare time he reads thriller fiction novels and occasionally explores his culinary skills.
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