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

Michael Novogratz’s Galaxy Digital has been one of Bitcoin’s top institutional HODLers. Even though its invested amount is still quite lower than that of MicroStrategy and other major holders, Galaxy Digital has managed to stay in the top 10 list.

According to data from Bitcoin Treasuries, the company owns around 4,000 BTC, worth around $96 million at the current market price of $24,000. Over the past few weeks, HODLing Bitcoin companies have noted bumps in their quarterly numbers due to HODLing Bitcoin. So, has Galaxy Digital followed the same path?

Read more: Here’s how MicroStrategy’s bitcoin stake affects shareholders

Bitcoin HODLer Galaxy Digital Reports Net Loss of $554.7 Million

On Monday, the technology-focused digital asset services and investment management company released its second-quarter performance report. At the same time, the company recorded an overall net loss of $554.7 million, compared to a loss of $182.9 million in the prior year period. Without directly mentioning Bitcoin or other cryptos, the report notes,

“The increased loss was primarily related to unrealized losses on digital assets and on investments in our core trading and investment businesses, due to lower digital asset prices, partially offset by the profitability of our mining activity.

The company’s operating lines of business, investment banking and mining, were, however, generally profitable. Together, they contributed $1.1 million to net comprehensive income for the quarter. Mining alone is up 204% over the same period last year.

As for liquidity, the company revealed that it maintains $1 billion in cash and has a net digital asset position of $474.3 million. Notably, $256.2 million of this 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 the net position of digital assets is mainly due to the sale of certain liquid positions to increase our cash position and the overall decline in digital asset prices.

Novogratz says company is ‘strong’

Well, the release of Galaxy Digital’s report highlights the fact that the company has fallen prey to macro instability, like its peers. Its leader, Mike Novogratz, is however “proud” of Galaxy Digital’s “outperformance” in a difficult market and macroeconomic environment.

Assuring the company is in a “strong enough” position to weather a long period of uncertainty, the executive said,

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

At the same time, in the medium term, the company’s shares listed in Toronto have rallied. Over the past month, they have risen nearly 30%, echoing renewed investor confidence in the company.

Source: Google Finance

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