Galaxy Digital’s Q2 Net Loss More Than Triples to $554.7M Amid Market Downturn

    0
    5



  • The larger loss was mainly the result of the crypto market downturn and investments in Galaxy’s trading business, the firm said on Monday. The firm reported a loss of $182.9 million for the second quarter of last year.

  • Shrugging off the backward-looking loss, Galaxy’s Toronto-listed shares are surging over 20% in Monday’s trading session after gains in cryptocurrencies over the weekend. Bitcoin (BTC) is up about 4.4% to over $24,000 while Ethereum (ETH) gains 5.6% to about $1,799.

  • As of June 30, the firm had a liquidity position of $1.5 billion, while partners capital at the end of the quarter was $1.8 billion, up 23% from $1.5 billion from the year-ago level.

  • The firm’s reported preliminary assets under management stood at nearly $1.7 billion at the end of the second quarter, up modestly from a year ago, but down 40% from three months earlier.

  • Mining business revenue in Q2 was $10.9 million and the segment’s comprehensive net income tripled from a year ago.

  • Investments stood at $753.9 million at of the end of June, a decrease of about 25% for the quarter alongside the general slump in cryptos.

  • Speaking on the earnings call CEO Michael Novogratz said “I don’t feel nearly as bad as I thought I would, and I hope it’s the worst quarter this firm ever has.”

  • Over the last eight weeks, said Novogratz, Galaxy took a “really serious look” at all of its business units and costs as it looks to control spending.

  • On the employee front, Novogratz expects Galaxy to finish the year with over 400 people from about 375 right now. “We are a growth company,” Novogratz said. Galaxy is investing in people, products, and engineering teams not only for the near-term but for years to come, he added.

  • “While the crypto landscape is less certain than it was, my confidence of where it’s going in the medium-term hasn’t waned a bit,” Novogratz said.



  • Source link

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here