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.