Mike Novogratz’s cryptocurrency investment firm, Galaxy Digital Holdings posted a loss of $ 175.8 million in the second quarter of the year.
The number is in stark contrast to the company’s first quarterly report, in which $ 860 million profit global net earlier this year.
Galaxy Digital released its financial results on Monday, June 30th, and the company attributed the $ 175.8 million loss in the second quarter of the year to the decline in asset prices after FUD-inducing narratives fueled May’s cryptocurrency crash.
“During the quarter, our results were impacted by a 34% decrease in total digital asset prices and a 41% decrease in Bitcoin price.relative to the end of the first quarter, “the report said.
In a conference call on the results of the second quarter, the CEO and founder Novogrätz He was indifferent to the losses and named several key metrics that excite him, such as counterparty volume, first-class partnerships at Goldman Sachs, strategic investments and employee acquisitions..
The CEO emphasized that the company remains “significantly profitable” in the first half of 2021 as total net income was $ 684 million.
Novogratz noted that market volatility and falling asset prices were “offset by strong acceptance across the ecosystem”.It found that Galaxy counterparties’ trading volume increased 90% in the second quarter and 560% year over year. Galaxy Digital’s assets under management were up 12% compared to the first quarter and exceeded $ 1,420 million as of June 30:
It is important to remember that the arc of long-term digital asset adoption in cryptocurrencies is far more important than the businesses we are building.
“We think so The adoption battle is tough, tougher, and has greater financial implications over time than short-term price movements., he added.
The second quarter report also highlighted that Gross lending increased more than 130% from the first quarter to approximately $ 1.56 billion.
Galaxy Employees Up 45% in Second Quarter 220 employees worldwide. The company also received key leadership hires from Tim Grant, former CEO of the Swiss Exchange SIX Group, who will serve as Head of Europe, and former BlackRock COO Jennifer Lee, who will become Director of People
The company also announced a $ 52 million investment in strategic capital in 14 different companies related to NFT and through Galaxy Interactive’s strategies. Funds. Novogratz said he was “more excited” about investing in Major League Baseball’s Candy Digital collector’s platform, NFT game developer Mythical Games, and the NFT Art Blocks platform.