According to a quarterly financial report, Galaxy Digital, a cryptocurrency investment company led by Michael Novogratz, recorded a loss of $111.7 million in the first quarter of 2022 spanning from January to March.
Cryptocurrency meltdown leaves a trail of losses
Several cryptocurrency currencies have lost up to 50% of their value recently, according to the firm’s study, which notes that the recent volatility of the cryptocurrency market is to blame for the losses. The company’s loss is a significant one when compared to an $858.2 million gain recorded in the first quarter of last year. The report said,
“The decrease was primarily related to unrealized losses on digital assets and on investments in our Trading and Principal Investment businesses, partially offset by profitability in our Investment Banking and Mining businesses and lower operating expenses”.
Growth in other areas Galaxy Digital
However, despite the fact that the company suffered losses in its digital asset holdings, it reported aggregate profits in its operating business lines of asset management, investment banking, and mining operations, with the investment banking and mining segments both posting record revenue and net comprehensive income in the quarter.
When compared to the same quarter in the previous year, net comprehensive income in investment banking increased by 775%, while net comprehensive income in mining increased by 433%.
The company’s digital trading division also reported continuous growth in the number of clients, with Partners’ Capital reaching $2.5 billion at the end of the quarter, an increase of 50% from $1.7 billion in the first quarter of last year.
Billionaire CEO Michael Novogratz anticipates that the following quarters will be tougher than the first, but he remains optimistic in the company’s capacity to weather the current downturn in the cryptocurrency industry.
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