On March 28, Canadian investment firm Galaxy Digital, operated by blockchain personality Mike Novogratz, revealed that it had achieved a preliminary pre-tax income of $150 million from January 1, 2023 to March 24. of 2023.
The results followed a $1 billion net loss in 2022, which was largely attributed to a $659 million unrealized loss on digital assets and a $496 million unrealized loss on other investments. According to Novogratz:
“2022 was an educational year for Galaxy, and while we and our industry faced unprecedented macroeconomic events, we managed to stay the course and were able to opportunistically seize strategic opportunities to build our operating businesses for the future.”
On May 19, 2022, Novogratz claimed that he was “permanently overwhelmed” by the $40 billion collapse of the Terra Luna ecosystem and reiterated that the crypto industry “seems stronger than ever and is not going away anytime soon.” A year earlier, on February 3, 2021, Cointelegraph reported that Galaxy Digital invested $25 million in the Terra Luna protocol. Galaxy Digital reported net income of $1.7 billion in 2021 during the height of the cryptocurrency bull market.
#Bitcoin is a report card on monetary policy and financial stability. In other words, it was built for these times.
On a risk-adjusted basis, BTC is the best-performing asset of the year, outpacing growth stocks, banks, and major stock benchmarks. pic.twitter.com/RZ0xZcgsLT
—Mike Novogratz (@novogratz) March 23, 2023
In August 2022, Galaxy Digital abandoned its plans to go public in the US. after terminating a $100 million deal to acquire digital asset custodian BitGo. Later, in November, the company revealed a $77 million exposure to failed cryptocurrency exchange FTX, with $48 million likely locked on the platform.
By the end of 2022, the firm’s partner capital was reduced from $2.6 billion to $1.4 billion year-over-year. Despite the setbacks, Novogratz says the firm has a strong liquidity position of $957 million. Among other things, the company projects that its subsidiary Galaxy Mining will increase its Bitcoin (BTC) mining hash rate to 4 exahash per second later this year, partly helped by its $65 million acquisition from Argo Blockchain’s flagship Helio facility.
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