Crypto financial firm Galaxy Digital said that it has reported $554M loss in second-quarter due to market crash and a decline in digital asset price.
Founded by billionaire Michael Novogratz, the firm’s net comprehensive loss was $554.7 million, compared with $182.9 million in the year-ago period. This amount is due to the unrealized losses on digital assets and on investments in its trading and principal investments businesses.
However, the company said that this loss was partially offset by profitability in the mining business.
During an earnings call Novogratz said that after the deleveraging of crypto lending platforms, “we’ve seen a bounce from there as the fear went away.”
He added that the industry now needs ‘new energy’, such as the upcoming Merge of the Ethereum blockchain.
Also Read: Vitalik Buterin Explains Steps In RoadMap of Ethereum Merge
Galaxy took a hit due to the downfall of Three Arrows Capital, however, Novogratz said that the exposure was small and hedged within the context of its balance sheet.
The company has over $1.5 billion in liquidity and on its credit business. Novogratz said that they have “got market share to gain there as most of our competitors have been wounded and we’re not.”
Galaxy’s asset management unit was managing nearly $1.7 billion as of June 30, a 40% decrease from prior quarter.
Novogratz was also a big promoter of Terraform Labs and when the LunaUSD downfall debacle happened, he said that the incident showed both the industry and retail investors “had very, very little concept of risk management.”
