Galaxy Digital’s net loss more than triples in a year

The company’s loss in the second quarter of 2022 amounted to $554,7 million

08.08.2022 - 15:40

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What’s new? Crypto investment company Galaxy Digital reported a net loss of $554,7 million for Q2 2022. Compared to the same period in 2021, the figure has more than tripled — then the company’s loss amounted to $182,9 million. According to Galaxy’s statement, the massive jump in losses is mainly due to the downturn in the cryptocurrency market and investments in the trading business.

Galaxy Digital’s statement

What else does the statement say? The firm reportedly had $1,5 billion in liquidity as of June 30, including $1 billion in cash and a net digital asset position of $474,3 million, 256,2 million of which was in non-algorithmic stablecoins.

Partner capital at the end of Q2 was down by 27% from the previous quarter, from $2,5 billion to $1,8 billion. Galaxy’s total assets under management (AUM) amounted to almost $1,7 billion, down by 40% from Q1.

Galaxy representatives reported that the revenue from the company’s mining operations was $10,9 million in this quarter, and total net income tripled compared to the same period last year.

Investments at the end of June amounted to $753,9 million, down by about 25% compared to the first quarter, mainly due to the drop in the valuation of some investments. Galaxy said that it was taking a “conservative approach” to investing, focusing on small deposits.

In July, mining company Argo Blockchain sold 887 bitcoins from its reserve to reduce its debt to Galaxy. As of July 31, the outstanding balance on the loan backed by BTC was $6,72 million.

Earlier, Bitfarms mining company sold 3000 BTC worth about $62 million. It used part of the profits to repay a bitcoin-backed loan to Galaxy, reducing it from $66 million to $38 million.

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