Merchant bank Galaxy Digital loses $134m in its first quarter
Galaxy Digital Ventures, the cryptocurrency-focused merchant bank, posted a $134m loss in its first quarter, the company – founded by Mike Novogratz – said on Thursday.
The company incurred a $13.5m trading loss in the quarter ended 31 March – its first quarterly earnings disclosure – and lost $85.5m on its digital asset holdings as the price of cryptocurrencies fell sharply during the period.
Galaxy also incurred $1.1m in paper losses on investments and a further $22.9m in paper losses on investments in its principal investing business.
At the end of the quarter, the company had $281.7m in assets, of which $225.8m were digital assets and investments, the company reported.
While total assets stood at $281.7m on 31 March, this was up from $54.7m at the end of December 2017 as the company built up its portfolio of investments.
“I am very proud of the progress that we have made since the beginning of the year,” said Novogratz. “We have assembled a world-class team with deep institutional knowledge and expertise and have also made significant strides in scaling our four core business lines.”
He added: “I have complete confidence in our team’s ability to continue driving growth and believe the company is strategically positioned to help further institutionalize the digital assets and blockchain technology industry.”