Galaxy Digital reported a net loss of $111.7 million

Cryptocurrency investment firm Galaxy Digital has announced financial results that were impacted by the fall in digital asset prices in the first quarter of 2022.

Galaxy Digital Holdings led by Michael Novogratz fixed a net cumulative loss of $111.7 million. For comparison, the first quarter of 2021 ended for Galaxy Digital with a net profit of $860 million. The company attributed the net loss in January-March 2022 to the continued volatility of the cryptocurrency market and its fall by 7% per quarter.

The result was affected by the decline in profitability of Galaxy Digital Trading (GDT) and Galaxy Digital Principal Investments (GDPI), which are the trading and private investment business of Galaxy Holding.

“The decline is attributable to unrealized losses on digital assets and investments in our trading and core investment businesses, which was partly offset by the profitability of our investment banking and mining businesses, as well as lower operating expenses,” the company said in a report.

Galaxy Digital Investment Banking (GDIB) and Galaxy Digital Mining (GDM) revenue grew by 775% and 433% compared to the first quarter of 2021, respectively. GDIB reported “record revenue” of $8 million and net comprehensive income of $5.8 million, GDM achieved revenue of $9.8 million and net comprehensive income of $5 million for the quarter.

Commenting on Galaxy’s quarterly earnings report, Michael Novogratz mentioned the downturn in the cryptocurrency and stock markets, but said he was not “panicking over any stretch and the company will continue to invest in people, platforms and technology.”

In mid-April 2022, Galaxy co-chairman Jason Urban (Jason Urban) in an interview with Kitco News said that bitcoin and ether are moving forward confidently and in the second quarter of 2023 can grow in price by 100%.