Billionaire Crypto Bull Mike Novogratz’s Firm Lost $554.7 In 2nd Quarter

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Galaxy CEO Mike Novogratz
Galaxy CEO Mike Novogratz

Galaxy Digital suffered a painful $554.7 million net loss for the second quarter, roughly triple its losses for the same stretch in 2021. 

The crypto firm said in a press release Monday that the downbeat crypto bear market dragged on earnings. Nonetheless, CEO Mike Novogratz, who is a famous crypto bull, said the company remains in a robust financial position. 

“I am proud of Galaxy’s outperformance during a challenging market and macroeconomic environment,” Novogratz said in the statement. “Prudent risk management, along with our commitment to exacting credit standards, allowed us to maintain over $1.5 billion in liquidity, including over $1.0 billion in cash.” 

Galaxy Digital reported preliminary assets under management of almost $1.7 billion for the end of the second quarter, which marks a 40% decline compared to the first quarter. 

The company’s investments plummeted about 25% sequentially to $753.9 million due to declining valuations of some investments. 

On the other hand, the broader cryptocurrency market has crashed through 2022. The so-called crypto winter has weighed down on the entire market’s valuation, dragging it down from over $3 trillion to about $1.1 trillion in about nine months.