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.
MicroStrategy’s Michael Saylor, another bullish and enthusiastic executive on digital assets, announced last week he would step down from his role as CEO and transition to become the executive chairman.
The move followed a digital-asset impairment charge of $917.8 million that stemmed from the firm’s massive bet on bitcoin, which has declined from its highs above $68,000 to about $24,198 as of the writing of this article.