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Crypto Bank Galaxy Digital Posts Q1 Net Loss of $134M

Crypto investment bank Galaxy Digital, founded by billionaire investor Michael Novogratz, lost $134 million in the first quarter of 2018, primarily due to a sharp drop in cryptocurrency prices.

According to the quarterly earnings report, Galaxy Digital has posted a “net unrealized loss” of $85.5 million on digital assets.

Additionally, the investment firm has lost another $24 million loss from other investments. Overall, the unrealized losses amounted to $109.6 million in its first-ever quarterly earnings report.

Furthermore, Galaxy Digital recorded $11 million in operating expenses and a net realized loss of $13.5 million. This resulted in 1Q18 net loss of ~$134 million. The company is yet to report its second-quarter results.

The report also confirmed the founder’s plan to complete a merger with Canadian companies First Coin Capital Corp. and Bradmer Pharmaceuticals Inc. Galaxy Digital is also trying to get its shares listed on the Canadian stock exchange.

For the merger to be allowed, regulators have made additional demands. This has delayed the listing process. Despite the setbacks, Novogratz has stated that he is “proud” of Galaxy’s progress so far this year.

Novogratz said

“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. 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.”

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