Crypto Financial Firm Galaxy Digital Reports $111.7M Net Loss For Q1

Galaxy Digital

Cryptocurrency financial services major Galaxy Digital suffered a quarter 1 loss in 2022($111.7M), against a generous gain of $858.2M in the first quarter of 2021. The firm attributed the slide to loss on trading investments, unrealized loss on investment business, and digital assets.

Galaxy Digital (GLXY) reported cumulative profitability in the asset management division, mining operations, and investment banking. Mining and investment banking too revealed recorded net comprehensive income and record revenues in this quarter.

The asset management division of Galaxy Digital, GDAM, revealed $2.7B worth of managed assets. It consists of $B of products in the Galaxy Fund Managementand $735M in the firm’s Interactive fund, which is double the $1.27B that was recorded last year. but it is a 5% fall against the last quarter of 2021.

Extreme Volatility Reason For Decline In Profits: Galaxy Digital CEO

Michael Novogratz, the CEO, highlighted weakness across the equity and crypto markets during Monday’s earnings call. But he said that there was no need to panic for any reason.

The CEO added that the recent meetings he had with investors have all pointed to growing acceptance, noting that cryptocurrencies are gaining momentum as a tech player.

Novogratz warned that this volatile situation is expected to continue. But he said that he believes Bitcoin will stabilize at close to the $30,000 mark while Ether will hover close to $2,000.

Mark Palmer, an equity research specialist at BTIG, lowered his targeted price on Monday on the stock of Galaxy Digital from $36.91 to a low of $28.45 per share. He has cited challenging conditions in the market across sectors for the downgrade. Though he says that the shares are quite inexpensive given the inherent strength of the Galaxy Digital platform. He said that it was time to buy this share. The shares of Galaxy Digital listed on the Toronto exchange were trading at a discount of 26% on Monday to $9.97.

Previous articleStimulus Check Update: A State Has Passed A Payment Of $750
Next articlePolygon Has Reached A Level That Could Trigger The Past