Ouch: Galaxy Digital Lost $272.7 Million Last Year
Cryptocurrency-focused merchant bank Galaxy Digital LP (TSXV:GLXY) reportedly lost a whopping $272.7 million in 2018, with the largest contributor being a $101.4 million realized loss on Bitcoin and Ethereum holdings.
According to recent filings, the Mike Novogratz-led startup lost $97 million in the fourth quarter, building on losses of $76.7 million in the third quarter.
As of December 31, Galaxy Digital had around 28% of its portfolio in digital assets with $66.5 million in cash and more than $300 million in partnership equity.
In the past, Novogratz has described the difficulties of building a crypto company during a bear market. However, this did not stop him from adding to his investment in the Galaxy Digital back in January. He now owns 221.2 million ordinary shares, representing 79.3% of the company.
Galaxy Digital is also reportedly in the process of raising a $250 million fund to provide loans to struggling cryptocurrency firms. With the new funds, the company plans to offer loans to crypto companies in return for collateral including digital assets, property and even mining hardware.
Shares of GLYX began trading on the Toronto Stock Exchange last August following a reverse takeover, and are currently down around 11% since that time.
More: Galaxy Digital Filings
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.