The Galaxy Digital share increases despite a net loss of $ 555 million in the second quarter

The Galaxy Digital share increases despite a net loss of $ 555 million in the second quarter

The Galaxy Digital share price rose on Monday morning, although the company reported a net loss of around $ 555 million in the second quarter.

The loss of the cryptofocussed company then comes Galaxy in the first quarter a net loss of about 112 million US dollar. Still that of the company Standard price was at 11:30 a.m. ET $ 9.09 - an increase of more than 20 % on this day. The share has fallen by about 60 % since the beginning of the year.

"To put the year in the right light: If you take our losses this year plus our profits last year, we still deserve over $ 1 billion in a growth business while investing a ton," said CEO Mike Novogratz during the company's telephone conference on Monday. "As bad as this 550 million dollar stroke, I don't feel near as bad as I thought, and I hope it is the worst quarter that this company has ever had."

The increased loss was due to non-realized losses in digital assets in investments in Galaxy's commercial and main business business due to the prices for digital assets. The losses were partially compensated for by profits in the company's mining business, which recorded a record sales of around $ 11 million in the quarter.

The net position of digital assets from Galaxy amounted to $ 474 million at the end of June-a decrease of $ 910 million at the end of March due to the sale of certain liquid positions to increase liquidity and the general decline in prices for digital assets.

The company's managed assets were $ 1.7 billion at the end of the second quarter, which corresponds to a decrease of 40 % compared to the previous quarter. Galaxy has liquidity of $ 1.5 billion, including more than $ 1 billion in cash, said Novogratz.

Novogratz wrote in a letter to the shareholders that the company was able to avoid the headwind in connection with the collapse of Terra's VAT-StableCoin and Luna token. Deepak Kaushal, analyst at BMO Capital Markets, said in a Research Note this month that Galaxy has no algorithmic stable coins and gave up its $ 400 million position in Luna in the first quarter.

The Galaxy loan portfolio had a case of a loan impairment of around $ 10 million in the quarter, which was due to the bankruptcy of Three Arrows Capital, said executives.

"While the crypto landscape is less safe than it was, my confidence in medium-term development has not subsided," said Novogratz. "We are a growth company; we do not invest in people, in product and development teams for the next six months, but for the next six years."

While some crypto companies dismiss employees, according to Novogratz, Galaxy wants to increase its number of employees from 375 to more than 400 employees by the end of the year.

Novogram also called the latest deal of Blackrock with coinbase, the institutional customers of the Aladdin platform of the asset manager, gives access to Bitcoin, "a monumental change".

"Crypto will not disappear," said the CEO. "While retail was really affected, the institutions just started to start, and so we only see progress there."

. .

The contribution of Galaxy Digital's contribution increases despite a net loss of $ 555 million in the second quarter.