Mike Novogratz, founder and CEO of Galaxy Digital, was undaunted by the company’s $175.8 million loss, emphasising the necessity of digital asset adoption.
Galaxy Digital Holdings, Mike Novogratz’s crypto investing firm, has reported a $175.8 million loss in the second quarter.
The amount stands in stark contrast to the company’s first-quarter report, which showed a total net profit of $860 million earlier this year.
Galaxy Digital released its financial results for the second quarter ended June 30 on Monday, blaming the $175.8 million Q2 loss to asset price reductions following the FUD-inducing narratives that propelled the crypto collapse in May.
“During the quarter, our results were impacted by a 34% decline in overall digital asset prices and a 41% decline in Bitcoin price, relative to the end of the first quarter,” according to the study.
During a conference call to discuss the Q2 results, CEO and founder Novogratz seemed undeterred by the loss, citing many key metrics that he is excited about, including counterparty trading volume, blue-chip partnerships with Goldman Sachs, strategic investments, and employee acquisitions.
The CEO emphasised that the company remained “significantly profitable” in the first half of 2021, with net comprehensive income of $684 million.
Novogratz stated that market volatility and asset price decreases have been “offset by strong tailwinds of adoption across the entire ecosystem,” citing Galaxy’s counterparty trading volumes increasing by 90% in Q2 and 560% year on year (YoY). Galaxy Digital’s assets under management (AUM) increased by 12% year on year to $1.42 billion as of June 30:
“It’s important to remember that when we look at the business, the long-term arc of adoption of digital assets in crypto matters far more than the businesses we are building.”
“We view the adoption battle as a hard one, stickier, and more financially impactful over time than short-term price moves,” he added.
According to the Q2 data, gross counterparty loan originations increased more than 130 percent over Q1 to nearly $1.56 billion.
Galaxy’s staff increased by 45 percent in Q2 to roughly 220 personnel worldwide. The firm also mentioned Tim Grant, former CEO of Swiss Exchange SIX Group, who will serve as Head of Europe, and Jennifer Lee, former BlackRock COO, who will become Chief People Officer.
In addition, the company reported a $52 million strategic capital outlay into 14 distinct NFT-related enterprises through direct investments and Galaxy Interactive Fund initiatives.
Novogratz noted that his investments in Major League Baseball collectible platform Candy Digital, NFT game creator Mythical Games, and NFT platform Art Blocks were “most exciting.”
