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Tuesday, February 27, 2024

Mike Novogratz’ Galaxy Digital Turns Profitable in Q1 2023: Report

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Galaxy Digital turned profitable in the first quarter of the year as the markets improved. Its founder and CEO, Michael Novogratz, revealed that the crypto financial services firm ended Q1 2023 with a liquidity position of $814 million.

  • According to an official press release, Galaxy Digital reported $134 million in net income for the same period as compared to a net loss of $288 million in the fourth quarter of 2022. The income was attributed to the gains on digital assets as well as unrealized gains on investments.
  • The company’s asset management division – Galaxy Digital Asset Management (GAM) – registered assets under management of $2.4 billion, representing an increase of 40% from the previous quarter.
  • On the mining front as well, Galaxy Digital Infrastructure Solutions (GDIS) concluded the quarter with nearly 3.0 exahash per second in Hashrate Under Management (HUM), surging by more than 100% increase QoQ.
  • Commenting on the first quarter earnings call, Novogratz said,

“Galaxy’s globally diversified platform and longstanding commitment to promoting the responsible adoption of digital assets is resonating with clients more than ever before. Our first quarter 2023 results are a validation of the investments we have made in our business to drive long-term growth and lead the evolution of the digital asset industry.”

  • The New York-based company had been posting negative quarterly revenues since the end of 2021. With the subsequent crypto price slump, Galaxy Digital resorted to slashing its headcount by 20%.
  • Its losses were exacerbated after the FTX collapse as it held over $76 million worth of exposure to bankrupt exchange.
  • Amidst heightened regulatory scrutiny, Novogratz revealed the company’s intention to expand its operations offshore.

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