Crypto investment bank Galaxy Digital, an initiative associated with Mike Novogratz, is said to have lost around $136 million in the year’s first three quarters, according to a Bloomberg report this Wednesday, November 28th.
Galaxy Digital’s “realized and unrealized losses” in the Q3 was a staggering $41 million, which was actually right in line with the rest of the year’s performance and a bleak offering about the potential behavior on Q4. The sum of the three quarters of 2018 makes for a grand total of $136 million. GD’s share price also collapsed, losing 55 percent in value.
$15 Million per Month Average Losses
The crypto firm is basically losing nearly $15 million per month. Galaxy Digital was founded in 2018 by Mike Novogratz, the ex-hedge fund manager formerly of the Fortress Investment Group and Goldman Sachs.
According to the company itself, the primary reason for the sustained losses are related to the price collapse of the crypto market as a whole, including the most relevant digital assets such as Bitcoin (BTC), Ripple (XRP), and Ethereum (ETH).
Galaxy Digital emphasized that crypto trading volumes are critical to the firm’s success, and also said that Galaxy Digital “continue[s] to improve and strengthen [their] trading business.” The company also identified “increased competition for arbitrage opportunities” as another possible cause for the low trading volumes.
Novogratz reiterated his faith in the industry turn around, saying that he expects the current downturn to “flip” in 2019. He conceded, though, that 2018 has been tough on his firm in a recent interview with Financial Times. “Financial institutions will shift from investing in cryptocurrency funds to investing in cryptocurrencies proper in the first quarter of next year,” were some of his words.
The Year of Bold Predictions
Novogratz boldly predicted in the first weeks of November that the price of Bitcoin would reach $20,000 or more next year, which would be an all-time high in case of materializing. After almost reaching that number in January, the leading cryptocurrency by market cap has collapsed and is barely hanging over $4,000 at the time of this writing.
To be more precise, Bitcoin is exchanging hands at $4,177.97 at the time of writing this piece, which accounts to a 4.88 price upswing in the last day. The battered cryptocurrency started sliding on November 14th after spending weeks hovering in the $6,400-$6,500 range.
Bitcoin’s total market cap is at $72,690,937,623, while the trading volume in the last 24 hours accounts to $6,966,628,967. There are 1,668,241 BTCs in circulation.
A Little Bit More about Galaxy Digital
Galaxy Digital Holdings, Ltd. (GDH) is a holding firm known within the field as a diversified, multi-service merchant bank dedicated to the digital assets and blockchain technology industry.
The firm focuses on investing, portfolio management, capital markets, operations, and blockchain technology via trading, asset management, principal investing and advisory services.
Galaxy Digital took part on six new investments in the third quarter of 2018 and one “add-on investment,” which amounted to $19.8 million and $0.9 million of capital, respectively.
By Andres Chavez