Galaxy Digital Holdings to Expect Massive $300 Million Loss in Q2 2022

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Galaxy Digital Holdings to Expect Massive $300 Million Loss in Q2 2022
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Given the recent performance of the crypto market, Galaxy Digital Holdings could lose as much as $300 million in net consolidated earnings this quarter.

A company’s comprehensive income is usually the sum of its net income and unrealized gains and losses. This latest news appears to be a warning sign for investors as we approach the end of the second quarter.

The $300 million loss would reduce “Partners Capital to $2.2 billion, a 12% decrease compared to March 31, 2022,” the statement read. The company said it currently has a liquidity position of $1.6 billion, “comprising $800 million in cash and over $800 million in net digital assets.”

The company claims that given Terra’s algorithmic stablecoin UST’s recent price collapse, the majority of its digital assets are in non-algorithmic stablecoins, and clarified that its treasury does not use algorithmic stablecoins.

coinbase

The Galaxy Digital update is no surprise, given that the cryptocurrency market has lost around 40% of its value in the past seven days. The crypto industry’s market cap fell below $1.5 trillion, the value of Bitcoin plummeted below $30,000, and the value of other major altcoins fell sharply.

Shares of most publicly traded crypto companies also started to fall. Most of the top publicly traded crypto-related companies have lost more than 50% of their value so far this year. This includes Coinbase, Microstrategy, Marathon Digital Holdings and Galaxy Digital Holdings.

The update comes just five days after its first-quarter report, which reported a loss of $111.7 million. It said at the time that these were unrealized losses on the digital asset and its trading and investment operations.

At the time, CEO Mike Novogratz said he was not worried about the market and predicted that Bitcoin would remain around $30,000 and ETH would remain around $2,000.

While the company itself has no exposure to the Terra ecosystem, Novogratz himself is a big fan of the asset, as he has a coin tattooed on his arm.

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