Galaxy Digital will profit after $1B net loss in 2022

Galaxy Digital, a Canadian investment firm run by blockchain personality Mike Novogratz, revealed on March 28 that it had generated a preliminary pre-tax income of $150 million from January 1, 2023, to March 24, 2023. This information was disclosed about the period from January 1, 2023, to March 24, 2023.

The findings came after a year in which the company saw a net loss of $1 billion in 2022, the majority of which could be attributed to unrealized losses of $659 million on digital assets and $496 million on investments.

The failure of the $40 billion Terra ecosystem on May 19, 2022, according to Novogratz, caused him to be “permanently humiliated.” Nonetheless, he emphasized that the cryptocurrency industry “looks stronger than ever and won’t vanish any time soon.” He said:

“2022 was a formative year for Galaxy, and while we and our industry faced unprecedented macroeconomic events, we succeeded in staying the course and were able to opportunistically take advantage of strategic opportunities to build our operating businesses for the future.”

On February 3, 2021, it was announced that Galaxy Digital had invested $25 million in the Terra protocol. Galaxy Digital reported a net income of $1.7 billion in 2021 when the market for cryptocurrencies was at its most bullish point.

With the collapse of a $100 million agreement to purchase digital asset custodian BitGo, Galaxy Digital is said to have decided to forego its intentions to launch an initial public offering (IPO) in the United States in August 2022.

Later in November, the business announced that it had an exposure of $77 million to the now-defunct cryptocurrency exchange FTX, of which it believed that $48 million was inaccessible for withdrawals.

By the end of the year 2022, the amount of yearly partner capital contributed to the company had fallen from $2.6 billion to $1.4 billion. Despite the firm’s recent misfortunes, according to Novogratz, the company is in a strong liquidity position with $957 million.

The company expects, among other things, that its subsidiary, Galaxy Mining, will have increased its Bitcoin mining hash rate to 4 exahashes per second by the end of the year.

This increase will be supported in part by the $65 million purchase of mining hardware from Argo Blockchain that the company made earlier in the year.