Mar 29, 2023 05:05
<p class="MsoNormal">The
publicly-listed cryptocurrency company founded by an American investor Michael
Novogratz, Galaxy Digital Holdings (<a href="https://www.financemagnates.com/tag/galaxy-digital-assets-fund/" target="_blank" rel="follow">TSX:GLXY</a>) has published its full-year
results for 2022. Galaxy showed a massive net loss due to the prolonged crypto
winter dominating the previous year.</p><p>Crypto Winter Hits Galaxy
Digital Hard</p><p class="MsoNormal">In Wednesday's
press release, Galaxy announced the fourth quarter, the full year and
preliminary first quarter-to-date results. The company showed a massive net
loss of $1.0 billion for the year ended 31 December 2022, compared to a net income
of $1.7 billion for the same period a year earlier. In the meantime, the fourth
quarter ended with a net loss of $287.8 million compared to $521.3 million
reached in Q4 2021.</p><p class="MsoNormal">Galaxy
explains the poorer performance primarily by the 64% drop in the price of
<a href="https://www.financemagnates.com/terms/b/bitcoin/" class="terms__main-term" id="261088a9-0f41-4202-a73c-31f75ba6bd93">Bitcoin</a> (BTC) over 2022. In January, BTC cost $46,500, ending the year at
$16,500. Ethereum (ETH) also saw a similar depreciation, falling from $3,700 to
$1,200. <a href="https://www.financemagnates.com/cryptocurrency/crypto-winter-fear-fad-or-opportunity-for-regrowth/" target="_blank" rel="follow">The crypto winter</a> negatively affected the performance of other
companies in the sector, <a href="https://www.financemagnates.com/cryptocurrency/hive-blockchain-reports-90m-loss-in-q4-2022-amid-lower-bitcoin-prices/" target="_blank" rel="follow">including digital asset miners</a>.</p><p class="MsoNormal">"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. I have never been more confident in
our go-forward strategy, businesses, and team," Michael Novogratz, the Founder
and CEO of Galaxy Digital, commented in a press release.</p><p class="MsoNormal">At the end
of 2022, Galaxy had 104 portfolio companies, in which it holds 145 investments.
In Q4 2022, it invested in Veridise, a verification platform that conducts
security audits for DeFi applications. Novogratz's company is still exploring
other opportunities in the investment space.</p><p>2023 Paints Brighter Future
for Galaxy Digital</p><p class="MsoNormal">The beginning
of 2023, in which cryptocurrencies saw a rebound after the severe declines of
2022, started off decidedly better. Between early January and 24 March 2023,
the company generated income before tax of $150 million. In the months ahead, Galaxy
will focus on organically building its platform during the bear market and
scaling and integrating recent strategic acquisitions.</p><p class="MsoNormal">Galaxy
anticipates earning net profits in its operating businesses and positive gains
from its liquid coin and investment holdings on its balance sheet for the
entire Q1 2023. The increased market <a href="https://www.financemagnates.com/terms/v/volatility/" class="terms__secondary-term" id="7fd330d9-8855-4c31-9770-cb52b328c117">volatility</a> and volumes from existing
counterparties positively impacted the company's operating business.</p><p class="MsoNormal">"The
Company continues to lead from a position of strength, remaining open for
business for our clients and counterparties. And as the market has improved
year to date, we have generated approximately $150 million of income before tax
while retaining a strong liquidity position through 24 March 2023,"
Novogratz added.</p><p class="MsoNormal">Galaxy
Mining has increased its capacity by 100% since the start of 2022 by
integrating the Helios site, <a href="https://www.financemagnates.com/cryptocurrency/mike-novogratzs-galaxy-saves-bitcoin-miner-argo-from-bankruptcy/" target="_blank" rel="follow">which was acquired at the end of last year</a>. The
company aims to have over 4 EH/s of Hashrate Under Management by the end of
2023, with self-mining accounting for about 50% of the total.</p>
This article was written by Damian Chmiel at www.financemagnates.com.
World Crypto Global
