Crypto News

Galaxy Digital Reports Loss Of $554.7m In Q2 Despite Increased Revenues From Mining

Galaxy Digital Reports Loss Of $554.7m In Q2 Despite Increased Revenues From Mining
© Copyright Image: DailyCoin.com

Galaxy Digital, the technology-driven financial services and investment firm which is focused on cryptocurrency and digital assets, has reported a massive loss of $554.7m in its Q2 results this year, compared to a loss of $182.9m reported in the corresponding quarter of the previous year. 

The company attributed the drop in Q2 to “unrealized losses on digital assets and on investments in trading and principal investments businesses, due to decreased digital asset prices, partially offset by profitability in the mining business.”

But, on behalf of Galaxy Digital Mining (GDM), the company said that the proprietary mining operations continued to mine bitcoin at a marginal cost significantly lower than fair market value. 

Additionally, Galaxy reported a 51% QoQ slide in its total value locked in decentralized finance (DeFi) to $39bn in the second quarter of 2022.  The company also saw its partners’ capital drop by 27% QoQ due to the approximately 56% drop in total cryptocurrency market capitalization during the quarter.

However, Michael Novogratz, founder and CEO of Galaxy Digital said, “ I am proud of Galaxy's outperformance during a challenging market and macroeconomic environment. Prudent risk management, along with our commitment to exacting credit standards, allowed us to maintain over $1.5bn in liquidity, including over $1bn in cash.”

Company’s Focus On Emerging Crypto Asset Class

Galaxy reported $1bn in cash and $474.3m in net digital asset position, along with $256.2m of the net digital asset position held in non-algorithmic stablecoins. 

The company’s leg, Galaxy Digital Asset Management (GDAM), launched the Galaxy Liquid Alpha Fund, benchmarked to the Bloomberg Galaxy Bitcoin index, with internal capital in Q2 as well. “The fund seeks to utilize a combination of macro, quantitative, and fundamental analysis to pick large secular winners within the emerging crypto asset class,” the company said.

Positive Factors In Galaxy’s Balance Sheet

On the upside, Galaxy’s Q2 saw the partnership’s operating business lines of investment banking and mining being profitable in aggregate and contributing $1.1m to net comprehensive income in the quarter.

Furthermore, the company reported a $10.9m revenue from the mining business, which grew Galaxy’s net comprehensive income 204% compared to the same period last year.

On the Flipside

  • The company is ready to weather prolonged volatility and to take advantage of strategic opportunities in a sustainable manner.

Why You Should Care

Galaxy’s Digital Mining branch added a new hosting provider this quarter, Aspen Creek Digital Corporation, a bitcoin mining company focused on renewable energy.

Read more: https://dailycoin.com/galaxy-digital-reports-loss-of-554-7m-in-q2-despite-increased-revenues-from-mining/

Text source: DailyCoin.com

Disclaimer: Financial information and news are not financial advice, read the disclaimer.
Buy & sell Crypto in minutes

Join BINANCE!

The world's largest crypto exchange

You're just steps away from receiving your reward.

The most complete Crypto News Center.

Search Stories:

Latest top stories