Mike Novogratz's Crypto-Focused Company Lost $134 Million in the First Quarter

Mike Novogratz's Crypto-Focused Company Lost $134 Million in the First Quarter

Mike Novogratz's crypto merchant bank Galaxy Digital released an announcement about a $134 million loss as crypto markets had stooped.

Galaxy Digital’s trading business lost $13.5 million, had $85.5 million of unrealized losses on digital assets and a $1.1 million paper loss on investments, according to its first quarterly report. The young firm also posted $22.9 million paper losses on investments in its principal investing business.

Novogratz, who established the company in 2017, is willing to assemble an institutional-level merchant bank for cryptocurrency and blockchain. To list the organization on Canada's TSX Venture Exchange, the country’s regulators expect enterprises to release financial statements.

Galaxy has just conducted a $52.5 million fundraising round for crypto-lending startup Blockfi. With the next round of investment, Blockfi will have the capacity to grow its business to new jurisdictions, as well as support a broader number of digital money.

Not long ago, Mike Novogratz stated that mass adoption of cryptocurrency and blockchain technology is "still five to six years away." According to his view, one of the main snags postponing the innovation’s diffusion is the growing “cost of technical talent” and investors’ doubts.

 

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