Bitcoin-bull Mike Novogratz's Galaxy Digital loses $555 million in 2nd quarter amid crypto winter
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- Galaxy Digital's net losses deepened to $554.7 million in the second quarter.
- The losses are more than triple those of last year for the same time period.
- The financial services company cited the broad crypto downturn as the main reason for its downbeat earnings report.
Galaxy Digital reported a $554.7 million net loss for the second quarter, roughly triple its losses for the same stretch in 2021.
The company said in a press release Monday that the downbeat crypto bear market dragged on earnings. However, CEO Mike Novogratz, who is a vocal crypto bull, said the company remains in a strong financial position.
"I am proud of Galaxy's outperformance during a challenging market and macroeconomic environment," Novogratz said in the statement. "Prudent risk management, along with our commitment to exacting credit standards, allowed us to maintain over $1.5 billion in liquidity, including over $1.0 billion in cash."
Galaxy Digital reported preliminary assets under management of almost $1.7 billion for the end of the second quarter, which marks a 40% decrease compared to the first quarter.
The company's investments dropped about 25% sequentially to $753.9 million due to declining valuations of some investments.
The broader cryptocurrency market, meanwhile, has tumbled through 2022. The so-called crypto winter has dragged the entire market's valuation down from over $3 trillion to about $1.1 trillion in about nine months.
MicroStrategy's Michael Saylor, another executive bullish and enthusiastic on digital assets, announced last week he would step down from his role as CEO and transition to become the executive chairman.
His job change followed a digital-asset impairment charge of $917.8 million that stemmed from the company's massive bet on bitcoin, which has plunged from its highs above $68,000 to about $24,198.