- Galaxy’s investments were $753.9 million at the time of the report.
- Non-algorithmic stablecoins accounted for $256.2 million.
This has been a difficult year for Galaxy Digital. The Digital asset management and investment giant posted a net comprehensive loss of $554.7 million in the second quarter on Monday, a whopping three-fold loss from last year.
“Unrealized losses on digital assets and on [its] investments in our Trading and Principal Investments businesses”, according to the statement. Galaxy’s investments were $753.9 million at the time of the report, down $252 million from March.
Strong Liquidity Position
The losses were somewhat offset by a record $10.9 million in mining income, but that number was still a pittance compared to the total losses of the corporation. Additional losses were mitigated by “prudent realizations of certain investments,” the business claimed.
However, Galaxy reported a good liquidity position, with $1 billion in cash and $474.3 million in digital assets. Non-algorithmic stablecoins accounted for $256.2 million of that total.
Prior to Terra’s stunning $40 billion collapse in May, Galaxy was well-known to have funded Terra. Its losses from the LUNA bet were, however, kept secret from the general public. “A constant reminder that venture investing requires humility” is what CEO Novogratz wrote to shareholders, partners, and members of the larger community after the collapse.
However, Novogratz was upbeat about the company’s recent results and argued that, despite the market slump, it was well-positioned for long-term development.
In the document, Novogratz’s claims are backed up by the fact that the number of clients has increased during the same time. 40 additional trading counterparties were added to Galaxy Digital Trading’s platform, increasing the total number of trading counterparties to around 860.
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