Galaxy Digital faces $1 billion loss in 2022

Galaxy Digitalthe investment firm of the billionaire Mike Novogratzrecorded a loss from 1 billion dollars in 2022 while the valuation from crypto market has been divided by 3.

Tuesday, as part of the disclosure of its results, Galaxy Digital announced a loss of $288 million for the fourth quarter of 2022, bringing its loss for fiscal 2022 to 1 billion all round versus a profit of $1.7 billion in the previous fiscal year (2021).

According to the release, its loss in 2022 is mainly due to market conditions. Last year, Bitcoin (BTC) lost more than 60% of its value, dropping below $16,000 following the surprise bankruptcy of FTX in the fall. The overall capitalization of the cryptocurrency market has been divided by 3 over the course of the year.

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Galaxy Digital was notably exposed to LUNA, the cryptocurrency supporting the now-defunct stablecoin TerraUSD. Michael Novogratz, founder and boss of Galaxy, even got a tattoo in reference to the project.

2022 was a formative year for Galaxy, and while we and our industry faced unprecedented macroeconomic events, we managed to stay the course and were able to opportunistically take advantage of strategic opportunities to build our operations for the future,” said a confident Novogratz.

The TSX-listed crypto investment giant is reassuring that its liquidity position remains ” intact “This is despite the recent turmoil in the U.S. banking industry. “Galaxy had established several banking relationships prior to the disruption, which allowed us to be agile and quickly migrate cash balances,” the document states.

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Following the acquisition of Helios in December, Galaxy reported that its mining arm has doubled its mining capacity and aims to exceed 4 EH/s of Hashrate Under Management (HUM) by the end of 2023.

Galaxy Digital now supports about 100 startups in the crypto ecosystem. Most recently, the New York-based company has invested in OP3N, Chaos Labs and Coincover.

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