The famous Bitcoin supporter suffered losses as the crypto market crash put many companies and investors in a bottleneck. Michael Novogratz’s Galaxy Digital seems to have had its share.
As a matter of fact, the crypto investment company headed by Novogratz, Loss of 111.7 million dollars in the first quarter of 2022 made the notification.
The loss in question is a significant decrease compared to the $858.2 million gain in the previous year.
Highlighting the increasing volatility in the digital asset sector in 2022, Galaxy Digital attributed overall losses to investments in its trading and investment businesses, in addition to unrealized losses in its virtual asset portfolio.
The net loss in question is largely due to continued volatility in the cryptocurrency market, as outlined in the company’s quarterly financial report from January 2022 to March.
In the report prepared on the subject, it is stated as follows:
The decrease primarily relates to unrealized losses in digital assets and investments in our commercial and core investment businesses. The loss was partially offset by profitability and lower operating expenses in our Investment Banking and Mining businesses.
On the other hand, the firm states that the 7% decline of the cryptocurrency market in the first quarter is responsible for most of the recorded losses.
But despite all this market volatility, crypto fund managers and venture capitalists continue to make large, strategic investments in the space.
Galaxy, BitGoIt plans to complete the acquisition later this year. Meanwhile, venture capital financing in crypto and blockchain projects hit a record high in the first quarter.