While the cryptocurrency’s market cap hits over $300 billion, and most of the currencies, luckily, seeing colors of growth this week, there have also been events of hackings, losses and declines.
The firm led by billionaire and ex-fund manager Novogratz, Galaxy Digital, posted a loss of around $134 million in the first quarter in their financial statements, following its launch a few months ago. The loss was mostly due to the dramatic decreases in the prices of the cryptocurrencies. The price of Bitcoin rose to about $20,000 at the end of last year and the price then avalanched down to almost 50% of the total amount and also hit a bottom near $6000. Galaxy digital had a $281.7 million of assets in the month of April, out of which $225.8 million were digital assets.
The company announced its quarterly earnings report this Wednesday explaining their tragedy, the declaration of financial statements was a requirement by the Canadian regulators so that the bank could be listed on the Canada’s TSX Venture Exchange. The founder aims to build this merchant bank to become an international quality merchant bank business, dedicated to cryptocurrency and blockchain based ventures like trading, investing, assets management and advisory work. Galaxy digital had $85.5 million worth of unrealized losses on digital assets, while the trading business had a loss of $13.5 million. The remaining losses were from paper investments, which made the amount a total of around $134 million.
Apart from the loss that he’s suffered, Novogratz take on the company’s standing was that,
I am very proud of the progress that we have made since the beginning of the year,
he also added that,
We have assembled a world-class team with deep institutional knowledge and expertise and have also made significant strides in scaling our four core business lines.
Although the company has only revealed what the financial statistics of the first quarter and have yet to show what the second quarter looked like.
The reports have also confirmed Novogratz’s plan to make a merger with Canadian companies, Coin Capital Corp. and Bradmer Pharmaceuticals Inc. Apart from that, the company is also working on getting their shares listed on the Canadian stock exchange. Novogartz had his plans set with the formation of the company that he wanted to get the company listed on the TSX Venture Exchange and raise upwards of $200 million.
Despite the delay that was caused by the additional demands of the merger, Novogratz still claimed that he was proud of the progress made by Galaxy Digital so far. He said,
We have assembled a world-class team with deep institutional knowledge and expertise and have also made significant strides in scaling our four core business lines. I have complete confidence in our team’s ability to continue driving growth and believe the Company is strategically positioned to help further institutionalize the digital assets and blockchain technology industry.
According to a blog post, Novogratz led a fundraising through Galaxy Digital of $52.5 million for a crypto lending startup on blockchain called BlockFi. “We’re excited to partner with BlockFi and jointly lead the way for financial institutions to participate in crypto investing strategies” said Novogratz, which back the fact that the loss hasn’t got the best of Novogratz and he has foreseen a profitable and strong future for his company. He also said that he believes that blockchain, the computer code that underpins all cryptocurrencies, will reshape finance just as the internet did communication. He was also quite motivated looking at the potential of BlockFi and said that he would want to see the business expand outside U.S. and would like to see it supporting other cryptocurrencies. He also tweeted that he was excited to get into the crypto lending business.
— Michael Novogratz (@novogratz) July 24, 2018
He also predicted that the market cap, by a time period of almost 12 months, will hit $800 Billion. In his interview he said that he thought that cryptocurrency has hit a bottom, but he took it optimistically that,
I do think that we are building a nice bottom for the next move up.