Biggest Crypto Firm On Wall Street Just Lost $134 Million USD On Bitcoin Plunge
Galaxy Digital, a crypto merchant bank, has recently announced that the company took a $134 million USD hit during the first quarter of 2018 because Bitcoin was down and it struggled to break the bear market at the time.
It was the first-ever disclosure of the company and it reported a loss of $103.3 million USD on trading, $13.5 million USD on digital assets and $85.5 million USD in unrealized losses on these assets. The company was launched just a single month before Bitcoin reached its all time high of $20,000 USD.
Progress Since The Beginning of the Year
According to the CEO of the company, Michael Novogratz, the company has made a lot of progress since the beginning of the year. Despite the losses, the executive said that he still has complete confidence in the talent of his team and that the company is strategically positioned to bridge crypto technology and the institutional investors.
The company is already planning to form a partnership with Canada’s TSX Venture Exchange to list the bank on it. To do it, it will buy the Canadian crypto startup Coin Capital and merge via a reverse takeover with the Canadian shell company Bradmer Pharmaceuticals. The company will have more than 70 employees.
Novogratz has been considerably bullish on the blockchain technology and Bitcoin since he started his business. His company has invested millions on eleven investments and five acquisitions, all related to the blockchain technology. The company had a total of $281.7 million USD in assets at the end of March. According to official documents, Novogratz used $302 million of his own money to fund the company.
According to CoinMarketCap, the whole crypto market plunged 51 percent this year, so it is not hard to see how the company has lost a lot of money.