Even the most resilient companies in the market are starting to suffer the effects of the neverending bear market in the crypto industry. Galaxy Digital, the merchant bank created by Mike Novogratz, lost over $41 million USD in the third quarter of 2018. Investing so much in cryptos and having to struggle during the whole year left the bank in a bad situation.
The company, which is based in New York City, has released its financial disclosure documents this week and it reported a combined net loss of $136 million USD during the nine months of the year. As Bitcoin (BTC), Ether (ETH) and Ripple’s XRP were very weak this year, the company ended up losing a lot.
Galaxy Digital was founded by Novogratz, which is a former Goldman Sachs trader. He launched the company in November 2017 to surf in the Bitcoin hype train and contributed with about $300 million USD from this own assets just a month before Bitcoin peaked its price at $20,000 USD, which was undoubtedly a very bad decision. 2018 started and all the money slowly started to be eaten away by the bear market.
Complete Confidence In The Crypto Industry
One thing is certain: Novogratz is not a quitter. He is standing by Bitcoin and defending the asset even in a very bad year. According to him, he has complete confidence that his team will “drive growth” and that the company will help in the institutionalization of the crypto assets in the industry.
Novogratz has decided that, instead of abandoning cryptos, he will double down his efforts, so Galaxy Digital Ventures LLC was created as the venture capital arm of the existing main company. At the moment, the VC fund has already participated with $15 million UDD in the funding round of BitGo, which was recently able to raise $58.5 million USD for its Series B investment round.
The bear market is slowly reaching its lowest point, though, its overall value has gone down from $800 billion USD in January to $137 billion USD now, according to CoinMarketCap. Bulls like Novogratz are betting everything, so Bitcoin has to recover… or they will have a very bad 2019.