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Galaxy Digital, a cryptocurrency-focused financial-services firm, reported an overall net loss of $111.7 million for the first quarter of 2022.
Galaxy Digital reports Q1 loss
The loss compared to an $858.2 million profit in the same quarter last year. The firm’s decrease was primarily due to unrealized losses on digital assets and investments in its trading and Principal Investment businesses. It also stated that some of its losses in the cryptocurrency market were partially mitigated by profitability in its Investment Banking and Mining operations and decreased operational expenditures.
Galaxy Digital Asset Management, the firm’s asset management division, reported $2.7 billion in assets under management, including $2 billion in Galaxy Fund Management products and $735 million in the Galaxy Interactive fund. This is more than double the $1.27 billion reported a year earlier but represents a 5% reduction compared to Q4 2021.
Challenging market environment
Due to the challenging market environment, several crypto firms have reported losses in their Q1 earnings. Microstrategy recorded a net loss of $130.8 million for the first quarter, while Coinshares reported a loss of $23.4 million, a 45% decrease from the same period last year.
Bitcoin is down 28.6 % year to date, and at market open, Galaxy Digital shares were penalized by the loss, as $GLXY shares, which are traded on the Toronto Stock Exchange, were down 17% at the time of writing.
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