Crypto investment bank Galaxy Digital lost $134 million in the first quarter of 2018, largely due to declining cryptocurrency prices, the company announced in a quarterly earnings report Wednesday.
Galaxy Digital, chaired by billionaire investor Michael Novogratz, said it saw a “net unrealized loss” of $85.5 million on digital assets, and a further $24 million loss on investments, totaling $109.6 million overall in its first-ever quarterly earnings report. The firm also spent $11 million in operating expenses and saw a $13.5 million loss from its income, resulting in roughly $134 million lost in the first quarter, according to the report.
The company only reported the results between January 1 and March 31, and has yet to reveal what its second quarter looked like.
The report confirmed Novogratz’s plan to complete a merger with Canadian companies First Coin Capital Corp. and Bradmer Pharmaceuticals Inc. Galaxy Digital is also still undergoing a process to have its shares listed on a Canadian stock exchange, Bloomberg reported.
Regulators have issued additional demands for the merger, resulting in a delay in getting its shares listed, Bloomberg wrote.
Despite the delay, Novogratz said in a statement that he was “proud” of the progress Galaxy Digital made so far in 2018.
“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.”
Michael Novogratz image by Brady Dale for CoinDesk
The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.