Crypto-Focused Firm Galaxy Digital Posts Over $100M Quarterly Loss

Key Insights:

• The first quarter of 2022 wasn’t pleasant for the crypto markets.
• Institutions like Galaxy Digital recorded a net comprehensive loss in Q1.
• The losses suffered were attributed to the turbulent price action presented by most cryptos in the first quarter.

This year started on a gloomy note for the cryptocurrency market. The first quarter of this year saw the global crypto market cap drop by almost 15%.

However, it wasn’t just token prices and the larger crypto market cap that were affected. In fact, cryptocurrency-focused financial firms like Galaxy Digital saw significant losses.

Galaxy Digital posts quarterly losses

Technology-driven financial services and investment management firm Galaxy Digital (GLXY) recorded a net comprehensive loss of $111.7 million for the first quarter of 2022. Notably, GLXY shares listed on the Toronto Stock Exchange, were down by around 3.83% in pre-market trading.

A statement from the company highlighted that the net comprehensive loss was $111.7 million, compared to an $858.2 million gain in the prior-year period. The firm cited market volatility and warned of a loss of $110 million to $130 million in the first quarter through March 28.

According to the firm, these losses were primarily related to unrealized losses on digital assets and on investments in the company’s Trading and Principal Investment businesses.

Notably, however, the company’s operating business lines of asset management, investment banking, and mining were profitable in aggregate, contributing $0.6 million to net comprehensive income in the quarter.

Additionally, the investment banking and mining segments demonstrated record revenue and net comprehensive income in the quarter. Net total income in investment banking grew 775% and in mining grew 433% compared to the same period last year.

Crypto market continues its fall

Despite hopes of a brighter second quarter, the crypto market has failed to stay above the key support zones established in the first quarter.

At the time of writing, the global crypto market cap was around $1.51 trillion, making for a 4.56% decrease, over the last day. Furthermore, the top coin in the market bitcoin (BTC) was down by almost 15%, over the last week, and traded at $33,048, at press time.

The top altcoin ethereum (ETH) was down by 14.68% on the weekly chart and traded at $2,413.32 at the time of writing.

A recent FX Empire forecast highlighted that volumes were rising along with falling prices, pointing to an increasingly rapid exit from cryptocurrencies.