On March 28, Galaxy Digital, a Canadian investment firm run by blockchain personality Mike Novogratz, revealed that it has preliminary pretax earnings of $150 million from January 1, 2023 to March 24, 2023.
The result is a net loss of $1 billion in 2022, largely attributable to unrealized losses on digital assets of $659 million and unrealized losses on investments of $496 million. As Novogratz puts it: "2022 is a year of growth for Galaxy, and while we and our industry faced unprecedented macroeconomic events, we managed to persevere and were able to capitalize on strategic opportunities to build our future operating business."
On May 19, 2022, Novogratz claimed he was "forever humbled" by the collapse of the $40 billion Terra ecosystem and reiterated that the crypto industry "looks stronger than ever and isn't going away anytime soon." Years ago, on February 3, 2021, Cointelegraph reported that Galaxy Digital had invested $25 million in the Terra protocol. Galaxy Digital reported net income of $1.7 billion in 2021 at the peak of the cryptocurrency bull market.
In August 2022, Galaxy Digital reportedly abandoned plans to list in the U.S. after terminating a deal to acquire digital asset custodian BitGo for $100 million. In late November, the firm disclosed $77 million in exposure to bankrupt cryptocurrency exchange FTX, of which $48 million may be locked.
By the end of 2022, the firm's partner capital has fallen from $2.6 billion year-over-year to $1.4 billion. Despite the setback, Novogratz said the company has a strong liquidity position of $957 million. Among other projects, the company expects its subsidiary Galaxy Mining to increase its Bitcoin. By the end of the year, mining hashrate reached 4 exahashes per second, thanks in part to its $65 million acquisition of Argo Blockchain’s flagship Helio facility.
