Mike Novogratz’s Cryptocurrency Bank Galaxy Digital Lost $134 Million in Q1 of 2018

Mike Novogratz's Cryptocurrency Bank Galaxy Digital Lost $134 Million in Q1 of 2018

Galaxy Digital run by famous Wall Street trader Mike Novogratz took a hit thanks to the cryptocurrency markets falling in the first quarter of the year 2018. A total of $134 million was lost with $13.5 million loss on digital assets and $85.5 million on unrealized losses of the digital assets.

The losses by Galaxy Digital are the first financial reports for the company ever since it launched in November of 2017. However adverse the reports are the firm confirmed to its investors that it is “strategically positioned to help further institutionalize the digital assets and blockchain industry.”

Mike Novogratz too explained his sentiment in a statement, “I am very proud of the progress that we have made since the beginning of the year. 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.”

Novogratz outlined future plans for growth of Galaxy Digital which included listing the merchant bank on Canada’s TSX Venture Exchange.  Getting listed on TSX Venture Exchange will require Galaxy Digital to buy Coin Capital which is a Canadian crypto startup which will then lead to a merge through a reverse takeover with Bradmer Pharmaceuticals. The company, as a result, will be renamed and have more than 70 employees.

Galaxy Digital has gone aggressive on cryptocurrency investments with $86.8 million invested across 11 different investments and six acquisitions. Novogratz had contributed $302 million of his own assets to the company.

As of the time of writing Bitcoin is $7,962 according to CoinMarketCap. Hence this rally of moving past $7,500 looks positive for Novogratz’s Galaxy Digital.

Mike Novogratz is pretty confident about cryptocurrency’s market in the long term. He stated in an interview with CNBC at the South Korean Beyond Blocks Conference a few days ago that cryptocurrencies would reach a market capitalisation of $800 billion before the end of 2018.

Image Source: “Flickr”

Leave a Reply

Your email address will not be published.