Mike Novogratz Led Galaxy Digital Reported Profit After Losses in 2022
- After a $1 billion net loss in 2022, these numbers are encouraging.
- Galaxy Digital apparently scrapped plans to go public in the United States last year.
Galaxy Digital, a Canadian investment business run by blockchain advocate Mike Novogratz, reported a preliminary pre-tax profit of $150 million from January 1, 2023, through March 24, 2023. This figure was announced on March 28.
After a $1 billion net loss in 2022, mostly attributable to an unrealized $659 million loss on digital assets and a $496 million loss on investments, these numbers are encouraging.
“2022 was a formative year for Galaxy, and while we and our industry faced unprecedented macroeconomic events, we succeeded in staying the course and were able to opportunistically take advantage of strategic opportunities to build our operating businesses for the future.”
Reviving From Harsh Past Year
When asked about the collapse of the $40 billion Terra ecosystem on May 19, 2022, Novogratz said he was “permanently humbled” and that the cryptocurrency sector “looks stronger than ever and wouldn’t be going away any time soon.”
Reportedly, Galaxy Digital put $25 million into the Terra protocol as was reported a year ago. When the cryptocurrency market was red hot in 2021, Galaxy Digital claimed a net income of $1.7 billion.
After canceling a $100 million agreement to purchase digital asset custodian BitGo in August 2022, Galaxy Digital apparently scrapped plans to go public in the United States. By late November, the company had admitted that it had lost $77 million on the defunct cryptocurrency exchange FTX, of which $48 million was presumably frozen in withdrawals.
After spending $65 million to acquire Argo Blockchain’s flagship Helio facility, the business expects its subsidiary, Galaxy Mining, to increase its Bitcoin mining hash rate to 4 exahashes per second by the end of 2023.