Galaxy Digital has reported a net loss of $1 billion for 2022.
The loss was attributed to unrealized losses on the firm’s principal investment portfolios.
The crypto investment firm posted a pre-tax profit of $150 million for the first quarter of 2023.
The company’s share price hiked 1.4% after a brief drop at market open.
Galaxy Digital, the New York-based digital asset investment firm, announced the financial results for the year 2022 as well as preliminary numbers for the first quarter of this year earlier today. Led by popular crypto personality Mike Novogratz, the company revealed a billion-dollar loss for last year but managed to turn a profit in Q1’23.
Galaxy Digital reports $150 million pre-tax income in Q1’23
According to a press release by Galaxy Digital, the company posted a net loss of $1 billion for the year ended 31 December 2022, compared to a profit of $1.7 billion that the company reported for the year ended 31 December 2021. As for the last quarter of 2022, the company reported a net loss of $288 million, compared to a net income of $521 million in the prior year period.
The significant loss was attributed to an unrealized loss of $659 million on digital assets, as well as $496 million on investments in the company’s Principal Investments Portfolio. The massive decline in the price of digital assets throughout 2022 was identified as a driving factor for the same.
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.”
Mike Novogratz, founder and CEO.
The new year has fared much better for Galaxy Digital, as the firm reported a pre-tax income of $150 million while retaining a strong liquidity position through 24 March 2023. The company expects to see more profits in its operating businesses thanks to positive gains from the digital assets on its balance sheet. Furthermore, the company revealed that Galaxy Mining had doubled its capacity since the beginning of 2023. Galaxy Digital’s share price has seen a 2.47% hike, after a brief fall at market open.