Cryptocurrency bank Galaxy Digital, one the largest establishments of Wall Street, has had to face losses of about $134 million in the first quarter as the value of Bitcoin plunged to half, and the other assets struggled to escape from the bear market.
The New York-based firm has released a financial disclosure where it reports a net loss of $103.3 million on trading, including a $13.5 million loss on altcoins and another $85.5 million of unrealised losses on these assets. The company was launched by former Goldman Sachs macro trader Michael Novogratz in November, shortly before Bitcoin hit the $20,000 peak.
“I am very proud of the progress that we have made since the beginning of the year,” Galaxy CEO Novogratz has said. Formerly a chief investment officer at Fortress Investment Group, Novogratz maintains that he still holds “complete confidence” in the ability of his team to make progress on the digital field and that Galaxy is “strategically positioned to help further institutionalize the digital assets and blockchain industry.”
Novogratz has revealed plans to enlist the bank on the Canadian TSX Venture Exchange. According to the plan, Galaxy Digital will first claim ownership of Canadian crypto startup Coin Capital, following which they will merge with Canadian shell company Bradmer Pharmaceuticals by means of a reverse takeover.
In 2018 so far, the bank has invested a total of $86.8 million across 11 investment and 6 acquisitions. They held $281.7 million worth of assets by the end of March, of which $225.8 million was in digital assets, according to the release. According to the papers, Novogratz had made contributions of about $302 million of his personal assets to the company
Bitcoin and other similar alt-coins still haven’t managed to find a proper footing this year in terms of value. Bitcoin surged to $8,300 this week but has fallen over 40% since the beginning of the year, according to reports. According to websites, the full market capitalisation for digital currencies has also fallen about 51% this year.
Galaxy digital has refused to make any comments on the financial disclosure.