Cryptocurrency bank Galaxy Digital, founded by Michael Novogratz, reported a loss of $1 billion for 2022. This was due to a significant decline in the rate of cryptocurrencies in the second half of the year, as well as the bank’s loss of $500 million due to its own investments.
- The report noted that the company earned $682 million in the first half of the year, but in the second half, the losses amounted to $1.7 billion. The biggest problem for the bank was the decline in prices for Bitcoin, Ethereum and other cryptocurrencies. In addition, Galaxy Digital suffered losses due to the undervaluation of assets, which was revealed after analyzing its own portfolio.
The report also indicates that the bank plans to increase investment in cryptocurrency storage and trading activities, as well as to develop its own cryptocurrency mining business. In addition, the company plans to focus on developing its trading platform and attracting new customers.
Despite losses, Galaxy Digital remains one of the largest companies in its industry and is increasing its presence in the cryptocurrency market. In addition, the company’s report may be useful for other players in the market, as it shows the importance of proper risk management in the cryptocurrency industry.