Bitcoin Plunge Leads to Losses for Coincheck & Galaxy Digital But Executives Still Bullish

Bitcoin price taking a dip in the first quarter of this fiscal year resulted in the losses for the exchange Coincheck, hacked and later acquired by Monex Group and Galaxy Digital of Mike Novogratz. However, the CEO of Monex Oki Matsumoto and Novogratz both are in for long-term and bullish on the crypto market.

Coincheck reports a loss of $2.33 mln in 1st Q, CEO focused on long-term

Japanese cryptocurrency exchange, Coincheck that was acquired by Monex Group, after suffering from one of the biggest hacks in the crypto history has reported a loss of 259 million yen i.e. $2.33 million in the first quarter of this year. According to the media channel, Nikkei Asia, Monex Group, the financial services company reported a pretax loss of 259 million yen for the fiscal year ended in June in its crypto asset department.

In the last fiscal year quarter of January-March, Coincheck reported a good financial quarter with an operating profit of $491 million with an 86 percent operating margin ratio. The losses in part could be attributed to the $530 million heist occurred in January in Coincheck that has not only hit its reputation but also the additional costs the exchange now requires to prevent such incidents in the future.

However, the company is onto a long-term approach as Oki Matsumoto, the CEO of Monex stated,

“We want to bring back that earning power over the long run.”

Factors in effect: Bitcoin drop & regulatory compliance  

Another reason in part for this loss has been characterized by the Nikkie media to the “investors fleeing cryptocurrencies.” The daily trading volume of Bitcoin that has reached to about $20 billion last year has now plunged to around $4.3 billion now.

Since the theft, Coincheck has suspended the majority of its operations. Meanwhile, the company is working on the exchange’s security and complying with the regulatory measures as Matsumoto said,

“We’ve had to invest more in cybersecurity.”

For the past few months, the Financial Services Agency (FSA) has ordered the exchanges to follow a certain set of rules. Many organizations have been ordered to suspend operations while others have voluntarily left.  

Rumors of some of the exchanges looking for buyers have been doing the round, reports the local media. However, the association of crypto exchanges in Japan is working towards establishing rules to prevent illicit activities like money laundering.  

Also, read: Who Will Drive The Bitcoin Price, Bulls Or Bears? A Complete Sentimental Analysis of BTC

Galaxy digital lost $134, still bullish on bitcoin & crypto

Recently, Galaxy Digital of former Wall Street trader Mike Novogratz also reported a loss of $134 million in the first quarter. In the firm’s first-ever financial disclosure, $13.5 million has been lost on digital assets while $85.5 have been registered as unrealized losses on these assets.

However, Novogratz is perturbed by the loss and he is also in for the long term. “I am very proud of the progress that we have made since the beginning of the year,” stated Novogratz before adding that they are

“strategically positioned to help further institutionalize the digital assets and blockchain industry.”

Another crypto investment firm Pantera Capital is extremely bullish on bitcoin and cryptocurrencies as the organization registered a return of 10,000% in just fives years of its operation.