News

Michael Novogratz’s Galaxy Digital Loses $111 Million Amid Crypto Crash

Published by
Michael Novogratz’s Galaxy Digital Loses $111 Million Amid Crypto Crash

Galaxy Digital, a cryptocurrency investment firm headed by billionaire Michael Novogratz, has reported losing $111.7 million in the first quarter of the year 2022. The loss is a significant decrease from its $858.2 million gain recorded in the previous years.

Advertisement

Crypto Market Volatility reason behind losses

The aforementioned net loss, as noted in the firm’s quarterly finance report for the month of January 2022, till March, was largely due to the continuous fluctuation in the cryptocurrency market. As the firm explains in the report. 

Excerpts from the report reads:

“The decrease was primarily related to unrealized losses on digital assets and on investments in our Trading and Principal Investment businesses, partially offset by profitability in our Investment Banking and Mining businesses and lower operating expenses.” 

Additionally, mining and investment banking and mining saw a 775% and 433% upsurge respectively.  Capital from the firm’s partners tapped a whopping $2.6 billion, but dipped by 3%, as net long digital positions were hit with severe losses.  Partners capital ended up closing at $2.5 billion in the first quarter; a 50% increase from its $1.7 billion close in 2021.

Again, the firm notes that the cryptocurrency market’s 7% dip within the first quarter, is responsible for most of its recorded losses.

Advertisement

Mike Novogratz remains optimistic 

On the other hand, the investment banking and mining division, along with the asset management division raked in a noteworthy $0.6 million; a significant addition to net comprehensive income within the same first quarter. 

Meanwhile, the firm’s CEO asserts the company’s ability to pull through the bearish clouds, noting the firm’s stability.  He is quoted saying: 

“Galaxy demonstrated yet another strong quarter against the backdrop of digital asset price declines, and I am proud to see the durability and sustained profitability of our operational business lines, including record contributions from our Investment Banking and Mining segments.”

He maintains that the firm will continue to focus on investing by advancing its digital financial services.

 

Advertisement

Share
Sunil Sharma

Sunil is a serial entrepreneur and has been working in blockchain and cryptocurrency space for 2 years now. Previously he co-founded Govt. of India supported startup InThinks and is currently Chief Editor at Coingape and CEO at SquadX, a fintech startup. He has published more than 100 articles on cryptocurrency and blockchain and has assisted a number of ICO's in their success. He has co-designed blockchain development industrial training and has hosted many interviews in past. Follow him on X at @sharmasunil8114 and reach out to him at sunil (at) coingape.com

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • News

Breaking: Trump To Meet China’s President On October 30, Bitcoin Bounces

Bitcoin surged above $111,000 after confirmation that President Donald Trump and Chinese President Xi Jinping…

October 23, 2025
  • News

Breaking: Trump Pardons Binance’s Changpeng “CZ” Zhao, BNB Spikes

U.S. President Donald Trump has reportedly pardoned Binance founder Changpeng "CZ" Zhao for his conviction…

October 23, 2025
  • News

Peter Schiff Challenges Binance Founder CZ to Debate as Bitcoin Vs. Gold Rivalry Heats Up

Bitcoin critic and renowned economist Peter Schiff has challenged Binance co-founder Changpeng "CZ" Zhao to…

October 23, 2025
  • News

Robinhood Lists HYPE As Hyperliquid Flips CZ Backed Aster In Perp DEX Volume

Crypto exchange Robinhood has listed Hyperliquid's native token HYPE for its U.S. clients. This comes…

October 23, 2025
  • News

Expert Warns More Crypto Bloodbath Ahead of CPI Data Tomorrow

The U.S. Bureau of Labor Statistics (BLS) will release the Consumer Price Index (CPI) data…

October 23, 2025
  • Bitcoin News
  • News

US President Promises Deal With China on Everything As ‘Trump Insider’ Begins To Close Bitcoin Shorts- Is A BTC Recovery Ahead?

The “Trump insider whale” has begun closing its Bitcoin short positions just as the U.S.…

October 23, 2025