Galaxy Digital Holdings could lose up to $300 million this quarter in net comprehensive income, given the recent performance of the crypto market.
The comprehensive income of a company is usually a sum of its net income and the yet-to-be-realized gains or losses. This recent news seems to be a warning sign for investors as we approach the end of Q2.
Losing $300 million will reduce “Partners Capital to $2.2 billion, a decline of 12% versus March 31, 2022,” the statement read. The company stated that it currently has a liquidity position of $1.6 billion, “including $800 million in cash and over $800 million in net digital assets.”
The firm claims that most of its digital assets are in non-algorithmic stablecoins, clarifying that its treasury doesn’t use algorithmic stablecoins, in light of the recent price crash of Terra’s algorithmic stablecoin UST.
Galaxy Digital update is unsurprising given that the crypto market had lost about 40% of its value in the last seven days. The market cap of the crypto industry crashed to below $1.5 trillion and Bitcoin’s value also plummeted to below $30,000 with other major altcoins also saw their value drop drastically.
Most publicly-traded crypto companies have also seen their stocks start to decline. To date, the majority of the top publicly traded crypto-related companies have lost more than 50% of their value year to date. This includes Coinbase, Microstrategy, Marathon Digital Holdings, and Galaxy Digital Holdings.
This update comes just five days after it released its Q1 reports, where it reported $111.7 million in losses. It stated then that these are unrealized losses on digital assets and its trading and investment business.
At the time, the CEO, Mike Novogratz, stated that he wasn’t worried about the market and predicted that Bitcoin would hold around $30,000 while ETH would stick around $2,000.
While the firm itself isn’t exposed to the Terra ecosystem, Novogratz himself is a huge fan of the asset as he has a tattoo of the coin on his arm.
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