Crypto asset manager Galaxy Digital has taken a deep hit following the significant downturn in digital asset markets.
According to a recent press release, the firm is reporting that is on track to lose $300 million for the second quarter of 2022.
[adinserter block="1"]The firm is also hinting that it has no exposure at all to TerraUSD (UST), an algorithmic stablecoin issued by Terra (LUNA) that collapsed last week.
“The company believes that the current digital asset and broader market conditions warrant providing shareholders, counterparties, and clients intra-quarter visibility regarding its capital and liquidity position, as well as its operating resilience. The company’s treasury does not utilize algorithmic stablecoins…
[Galaxy Digital] has a liquidity position of approximately $1.6 billion, including $800 million in cash and over $800 million in net digital assets, with the majority of net digital assets in non-algorithmic stablecoins.
Quarter-to-date net comprehensive income is expected to be a loss of approximately $300 million.”
Last week, Galaxy Digital CEO Mike Novogratz said that crypto assets could be under threat from rising inflation fears and a struggling equities market. According to Novogratz, however, prominent blue-chip investors are “lining up” for the opportunity to purchase digital assets, which could serve as support for the industry.
“The bright note for crypto is… Amazing institutional capital is starting to line up to come into the place. BlackRock, Blackstone, Citadel, Apollo, [are] all building major crypto efforts.
And so it’s completely intuitive to me that there’s a backstop somewhere in crypto.”
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