Digital asset manager Galaxy Digital has reported a $1 billion loss in 2022 after weathering the worst of the crypto bear market.
In a new press release related to its Q4 2022 financial results and its preliminary results of Q1 2023, Galaxy Digital CEO Mike Novogratz said the firm faced “unprecedented” headwinds last year, but remains in a healthy position.
“2022 was a formative year for Galaxy, and while we and our industry faced unprecedented macroeconomic events, we succeeded in staying the course and were able to opportunistically take advantage of strategic opportunities to build our operating businesses for the future. I have never been more confident in our go-forward strategy, businesses, and team…
The Company continues to lead from a position of strength, remaining open for business for our clients and counterparties. And as the market has improved year to date, we have generated approximately $150 million1 of Income before tax while retaining a strong liquidity position through March 24, 2023.”
Galaxy Digital reported a net loss of $287.8 million for the fourth quarter of 2022, compared to a net income of $521.3 million in the prior year’s period.
For 2022 in its entirety, the firm reported a net loss of $1 billion compared to a net income of $1.7 billion in 2021.
Says the firm,
“The loss was primarily attributable to unrealized marks to market on investments in our Principal Investments portfolio, driven by depressed market conditions.”
Novogratz said earlier this month that he felt the economy was headed for a recession, and that crypto assets could stand to benefit from excessive government money printing.
“Fixed income, commodities will tell you we are headed to a recession. [Federal Reserve Chair] Powell should pause and we’ll be cutting rates sooner than we think.
And so that’s a huge difference in psychology. It’s got Bitcoin and Ethereum on the move. If there was ever a time to be in Bitcoin and crypto, this is why it was created in that governments print too much money whenever the pain gets too great. And we’re seeing that.”
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Featured Image: Shutterstock/Tithi Luadthong
