Galaxy Digital braces for $300m hit this quarter

Galaxy Digital braces for $300m hit this quarter

Banking















Bloomberg

Galaxy Digital Holdings Ltd. is anticipating a loss of $300 million in net comprehensive

income this quarter, as uncertainty swirls across the broader cryptosphere.

The crypto merchant bank revealed the potential hit in a preliminary update “in light of recent market conditions.” Comprehensive income typically combines both a company’s net income as well as any yet-to-be realised financial gains or losses.

The $300 million dampener would bring “partners’ capital” — or total equity — to $2.2 billion, a decline of 12% versus March 31, 2022, according to the statement.

The news comes in the midst of a crypto market crash, fueled by the unraveling of algorithmic stablecoin TerraUSD and its sister coin, Luna. The recent depegging of TerraUSD from the dollar accelerated a sell-off of Bitcoin and other cryptocurrencies, wiping out about $270 billion of cryptoasset market value.

However, Galaxy Digital said that its treasury “does not utilise algorithmic stablecoins” in its May 13 update, adding that it remains “in a strong

capital and liquidity position.”

The company’s liquidity stands at about $1.6 billion, including $800 million in cash and over $800 million in net digital assets.

Meanwhile, Galaxy Digital’s CEO Michael Novogratz,