Galaxy Digital Quarterly Loss Now Increasing Due To Bitcoin ETF Expectations

Key Points:

  • Galaxy Digital quarterly loss amounted to $94 million in Q3 due to market challenges.
  • Despite increased trading volume, the company’s Q3 trading revenue decreased by $6 million to $14 million.
  • Galaxy Digital remains optimistic, with expectations of SEC approval for a Bitcoin ETF by 2023.
According to Bloomberg, Galaxy Digital Holdings Ltd., the cryptocurrency financial services firm led by Michael Novogratz, reported a widening loss in the third quarter, attributed to a decline in token prices and increased market volatility.
Galaxy Digital Quarterly Loss Now Increasing Due To Bitcoin ETF Expectations
Galaxy CEO Michael Novogratz. Source: Bloomberg

Galaxy Digital quarterly loss amounted to $94 million in Q3, compared to $68 million in the same period last year, and a loss of $46 million in the previous quarter. Although consensus estimates anticipate savings of $44 million, the company faces challenges.

Despite a 70% increase in trading volume, Galaxy Digital quarterly loss reached $6 million in trading revenue, totaling $14 million. However, the firm noted a significant improvement in its financial position following the quarter’s end. In October, Galaxy reported $124 million in income before tax and $24 million in trading revenue, mainly due to the surge in digital asset prices, including Bitcoin, which had risen nearly 30% that month.

Additionally, Galaxy’s asset management business experienced an 11% quarterly increase in management and performance fees, reaching $4.7 million. Their preliminary assets under management as of September 30 stood at approximately $3.9 billion, marking a 58% increase from the previous quarter.

Despite challenges, Galaxy Digital Holdings remains on a positive trajectory, with its shares surging by 97% over the year. Michael Novogratz expressed optimism, expecting that the US Securities and Exchange Commission will approve an exchange-traded fund directly invested in Bitcoin by the end of 2023. This optimism follows Galaxy’s partnership with Invesco in plans to launch such a product.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Galaxy Digital Quarterly Loss Now Increasing Due To Bitcoin ETF Expectations

Key Points:

  • Galaxy Digital quarterly loss amounted to $94 million in Q3 due to market challenges.
  • Despite increased trading volume, the company’s Q3 trading revenue decreased by $6 million to $14 million.
  • Galaxy Digital remains optimistic, with expectations of SEC approval for a Bitcoin ETF by 2023.
According to Bloomberg, Galaxy Digital Holdings Ltd., the cryptocurrency financial services firm led by Michael Novogratz, reported a widening loss in the third quarter, attributed to a decline in token prices and increased market volatility.
Galaxy Digital Quarterly Loss Now Increasing Due To Bitcoin ETF Expectations
Galaxy CEO Michael Novogratz. Source: Bloomberg

Galaxy Digital quarterly loss amounted to $94 million in Q3, compared to $68 million in the same period last year, and a loss of $46 million in the previous quarter. Although consensus estimates anticipate savings of $44 million, the company faces challenges.

Despite a 70% increase in trading volume, Galaxy Digital quarterly loss reached $6 million in trading revenue, totaling $14 million. However, the firm noted a significant improvement in its financial position following the quarter’s end. In October, Galaxy reported $124 million in income before tax and $24 million in trading revenue, mainly due to the surge in digital asset prices, including Bitcoin, which had risen nearly 30% that month.

Additionally, Galaxy’s asset management business experienced an 11% quarterly increase in management and performance fees, reaching $4.7 million. Their preliminary assets under management as of September 30 stood at approximately $3.9 billion, marking a 58% increase from the previous quarter.

Despite challenges, Galaxy Digital Holdings remains on a positive trajectory, with its shares surging by 97% over the year. Michael Novogratz expressed optimism, expecting that the US Securities and Exchange Commission will approve an exchange-traded fund directly invested in Bitcoin by the end of 2023. This optimism follows Galaxy’s partnership with Invesco in plans to launch such a product.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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