Terra-Backer Galaxy Digital Provides An Update On The Liquidity Situation
Mike Novogratz’s Galaxy Digital issued a corporate update on Friday for Terra, providing insight into its capital and liquidity position in the wake of the cryptocurrency Luna’s and linked algorithmic stablecoin TerraUSD’s meltdowns (UST).
Galaxy Digital — an early backer of Terraform Labs and Luna — said in a release it:
“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 corporation claims to have a $1.6 billion liquidity position, with $800 million in cash and another $800 million in cryptocurrency. Meanwhile, according to the firm, quarter-to-date net comprehensive income is forecast to be a loss of $300 million, down 12% from March 31.
UST, an algorithmic stablecoin built on the Terra blockchain, collapsed, pushing Luna’s price
The revelation comes just days after Galaxy announced a stock repurchase plan that would see the company buy back 10.6 million shares over the next year.
Galaxy was an early Terra backer, investing alongside Coinbase Ventures, Pantera Capital, and Arrington Capital in a January 2021 round. Novogratz publicly tweeted a photo of his new tattoo, which depicted a wolf howling at a moon with the word “Luna” written next to it.
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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Terra-Backer Galaxy Digital Provides An Update On The Liquidity Situation
Mike Novogratz’s Galaxy Digital issued a corporate update on Friday for Terra, providing insight into its capital and liquidity position in the wake of the cryptocurrency Luna’s and linked algorithmic stablecoin TerraUSD’s meltdowns (UST).
Galaxy Digital — an early backer of Terraform Labs and Luna — said in a release it:
“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 corporation claims to have a $1.6 billion liquidity position, with $800 million in cash and another $800 million in cryptocurrency. Meanwhile, according to the firm, quarter-to-date net comprehensive income is forecast to be a loss of $300 million, down 12% from March 31.
UST, an algorithmic stablecoin built on the Terra blockchain, collapsed, pushing Luna’s price
The revelation comes just days after Galaxy announced a stock repurchase plan that would see the company buy back 10.6 million shares over the next year.
Galaxy was an early Terra backer, investing alongside Coinbase Ventures, Pantera Capital, and Arrington Capital in a January 2021 round. Novogratz publicly tweeted a photo of his new tattoo, which depicted a wolf howling at a moon with the word “Luna” written next to it.
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.
Join CoinCu Telegram to keep track of news: https://t.me/coincunews
Follow CoinCu Youtube Channel | Follow CoinCu Facebook page
Annie
CoinCu News
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