logo
Plus   Neg
Share
Email

Mike Novogratz's Crypto Bank Galaxy Digital Posts $272.7 Mln Loss In FY18

cryptoinvestment-may1-lt.jpg

Billionaire Michael Novogratz's crypto investment bank Galaxy Digital Holding Ltd. reported a loss of $272.64 million in fiscal 2018 reflecting significant loss on digital assets amid the weakness in cryptocurrency market.

Regarding the new year, Galaxy Digital CEO Novogratz said, "The first few months of 2019 have yielded a notable increase in activity across our business lines. We are already benefiting from both the strong foundation we laid in 2018 as well as the year-to-date rally in digital asset markets. We expect to continue to build upon this positive momentum through the remainder of 2019 and beyond."

Novogratz, a former Goldman Sachs Group Inc. partner and hedge fund manager, founded Galaxy Digital in 2017. For the period from the formation on November 30, 2017 until December 31, 2017, the company had reported a profit of $1.74 million.

In the year 2018, Galaxy Digital, a full service, digital assets merchant bank, recorded net realized loss on digital assets of $101.4 million and operating expenses of $88.4 million.

According to the company, the operating expenses included $31.3 million of equity-based compensation and $26.9 million of compensation and compensation related expense.

Income in the year was negative $94.76 million. Advisory and management fees were $4.19 million.

In the prior year, the company had generated income of $1.50 million.

In January this year, there were reports that Novogratz increased his shares in Galaxy Digital, and owned 221.2 million ordinary shares, representing about 79.3 percent of ordinary shares.

Galaxy Digital earlier had teamed with Bloomberg LP, the parent of Bloomberg News, to establish the Bloomberg Galaxy Crypto Index, or BGCI to track ten major cryptocurrencies.

For comments and feedback contact: editorial@rttnews.com

Business News

Follow RTT