Mike Novogratz's digital asset finserv company Galaxy Digital has registered a net loss of $177 million for the second quarter.
When zoomed out, the state of affairs seemed better. The firm recorded a net income of $245 million in H1 2024, driven by “strong operating performance and positive digital asset markets.”
The company's performance has been closely knit with the performance of the crypto market. BTC, for instance, closed last quarter 11.92% down. Meanwhile, its H1 performance, as a whole, has been more refined owing to the 68.68% Q1 gains.
Galaxy is working towards wrapping up its proposed reorganization to become a Delaware-incorporated company. It also intends to get listed on the Nasdaq as soon as the SEC review and other official approval-related formalities wrap up.
Last month, the firm unveiled that it acquired the assets of blockchain node operator CryptoManufaktur [CMF]. The official statement released highlighted,
“The addition of CMF brings approximately $1 billion in Ether assets under stake, raising the Company's total AUS to $3.3 billion as of July 18, 2024.”
Galaxy's revenue from counterparty trading shrunk by to $24 million in Q2. The company attributed the same to “lower trading volumes,” which decreased by 19% QoQ, and “unfavorable asset price movements.”
Galaxy sealed two investment banking-centric deals in Q2. The firm also served as the sole financial advisor to Bitstamp in a to-be-completed sale to Robinhood. The deal is expected to wind up in H1 2025. Once that is done and dusted, Galaxy will “recognize” the revenue linked to this deal. The report highlighted,
“Galaxy is executing against a pipeline of mandates representing $2.1 billion in potential deal value.”
As far as mining revenue is concerned, Galaxy registered a figure of $24 million for the second quarter, representing a 24% QoQ shrink. This primarily stemmed from the Bitcoin halving event that took place in April, whereby mining rewards were slashed down by 50%.
