Galaxy Digital Holdings’ net loss for the second quarter of 2021 totaled $175.8 million, versus a net profit of $35.3 million for the same period last year.
The metric includes net income and unrealized gains.
The company attributed the result to a 34% decline in crypto-market capitalization, including a 41% drop in Bitcoin.
For Q1 2021, Galaxy Digital totaled $860.2 million.
Assets under management for April–June rose by 12%, crossing the $1.6 billion mark. Trade volume through partner schemes rose 90% quarter-on-quarter and 560% year-on-year. Galaxy Digital invested $52 million in 14 NFT-related startups.
“Against a backdrop of substantial volatility, our core disciplines — market making, trade execution and strategic investments in startups — delivered another quarter of rapid growth in line with industry development,” said Mike Novogratz, CEO of Galaxy Digital.
At the subsequent press conference, the founder cited cooperation with Goldman Sachs, growth in trading via partner schemes, strategic investments and headcount growth (+45% in Q2) as drivers of further business growth.
During the latest reporting period, the company was joined by former BlackRock COO Jennifer Li and former SIX Swiss Exchange CEO Tim Grant.
“It is important to consider that the long-term prospects for the adoption of digital assets have far greater significance than the business we are building,” explained Novogratz.
In August, Galaxy Digital applied for a Bitcoin futures ETF launch under the Investment Company Act of 1940.
In May the firm acquired the asset manager Vision Hill Group, on the basis of which it created a $34 million crypto fund, one of its investors being Franklin Templeton.
In the same month Galaxy Digital agreed to acquire the custodian BitGo for $1.2 billion.
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