In Brief:
- Galaxy Digital releases financial results for the Second Quarter of 2021
- In a recent earnings call, Galaxy reported a $175 million loss for the previous quarter.
Galaxy Digital, a US financial services firm, released its financial results for the three and six months ended June 30, 2021. The firm reported a loss in the second quarter due to a drop in cryptocurrency prices.
“While the second quarter saw significant volatility and macro-related headwinds to near-term results,” Michael Novogratz, CEO of Galaxy Digital, said.
Mr. Novogratz continued, “Even with broad-based digital asset market decreases within the quarter, Galaxy maintained significant counterparty most notably with Bloomberg and Goldman Sachs.”
Total cryptocurrency market capitalization has climbed by 33% since the end of the second quarter. According to the 2021 Fidelity Digital Assets Institutional Investor Study of July, 71% of institutions intend to participate in digital assets.
Also, 91% of those expecting to invest believe it will be part of their portfolios within the next five years. Although institutional adoption trends have remained favourable, confirming long-term thesis regarding the asset class’s value and growth potential.
Galaxy Digital Asset Management’s AUM
Galaxy Digital Asset Management announced a preliminary AUM of $1.6 billion as of July 31, 2021.
With direct investments and Galaxy Interactive Fund strategies, the company has invested over $52 million in 14 different NFT-related firms. From a net gain of $35.3 million previously this year, net income dropped to a loss of $175.8 million.
As of June 30, 2021, Galaxy Digital Asset Management (“GDAM”) announced preliminary assets under management (“AUM”) of $1.42 billion. GDAM’s Galaxy Fund Management products had $933.0 million in AUM, while the Galaxy Interactive funds had $489.6 million.
Also Read: Galaxy Digital Files to the SEC For Bitcoin Futures ETF
The firm currently has a total of 84 investments spread over 68 portfolio firms.
The only substantial asset owned by Galaxy Digital Holding Ltd. is a minority stake in GDH LP. GDH LP is a financial services and investment management firm that specialises in digital assets, cryptocurrencies, and blockchain technology.
Bloomberg’s relationship with Galaxy is limited to serving as the administrator and calculation agent for Bloomberg’s Indices. Bloomberg and Galaxy make no representations or warranties of any data connected to the outcomes to be gained.
