Mike Novogratz Led Galaxy Digital Reported Profit After Losses in 2022

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Jeff Horseman
Jeff Horseman
Jeff Horseman got into journalism because he liked to write and stunk at math. He grew up in Vermont and he honed his interviewing skills as a supermarket cashier by asking Bernie Sanders “Paper or plastic?” After graduating from Syracuse University in 1999, Jeff began his journalistic odyssey at The Watertown Daily Times in upstate New York, where he impressed then-U.S. Senate candidate Hillary Clinton so much she called him “John” at the end of an interview. From there, he went to Annapolis, Maryland, where he covered city, county and state government at The Capital newspaper. Today, Jeff writes about anything and everything. Along the way, Jeff has covered wildfires, a tropical storm, 9/11 and the Dec. 2 terror attack in San Bernardino. If you have a question or story idea about politics or the inner workings of government, please let Jeff know. He’ll do his best to answer, even if it involves a little math.
  • After a $1 billion net loss in 2022, these numbers are encouraging.
  • Galaxy Digital apparently scrapped plans to go public in the United States last year.

Galaxy Digital, a Canadian investment business run by blockchain advocate Mike Novogratz, reported a preliminary pre-tax profit of $150 million from January 1, 2023, through March 24, 2023. This figure was announced on March 28.

After a $1 billion net loss in 2022, mostly attributable to an unrealized $659 million loss on digital assets and a $496 million loss on investments, these numbers are encouraging.

Novogratz’s stated:

“2022 was a formative year for Galaxy, and while we and our industry faced unprecedented macroeconomic events, we succeeded in staying the course and were able to opportunistically take advantage of strategic opportunities to build our operating businesses for the future.”

Reviving From Harsh Past Year

When asked about the collapse of the $40 billion Terra ecosystem on May 19, 2022, Novogratz said he was “permanently humbled” and that the cryptocurrency sector “looks stronger than ever and wouldn’t be going away any time soon.” 

Reportedly, Galaxy Digital put $25 million into the Terra protocol as was reported a year ago. When the cryptocurrency market was red hot in 2021, Galaxy Digital claimed a net income of $1.7 billion.

After canceling a $100 million agreement to purchase digital asset custodian BitGo in August 2022, Galaxy Digital apparently scrapped plans to go public in the United States. By late November, the company had admitted that it had lost $77 million on the defunct cryptocurrency exchange FTX, of which $48 million was presumably frozen in withdrawals.

After spending $65 million to acquire Argo Blockchain’s flagship Helio facility, the business expects its subsidiary, Galaxy Mining, to increase its Bitcoin mining hash rate to 4 exahashes per second by the end of 2023.

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