Galaxy Digital Holdings Cryptocurrency Investment Manager It reported huge losses in the first quarter. which is an accounting loss (unrealized loss) in the digital asset portfolio Underscores the increasing volatility in the digital asset sector in 2022.
Galaxy Digital reported a net comprehensive loss of $111.7 million for the quarter ended March 31, compared with a profit of $858.2 million for the year 2021, as the company announced on Monday. In addition to the unrealized losses in the digital asset portfolio Galaxy’s overall loss is also caused by investments in trades and investments.
The company reported overall profitability for asset management, investment banking, and mining, with assets under management held by Galaxy Digital Asset Management down 5 percent during the quarter to $2.7 billion.
Galaxy’s declining profitability in the first quarter reflects strong volatility in the digital asset market, as Bitcoin (BTC) and altcoins suffered huge losses. And it looks like the market will enter a capitulation phase in May due to Bitcoin’s strong correlation with other risky assets.
Risk assets, including crypto, have fallen since the Federal Reserve and other central banks decided to vigorously raise interest rates to combat rising inflation. Last week, the Fed raised interest rates by 50 basis points, the biggest hike in more than two decades.
despite market volatility But crypto fund managers and venture capitalists are still making large strategic investments in the space, with Galaxy planning to complete its BitGo acquisition later this year.
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