Galaxy Digital Ventures, the cryptocurrency merchant bank created by former hedge fund manager Michael Novogratz, has posted a $134 million quarterly loss, as the bear crypto market in the first three months of the year took its toll on the company’s performance.
In its first-ever financial report released on Wednesday, Galaxy Digital disclosed a $13.5 million loss on digital asset trading and $85.5 million of unrealized losses on digital assets. The New York-based firm also recorded a $24 million paper loss on investments and $11 million in operating expenses.
Despite the weak performance, Novogratz voiced confidence in the company’s outlook:
“I am very proud of the progress that we have made since the beginning of the year. We have assembled a world-class team with deep institutional knowledge and expertise and have also made significant strides in scaling our four core business lines. I have complete confidence in our team’s ability to continue driving growth and believe the Company is strategically positioned to help further institutionalize the digital assets and blockchain technology industry.”
The former Goldman Sachs (NYSE:GS) macro trader launched Galaxy Digital in November 2017, pouring $302 million of his own capital into the business — more than the $242 million contributed by all other investors combined.
A month after the launch, Bitcoin (BTC) hit its record high of near $20,000. Since then, however, the cryptocurrency market has lost more than a half of its value, with BTC down more than 40% since the start of 2018.
A prominent crypto bull, Novogratz has revised his 2017 prediction that the cryptocurrency market capitalization would reach $2 trillion this year. His most recent forecast is that the market will hit $800 billion within 12 months.
Novogratz also recently remarked that institutional investors are beginning to see the potential in blockchain technology, which he believes is seeing increasing adoption and can grow as the internet did. The billionaire investor also believes Initial Coin Offerings (ICOs) will see more institutional investors contribute as they seek to expand their portfolios and diversify into the crypto space.
This article appeared first on Cryptovest
