Galaxy Digital Holdings, the cryptocurrency investment company founded by Mike Novogratz, has seen big losses in the first nine months of the year, the firm’s most recent earnings report as shown.
As reported by Bloomberg, Galaxy Digital lost $136 million in the nine-month period ended September 30. Much of that loss was due to the firm’s poor performance in the third quarter, when the business’ realised and unrealised losses on digital assets totalled $41 million. The firm said that the latest losses were largely driven by losing bets on Ethereum (ETH), Bitcoin (BTC) and Ripple (XRP). The company also attributed the poor performance in the third quarter to disappointing trading volumes and increased competition for arbitrage opportunities.
“While we continue to improve and strengthen our trading business, lack of overall trading volume in cryptocurrencies has been a headwind,” Galaxy Digital said, as quoted by Bloomberg. The company added that the fair value of its digital assets, net of short positions, stood at $90.6 million at the end of September and that the assets cost $172.7 million.
In a recent interview with The Financial Times, Novogratz pointed out that it was challenging to build a business in a bear market. Nevertheless, he remained optimistic that the cryptocurrency market would bounce back next year. According to him, this comeback will be driven by financial institutions shifting from investing in cryptocurrency funds to investing in the digital currencies themselves.
“You’ll see that flip next year. That’s when prices start moving again,” Novogratz told the FT.
The former Goldman Sachs partner is widely known as a big supporter of cryptocurrencies. Earlier this year he said that the original cryptocurrency, Bitcoin, could end the year at around $8,900 and surge to $20,000 or more in 2019.
In today’s trading, the Bitcoin price stood at $4,305.90, as of 15:08 GMT. The digital coin has gained 2.6% in the past 24 hours.