Mike Novogratz-led cryptocurrency investment firm Galaxy Digital has suffered a loss of $175.8 million during the second quarter, according to a press release shared by the company.
At the same time, Galaxy Digital has reported an increase in trading activity and volume of assets under management. The main reason has been the sharp fluctuations in crypto prices. Thus, from April to the end of June, the cryptocurrency market suffered a 34% drop and Bitcoin a 41% fall, the company has noted. Novogratz said:
"While the second quarter included significant volatility and macro-related headwinds to near-term results, our core operating activities including providing liquidity and execution services for clients and counterparties, and our strategic investment portfolio, delivered another quarter of rapid growth consistent with the pace of adoption of the crypto economy."
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The volume of assets under Galaxy's management exceeded $1.6 billion as of July 31, corresponding to a 12% increase for the quarter. In addition, the company has announced a $52 million investment in 14 projects related to non-fungible tokens (NFTs). Trading volumes with counterparties increased by more than 90%. Novogratz said:
"It’s important to remember that when we look at the business, the long-term arc of adoption of digital assets in crypto matters far more than the businesses we are building. We view the adoption battle as hard one, stickier, and more financially impactful over time in short-term price moves."