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Galaxy Digital Holdings LP, the cryptocurrency business bank founded by famed crypto investor, Mike Novogratz, announced losses amounting to $ 41 million for the third quarter of 2018, which brings the total loss of the year to $ 136 million. Bloomberg said the 3rd quarter loss was due to net realized and unrealized losses on digital badets, mainly due to the loss of Ether, XRP and Bitcoin positions over the course of a year. still bearish for the cryptobadet category.
It's no secret that 2018 has generally been a bad year for cryptocurrency traders, Galaxy Digital's financial report offers a rare opportunity to understand how crypto traders have been affected by the downturn and falling badet prices throughout the year.
Can a bad year worsen?
Earlier in the month, CCN announced that Novogratz was frustrated with the current market situation, saying that trying to create a business focused on cryptography amid the carnage "is nil". According to him, Galaxy Digital is facing a set of challenges completely different from that of a conventional business. the business bank, whose main one is that each soaring price down is an existential threat to the business and that its staff is overseen over his shoulders.
After losing $ 134 million in the first quarter of 2018, the company released an improved performance report in the second quarter of 2018, recording net income of $ 35 million and trading losses reduced to only $ 1.5 million. . The latest figures, however, show that the company's position is still far from excellent, as the fourth-quarter figures are further deteriorated as a result of last month's market defeat.
Expressing in its record, the company has identified strong trading volumes and heightened competition for arbitrage opportunities as the main reasons for its weak performance in the third quarter. It also revealed that the fair value of its digital badets was $ 90.6 million, net of short positions, which is significantly lower than the $ 172 million cost that badets have cost.
An excerpt from the report reads as follows:
"As we continue to improve and strengthen our trading business, the lack of overall cryptocurrency trading volume has been an adverse factor."
Galaxy Digital's shares are currently trading at their lowest level after recording 55% of gains in November, but Novogratz's founder remains optimistic about cryptobadets, recently declaring that 2019 sees a move by investors institutions to move away from encrypted funds to go directly to encryption. investment. He also predicted that by 2019, bitcoin would hit a record 20,000 USD on the institutional FOMO (fear of running out), having finished 2018 with a high of 9,000 USD.
Featured image of BIG Crypto / Ethereal Summit /Youtube
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