Galaxy Digital Bounces Back with $134M Q1 Profit Amid Crypto Market Resurgence

Galaxy Digital Bounces Back with $134M Q1 Profit Amid Crypto Market Resurgence

Time Stamp: May 9, 2023 9:04 AM
Source Node: 2640262

Galaxy Digital claimed the majority of Q1 income came from “gains on digital assets and unrealized gains on investments.”

Galaxy Digital (GLXY), a financial services and investment management company, celebrates a triumphant comeback, posting a $134 million profit in Q1 as the crypto market experiences a revival.

The New York-based cryptocurrency-focused financial services firm has seen a turnaround since the end of 2021, with a strong first-quarter performance following previous losses of $111.7 million a year ago and $288 million in Q4 2022.

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In the report, the company noted that its sources of income were “gains on digital assets and unrealized gains on investments.”

The firm’s liquidity position stands at $400 million in cash and $414 million in net digital assets, from which $209 million in non-algorithmic stablecoins.

When commenting on the first quarter results, Galaxy Digital founder and CEO Michael Novogratz noted:

Galaxy’s globally diversified platform and longstanding commitment to promoting the responsible adoption of digital assets is resonating with clients more than ever before. Our first quarter 2023 results are a validation of the investments we have made in our business to drive long-term growth and lead the evolution of the digital asset industry.

Additionally, the firm’s asset management division, Galaxy Digital Asset Management (GDAM), reported $2.4 billion in assets under management, a 40% increase from the previous quarter. However, this figure is still 11% lower than the $2.7 billion recorded a year ago.

At the end of the announcement, Michael Novogratz stated:

We enter the second quarter of 2023 extremely well positioned to grow our market share and build deeper relationships with our clients and partners.

At the end of March, Galaxy Digital CEO urged the government to focus its attention on artificial intelligence (AI) rather than the cryptocurrency industry.

Gile K. - Expert Reviewer

by Gile K. – Expert Reviewer, BitDegree

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