This Bitcoin Backing Company Loses More Than US$500 Million In 2022

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Bitcoin backing company Galaxy Digital has announced losses it suffered throughout the second quarter of 2022, losing more than US$500 million.

The bearish crypto market that is still looming has scored losses for many investors, even bankruptcy for several companies engaged in the crypto industry.

The price of Bitcoin (BTC) has plunged more than 60 percent from its all-time high (ATH), which kicked many people off the market. This is followed by the majority of altcoins, bringing the crypto market into winter conditions, otherwise known as crypto winter.

Losing Bitcoin Supporting Company

Based on the Decrypt report, Galaxy Digital has released its earnings report for the second quarter of this year, in which the Bitcoin backer has posted a loss of US$554.7 million.

However, the company said that the losses were still on paper, aka unrealized, which occurred due to investments in crypto assets that had not been sold.

The company, founded by billionaire Mike Novogratz, claims it still has a strong liquidity portion, amounting to US$1.5 billion. So, the losses on paper are still far from making the company run out of strength.

Even so, the company has experienced a loss increase of more than 100 percent compared to the second quarter of 2021, which was only US $ 182.9 million.

“I am proud of Galaxy [Digital]'s better performance during a challenging market and macroeconomic environment. Prudent risk management, together with our commitment to credit standards, have allowed us to maintain liquidity of more than US$1.5 billion, including more than US$1 billion in cash,” said Novogratz.

He continued that he believes the company is still in a strong position to weather the storm of volatility that exists in the crypto market and take advantage of strategic opportunities to grow the company.

Despite the company's losses, Novogratz continues to believe that the crypto market will eventually recover, while believing that BTC has now hit rock bottom.

Interestingly, he sees that a recession is imminent as the US will not be able to fight the exorbitant inflation rate, thus potentially becoming a turning point for Bitcoin and major crypto assets. Lets watch.

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