Galaxy Digital releases Q3 financials, citing net-loss of $68 million this quarter
Disclaimer: Galaxy Digital Holdings Ltd. is an investor in Messari
Galaxy, a full-service crypto-focused investment bank revealed a net-loss of $68.2 million in the third-quarter primarily a result of their OTC trading business that lost over $43 million. While the third quarter was a challenging one for the market as a whole with bitcoin losing down 30%, there were a few bright spots for the company. The OTC trading desk onboarded 47% more counterparties compared to last quarter, Advisory Services’ worked on two IPOs as Joint Bookrunner for Canaan and Co-Manager for Silvergate Bank, and the firm entered the structured and derivative product markets.
Why it matters:
- As more profitable businesses are built around crypto there will be a growing demand for traditional investment banking functions such as the underwriting of debt and equity offerings. Galaxy Digital is poised to be a leader in this space having been focused exclusively on crypto and receiving regulatory approval from FINRA in July.
- The size of the firm’s balance sheet has enabled them to remain solvent despite the bear market. Should market conditions reverse, the $125 million of cryptocurrency could further increase the size of the balance sheet expanding their capabilities.
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