Galaxy Digital Widens Losses In Q2 2022 As ‘Crypto Winter’ Bites Harder
Galaxy Digital Holdings Ltd. (TSX: GLXY) released today its Q2 2022 financial results, which saw the company posting a net comprehensive loss of US$554.7 million. This is a decline from Q1 2022’s net loss of US$111.7 million and Q2 2021’s net income of US$22.1 million.
The company attributes the widening losses to net realized and unrealized losses on digital assets, which are US$231.1 million and US$233.4 million, respectively. Net unrealized loss on investments also contributed to the redder bottomline with a US$258.9 million loss.
Conversely, following the earnings release, the company’s shares rallied as much as 20% when the market opened Monday.
The bottomline figure for the quarter translates to US$1.74 loss per diluted share.
Looking at the financials, the company ended the quarter with US$875.1 million in digital assets from a balance of US$2.42 billion at the start of the year. The firm also had a cash balance of US$1.01 billion at the end of the three-month period, putting the company’s current assets balance at US$2.42 billion. Meanwhile, current liabilities ended at US$1.12 billion.
The crypto firm also held around US$1.7 billion in assets under management at the end of the quarter, “a 40% decrease against the 56% decrease of total cryptocurrency market capitalization” from the previous quarter. The firm meanwhile saw a rebound in AUM during the month of July.
Galaxy Digital Holdings Ltd. last traded at $7.49 on the TSX.
Information for this briefing was found via Sedar and Galaxy Digital. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
