In a recent interview with the Financial Times, Mike Novogratz talked about the difficulty of building a business in a bearish market. Although he remains bullish on the growth of cryptocurrencies and the future of his company, he still has to go through a unique set of challenges as compared to a traditional financial company.
After being launched in 2017, Galaxy Digital had received around $302 million in investment from Mike Novogratz has around $460 million in assets across its three offices – London, Hong Kong, and Tokyo. The company is also looking for a dual listing in Frankfurt.
In Q1 2018, the company had recorded losses of $134 million due to unrealized losses of $85 million on digital assets and $13.5 million on trading losses. The company’s shares also had a massive drop of 37% ever since its public debut on the Toronto Venture Exchange.
However, in Q2, the company had better results with $35 million in net income driven by $44.8 million in unrealized gains from principal investments, and its trading losses reduced to $1.4 million.
Speaking on the bearish run of the crypto markets, Novogratz said:
“2017 was just fun, it was almost stupid. [But] this year has been challenging. It sucks to build a business in a bear market…[Staff] anxiety levels go up when crypto goes down…In most traditional business, [such as] Goldman Sachs, you don’t worry. There’s not an existential threat out there.”
Presently, Novogratz is taking care of the current issues in the company, such as the departures of the company president Richard Tavoso and co-head of trading David Namdar. There are reports that the company’s advisory business has received a subpoena from the US regulators, but there is no word from the Galaxy Digital.
Amidst all this crisis, the Founder of Galaxy Digital still remains bullish on cryptocurrencies stating that 2019 will see institutional investors moving away from crypto funds investments to investing in crypto assets before the end of Q1.
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