Cryptocurrency merchant bank Galaxy Digital has reported a loss of $272.7 million in 2018 in its annual financial reports filed with Canadian securities regulators.
The filings showed that Galaxy Digital had endured a loss of $97 million in the fourth quarter while, in the previous quarter, the books only registered $76.7 million in losses.
The company off-loaded a significant amount of its crypto holdings in the bear market which contributed most to its losses.
In addition, the bank also recorded $75.5 million in paper losses on crypto it held that declined in price, $8.5 million in unrealized losses on investments in various startups, and $88.4 million in operating expenses.
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Headed and controlled by Mike Novogratz, the company also runs an over-the-counter desk for trading crypto assets along with its venture capital wing. He holds almost 80 percent of the company’s stakes.
“While 2018 was a challenging year for the industry, I am pleased with the ways in which our team navigated difficult market dynamics, and believe we are well positioned to scale our business strategically over time,” Novogratz said. “We have used our capitalized position to both identify and invest in a number of unique opportunities, while also continuing to build an institutional-quality platform.”
Despite the losses, the firm still holds millions worth digital currencies. At the end of 2018, its portfolio included 9,724 Bitcoin valued at $36.4 million, 92,545 Ether worth $12.3 million, 2.4 million EOS worth $6 million, and 60,227 of Monero.
Apart from these major coins, the firm also holds a significant amount of other tokens.
“The first few months of 2019 have yielded a notable increase in activity across our business lines. We are already benefiting from both the strong foundation we laid in 2018 as well as the year-to-date rally in digital asset markets. We expect to continue to build upon this positive momentum through the remainder of 2019 and beyond,” Novogratz added.