Galaxy Digital achieved profitability in Q1 of this year thanks to improved markets. CEO Michael Novogratz announced that the crypto financial services firm had a liquidity position of $814 million by the end of Q1 2023.
- Galaxy Digital reported a net income of $134 million for the same period, compared to a net loss of $288 million in Q4 2022. This growth was driven by digital asset gains and unrealized gains on investments.
- The company’s asset management division, Galaxy Digital Asset Management (GAM), reported a 40% increase in assets under management, reaching $2.4 billion.
- Galaxy Digital Infrastructure Solutions (GDIS) also saw growth with a 100% increase quarter-over-quarter, with nearly 3.0 exahash per second in Hashrate Under Management (HUM).
- In an earnings call, Novogratz shared, “Galaxy’s globally diversified platform and longstanding commitment to promoting the responsible adoption of digital assets is resonating with clients more than ever before. Our first quarter 2023 results are a validation of the investments we have made in our business to drive long-term growth and lead the evolution of the digital asset industry.”
- Previously, the New York-based company had been posting negative quarterly revenues since the end of 2021, leading to a 20% headcount reduction during the crypto price slump. Galaxy Digital also suffered significant losses after the FTX collapse, with over $76 million in exposure to the bankrupt exchange.
- Given increased regulatory scrutiny, Novogratz revealed the company’s plans for offshore expansion.