Galaxy Digital lost $134 million last quarter, now they are going public

in crypto •  6 years ago 

Galaxy Digital had a rough first quarter on the eve of being listed publicly.

The Galaxy Digital Bank, one of the first and only cryptocurrency banks is finally ready to be listed on the Toronto based TSX Venture Exchange.

It's a Canadian stock exchange that lists companies that are too small to qualify for the main Toronto Stock Exchange.

If Galaxy Digital sounds familiar it is because it is the bank launched by Mike Novogratz:

(Source: https://www.ccn.com/cryptocurrency-bank-galaxy-digital-lost-134-million-in-q1-now-its-going-public/)

Novogratz is the former Fortress Hedge Fund manager and Goldman Sachs partner.

The billionaire started the Galaxy Digital Asset Fund with mostly his own money and then also launched the Galaxy Digital Bank.

The plan was to turn Galaxy Digital into the Goldman Sachs of the cryptocurrency world.

Things hadn't been going quite as well as Mike would have hoped...

Since the back and forth took longer than expected to get his bank publicly traded, he had to disclose the financials from the first quarter of this year before the listing.

As you might have guessed, they were less than stellar as the entire cryptocurrency market got smashed earlier this year.

In fact, his bank showed a loss of $134 million for their first quarter.

Usually not a number you like to show investors on the eve of going public...

In fact Mike even admitted as much, saying:

“If I knew what I know now, knew the crypto markets were going to swoon as much, and it was going to take so long, I might have stayed private for another year or so and then gone public."

(Source: https://www.ccn.com/cryptocurrency-bank-galaxy-digital-lost-134-million-in-q1-now-its-going-public/)

Not all bad news...

However, it wasn't all dire as Mike said that he expected the bank to be profitable within a calendar year.

The shares of his newly listed company were sold to investors at C$5, but it isn't clear where they will begin trading on August 1st.

Stay informed my friends.

Image Source:

https://www.mooncatchermeme.com/mike-novogratzs-crypto-focused-merchant-bank-galaxy-digital-lp-is-set-to-begin-trading-on-canadas-tsx-venture-exchange-on-august-1/

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This is actually cool, never knew of it.
It's only passion and believe that can make a man do what Mike did to start this bank.
If there's no other reason, for the sake of Mike alone Cryptos should moon.

He will help blockchain companies get financing that are otherwise unable.

Very interesting! What do you make of a crypto bank?

I honestly am not sure. I assume they intend to take on many of the responsibilities of the big investment banks. After all, their intended goal was to be the Goldman Sachs of crypto...

If nothing else they will likely help provide financing to crypto companies that otherwise aren't able to get it.

Probably good time to invest in galaxy digital shares.

Possibly. People will probably buy them since there is not much exposure to bitcoin and crypto in traditional stock markets.

i think that the time start for those type of digital currencies.. and this currency make the rock in the market.. i definitely invest in this currency

Not really sure what you are saying here.

nothing sir. i'm just promoting this currency :-)

Before investing watch and set your mind thou this time is one of the best time to invest

Having a loss for a newly listed public company is pretty normal. It took years for Amazon to make money. In fact, I remember them losing about $1 billion before they actually made money! It takes resources and time for things to play out in spaces that are innovative and disruptive as seen many times before.

Very true. Though usually banks make money pretty quickly. This is because right now most of their capital is tied up in crypto assets themselves. Over time they will branch out into many areas.

do you like crypto bank?

Yep, I think it is very good for the crypto ecosystem.

I like the idea and I think it’ll help adoption of crypto currency but I think In the long term we need a DAO bank that can’t buy politicians or be bought for whatever nefarious purposes. It’s probably going to be awhile before the crypto market matures to that level though.

Yes, that would be ideal.

  ·  6 years ago Reveal Comment

Thanks.

Very rough quarter they have for sure well they need to stand up once again and deliver