Galaxy Digital Records Q1 Loss of $111.7M Amid Fall in Crypto Prices

Cryptocurrency-focused financial services firm Galaxy Digital (GLXY) recorded a net loss of $111.7 million for the quarter-ended March 31, 2022.

• The loss compares to the $858.2 million gain recorded in the equivalent quarter a year ago.
• Galaxy Digital attributed the loss to unrealized losses on digital assets and on investments in its trading and investments businesses in an announcement on Monday.
• The firm's asset management business, Galaxy Digital Asset Management (GDAM), recorded assets under management of $2.7 billion, consisting of $2 billion in GDAM's Galaxy Fund Management products and $735 million in the Galaxy Interactive fund. This is more than double the figure of $1.27 billion recorded a year ago, but a 5% decrease compared to Q4 2021.
• CEO Michael Novogratz highlighted weakness across crypto and equity markets during Galaxy's earnings call Monday, though said he isn't "panicked by any stretch." He added that his recent investor meetings point to growing adoption, and noted that "crypto as a tech play" is gaining momentum.
• Volatility will continue, according to Novogratz, although he said he expects bitcoin to hold around the $30,000 level and ether to stick around the $2,000 level.
• BTIG equity research analyst Mark Palmer lowered his price target on Monday afternoon on Galaxy's stock to $28.45 to $36.91 per share, citing the "more challenging market conditions" across the sector. Though Palmer says shares are "very inexpensive in light of the strength" of Galaxy's platform. He maintained a buy recommendation.
• GLXY's Toronto-listed shares were trading down about 26% to $9.97 on Monday.

UPDATE (May 9, 20:01 UTC): Updates with analyst comment.

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