Cryptocurrency-focused financial services firm Galaxy Digital (GLXY) said it expects to report a quarterly loss of about $300 million by Wednesday.
- The Mike Novogratz-led company announced the update Friday, "given recent market conditions."
- Galaxy stated that its Treasury does not use algorithmic stablecoins. The decline in value of algorithmic stablecoin terraUSD (UST) and its sister token LUNA have been at the center of the sharp downturn in the crypto asset market in recent days.
- The company has a liquidity position of about $1.6 billion, split 50/50 between cash and net digital assets, "with the majority of net digital assets in non-algorithmic stablecoins."
- "The overall result is expected to be a loss of approximately $300 million, bringing partner capital down to $2.2 billion, a 12% decrease from March 31, 2022," Galaxy announced.
- Galaxy released its first quarter results earlier this week, reporting a loss of $111.7 million, compared to a profit of $858.2 million in the corresponding quarter last year.
- Toronto-listed GLXY shares closed Thursday at $7.72, down 43% from before the quarterly results were released.