As uncertainty spreads throughout the cryptosphere, Galaxy Digital Holdings Ltd. estimates a net cumulative income loss of $300 million this quarter.
In light of recent market conditions, the bitcoin trading bank reported a probable hit in a pre-update.
Michael Novogratz is interested in TerraUSD
The announcement comes amid a cryptocurrency market slump sparked by the failure of the algorithmic stablecoin TerraUSD and its sibling coin, Luna. The recent separation of TerraUSD from the US dollar has intensified the sell-off of bitcoin and other cryptocurrencies, wiping off over $270 billion in market value.
Galaxy Digital, on the other hand, stated in its May 13 report that its treasury is not employing an algorithmic stablecoin and that the firm has $1.6 billion in liquidity, including $800 million in cash and more than $800 million in net digital assets.
Meanwhile, Michael Novogratz, the founder of Galaxy Digital and a proponent of TerraUSD, had his net worth collapse to $2.5 billion from $8.5 billion in early November.
In the first quarter, Galaxy Digital lost around $112 million due to a sharp drop in digital asset prices.