Galaxy Investor Not Brought Down To Earth By Massive Loss

Galaxy Investor Not Brought Down To Earth By Massive Loss

Crypto Investment Bank, Galaxy Digital Holdings, saw massive loses of over 272 million in 2018 but their main stakeholder, Michael Novogratz seems unperturbed.

While many crypto companies had rough twelve months in 2018, they are dwarfed in size by that of Michael Novogratz and the company he owns 3/4’s of Galaxy Digital Holdings. In total last year, they lost $272 million dollars. This was made up of a $100million in selling crypt assets at a loss alone, while another $75.5 million was lost by price declination and $88.4 million purely in operating expenses, with the final $7million coming from unrealised investment losses.

Novogratz Doubles Down

Wrong place, wrong time, comes to mind, as since these last losses in Quarter 4 for the company of $97 million, the market has since improved. It appears that sentiment is shared by Novogratz. As it has been revealed that the former American hedge fund manager increased his stake in the company in the wake of these substantial losses, by an extra $5 million.

This increased his stake in the company by a further 2.5%, making his overall stake in the company, 79.3% just weeks after the end of year losses were revealed.

Considering the findings of the report and the fact he was already the main shareholder in the company, you have to question whether this is the right approach.

Why Was More Investment Made?

However, this can be explained though in Novogratz’s believe in Bitcoin’s sustainability. According to crypto-researcher Willy Woo, Novogratz was fourth most likely of all crypto influencers, analysts and traders to think that bitcoin has reached it all time low. With his stating his belief that it has an 85% chance of already having bottomed out.

In fairness, this latest investment in Galaxy Digital Holdings was made back in January and only came to be known recently. Thus, it was made before the most recent resurgence in bitcoin’s popularity and value. And so, it wasn’t a completely erratic move it seems and one that would have paid off, albeit only slightly. This said, those are so substantial losses all the same and it will take a much larger increase in value than that to make up for them.

What is also interesting about this case is that in the initial report that revealed the massive losses also cited Novogratz as the key catalyst in the direction of their profitability and future prospects. It stated that Galaxy is “highly dependent on Michael Novogratz, exposing shareholders to material and unpredictable ‘key man’ risk.” With a big danger for the company coming from the possibility of him committing himself to ventures outside of the company.

Furthermore, Novograts brings more heat to the company in other ways too. Adding “Mr. Novogratz’s public profile makes it more likely that GDH LP will attract material regulatory scrutiny, which would be costly and distracting regardless of whether GDH LP has engaged in any unlawful conduct.”

As such, the power is in his and hands, so we will have to wait and see whether this resilience from Novogratz is genius or delusional.

Ready to join our tribe?

We respect your email privacy

Subscribe now to recieve exclusive updates and offers!

Recently Similar News

Latest Guides

Latest News


Cryptocurrency Market Cap Jumps Past $2 Trillion

Cryptocurrencies continue to make headline news around the world as the total market cap surpassed $2 trillion on Monday. Supported by increased interest from institutional investors, celebrities, and retail investors, digital coins are now worth more than Apple Inc. Bitcoin has, once again, played a major role in the sector’s market cap. The world’s first […]

6 April, 2021
Digital Currency,Ethereum,Stablecoin

VISA Set To Support Cryptocurrency Settlements

The global payments corporation, VISA, announced on Monday that it is making preparations to allow USD Coin (USDC) to settle transactions within its network. This move is being viewed by industry analysts as yet another clear sign that cryptocurrencies are being accepted by major institutions within the traditional financial industry. USDC was selected by VISA […]

30 March, 2021

CasinoFair Temporarily Shuts Down Amid Network Congestion

The popular cryptocurrency casino, CasinoFair, has announced in a recent blog post that it will be temporarily stopping its gaming services. Citing unsustainable congestion on the Ethereum network as the main reason for this pause, the casino reassured its players that it is “actively researching solutions and hope to be back with a new range […]

26 March, 2021

Significant Bitcoin Drops As Coinbase Announces IPO

The cryptocurrency market is back in turmoil following yet another volatile week where Bitcoin almost reached a record-breaking value of $60,000. Bitcoin drops are nothing new, but the recent 25% decrease has caused panic amongst even traders with an experience of major currency fluctuations. The latest drop comes as Coinbase, one of the world’s largest […]

1 March, 2021

Trezor Warns Users About Fake Mobile App

Trezor is warning users of a malicious mobile application featured on Google Play which appears to be associated with the wallet provider. At least 1,000 users have already downloaded this software, and it is likely that some have unwittingly provided their seed phrase to unlock their funds. Both Trezor and SatoshiLabs have confirmed the existence […]

26 January, 2021

eToro Temporarily Raises Minimum Deposit To $1,000

For the past few weeks, the increase in Bitcoin’s price has led to a massive interest in cryptocurrency trading. eToro has been overwhelmed by new registrations and has decided to temporarily raise the minimum deposit from $200 to $1,000. Although 2021 has barely gotten started, it promises to be an exciting time to invest in […]

11 January, 2021

Global Cryptocurrency Market Value Surpasses $1 Trillion

Thursday has proven to be a monumental day for cryptocurrencies as the world’s combined value tops the $1 Trillion mark. Energised by a substantial rise in the value of Bitcoin in recent months, the volatile crypto market has reached a once-unreachable value. Following the latest Bitcoin Halving in May 2020, the world’s largest digital token […]

10 January, 2021

Victory over virus: SiGMA Virtual Expo hosts 100+ exhibitors

SiGMA Europe and AIBC Virtual Expos launch with record breaking attendance, providing a cure to the industry’s events sector In the light of this year’s changes in our everyday lives, SiGMA was close to having to stop doing what it does best; creating networks for people through the company’s iconic physical events, but luckily, the […]

26 November, 2020