Galaxy Digital Holdings, the crypto-merchant bank founded by former hedge fund manager Michael Novogratz, lost $ 97 million in the fourth quarter, as announced Monday.
The net loss increased to $ 76.7 million in the third quarter and approximately $ 100,000 the previous year, according to Canadian securities regulators. (In late February, the New York-based Galaxy bought a Canadian listed company in a reverse takeover.)
For 2018, the company's first full year of operation, the company lost $ 272.7 million.
The majority of reds ink in 2018 ($ 101.4 million) came from the sale of loss-making digital assets.
Galaxy incurred $ 75.5 million in paper losses, while crypto declined, unrealized losses of $ 8.5 million at companies and $ 88.4 million in expenditures.
What coins lost [?] In late 201
8, Galaxy held 9,724 bitcoins ($ 36.4 million), 92,545 ethers ($ 12.3 million), 2.4 million EOS ($ 6 million) and 60,227 Monero ($ 2.8 million). The company has increased its investments in Bitcoin and Ether since the beginning of the year, when it held 5,902 BTC and 57,000 ETH.
Galaxy also had large amounts of Wax ($ 50.2 million) and BlockV tokens ($ 17.4 million) that disappeared. Galaxy lost on sale of Bitcoin ($ 70.3 million) and Ether ($ 64.4 million), which was partially offset by the sale of some $ 54.3 million of cryptocurrencies (it is not stated which.)
Bitcoin was the largest source of loss in early 2018, while ether did the most damage in the rest of the year.
Interestingly, Galaxy even lost $ 47 million over the devaluation of the Wax Token, an asset created to run a platform for trading in virtual goods, such as video game articles.
Several other old coins also lost in price before Galaxy was able to sell them profitably in 2018: Kin ($ 10.9 million in losses), BlockV ($ 17.2 million) and Aion ($ 8.6 million) , About 5 million US dollars were lost at EOS.
Protocols, Mining and ICOs
A number of companies and mutual funds in the portfolio of Galaxy sank in value.
For example, the devaluation of Pantera ICO Fund LP shares caused a loss of $ 14.1 million (Galaxy currently has $ 17.4 million invested in the fund). The company also received a $ 11.3 million discount on its shares from Canada-based Hut 8 Mining Corp. and $ 11.1 million for crypto-wallet company Xapo.
At the end of 2018, Galaxy held $ 41.9 million in block. One, the creator of EOS, and the Galaxy EOS VC Fund by about $ 5 million more. The main focus was on the development of the EOS.IO ecosystem.
Meanwhile, Ripple Labs, the payment startup, received $ 23.8 million, including "an indirect investment by a special purpose vehicle." "The report states.
Galaxy also invested $ 26 million in mining companies, including Hut 8 Mining and Bitfury; $ 7.5 million for depository and multi-signature wallet provider BitGo; and $ 5 million in Bakkt, the Bitcoin futures exchange, to be launched by New York Stock Exchange's parent company ICE.
Other investments include Silvergate Capital Corporation, the parent company of Crypto-friendly Silvergate Bank; Tokenization Starts AlphaPoint and Templum; Investment Instruments Cryptology Asset and Pantera Venture Fund; and Mercantile Global Holdings, a Puerto Rican-based entity that operates the recently established San Juan Mercantile Exchange. The company also provided $ 3.8 million in loans to the BlockFi crypto-lending platform.
When discussing the risks Galaxy might face in the future, the Concentration of Power report pays special attention to the CEO and key stakeholder Mike Novogratz, which owns over 71 percent of Galaxy.
Regarding regulatory risks and market risks, Galaxy "is highly dependent on Michael Novogratz and exposes shareholders to a material and unpredictable" key man "of risk," the document says, adding that the "interests of the CEO" from which shareholders could deviate, and there is a danger that "he may operate outside GDH LP or give up GDH LP in favor of other activities."  No less remarkable, the report adds, "Mr. Due to the public profile Novogratz is more likely to use GDH LP for significant regulatory review, which is costly and distracting, regardless of whether GDH LP has committed unlawful acts. "
Image by Mike Novogratz of CoinDesk archives ]