Galaxy Digital Second-Quarter Net Loss Widens as Crypto Market Retreats

As a researcher with extensive experience in the digital asset market, I find myself both intrigued and concerned by Galaxy Digital’s Q2 results. The fourfold increase in net loss is a stark reminder of the volatility that characterizes this space. Yet, it’s not unfamiliar territory to me – I’ve seen bull markets soar and bear markets plummet countless times before.

Galaxy Digital, a firm specializing in digital asset financial services, reported a significantly wider $177 million net loss during the second quarter compared to the same period last year. This escalation is largely attributed to a retreat in the cryptocurrency market.

In this quarter, Galaxy recorded a total loss of approximately $161.7 million from its investments in digital assets. The price of Bitcoin fell by 12% during this period, having risen nearly 70% in the preceding three months, as indicated by data from Coinglass.

In the first half of this year, my investments in the New York-based company have seen a substantial growth, with net earnings skyrocketing by over 175% compared to the same period last year, amounting to approximately $245 million.

Galaxy’s Toronto-traded shares fell 10% on the day to C$14.89 as of 15:07 UTC.