Galaxy Digital Loss IDR 15 Trillion From Crypto Gegara Pasar Bearish 2022

Galaxy Digital announces losses from crypto investment. (Photo; Doc. Cryptoast)

JAKARTA Galaxy Digital, one of the largest digital asset managers in the world, has experienced a difficult year in the midst of a prolonged crypto bearish market. The company reported a net loss of US$1 billion (equivalent to Rp15 trillion) for 2022, mainly due to its decline in investment value in the crypto sector.

In a blog post published on Thursday, March 30, Galaxy Digital CEO Mike Novogratz explained how the company faced "unprecedented" challenges last year, but remains optimistic about the future of the crypto industry.

"The loss is mainly due to mark-to-markets that have not been realized in investing in our Principal Investments portfolio, which is driven by depressed market conditions," wrote Galaxy Digital's statement.

He added that Galaxy Digital has taken advantage of the opportunity to strengthen its operational business in 2022, by improving investment banking services, trading, asset management, and crypto research. He also said that the company has invested in several innovative and impactful projects in crypto spaces, such as NFT, DeFi, metaverse, and blockchain infrastructure.

"Recent income, commodities will tell you that we are heading for a recession. [Chairman of the Federal Reserve] Powell has to stop for a moment and we have to lower interest rates faster than we thought," Novogratz said.

And that's a big difference in psychology. This makes Bitcoin and Ethereum move. If ever there was time to be in Bitcoin and crypto, here's the reason why it was created, namely because the government scored too much money every time the pain got too big. And we're looking at it," he added.

According to a recent press release from Galaxy Digital, the company has generated pre-tax revenue of US$150 million (Rp2.2 trillion) as of March 24, 2023, while maintaining a strong liquidity position. The company also announced that it will launch new products and expand their global presence this year.

Galaxy Digital is one of the main players in the crypto industry, with assets under management of 7 billion US dollars (Rp105 trillion) by the end of 2022. The company was founded by Novogratz in 2018, with a vision to become a bridge between the traditional financial world and the crypto world.