Novogratz’s firm lost $272 million in 2018, remains bullish on Bitcoin

29 Apr, 2019 | Updated: 29 Apr, 2019
by Joeri Cant
Bitcoin
Novogratz’s firm lost $272 million in 2018, remains bullish on Bitcoin

Galaxy Digital Holdings, the crypto investment bank founded by former hedge fund manager and billionaire, Michael Novogratz, recorded a net loss of $272 million in 2018.

According to Galaxy Digital Holdings, the crypto investment firm recorded a net loss of $272 million in 2018.

The press release shows that the majority of the losses in 2018, $101.4 million, are coming from selling digital assets at a loss. The investment company also recorded $75.5 million due to declining crypto prices, and $88.4 million in operating expenses.

In November, Chepicap reported that the company had confirmed it had lost $136 million in the first nine months of last year, which basically means these financial numbers show that the net losses for the crypto investment firm doubled in the last three months of 2018.

'While 2018 was a challenging year for the industry, I am pleased with the ways in which our team navigated difficult market dynamics, and believe we are well positioned to scale our business strategically over time. We have used our capitalized position to both identify and invest in a number of unique opportunities, while also continuing to build an institutional-quality platform', said Michael Novogratz, CEO of Galaxy Digital.

'The first few months of 2019 have yielded a notable increase in activity across our business lines. We are already benefiting from both the strong foundation we laid in 2018 as well as the year-to-date rally in digital asset markets. We expect to continue to build upon this positive momentum through the remainder of 2019 and beyond.'

Despite the massive losses his company has suffered in 2018, Novogratz stated that he is becoming more and more bullish on Bitcoin and cryptocurrencies.

Speaking about BTC and its rival 'store of value' asset, Novogratz said recently: 'Gold’s got an $8 trillion market cap, or a $7.5 trillion market cap. And so, we’re 100x off on that. We’re not going to get there in Bitcoin in the next year or two. But over a 20-year period, could that happen? Easily. Easily.'

The Galaxy CEO sees an influx of institutional money as being the likely cause of this huge BTC growth, pointing to the upcoming launch of Fidelity's custodial solutions, as well as Bakkt.

He also said that there are a lot of other players coming.

'Goldman for instance is gearing up around securities tokens. They’re not doing anything yet, but they’re getting really ready and looking at all the questions', he said.

It is clear that despite losing $227 million in 2018, Novogratz's confidence in Bitcoin and the whole crypto space, is still strong and very bullish.

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