Mike Novogratz and Galaxy Digital have always been there to support bitcoin. There’s no doubt about this, but has bitcoin been able to support them? Following the company’s recent Q2 reports, it appears BTC is abandoning both figures.
Mike Novogratz Is Feeling the Burn
Galaxy Digital is reporting that it lost more than half a billion in quarter two of 2022, nearly triple its losses for the same period in 2021. The company – which has become so tied to bitcoin – has ultimately seen its crypto portfolio suffer greatly at the hands of the digital currency winter we’ve been witnessing over the past nine months.
Bitcoin was initially trading at more than $68,000 per unit in November of last year, for example. Sadly, the asset has lost more than 60 percent of its overall valuation and the currency is now struggling to maintain a position between $23,000 and $24,000. It’s an ugly sight, and the digital currency arena has lost close to $2 trillion in overall valuation.
Despite the recorded losses, Novogratz – a known crypto bull – is confident that the market is going to come back. He also says that Galaxy Digital is still in a strong financial position, claiming in a recent interview:
I am proud of Galaxy’s outperformance during a challenging market and macroeconomic environment. Prudent risk management, along with our commitment to exacting credit standards, allowed us to maintain over $1.5 billion in liquidity, including over $1 billion in cash.
The suffering of the crypto market has caused many bitcoin and digital currency bulls to take drastic action to save the companies they have tied so tightly to the world’s most renowned crypto assets. Elon Musk, for example, who purchased more than $1 billion in bitcoin in early 2021, has reportedly sold more than 90 percent of his overall stash in the wake of falling prices.
In addition, Michael Saylor – the CEO of MicroStrategy, a software giant that has since become one of bitcoin’s biggest institutional supporters – has stepped down from his role with the company given the poor crypto-related decisions he’s made in recent years, though he’s not moving away fully and will still serve as the enterprise’s executive chairman.
He Always Has Things to Say
Not long ago, Mike Novogratz informed traders that he’s confident bitcoin has allegedly bottomed out. There appears to be some truth to his words given in mid-June of this year, bitcoin suffered so badly as to temporarily drop into the mid-$17,000 range. The currency has since added close to $7K to its price.
However, he also warned that a recession is coming, and that the country could not deal with such high levels of inflation. Novogratz has also taken flak for potentially tying bitcoin to the Supreme Court’s recent reversal of Roe v. Wade.