Novogratz is Still Hopeful about Crypto Despite losing $68 Million
Galaxy Digital Holdings, which is a crypto merchant bank that was created by Mike Novogratz, a former partner Goldman Sachs, posted huge losses in Q3. This was likely caused by the recent price-crash of the crypto market.
According to a press release from the company, they lost $68.2 million in Q3. This is relatively strong considering that the company lost $76.7 million in Q3 2018. Despite this loss, the fund managed to earn an income of $58.4 million this year, which is primarily due to spot long holdings of Ethereum and Bitcoin as well as a 123% gain in the investment it made in Block.one.
Despite the losses, Galaxy is still optimistic about the crypto market. In mid-November, it announced the launch of Galaxy Institution Bitcoin Fun and the Galaxy Bitcoin Fund. These investment vehicles will offer accredited and institutional investors low fee Bitcoin exposure. Bakkt will store the funds while Bloomberg will act as the pricing agent.
It is not known how launching this fund is going to help Galaxy’s financial performance. However, it is unlikely that it will damage. Novogratz also expressed optimism about other aspects of his business. In the press release, he noted that while Q3 performance had been dismal, they were not giving up. He said that the Galaxy Digital team was making progress across their main operating business lines while allocating capital to pockets where they saw clear value.
Still Optimistic
Novogratz noted that Q3 had not been a positive quarter, he was still optimistic about crypto. During a CNN interview, he said that he expected BTC would appreciate in late 2020 and at the start of 2021. In fact, he hinted that he expected the price of BTC to go past $20,000 in the next 15 months. If that happens, it would be a 160% gain from the current price of around $7,400. In his opinion, this would be caused by various geopolitical and macroeconomic trends such as mistrust in centralized systems and negative interest rates. As a result, this would push BTC prices to all-time highs.
Published at Fri, 06 Dec 2019 16:38:39 +0000
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