Galaxy Still Hopes For US Listing, Application Under SEC Review

Crypto investment firm Galaxy has reported a $1 billion net loss for last year, but ambitions to trade publicly in the US remain alive

article-image

Galaxy CEO Mike Novogratz | Source: Seb Daly/ RISE via Sportsfile "Mike Novogratz" (CC license)

share

Crypto was created for this moment, Galaxy Digital CEO Mike Novogratz said during the company’s fourth quarter earnings call Tuesday morning. 

Galaxy Digital, traded on the Toronto Stock Exchange, hosted the call Tuesday before the open.

“Satoshi Nakamoto, way back in 2009, worried about the breakdown of the legacy financial system, he worried about… constant printing of fiat currencies and a debasement of money and created Bitcoin,” Novogratz said.

“Bitcoin really is the first decentralized store of value or money, which then really gave birth to this whole industry of a decentralized revolution.”

Galaxy reported a net loss of $288 million for the fourth quarter of 2022, earnings show, compared with a net income of $521.3 million during the fourth quarter of 2021. For the year of 2022, Galaxy logged a net loss of $1 billion. 

“The loss was primarily attributable to unrealized marks to market on investments in our Principal Investments portfolio, driven by depressed market conditions,” the earnings report noted.

Galaxy Trading’s counterparty trading volume increased about 19% from the third quarter of 2022, the company noted in its report, and lost about 65% from the fourth quarter of 2021. 

Galaxy still plans to list in the US after reorganizing and becoming a Delaware-incorporated company and completing the necessary SEC review. Galaxy’s most recent amended registration was submitted to the SEC in February 2023 and is currently under consideration, the filing noted. 

Shares of Galaxy are currently up about 1% year-to-date, but have lost 86% over the past 12 months. 

“I feel for you, our stock price has been ugly,” Novogratz said. “Last earnings call I cared a lot about the stock price, and, you know it’s lower, not higher.” 

Galaxy stock and Coinbase diverged at the start of the year

Galaxy is committed to cost-saving efforts, Novogratz said. The company announced layoffs in late 2022 and its bonus pool is now “way down,” the CEO said. 

“Our stock is just at the wrong price,” Novogratz said. 

In terms of the future of crypto as a whole, Novogratz said we are at a crucial inflection point. 

The industry seems to be thriving overseas, he said said, but regulatory headwinds in the US makes expansion in America challenging.  

“I go to bed and I say a Hail Mary hoping that the stewards of our country and our economy can land the plane, can actually maneuver our economy into something that’s sustainable without a real disaster, but that challenge is real and a challenge gets worse and worse,” Novogratz said.

“And so things like this banking crisis are a great reminder, and it gives bitcoin and bitcoin’s community unbelievable resilience.”


Don’t miss the next big story – join our free daily newsletter.

Tags

    Upcoming Events

    HYATT REGENCY SALT LAKE CITY

    TUES, OCT. 8, 2024

    Guided by the expertise of Blockworks Research Analysts team, this one day event will feature senior leaders, entrepreneurs, and developers from across the crypto industry. Attendees will have the opportunity to participate in an immersive experience to explore the latest trends, […]

    Salt Lake City, UT

    WED - FRI, OCTOBER 9 - 11, 2024

    Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

    recent research

    avaxcover.png

    Research

    The Avalanche Network is well on its way to becoming the best platform to build high-performance blockchains that can seamlessly interact with each other, and the strong focus on performant and scalable blockchains will likely be Avalanche’s competitive advantage.

    article-image

    Assets under management in global crypto ETPs broke the $100 billion mark for the first time amid BTC price increases and persistent inflows

    article-image

    Bitcoin and ether stay flat post-selloff as SOL fans brace for a new all-time high

    article-image

    For the first time ever, Bitcoin’s halving comes right after a new all-time high

    article-image

    The company unveiled its research platform upgrades during the first day of Blockworks’ Digital Asset Summit in London

    article-image

    With this launch, Blockworks Research consolidates hundreds of features into one subscription model

    article-image

    After the capital infusion led by Jump Crypto, Pantera Capital and Lightspeed Faction, Figure also seeks to offer a registered security alternative to stablecoins