Galaxy Digital is committed to listing in the U.S. Volatility expected to cause 1Q net comprehensive income decline
Michael Novogratz is a billionaire crypto investor and leads Galaxy Digital Holdings Ltd.. He said that while he still expects volatility in 2018, he has become more constructive about digital-asset markets.
Novogratz stated that it wouldn’t surprise him to see crypto significantly higher by year’s end during Galaxy’s earnings conference calls on Thursday. Given the adoption cycle, the way markets trade and the number of people who want to join, the innovation in web3/the metaverse space, I have become more constructive than at the start of the year.
Novogratz had previously this month predicted a Bitcoin price range of $30,000 to $50,000. He did not provide any new ranges during the call. Bitcoin dropped 1.4% to $46,604 at 10:48 AM in New York.
Galaxy, which provides businesses that range from crypto trading to asset management to mining said it “remains dedicated” to U.S. listing and expects to be a Delaware corporation between second and fourth quarters, subject to ongoing SEC review, and then to list on the Nasdaq. Galaxy had previously aimed at listing on a U.S. stock exchange in the first quarter this year.
The fourth quarter net comprehensive income increased 55% to $521.3million. This was due to the “strong contributions” of trading and realized and unrealized benefits from digital coin appreciation and investments it holds. Market volatility is a reason why the company expects to lose $110 million-130 million for the quarter ending March 28.
After the price of BitGo Inc. plunged, crypto financial services company negotiated new terms to acquire it.
It will pay $1.16 billion in cash and 44.8million shares to finance the purchase. This is up from 33.8million shares under the previous agreement. BitGo shareholders will now own approximately 12% of the company, compared to 10% previously. Galaxy shares, which are traded on the Toronto Stock Exchange (TSX), had fallen by 30% since May’s announcement. The shares dropped 3% on Thursday morning.
