Mike Novogratz’s Crypto Bank Suffered More Than 250 Million Losses in 2018

Mike Novogratz, a famous American entrepreneur and billionaire, has tried his hand in various financial businesses, including Goldman Sachs and Fortress Investment Group. Nevertheless, he didn’t stay in either of those major companies.

Currently, besides all of his other affairs, Novogratz is the CEO of Galaxy Digital, a multi-service merchant bank, engaged in trading, asset management, investments and advisory. It is also described as a “bridge between the crypto and institutional worlds”.

It seems like Mike Novogratz had a lot of faith in cryptocurrencies. We don’t know whether it’s still true or not, but the events of the recent few months undoubtedly had some impact on that faith.

We all remember the winter of 2018/2019, which was characterized by probably one of the biggest downward trends in the price of cryptocurrencies. Crypto holders and owners of crypto-related businesses were smashed, and they are still trying to recover.

Obviously, the crypto bank Galaxy Digital was no exception to the sad tendency. Throughout the year of 2018, it suffered massive losses, which can be seen o the screenshot of the company’s income statement.

Source: The Block

As we can see, in Q1 the company lost around 13.5 million dollars, in Q2 this sum jumped to 88.5 million, since the “crypto winter” started. Moreover, Galaxy Digital was heavily fined by the US authorities regarding its ICO services.

In Q4 the bank kept suffering losses. Mike Novogratz commented on the situation by saying:

Q4 in crypto felt a little bit like watching Game of Thrones last night.The results on the year weren’t great by any means.”

Overall, the bank lost around 273 million in 2018, which is a significant price even for such a wealthy person as Mike Novogratz, who has recently acquired 80% of the company shares, 7 million ones, to be specific.

The CEO of Galaxy Digital surprisingly remains optimistic. He still pictures a good future for cryptocurrencies and sees potential in his business for the next year, hoping to recover fully from the “crypto winter”.

We remind you that Mike Novogratz has recently made a promising forecast for the price of Bitcoin this year.

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