Galaxy Digital’s CEO foresees a delay in U.S. crypto regulation until post-2024 elections amid the firm’s report of increased Q3 losses.Galaxy Digital Holdings CEO Michael Novogratz voiced skepticism regarding the advancement...
Galaxy Digital Holdings CEO Michael Novogratz voiced skepticism regarding the advancement of cryptocurrency regulations in the U.S. prior to the upcoming 2024 presidential elections. His comments came amid market speculation surrounding the imminent approval of the first U.S.-based Bitcoin exchange-traded fund (ETF) by the SEC.
Galaxy’s financial performance and prospects
Galaxy’s financial disclosures revealed a significant third-quarter net loss of $94 million, escalating from the prior year’s $68 million. The increase in losses was attributed to the downturn in token valuations and an unprecedented dip in market volatility. The firm had anticipated the losses to plateau, following a $46 million loss in Q2, with forecasts predicting a steady $44 million loss for Q3.
Despite a 70% surge in trading volumes, Galaxy’s trading revenue dipped to $14 million in the quarter, a $6 million fall from Q2 figures. The company’s lending ventures, however, experienced growth, with the average loan book size inflating to $553 million.