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’s CEO foresees a delay in U.S. crypto regulation until post-2024 elections amid the firm’s report of increased Q3 losses.
During the company’s earnings call for the third quarter, Novogratz remarked that any new regulatory decisions are unlikely with the election on the horizon, but post-election could see a significant drive in progress, given the cadre of knowledgeable individuals in Washington.
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.
October painted a brighter financial picture for Galaxy, with a remarkable $124 million in pretax income and $24 million in trading revenue. This uptick was largely due to strategic market positioning and a resurgence in cryptocurrency prices, highlighted by Bitcoin’s impressive 35% price increase within the month.