Bitcoin ETF

Galaxy

Bitcoin

Optimism

Galaxy Digital Holdings Ltd., led by Michael Novogratz, appears to have <a href="https://www.newswire.ca/news-releases/galaxy-announces-third-quarter-2023-financial-results-and-october-update-876195832.html" target="_blank" rel="noopener nofollow">confronted</a> a turbulent market, reporting a ‘widening’ of its quarterly losses amid a period marked by declining crypto prices and low volatility in the <a href="https://bitcoinist.com/ftx-remaining-crypto-assets/" target="_blank" rel="noopener ">digital asset market</a>. 
The firm, known for its range of crypto services, faces the headwinds of a challenging quarter, even as it lays the groundwork for future ventures, including a bid for a <a href="https://bitcoinist.com/galaxy-digital-just-opened-a-massive-long-on-bitcoin-and-ethereum/" target="_blank" rel="noopener ">Bitcoin</a> exchange-traded fund (ETF). 
<h2 id="financial-fluctuations-amid-expansion-and-optimism">Financial Fluctuations Amid Expansion And Optimism</h2> 
In the latest financial disclosures, Galaxy Digital revealed a net loss of $94 million for the third quarter, a notable increase from the $68 million loss reported during the same period last year. 
<img loading="lazy" decoding="async" class="size-medium wp-image-263808" src="https://bitcoinist.com/wp-content/uploads/2023/11/Screenshot-2023-11-09-at-15.03.46.png?w=640&amp;resize=640%2C272" alt="Galaxy Digital Holdings financial summary" width="640" height="272" srcset="https://bitcoinist.com/wp-content/uploads/2023/11/Screenshot-2023-11-09-at-15.03.46.png?w=2102 2102w, https://bitcoinist.com/wp-content/uploads/2023/11/Screenshot-2023-11-09-at-15.03.46.png?w=640&amp;resize=640%2C272 640w, https://bitcoinist.com/wp-content/uploads/2023/11/Screenshot-2023-11-09-at-15.03.46.png?w=768 768w, https://bitcoinist.com/wp-content/uploads/2023/11/Screenshot-2023-11-09-at-15.03.46.png?w=980 980w, https://bitcoinist.com/wp-content/uploads/2023/11/Screenshot-2023-11-09-at-15.03.46.png?w=1536 1536w, https://bitcoinist.com/wp-content/uploads/2023/11/Screenshot-2023-11-09-at-15.03.46.png?w=2048 2048w, https://bitcoinist.com/wp-content/uploads/2023/11/Screenshot-2023-11-09-at-15.03.46.png?w=750 750w, https://bitcoinist.com/wp-content/uploads/2023/11/Screenshot-2023-11-09-at-15.03.46.png?w=1140 1140w" sizes="(max-width: 640px) 100vw, 640px" data-recalc-dims="1"> 
This figure also represents a jump from the $46 million loss recorded in the second quarter, defying consensus <a href="https://www.bnnbloomberg.ca/novogratz-s-galaxy-says-quarterly-loss-widened-ahead-of-bitcoin-etf-bid-1.1996292" target="_blank" rel="noopener nofollow">estimates</a> that had projected the company’s losses to remain relatively stable at around $44 million. 
Despite the losses, Galaxy’s diverse <a href="https://bitcoinist.com/galaxy-digital-ceo-on-90s-hit-song-crypto/" target="_blank" rel="noopener ">operations</a> — spanning trading, asset management, and mining — demonstrated resilience. The firm’s trading revenue stood at $14 million, slightly declining from the previous quarter. 
However, this comes against a backdrop of a 70% surge in trading volume and an expansion of its average loan book size to $553 million. 
On a brighter note, Galaxy Digital has experienced a turnaround post-quarter, boasting an income before tax of $124 million and trading revenue of $24 million in October alone. 
According to the report, this sharp recovery was fueled by favorable market conditions, including the uptick in digital asset prices, with Bitcoin’s value climbing over 30% in the past month. 
<h2 id="resilience-amid-volatility">Resilience Amid Volatility</h2> 
Galaxy Digital’s earnings from its asset management division experienced a notable increase, with a quarter-over-quarter growth of 11%. The company’s preliminary report on assets under management highlighted a significant boost, with a valuation reaching $3.9 billion as of the end of September, a 58% rise from the second quarter. 
However, Galaxy Digital did not emerge unscathed from the market’s volatility, recording a substantial financial adjustment charge of $44.9 million due to a reduction in the value of its smaller stake holdings. 
This figure contrasts sharply with the reassessment gain on previous write-downs totaling $128.1 million recognized earlier in the year, underscoring the quarter’s financial pressures. 
Meanwhile, <a href="https://bitcoinist.com/galaxy-digital-ceo-govt-should-fear-ai/" target="_blank" rel="noopener ">Novogratz</a> maintains an optimistic outlook, projecting that the US Securities and Exchange Commission (SEC) will green-light a direct Bitcoin ETF by the <a href="https://www.cnbc.com/2023/10/18/mike-novogratz-thinks-the-sec-will-approve-a-bitcoin-etf-as-early-as-this-year.html" target="_blank" rel="noopener nofollow">close of 2023</a> — a move Galaxy Digital is preparing for in <a href="https://www.prnewswire.com/news-releases/invesco-etfs-and-galaxy-digital-partner-to-offer-investors-exposure-to-an-expansive-range-of-products-in-the-digital-asset-ecosystem-301382506.html" target="_blank" rel="noopener nofollow">partnership</a> with investment management firm Invesco. 
Furthermore, Galaxy Digital’s recent analysts <a href="https://www.galaxy.com/insights/research/sizing-the-market-for-a-bitcoin-etf/" target="_blank" rel="noopener nofollow">suggest</a> that a spot Bitcoin ETF could see inflows exceeding $14 billion in its inaugural year. They argue that existing investment options have limitations, including high fees and poor liquidity, which limit their appeal to a broader investor base. In contrast, a <a href="https://bitcoinist.com/bitcoin-etf-galaxy-ceo-forecasts-approval-2023/" target="_blank" rel="noopener ">spot Bitcoin ETF</a> would offer investors a more accessible route to direct Bitcoin exposure without self-custody complexities. 
<img loading="lazy" decoding="async" class="size-medium" src="https://www.tradingview.com/x/5U7Flzuh/" alt="Galaxy Digital Holdings stock price chart on TradingView" width="2770" height="1556"> 
Featured image from Unsplash, chart from TradingView

Galaxy Digital Faces Increased Q3 Losses, Holds Strong For Spot Bitcoin ETF Approval

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