Galaxy Digital reported a loss of $482 million in the fourth quarter of the financial year. On Tuesday, the company reported the loss after experiencing a 22% drop in the value of its investment portfolios. The announcement caused a sharp reaction in the market. The company’s shares fell as trading opened.
The company said that the value of digital assets and investments declined by $449 million in the quarter ending December 31. The value of the investment portfolios declined to $1.7 billion. However, the company reported that it still had $2.6 billion in cash and stablecoins.
Breakdown of Galaxy Digital’s Investment Portfolio
Galaxy Digital stated that it had $557 million in Bitcoin at the end of the quarter. The company reported that it had $124 million in Ethereum. In addition, the company said that it had $220 million in other altcoins as part of its investment portfolios.
The company reported that it had $617 million in venture and fund investments. In addition, the company added that it had $141 million in liquid investments. The information is part of the structure of its diversified investment portfolios.
The company reported a loss before interest and taxes of $557 million, which is above the $278 million that analysts had projected. The company said the earnings miss as part of the disclosure in the quarterly report to investors.
Also Read: Galaxy Digital to Launch $100M Crypto Hedge Fund in Q1 2026
Shares of Galaxy Digital dropped about 16%. The shares traded at about $22 during the day, according to Yahoo Finance data. The shares reached their lowest since July after the news.
Galaxy Digital Broadens Business Portfolio
Galaxy Digital has different businesses ranging from trading to asset management and investment banking. It also has a business called GalaxyOne that supports institutions. The business was launched at the end of last year. It allowed its clients to use its product for trading and lending.
The company mentioned a 62% drop in its volumes to $10.6 billion during the quarter. The drop came after a sale of $9 billion worth of Bitcoin the previous quarter. The platform said the present is an exceptional sale for the company.
The company also said its loans stood at $1.8 billion during the quarter. This is almost the same as the previous quarter. This improvement is a result of consistent client activity. The increase is despite the weak performance of digital assets.
Bitcoin and Ethereum dropped 23% and 28%, respectively, during the last quarter of the year, according to CoinGlass. These changes led to a decrease in the value of assets on its platform. Assets on its platform dropped 26% to $11.4 billion.
Also Read: Bitcoin’s Secret Strength: Galaxy Digital CEO Mike Novogratz Explains
