Galaxy reports 54% decline in trading revenues in Q2 earnings

Michael Novogratz’s Galaxy Digital saw trading revenue decline 54% in the second quarter of the year to $59.5 million.

“The decrease was primarily attributable to lower net realized gains on digital assets and net unrealized losses on investments, partially offset by higher net realized gains on investments,” the company said in a statement.

The crypto firm, however, reduced its losses to $46 million after reporting a loss of $554.7 million in the second quarter of 2022. It ended the quarter with a "strong" a liquidity position of $696 million.

"Galaxy's operating businesses performed well in the second quarter against a backdrop of continued uncertainty and regulatory pressure, as we continue to manage the Company to meet the evolving needs of our clients," Novogratz said.

Operating expenses

The company reported that its asset management division generated $33.8 million in revenue during the quarter, which compared to the first quarter of this year was a 619% increase.

The firm also said it cut operating expenses by 6% quarter-on-quarter and 34% year-over-year.