Galaxy Digital reports $76.8M exposure to FTX Galaxy Digital reports $76.8M exposure to FTX
Galaxy Digital becomes the latest major player in the crypto space to reveal a significant exposure to the failing FTX.
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Updated: Oct. 13, 2023 at 9:31 am UTC
RISE / CC BY 2.0 / Wikimedia. Remixed by CryptoSlate
Galaxy Digital, one of the largest crypto financial services firms on the market, released its financial results for the third quarter of the year.
The report revealed that the company has an exposure of approximately $76.8 million in cash and cryptocurrencies to FTX. Out of the $76.8 million, $47.5 million is currently “in the withdrawal process,” the company said in the report.
No further information was revealed about the remaining $29.3 million. It is also unclear how long the withdrawal process will take and whether the company will be able to complete it.
The company saw a net comprehensive loss of $68.1 million in the third quarter, compared to the $517.9 million gain it saw in the third quarter of last year. However, the total capital of Galaxy Digital Holdings stood at $1.8 billion at the end of the quarter.
Michael Novogratz, the founder and CEO of Galaxy Digital, said that the company’s reserves make it well-positioned to take on any upcoming volatility.
“Retaining $1.5 billion in liquidity, including over $1.0 billion in cash, the Company continues to be in a position of strength for both organic and inorganic growth, as we focus on building for the future.”
However, earlier this month, sources close to Galaxy Digital revealed that the company plans to cut at least 20% of its global workforce in the coming weeks. While Galaxy Digital didn’t confirm or deny the rumors, a spokesperson noted that the company was “always considering optimal team structure and strategy.”
If true, Galaxy Digital will be joining a slew of other crypto industry giants which have been laying off staff throughout the year. The market slump in June took away thousands of jobs in the industry, with some estimates showing that the number could be over 13,000.
The mass layoffs came hand in hand with a sharp drop in stock price, with almost all public companies experiencing significant losses. Galaxy Digital saw its stock drop over 88% from its high last November.
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Andjela Radmilac
Armed with a classical education and an eye for news, Andjela dove head deep into the crypto industry in 2018 after spending years covering politics.
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In this article
FTX is a cryptocurrency derivatives exchange that offers futures, leveraged tokens and OTC trading.
Galaxy Digital
Galaxy (TSX: GLXY) is a digital asset and blockchain leader providing access to the growing digital economy.
FTX
FTX is a defunct cryptocurrency exchange, currently in bankruptcy proceedings, that was founded by Sam Bankman-Fried and Zixiao “Gary” Wang in May 2019.
Michael Edward Novogratz, born on November 26, 1964, stands out as an iconic figure in the financial realm.