Galaxy Digital Disclose Approximately $76.8 Million Exposure to FTX
Galaxy Digital Disclose Approximately $76.8 Million Exposure to FTX.
According to Galaxy Digital’s third-quarter earnings report, the publicly-listed firm has an FTX exposure of approximately $76.8 million in cash and digital assets.
The news comes as little surprise, following the announcement by many exchange executives, including Coinbase, that they had no material exposure to the troubled exchange.
Loss $68 million in the third quarter
According to the company, its net loss for the third quarter was $68 million, and assets under management increased 17% from the previous quarter to nearly $2 billion.
According to the company, its losses were attributable to “reduced valuations on certain investments due to external market conditions,” and to an increase in operating expenses for its mining business. There was a cash balance of $1 billion and a liquidity position of $1.5 billion.
Read More: TRON’s Justin Sun Working With FTX To Create A Solution
A year-long slump in crypto assets and traditional assets has also contributed to the results, also following Binance’s expected purchase of FTX after the collapse of its native token FTT.
Galaxy’s Q3 report reveals, “On November 8, 2022, FTX.com (FTX), a digital asset exchange on which the partnership holds cash and digital assets, announced that it entered into a non-binding arrangement with Binance Holdings Ltd. to provide liquidity.”
The partnership has $76.8 million exposures and now in withdrawal process
In its third quarter earnings report, Galaxy Digital revealed that it has a $76.8 million exposure to FTX, of which $47.5 million is being withdrawn.
“As of the date of this filing, the partnership has an exposure of approximately $76.8 million of cash and digital assets to FTX, of which $47.5 million is currently in the withdrawal process,” cited to the report.
Read More: FTX CEO Says The Firm May Face Bankruptcy If it Does Not Get Cash Injection
Michael Novogratz, the billionaire investor and founder of Galaxy Digital, said Galaxy remains focused in his Q3 report, even though it is uncertain how the “withdrawal process” is going.
“While our industry continues to face macroeconomic headwinds and structural evolution, Galaxy remains focused on building for the future state of institutional adoption by taking deliberate steps to transform and simplify our operations,” he said.
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