Galaxy Digital made $77 million on FTX exposure, shows earnings

Mike Novogratz‘s crypto firm still has over $47 million in FTX exposure stuck in the withdrawal process.

In its recently published Q3 earnings report, crypto financial services firm Galaxy Digital revealed that it holds over $76 million in exposure to FTX, the current mainstream crypto exchange. is experiencing a liquidity crisis.

  • According to the report, US$76.8 million includes both cash and digital assets. Of that, $47.5 million is still in the process of being withdrawn.
  • FTX appears to have stopped processing withdrawals on Tuesday after the company experienced massive net outflows earlier this week.
  • The company also posted a net loss of $68.1 million in the third quarter, compared with a net profit of $519 million in the third quarter of 2021.
  • Speaking on the company’s earnings conference call, Galaxy CEO Mike Novogratz said that the collapse of FTX has “put a short-term wrench” on the crypto industry. After Binance refused to bail out the company, the crypto market dropped to a total market capitalization of less than $800 billion.
  • Meanwhile, shares of Galaxy (GLXY) fell to $3.92 on Wednesday – down 15%.
  • Novogratz added that the industry has been “agile” enough to weather past scandals and will eventually return to macroeconomic correlation.
  • Galaxy Co-Chair Chris Ferraro said that the company has no contact with Alameda – a sister company of FTX that has recently gone dark.
  • Last week, Galaxy Digital was reported to be planning to reduce its headcount, because of “optimal team structure and strategy”.

Read more: FTX Exposure Limited, said venture capital giant Sequoia Capital

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