Galaxy Digital Holdings is still losing money – but is anyone really surprised? Just look at the overall cryptocurrency market. It is bleeding and confidence in the crypto markets range from nil to cautiously optimistic.
The New York-based firm, which conducts several vital activities such as trading and principal investments, has had a bumpy ride as a publicly-traded entity.
Michael Novogratz took the company public through a reverse merger and ran into a bear market. But still, the company traded, made investments, and is still present in the cryptocurrency market today. Further, it seems like Novogratz is taking the long view with the latest investments.
We, at CryptoTraderNews, can say that the cryptocurrency market is still in a bearish phase. Bitcoin is still at levels well below its all-time highs, and other cryptocurrency projects have bled significantly since their all-time highs. The success of the firm may not necessarily stem from its trading division but rather from principal investments, advisory, and other divisions.
Then, going by these other divisions, one should look at Galaxy Digital as a long-term holding, at least 5-6 years. Investors will have to wait and see returns as they would from a traditional venture capital firm that seeks to exit positions and provide returns after 8-10 years.
Indeed, if the sentiment is exact, the cryptocurrency industry still has quite a ways to go. The proper infrastructure is still being built to support bitcoin, blockchain, and cryptocurrencies; then it follows that Galaxy Digital must be a long-term play.
Galaxy Digital is still up 58,000,000 for the year, has a healthy cash position, and holds over $400,000,000 in assets as of its latest filing.
Galaxy Digital Assets
Galaxy Digital Holdings, Ltd. (TSXV:GLXY / OTC:BRPHF) went public in August 2018 and is well below the initial IPO price. It debuted around $2.12 USD and declined to $1.50 USD before leveling off. It would decrease even further in 2018 as bitcoin went to new lows. Investors who purchased stock in the firm via the private placement see a halving in their holdings at the current time.
The story so far from a new investor standpoint isn’t very compelling for Galaxy Digital. That’s primarily because a wider variety of Galaxy Digital assets that relate to token holding have declined over 60%.
But Galaxy Digital activity and efforts in other regards are very compelling.
First, partnerships related to Galaxy Digital trading are up over the year as it adds more counterparties.
Let’s take a look at some of the most compelling firms that Galaxy Digital has invested in over the past year.
A first important note in regard to Galaxy Digital assets is that it has invested in over 40 companies within the cryptocurrency sector.
A few of them are consumer-facing, others are for enterprise, and these include:
- BlockFi – An institution that lets individuals deposit bitcoin and earn interest. BlockFi is a positive contribution to the Galaxy Digital balance sheet. Galaxy also owns positions in other firms such as Drawbridge Lending.
- Mythical Games – A blockchain based gaming studio that seeks to revolutionize ownership within gaming. The firm has raised more than $30 million to build games and is developing its first game, Blankos Blockparty.
- NuCypher – A firm that provides cryptography related infrastructure contributes positively to the Galaxy Digital balance sheet.
- N3twork – A mobile gaming company that has progressed to Series C funding is another Galaxy Digital portfolio member. The firm is active and has games such as Legendary:Game of Heroes. The firm seeks to become a powerhouse by helping other gaming studios scale their games. N3twork’s scaling and partnership program should be a key differentiator and help bolster several mobile gaming companies.
- Genvid Technologies – A company that augments streaming through proper tools and services to help accelerate the activity in e-sports and general media.
- Bitski – The firm simplifies wallet integration use for the consumer and third-party applications.
What Lies Ahead for Galaxy Digital Holdings?
In the short term, it looks as if Galaxy Digital holdings are making many of the right moves with investments in a wide variety of entities that tie directly or indirectly to the blockchain and banking sectors.
Yet many of them are new firms that have a compelling value proposition that will need time to provide substantial returns.
Patience and the long-view regarding cryptocurrencies, the blockchain, and innovation are the critical factors for investors in this firm.
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