Novogratz’s crypto bank Galaxy Digital Holdings tabled its financial report for the last 3 months of 2018. The report indicated a 97 million U.S dollars loss.  This was a $20.3 million increase from the previous quarter’s loss of 76.7 million U.S dollars. The financial statement was filed with the securities watchdogs in Canada where Galaxy Digital Holdings bought a publicly listed firm.

Novogratz Is Buying High, Selling Low For Crypto Bank

A combination of all losses incurred by the crypto merchant bank in all of 2018 amounted to over 270 million U.S dollars ($272.7M). Galaxy reported that a considerable chunk of the losses came from trading virtual currencies at a lower price than the buying price which accounts for a loss of 104 million U.S dollars.

The next colossal loss, 75.5 million U.S dollars, was from paper losses on digital currencies that lost in price followed by operating expenses and unrealized losses on investment at 88.4 million U.S dollars and 8.5 million U.S dollars respectively.

Bitcoin (BTC), Ether (ETH), EOS (EOS), and Monero (XMR) are among the top coins Galaxy Digital has been piling up throughout 2018. By the end of the year, the firm had 9.7K BTC, 92.5K ETH, 2.4M EOS, and 60.2K XMR. This was an increase in BTC and ETH holding which stood at 5.9K and 57K respectively at the early days of 2018.

During the selling period, BTC brought in the huge losses at the start of the year while ETH recorded losses almost throughout the year. Other coins that added to the enormous losses due to a depreciating price include Kin, EOS, and BlockV at 10.9 million, 5 million, and 8.6 million U.S dollars respectively.

Going forward, the financial report cited Novogratz as the most significant risk factor since:

“Galaxy is highly dependent on Michael Novogratz (has a 71% stake), exposing shareholders to material and unpredictable ‘key man risk’…Interests may be different from those of shareholders and he could engage in activities of GDH LP or could quit GDH LP in favour of other pursuits.”