Crypto merchant bank Galaxy Digital Holding experienced a $32.9 million net loss in the fourth quarter of 2019, according to the latest financial release from the company.
The disclosure comes as its stock continues a downward trend that began with its 2019 high last June.
In a Q4 earnings call Wednesday morning, the Canadian TSX Venture exchange-listed company disclosed its 2o19 financials. CEO Michael Novogratz tried to reinforce investor confidence after a period of significant turbulence in the crypto market, including the so-called Black Thursday that saw bitcoin’s price among other cryptos plummet.
“I don’t think [Black Thursday] invalidates bitcoin’s thesis,” said Novogratz during the earnings call.
“I am just really confident that at the end of the year it [bitcoin] is going to go higher,” he added later.
As confident as Novogratz sounded for the overall bitcoin market, Galaxy Digital still experienced a troubled final quarter of 2019. Its trading desk saw a net realized loss of over $32 million, with its overall net loss (including unrealized gain/loss on different assets) coming in at roughly $16.7 million. Its principal investing division also showed a net loss of $8.4 million.
The disclosed financials are current as of December 30, 2019, and thus don’t include performance details for 2020, let alone the period in mid-March.
Galaxy Digital suffered less of a loss in Q4 compared to Q3, when it saw a $68.2 total net loss across all divisions. Its comprehensive net income for 2019 reached $25.8 million, compared to its 2018 loss of $272.7 million.
The firm’s stock price is down 65% since its 2019 high in June. When asked about the stock’s poor performance, Novogratz said Galaxy Digital’s stock is “cheap” compared to the company’s actual performance,