The over-the-counter (OTC) trading desk of Mike Novogratz's cryptocurrency firm Galaxy Digital has just reported its best quarter to date:
The increase in trading volume can be attributed to GDT's close management of its global counterparty base which grew by 30 new counterparties in the third quarter, the expanding roll out of its electronic trading platform, and the growth of its crypto derivatives business.
In Q3, it generated $1.4 bln worth of trading volume, which represents a 75 percent year-over-year increase.
Galaxy Digital's family of investment products
The firm's investment arm remains its biggest line of business. Galaxy Digital Asset Management capped off the quarter with a total AUM of $407.4 mln.
Its Bitcoin funds that track the Bloomberg CFIX returned 17.3 percent in the last quarter. The Galaxy Crypto Index Fund, which allows accredited investors to gain exposure to large-cap cryptocurrencies, was up 32.2 percent, benefiting from the revival of altcoins in late summer and early September.
In September, Galaxy Digital also ventured into cryptocurrency mining, providing financial and educational services to Bitcoin miners in North America.
Struggling to turn a profit
The company is struggling to constantly remain profitable. However, in Q3, it reported income of $44.6 mln after a streak of quarters in the red.
Galaxy Digital's launch in early 2018 coincided with the start of a brutal bear market, and it posted a $134 mln loss in the first quarter of the year.
As reported by U.Today, Novogratz—a macro trader and former Goldman Sachs partner—compared the crypto market to TV show Game of Thrones after his firm took a $272 mln hit in 2018:
This February, it had to reduce its headcount by 15 percent across its multiple divisions.