Main navigation

Mike Novogratz Is Getting Ready to Lose $300 Million Because of Bitcoin's Massive Sell-Off

Sun, 05/15/2022 - 14:50
article image
Arman Shirinyan
The company was heavily affected by the most recent Bitcoin nosedive to $25,000, reports massive losses
Mike Novogratz Is Getting Ready to Lose $300 Million Because of Bitcoin's Massive Sell-Off
Cover image via
Read U.TODAY on
Google News

The billionaire's Galaxy Digital Holdings is bracing itself for a massive $300 million loss in income for the second quarter of 2022 as massive fear and negative market conditions cover the cryptocurrency market, Bloomberg reports.

The comprehensive income, which will be at a loss according to the preliminary update, is the net income of the company and yet-to-be realized financial gains or losses. Realized loss would put the financial gains or losses of Galaxy to $2.2 billion, which would be a 12% decline compared to the same report in March 2022.

Crypto Billionaire Says Terra Wasn’t as Bad as Theranos

"In light of recent market conditions,'' losses of the crypto merchant bank are inevitable as Bitcoin's price plunged to $25,000 at some point, causing a massive outflow from the industry. In addition to negative market conditions, Terra's UST fueled the panic in the DeFi and stablecoins field.

Some industry experts complained that the market turmoil we saw during the last week was caused mostly by the TerraUSD and Luna crash. The recent depegging of the UST stablecoin from the U.S. dollar affected cryptocurrencies outside of Terra's ecosystem, with Bitcoin plunging to $25,000 and Ethereum losing the $2,000 support. Almost $300 billion of the cryptocurrency market was wiped out in less than a week.

According to the official Galaxy comment, the treasury does not contain algorithmic stablecoins. Though the company does not own any type of algorithmic stables, Novogratz showed his affection for UST. The billionaire's fortune dropped massively since November, as his $8.5 billion turned into $2.5 billion at press time.

article image
About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.