Galaxy Digital has reported a first-quarter net loss of $216 million, or $0.49 per share. This represents an improvement from a $295 million deficit a year prior, with the company attributing the ongoing losses to a challenging cryptocurrency market.
Despite the net loss, founder and CEO Mike Novogratz highlighted that the firm's performance was partially offset by its investment in Hyperliquid. This exposure to the decentralized exchange and its native token is seen as a key factor in cushioning the blow of the tepid crypto market.
Galaxy's total assets saw a quarter-over-quarter decline of 12%, falling to $9.99 billion from $11.3 billion, largely due to a $316 million decrease in the valuation of its digital assets and related investments. However, the company's stock has shown resilience, increasing 12% year-to-date.
Novogratz expressed optimism about the future, stating that Hyperliquid's economic model provides insight into the evolution of crypto. He also noted the company's strategic diversification, including expansion into data centers to capitalize on the AI revolution.