The Crypto Winter has come and lingered: Galaxy Digital and Riot Blockchain still weathering the thaw. Discover how they plan to rise back.
Crypto Market Fallout: Galaxy Digital and Riot Blockchain Face Q2 Losses
Both Galaxy Digital Holdings Ltd. and Riot Platforms Inc. recently reported financial losses in Q2, highlighting the challenges posed by the aftermath of the prolonged cryptocurrency slump.
Galaxy Digital, founded by American investor Michael Novogratz, faced a considerable setback, reporting a net loss of $46 million for the past quarter. This stands in stark contrast to the $134.3 million profit reported in the previous quarter.
Galaxy Records Losses in Some Area, Gains in Others
The decrease was attributed to lower net realized gains on digital assets and net unrealized losses on investments, despite offsetting gains in other areas. While trading profits plummeted by 54%, Galaxy’s asset management division saw a revenue surge of 619% quarter-over-quarter. Their mining profits experienced a 51% growth.
Galaxy Digital maintained a strong liquidity position of $696 million, comprising $302 million in cash and $395 million in digital assets, with stablecoins making up a significant portion.
Riot Blockchain Records Improvements Amidst Losses
Despite a net loss of $27.7 million, Riot Blockchain demonstrated an improved performance compared to the previous year. The focal point of Riot’s statement was its record hash rate capacity of 10.7 EH/s and the reduction in average mining costs per Bitcoin to $8,389, down from the average Bitcoin price of $28,000 during the period.
Riot Platforms produced over 1,700 Bitcoins during the quarter, marking a 27% increase in Bitcoin production compared to the previous year. This was attributed to a significant uptick in the deployment of miners. The total revenue for Riot Platforms reached $76.7 million, a rise from $72.9 million in the same period of 2022.
Riot reported several highlights, including earnings from power curtailment credits and data centre hosting revenue. Jason Les, the CEO of Riot, expressed enthusiasm over the results, emphasising the execution of their long-term strategy.
However, post the Q2 reports, both companies experienced fluctuations in their stock prices. Galaxy Digital and Riot Blockchain grappled with shifts in the market, underscoring the ongoing volatility in the crypto industry.
