Galaxy Digital Lays Off Staff Members
Galaxy Digital, a crypto-focused company, is the latest in a series of companies to lay off staff members.
The downturn in the markets has been tough on digital asset companies, with many of them having to resort to job cuts in order to stay afloat. It's been a difficult time for everyone involved, but hopefully things will start to improve soon.
While the news of Galaxy Digital joining the list of firms laying off workers is disheartening, it is unfortunately not surprising given the current state of the economy. However, I remain optimistic that companies like Galaxy will eventually rebound and continue to innovate and thrive in the long term.
Galaxy Digital lays off dozens of employees.
It is disappointing to hear that Galaxy Digital is considering workforce cuts of up to 20%. This would be a significant blow to the company, and would undoubtedly have a negative impact on the cryptocurrency industry as a whole. We can only hope that the company can find a way to avoid such drastic measures.
Galaxy spokesperson Michael Wursthorn said, “We are always considering optimal team structure and strategy and will share future plans when finalized.”
It's no secret that the crypto industry has been struggling over the past few years. Media reports suggest that the sector has lost over 11,000 jobs since April 2022. Almost all digital assets firms have either reduced the headcount or put a brake on fresh recruitment. Looking ahead, it's hard to say how the industry will recover.
The layoffs in the blockchain industry are a sign of the times. With the industry facing challenges, many companies are forced to downsize. However, this doesn't mean that blockchain is going away. The industry is still growing, and there are many opportunities for those who are willing to seize them.
Galaxy Q2 Loss: $554.7 Million
Galaxy Digital's second quarter net loss of $554.7 million represents a significant increase from the $182.9 million loss reported in the same quarter last year. The company attributes the loss to the crypto market downturn and investments in its trading business. Despite the challenges faced in the current market environment, Galaxy Digital remains committed to its long-term goal of becoming a leading provider of digital asset management services.
“I am proud of Galaxy’s outperformance during a challenging market and macroeconomic environment. Prudent risk management, along with our commitment to exacting credit standards, allowed us to maintain over $1.5 billion in liquidity, including over $1.0 billion in cash,” Novogratz had said while releasing the Q2 results.
Looking at the financial report for Galaxy Digital for the first quarter of 2022, it is clear that the company has suffered a significant loss compared to the same period last year. Its AUM has also dropped by 5%. This is a clear sign that the company is in trouble and is struggling to maintain its profitability.
BitGo Drops Acquisition Plan
Galaxy Digital has announced that it is no longer looking to acquire cryptocurrency custody provider BitGo. This comes just one week after the company released its Q2 results.
It is disappointing to see that BitGo has not yet provided an audited financial report for 2021, as required by the agreement between the two companies. This acquisition was supposed to be completed by October this year, and it is now unclear what the status of the deal is. We hope that Galaxy and BitGo can resolve this issue soon so that the acquisition can be completed and BitGo can continue to provide its excellent services.
The custodian responded to the Novogratz-spearheaded firm's actions by launching a lawsuit against them.
According to a recent report, Galaxy Digital, a digital asset management firm founded by Michael Novogratz, is planning to reduce its headcount by 20%. This is a difficult time for many businesses, and it's heartening to see that Galaxy Digital is taking proactive steps to ensure its long-term viability.