Galaxy Digital Held $77 Million in FTX Exposure, Earnings Show

In its recently released third-quarter earnings report, crypto financial services company Galaxy Digital revealed that it has over $76 million in exposure to FTX, the traditional crypto exchange currently experiencing a liquidity crunch. .

• Speak report, the $76.8 million exposure includes both cash and digital assets. In this context, 47.5 million dollars are still being withdrawn.
• FTX seems to have stopped processing withdrawals on Tuesday after the company saw overwhelming net outflows earlier this week.
• The company also posted a net loss of $68.1 million in the third quarter, compared to a net profit of $519 million in the third quarter of 2021.
• Speaking on the company’s earnings conference call, Galaxy CEO Mike Novogratz said the fallout from FTX had “put a short span wrench” in the crypto industry. After Binance refused to bail out the company, crypto markets fell to a total market capitalization below $800 billion. Meanwhile, Galaxy (GLXY) stock fell to $3.92 on Wednesday, down 15%.
• Novogratz added that the industry has been “nimble” enough to handle scandals in the past and will eventually become correlated with the macro economy again.
• Galaxy Co-Chairman Chris Ferraro said the company has no exposure to Alameda – a sister company to FTX which recently turned dark.
• Galaxy Digital was reported last week to plan to reduce its workforce, taking into account “optimal team structure and strategy”.
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