Mike Novogratz Has Big Bitcoin Plans Despite Recent String of Losses

Despite a string of heavy financial losses, Mike Novogratz – the head of Galaxy Digital Holdings Ltd – is remaining positive about bitcoin and the growing digital finance space.

Mike Novogratz Is Looking to Start a Bitcoin ETF

In a recent interview, Novogratz has revealed that his company has applied with the Securities and Exchange Commission (SEC) to begin a bitcoin-based exchange-traded fund (ETF), which has arguably been the object of many crypto companies’ affection over the past four years. While no company has ever come close to getting a green light, this isn’t stopping them from throwing their hats into the ring.

In the same conversation, Novogratz also revealed that his company incurred losses of more than $175 million during the second quarter of 2021. To be fair, this was a difficult time for all digital currency-related businesses given that bitcoin initially began the quarter out on a high note only to come crashing down just weeks later.

The world’s number one digital currency by market cap hit a new peak of approximately $64,000 per unit in mid-April, thereby hitting its highest point yet. However, by early May, the currency took a turn for the worse, and dived into the mid-$40,000 range, losing about $20,000 in value in just a matter of weeks. From there, the currency fell into the high $30,000 range and then briefly fell below $30K.

Many individuals thought this was the end; that bitcoin had reached its breaking point and that the currency was likely to disappear without a trace, though the currency has recovered somewhat and is now trading for about $45,000 per unit once again. In a statement, Galaxy Digital was clear regarding its Q2 losses, claiming:

During the quarter, our results were impacted by a 34 percent decline in overall digital asset prices and a 41 percent decline in the price of bitcoin, relative to the end of the first quarter.

By comparison, the same space in 2020 saw Galaxy Digital earning more than $35 million. Shares in Galaxy Digital dropped by more than 12 percent following the negative news. However, Novogratz refuses to let this little slip get him down. Rather confidently, he stated:

Listen, we lost money last quarter. We lost about ten percent, a little more than ten percent of our equity. That’s when bitcoin was down 41 percent. That doesn’t bother me. Year-to-date VC investment in crypto and blockchain companies stands at $9 billion with nearly $6 billion invested in Q2 alone. By comparison, 2020 average is closer to one billion of investment per quarter.

An ETF Will Only Work for Certain People

In addition, Novogratz acknowledges that many companies have not had success with their bitcoin ETF applications, though he predicts things will be different for Galaxy Digital. He also said:

Investors seeking direct exposure to the price of bitcoin should consider an investment other than the fund.

The post Mike Novogratz Has Big Bitcoin Plans Despite Recent String of Losses appeared first on Live .

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