Galaxy Digital stock knocked lower on $77M FTX exposure, Q3 loss

Galaxy Digital ( OTCPK:BRPHF ) stock tanked 14% in Wednesday afternoon trading after the cryptocurrency-focused asset manager disclosed exposure of ~$76.8M of cash and digital assets to beleaguered crypto exchange FTX . Of that figure, $47.5M is now in the withdrawal process, it said. At the same time, the company recorded a net comprehensive loss of $68.1M in the third quarter, compared with income of $517.9M in the year-ago period, driven mostly by unrealized losses on investments in its Principal Investments business, partially offset by profitability in its Trading division. Revenue of $32.68M, missing the average analyst estimate of $49.1M, dropped from $217.07M for the three months ended Sept. 30, 2021. Operating expenses totaled $126.05M in Q3, up from $123.65M in Q3 of last year. Partners' Capital retreated 12% Y/Y to $1.8B. And crypto trading volumes dropped more than 50% from a year ago. Net digital assets were $422.6M compared with $474.3M in Q2. The decrease was driven by the company selling certain liquid positions. "Retaining $1.5 billion in liquidity, including over $1.0 billion in cash, the Company continues to be in a position of strength for both organic and inorganic growth," said Founder and CEO Michael Novogratz. At the beginning of November, Galaxy Digital was said to lay off 20% of its workforce in the wake of a crypto bear market .