Michael Novogratz discloses $77m exposure to crypto exchange FTX

Galaxy Digital Holdings, the crypto financial services company founded by billionaire Michael Novogratz, has disclosed a $76.8 million exposure to collapsed exchange FTX and expects the turmoil in the industry to continue in the weeks ahead.

Galaxy, which uses FTX to hold assets, said $47.5m worth of assets is currently in the withdrawal process, the company disclosed in its third-quarter results.

FTX, cofounded in 2019 by chief executive Sam Bankman-Fried and Gary Wang, halted withdrawals on Tuesday, citing a liquidity crunch, and agreed to a buy-out offer from Binance, which has since backed out of the deal.

Galaxy’s net comprehensive loss was $68.1m, compared with a $517.9m gain in the same period a year ago, primarily because of unrealised losses on investments, driven by reduced valuations under external market conditions.

“We are going to have to be nimble and agile for the next two to 12 weeks as this digests, and people really make sense of what happened,” Mr Novogratz said during a conference call about the fallout from FTX.

He expects that crypto prices will no longer be driven by events such as FTX and will return to being correlated to macro market conditions “within a quarter”.

Read more : https://www.thenationalnews.com/business/money/2022/11/14/billionaires-michael-novogratz-discloses-77m-exposure-to-crypto-exchange-ftx/