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How bad is Mike Novogratz's FTX exposure?

  • Galaxy Digital, a company owned by Mike Novogratz, has admitted that it has exposure to FTX.

  • Galaxy Digital declared its FTX exposure in its third-quarter financial results. Binance has earlier announced a non-binding agreement to acquire FTX. Binance CEO CZ said the transaction will help FTX's liquidity. The cryptocurrency market collapsed after the statement, with Bitcoin (BTC) plunging 10% in 24 hours.

10 Nov 2022 By: Rohit Tripathi
How bad is Mike Novo

News Update for Galaxy Digital FTX: Mike Novogratz Firm 

Galaxy Digital disclosed that it has exposure to FTX.

Firm of Mike Novogratz Galaxy Digital disclosed its exposure to FTX in its third quarter financial results, the company said. Binance, a cryptocurrency exchange, had earlier announced that it had entered into a non-binding agreement to fully acquire FTX. The transaction is intended to address FTX's liquidity shortage, according to CZ, the CEO of Binance. Following the statement, the cryptocurrency market experienced a major collapse, with the price of Bitcoin (BTC) falling by around 10% over the past 24 hours.

Digital Assets From Galaxy In FTX

Galaxy Digital stated that it holds cash and digital assets in FTX in its quarterly results report. But it claimed that the majority of it is still being withdrawn. The company's net comprehensive loss for the quarter was $68.1 million, which was partially brought on by rising operational costs for its mining division. According to the corporation, the losses were from impairments in mining assets caused by disruptions in the mining industry. The partnership is exposed to FTX as of the date of this filing in the amount of about $76.8 million in cash and digital assets, of which $47.5 million is currently being withdrawn.

Exposure To The FTX Market

Questions were raised about other crypto businesses' exposure to FTX in light of the declining cryptocurrency prices following the announcement of the Binance FTX acquisition. Companies like stablecoin issuer Circle and cryptocurrency exchange Coinbase, meanwhile, denied allegations that they had any exposure to FTX. Additionally, a different cryptocurrency exchange, OKX, claimed that it has no debt exposure to FTX, FTT, or Alameda Research.

According to Michael Novogratz, structural changes and macroeconomic headwinds continue to affect the cryptocurrency market. He continued by saying that Galaxy is concentrating on developing for institutional adoption in the future. In the meantime, the price of the FTX Token (FTT) plummeted after Binance announced their acquisition. According to price monitoring site CoinGabbar, the price of FTT is currently $4.59, having dropped a startling 26.69% in the previous 24 hours.