According to the recently released third-quarter earnings report, crypto investment firm Galaxy Digital revealed that it holds over $76 million worth of exposure to FTX which is now experiencing a liquidity crisis.
The $76.8 million of exposure includes both cash and digital assets. Out of which, $47.5 million is still in the withdrawal process. After experiencing overwhelming net outflows early this week, FTX seems to have stopped processing withdrawals on Tuesday.
The report shows that the company is also in a net loss of $68.1 million in Q3 when compared to a net profit of $519 million in Q3 2021. Considering the FTX’s sudden fallout, Galaxy CEO Mike Novogratz said that the FTX collapse has “put a short-term wrench” in the crypto industry.
After Binance decided against acquiring the crashed FTX, the crypto market further suffered with a total market cap of under $800 billion. On the other hand, Galaxy’s stock (GLXY) dropped to $3.92 on Wednesday.
Compiled by Coinbold