Galaxy Digital expects Trump to cause crypto "tsunami"
Trump's presidency looks like it's going to be good for investment banks and good for crypto. Crypto investment bank Galaxy Digital is feeling double the love.
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In its Q3 earnings call today, CEO Mike Novogratz called election day "probably the most important day in the history of Galaxy." Not only was it the firm's "largest trading day of the year PNL-wise", he said its going to bring forth a continued period of good news in crypto. Novogratz expects there to be a "tsunami of institutional participation incoming... the TLDR is it's going to bring in a ton of money."
Galaxy could probably use that ton of money sooner rather than later. It made a $54m loss last quarter, which is still an improvement on its $177m loss the quarter before. Massive revenues in Q1 mean Galaxy is still $191m in the black year-to-date. Novogratz stressed that yesterday's events were so monumental that Q3 "seems a little less relevant now."
Galaxy's president Christopher Ferraro highlighted the advisory team as the "unsung heroes" of the firm. He says revenues in the space are "generally pretty lumpy, especially in crypto," and many deals the team have been working on have been set back by the regulatory environment; with Trump incoming, things are set to change for the better.
Galaxy has been increasing its headcount. It had set its sights on a headcount of 500 by September, and has exceeded that figure; Galaxy now has over 510 employees and is looking to grow further, with 44 current job openings.
Galaxy's staff are being paid more, too. Compensation per head in the last quarter was $78.4k, up 10% year-on-year. High paying roles available right now include Java quant trading VPs, which can earn salaries of up to $200k.
It's not just Galaxy that had a massive trading day yesterday. Novogratz previously said he spent the night "trading like a banshee." Although he donated to the opposition, he doesn't seem all that dismayed about the final result.
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