The crypto merchant bank, Galaxy Digital, founded by Wall Street expert Michael Novogratz, has cut off its 13 employees, i.e. approx 15% of its staff.
The layoff occurred at the beginning of January this year with employees across all of the business divisions, including trading, asset management, advisory services and principal investments left whole. In simple words, no business line is affected or singled out from the layoffs.
Presently there are 80 employees left in the company, and as per the reports, the company is open for new hirings for several positions. The job openings are not listed on LinkedIn, but according to the source close to the situation, the firm is relying on recruiters, inbound inquiries and networking for candidates. The cuts are being described as the standard year-end activity.
A former employee informed Coindesk that the firm hired employees expecting it to grow more quickly with the digital asset markets then it actually did and realized that they have overbuilt. Michael Novogratz, the company’s founder described the layoffs as an all-hands meeting to start off the year.
This layoff occurred right before the spike in the price of bitcoin, the leading cryptocurrency of the sector. Bitcoin is seen to hike above $10,000 from $7,000 this week.
The merchant bank dedicated to the digital assets and blockchain technology industry was founded in 2018 and has been through many losses in the past years. In 2018, the company went through $77 million, which narrowed down to $68 million in the third quarter of 2019. The firm had paid more equity-based compensation in its initial year which resulted in these operating expenses.
For about nine months at the beginning of 2019, the company made a profit of $58 million as compared to the losses of $176 million in 2018. Due to the price increases in those months, the digital asset portfolio of the bank increased to $133.5 million.