Galaxy Digital has a $76.8 million exposure to FTX, of which $47.5 million is currently "in the withdrawal process," the company said in its third quarter earnings report.

In addition, co-President, Damien Vanderwilt will step down in mid-January and take a seat on the board. 

The company reported a net loss of $68 million in the third quarter, and assets under management of nearly $2 billion, up 17% from the previous period.

The company's losses were driven by "reduced valuations on certain investments due to external market conditions," and the increased operating expense for its mining business due to impairments in mining assets. The company retained $1.5 billion in liquidity and $1 billion in cash.

The results come on the heals of Binance's expected purchase of FTX following the collapse of its native token FTT, and amid the year-long slump in crypto assets, as well as traditional ones. 

"The company continues to be in a position of strength for both organic and inorganic growth, as we focus on building for the future," CEO Mike Novogratz said.

Losses had been offset by the profitability of the firm's mining business in previously quarters. However, mining incurred a net comprehensive loss of $34.9 million in the quarter, largely due to non-cash operating impairments of mining assets that increased expenses, against the backdrop of its largest third-party hosting provider reducing capacity due to market conditions, rising energy prices and constrained access to capital markets.

Galaxy said its plan to reorganize, become a Delaware-incorporated company and subsequently list on the Nasdaq is still in SEC review and subject to stock exchange approval and it now expects the listing to happen next year. 

The company broke ground on its first proprietary mining site in Texas, which is expected to be fully operational by January, "enabling GM to scale its self-mining responsibly and in a tax-efficient structure."
 
GM also announced an investment in Aspen Creek Digital Corporation and continues to host machines at their sustainably-focused facilities. 

Toward the end of the quarter, Galaxy Digital lost its co-Head of Trading Robert Bogucki, who left for Brevan Howard’s crypto arm BH Digital, according to an Axios report. In August, it was revealed that Michael Jordan — Galaxy's co-head of investments — was setting up a new fund called DBA Crypto.