Galaxy CEO Mike Novogratz Points To Quantum Uncertainty As 'Big Excuse' Behind Early Investors Selling Off Bitcoin: 'Not A Huge Issue'

Galaxy Digital Inc. (NASDAQ: GLXY) CEO Mike Novogratz on Tuesday called quantum uncertainty a “big excuse” for Bitcoin (CRYPTO: BTC) whales and long-term holders selling off their positions, even though he downplayed its long-term industry impact.

Quantum Computing Fears: Overblown Or Justified?

During the company’s fourth-quarter earnings call, Novogratz argued that concerns about quantum computing’s impact on Bitcoin have been exaggerated.

“Quantum has been the big excuse for people,” the cryptocurrency billionaire said. “I think in the long run, quantum will not be a huge issue for crypto. It will be a big issue for the world, but Bitcoin, especially, will be able to handle it.”

Novogratz said he has been reassured by the “smart guys” that as the era of quantum computing approaches, Bitcoin’s core developers will likely adapt the code to be quantum-resistant. 

He also dismissed the risk of developers fighting among themselves over protocol upgrades to cause harm to the overall Bitcoin ecosystem.

“I think the OG profit taking more than we thought is a real thing. And I think the psychology is — if you’ve ever been like a speculator, once you start selling, it becomes like an idea, a reaction function, then you sell a little more, you sell a little more,” Novogratz discussed the behavior of early Bitcoin investors.

Crypto Industry Isn’t Taking This Lightly

Notably, Coinbase Global Inc. (NASDAQ:COIN), the biggest cryptocurrency-native company on Wall Street, established an advisory board last month to assess the implications of quantum computing and prepare for "threats," even those many years away.

Moreover, Ethereum (CRYPTO: ETH) creator Vitalik Buterin called for the swift deployment of quantum-resistant technology for the network, stressing its importance for long-term cryptographic safety.

Galaxy’s Q4 Losses

Galaxy reported a loss per share of $1.08 for the fourth quarter, wider than the anticipated loss of 52 cents per share, as falling digital asset prices weighed on results.

Trading activity weakened during the quarter, with digital asset trading volumes dropping about 40% quarter over quarter after a strong third quarter.

Price Action: Galaxy shares fell 0.64% in after-hours trading after closing 16.87% lower at $21.98 during Tuesday’s regular trading session, according to data from Benzinga Pro.

GLXY showed a weaker price trend over the short, medium, and long term, earning an average Value score in Benzinga’s Edge Stock Rankings.

Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

Photo Courtesy: T. Schneider on Shutterstock.com