Equity capital was $2.2
billion as of March 31, 2024,
up $402 million quarter-over-quarter
("QoQ")
Net income of $422
million for the first quarter, up $120 million relative to the prior
quarter
Galaxy Mining reached a Hashrate Under
Management of 5.7 exahash per second, which contributed to record
bitcoin mining revenue of $31.5
million for the first quarter
NEW
YORK, May 14, 2024 /CNW/ - Galaxy Digital
Holdings Ltd. (TSX: GLXY) (the "Company" or "GDH Ltd.") today
released financial results for the three months ended March 31, 2024, for both itself and Galaxy
Digital Holdings LP (the "Partnership" or "GDH LP"). In this press
release, a reference to "Galaxy", "we", "our" and similar words
refer to GDH Ltd., its subsidiaries and affiliates including GDH
LP, or any one of them, as the context requires.
Corporate Updates
US Listing and Reorganization: Galaxy continues to
work on completing its proposed reorganization and domestication to
become a Delaware-incorporated
company and subsequently list on the Nasdaq, upon completion of
ongoing SEC review and subject to stock exchange, shareholder and
applicable regulatory approvals of such transactions. On
May 13, 2024, Galaxy filed an
amendment to its registration statement responding to SEC comments,
which is under review.
Equity Capital Raise: Subsequent to quarter-end, on
April 12, 2024, Galaxy announced the
close of its US$125 million bought
deal financing (the "Offering"). Pursuant to the Offering, the
Company issued a total of 12,100,000 ordinary shares on a bought
deal basis at an offering price of C$14.00 per Ordinary Share for aggregate gross
proceeds of C$169,400,000 (or
approximately US$125 million
equivalent). The net proceeds of the Offering will be used for
working capital and general purposes, including among other things,
to advance the following business objectives: expansion of our
trading operations in the United
States and internationally, and completion of the planning
for the next phase of expansion of the Helios mining facility's
infrastructure.
Select GDH LP
Financial Metrics
|
Q1
2024
|
Q4
2023
|
Q/Q %
Change
|
Equity
Capital
|
$2,192M
|
$1,790M
|
22 %
|
Liquidity
|
$1,499M
|
$910M
|
65 %
|
Cash & Net
Stablecoins1
|
$163M
|
$201M
|
(19) %
|
Net Digital Assets
Excluding Stablecoins2
|
$821M
|
$709M
|
16 %
|
Spot Bitcoin ETFs
|
$515M
|
$0M
|
N.M.3
|
Net Income
(loss)
|
$422M
|
$302M
|
40 %
|
Book Value Per Share
in CAD4
|
$9.11 CAD
|
$7.28 CAD
|
25 %
|
Note: Throughout this
document, totals may not sum due to rounding. Quarter-over-quarter
and year-over-year percentage change calculations are based on
unrounded results.
|
(1)
|
Includes Cash
Equivalents.
|
(2)
|
Refer to page 13 of
this release for a breakout of our net digital assets
position.
|
(3)
|
Abbreviation for "Not
Meaningful".
|
(4)
|
Calculated as equity
capital divided by outstanding Class A and Class B Units multiplied
by the end of period foreign exchange rate.
|
Galaxy Global Markets
Galaxy Global Markets ("GGM") offers institutional-grade
expertise and access to a broad range of digital asset products,
including digital asset spot and derivatives trading, structured
products, financing, as well as capital markets and M&A
advisory services for corporate clients. GGM operates in two
discrete business units – Trading and Investment Banking.
Trading
Trading reported counterparty trading revenue of $66 million in the first quarter, primarily
driven by increased revenue from derivatives and favorable asset
price movements. In-line with this, counterparty trading volumes
increased 78% versus the prior quarter, and our average loan book
size expanded to $664 million. Galaxy
continues to onboard new counterparties and ended the first quarter
with 1,161 total trading counterparties.
Key Performance
Indicators
|
Q1
2024
|
Q4
2023
|
Q/Q %
Change
|
Counterparty Trading
Revenue
|
$66M
|
$37M1
|
79 %
|
Loan Book Size
(Average)
|
$664M
|
$635M
|
5 %
|
Total Trading
Counterparties
|
1,161
|
1,052
|
10 %
|
Active Trading
Counterparties
|
281
|
272
|
3 %
|
(1) Metric has been
updated to exclude revenues derived from decentralized finance
protocols resulting in a reduction of Q4 2023 Counterparty Trading
Revenue by $7M.
|
Investment Banking
Investment Banking successfully closed one deal in the first
quarter, serving as advisor to CryptoSlam, the leading aggregator
of NFT data across blockchain ecosystems, who received a strategic
investment from Spirit Blockchain Capital. Galaxy is executing
against a pipeline of mandates representing $2.2 billion in potential deal value.
Key Performance
Indicators
|
Q1
2024
|
Q4
2023
|
Q/Q %
Change
|
Deals
Closed
|
1
|
1
|
— %
|
Pipeline
|
20
|
23
|
(13) %
|
Deal Value of
Pipeline
|
$2.2B
|
$2.2B
|
— %
|
_____
KEY TERMS
Counterparty Trading Revenue: revenue from
counterparty-facing activities from our Derivatives, Credit,
Over-the-Counter Trading, and Quantitative Trading businesses, net
of associated funding charges.
Loan Book Size (Average): average market value of all
open loans, un-funded arrangements to finance delayed
trading/settlement (for example over weekends), and uncommitted
credit facilities in the period.
Active Trading Counterparties: counterparties with whom
we have traded within the past 12 months and who are still
onboarded with Galaxy's trading business.
Pipeline: the number of open engagements and transactions
the Investment Banking team has in market.
Deal Value of Pipeline: the theoretical aggregate deal
value associated with the Investment Banking pipeline.
Galaxy Asset Management
Galaxy Asset Management ("GAM") provides investors access
to the digital asset ecosystem via a diverse suite of
institutional-grade investment vehicles that span passive, active,
and venture strategies.
GAM management and performance fees were a record
$17.8 million in the first quarter,
representing a 113% increase QoQ, primarily driven by the
management of certain opportunistic mandates. GAM reported assets
under management of approximately $7.8
billion as of March 31, 2024,
a 50% increase QoQ, driven primarily by net inflows from newly
managed opportunistic mandates and market appreciation. On
January 11, 2024, GAM, in partnership
with Invesco, announced the launch of the Invesco Galaxy
Bitcoin ETF (ticker: BTCO). Subsequent to quarter-end,
GAM launched two new XTrackers Exchange Traded Commodities ("ETCs")
in partnership with DWS Group, giving European investors access to
bitcoin and ether.
Key Performance
Indicators
|
Q1
2024
|
Q4
2023
|
Q/Q %
Change
|
Management and
Performance Fees
|
$17.8M
|
$8.4M
|
113 %
|
Total
AUM
|
$7,777M
|
$5,176M
|
50 %
|
Passive
AUM
|
$2,730M
|
$1,589M
|
72 %
|
Active AUM1
|
$3,582M
|
$2,170M
|
65 %
|
Venture
AUM
|
$1,465M
|
$1,418M
|
3 %
|
Note: In Galaxy's
monthly AUM disclosures, the "funds" line item consists of AUM held
in GAM's Passive, Active, and Venture funds, excluding
opportunistic assets.
(1) Includes opportunistic AUM. "Opportunistic" AUM are near-term
or mid-term engagements to unwind portfolios managed by GAM.
Opportunistic AUM was $3,440M as of March 31, 2024, and $2,078M as
of December 31, 2023.
|
_____
KEY TERMS
Assets Under Management: all figures are unaudited. AUM
is inclusive of sub-advised funds, committed capital closed-end
vehicles, seed investments by affiliates, affiliated and
unaffiliated separately managed accounts, engagements to unwind
portfolios, and fund of fund products. Changes in AUM are generally
the result of performance, contributions, withdrawals, liquidations
and opportunistic mandate wins.
- AUM for committed capital closed-end vehicles that have
completed their investment period is reported as NAV (Net Asset
Value) plus unfunded commitment.
- AUM for quarterly close vehicles is reported as of the most
recent quarter available for the applicable period.
- AUM for affiliated separately managed accounts is reported as
NAV as of the most recently available estimate for the applicable
period.
Passive Strategies: single- and multi-asset private
funds, as well as a suite of regulated spot digital asset
exchange-traded funds offered through partnerships with asset
managers globally.
Active Strategies: Galaxy's Liquid Crypto
Fund and the management of certain opportunistic mandates.
Venture Strategies: organized around two investment
themes: Interactive Ventures and Crypto Ventures.
Galaxy Interactive is GAM's sector-focused venture arm, managing
client capital across three funds. GAM's Crypto
Ventures sleeve invests client capital across two global,
multi-manager venture funds and manages a subset of Galaxy's
balance sheet venture investments.
Galaxy Digital Infrastructure Solutions
Galaxy Digital Infrastructure Solutions
("GDIS") consists of proprietary and hosted
bitcoin mining services, GK8 self-custody technology
solutions, and blockchain infrastructure.
Mining
Mining revenue was a record $31.5
million for the first quarter, a 69% increase QoQ driven by
incremental hashrate coming online. We reached 5.7 exahash per
second ("EH/s") of Hashrate Under Management ("HUM") across our
proprietary and hosted footprint, and remain on track to achieve 6
EH/s of HUM in the third quarter. Our average marginal cost to mine
in the first quarter increased relative to prior quarters due to
network difficulty reaching all-time highs. For the first quarter,
Galaxy mined 373 bitcoin from our proprietary mining
operations at an average marginal cost to mine of less than
$19,500.
Key Performance
Indicators
|
Q1
2024
|
Q4
2023
|
Q/Q %
Change
|
Mining
Revenue
|
$31.5M
|
$18.7M
|
69 %
|
Proprietary Mining
Revenue
|
$20.1M
|
$12.4M
|
62 %
|
Hosted and Other
Mining Revenue1
|
$11.4M
|
$6.2M
|
84 %
|
Total Hashrate Under
Management
|
5.7 EH/s
|
4.1 EH/s
|
41 %
|
Proprietary Mining
Hashrate
|
3.1 EH/s
|
1.9 EH/s
|
64 %
|
Hosted Mining
Hashrate
|
2.6 EH/s
|
2.2 EH/s
|
21 %
|
Number of
Proprietary BTC Mined
|
373
|
333
|
12 %
|
Average Marginal
Cost to Mine
|
<$19.5K
|
<$15.5K
|
N.M.
|
(1) Includes revenue
from hosting clients and other mining related
activities.
|
Blockchain Infrastructure and GK8
Blockchain Infrastructure and GK8 continue to support the
build-out of decentralized networks. Blockchain
infrastructure grew its Assets Under Stake ("AUS") by 100% in the
first quarter. As of April 30, 2024,
AUS increased to $1.5 billion, with
Galaxy growing to become the number two validator globally on the
Solana network. GK8 has a robust pipeline of
enterprise clients and expanded its tokenization capabilities to
allow clients to seamlessly and securely tokenize assets.
Key Performance
Indicators
|
Q1
2024
|
Q4
2023
|
Q/Q %
Change
|
Assets Under
Stake
|
$486M
|
$243M
|
100 %
|
GK8 Total Client
Count
|
21
|
21
|
— %
|
_____
KEY TERMS
Hashrate Under Management: the total combined hashrate of
active proprietary and hosted mining capacity managed by
Galaxy.
Proprietary Mining Hashrate: the hashrate attributed to
Galaxy owned and operated mining rigs.
Hosted Mining Hashrate: the hashrate attributed to
third-party machines operated by Galaxy for a client.
Number of Proprietary BTC Mined: the total amount of
bitcoin mined from proprietary mining operations.
Average Marginal Cost to Mine: the marginal cost of
production for each bitcoin generated during the
period. The calculation excludes depreciation, mark-to-market on
power contracts, and corporate overhead.
Assets Under Stake: the total notional value of assets
bonded to Galaxy validators, based on prices as of the end of the
specified period. This includes certain Galaxy balance sheet
assets, Galaxy affiliate assets, and third party assets.
GDH Ltd.'s Financial Highlights
As the only significant asset of GDH Ltd. is its minority
interest in GDH LP, its results are driven by the results of GDH
LP. GDH Ltd. accounts for its investment in this associate (GDH LP)
using the equity method. The investment, initially recorded at
cost, is increased or decreased to recognize GDH Ltd.'s share of
the earnings and losses of GDH LP. The net comprehensive income
(loss) of GDH Ltd. was $110.0 million
for the three months ended March 31,
2024.
Earnings Conference Call
An investor conference call will be held today, May 14, 2024, at 8:30 AM
Eastern Time. A live webcast with the ability to ask
questions will be available at: https://investor.galaxy.com/. The
conference call can also be accessed by investors in the United States or Canada by dialing 1-844-746-0741, or
1-412-317-5107 (outside the U.S. and Canada). A replay of the webcast will be
available and can be accessed in the same manner as the live
webcast on the Company's Investor Relations website. Through
June 14, 2024, the recording will
also be available by dialing 1-844-512-2921, or 1-412-317-6671
(outside the U.S. and Canada) and
using the passcode: 10188612.
About Galaxy Digital Holdings Ltd. (TSX: GLXY) ("GDH Ltd.")
and Galaxy Digital Holdings LP ("GDH LP")
Galaxy (TSX: GLXY) is a digital asset and blockchain leader
providing access to the growing digital economy. We serve a
diversified client base, including institutions, startups, and
qualified individuals. Since 2018, Galaxy has been building a
holistic financial platform spanning three complementary operating
businesses: Global Markets, Asset Management, and Digital
Infrastructure Solutions. Our offerings include, amongst others,
trading, lending, strategic advisory services, institutional-grade
investment solutions, proprietary bitcoin mining and
hosting services, network validator services, and the development
of enterprise self-custodial technology. The company is
headquartered in New York City,
with global offices across North
America, Europe, and
Asia. Additional information about
Galaxy's businesses and products is available on
www.galaxy.com.
This press release should be read in conjunction with (i) GDH
LP's Management Discussion and Analysis and Consolidated Financial
Statements for the three months ended March
31, 2024 and (ii) GDH Ltd.'s Management Discussion and
Analysis and Consolidated Financial Statements for the three months
ended March 31, 2024 (together, the
"Consolidated Financial Statements" and "MD&As"), which have
been filed on SEDAR at www.sedarplus.ca.
Disclaimers and Additional Information
The TSX has not approved or disapproved of the information
contained herein. The Ontario Securities Commission has not passed
upon the merits of the disclosure record of Galaxy.
No Offer or Solicitation
As previously announced, the Company intends to complete its
proposed reorganization and domestication to become a Delaware-based company, and subsequently list
on the Nasdaq, upon completion of the SEC's ongoing review and
subject to stock exchange approval of such listing. The proposed
reorganization and domestication is subject to approval by
shareholders the Company and applicable regulatory authorities,
including the Toronto Stock Exchange. In connection with the
proposed reorganization and domestication, the Company has filed a
registration statement, including a management information
circular/prospectus, with the SEC, which has not yet become
effective. SHAREHOLDERS ARE ADVISED TO READ THE FINAL VERSIONS OF
SUCH DOCUMENTS, WHEN AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT
INFORMATION. Shareholders may obtain a free copy of the
registration statement (including the management information
circular/prospectus) and any other relevant documents from the
SEC's website at http://www.sec.gov. Copies of the final versions
of such documents can also be obtained, when available, without
charge, via Galaxy's investor relations website:
https://investor.galaxy.com/ The Company anticipates holding a
shareholder meeting to seek approval following the effectiveness of
the registration statement, and further details will be included in
the management information circular to be mailed to shareholders
and posted on the Company's SEDAR profile at www.sedarplus.ca.
This document shall not constitute a solicitation of a proxy,
consent or authorization with respect to any securities or in
respect of the domestication or any of the other proposed
reorganization transactions. This document does not constitute an
offer to sell or the solicitation of an offer to buy any securities
or a solicitation of any vote of approval, nor shall there be any
sale of securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to the registration or
qualification under the securities laws of any such
jurisdiction.
CAUTION ABOUT FORWARD-LOOKING STATEMENTS
The information in this document may contain "forward-looking
statements" within the meaning of Section 27A of the Securities Act
of 1933, as amended (the "Securities Act"), Section 21E of the
Securities Exchange Act of 1934, as amended (the "Exchange Act")
and "forward-looking information" under Canadian securities laws
(collectively, "forward-looking statements"). Our forward-looking
statements include, but are not limited to, statements regarding
our or our management team's expectations, hopes, beliefs,
intentions or strategies regarding the future. Statements that are
not historical facts, including statements about Galaxy's
anticipated use of proceeds from the capital raise, business
pipelines for banking and Gk8, mining goals, focus on self custody
and validator solutions and our commitment to the future of
decentralized networks and the pending domestication
and the related transactions (the "transactions"), and the parties,
perspectives and expectations, are forward-looking statements. In
addition, any statements that refer to estimates, projections,
forecasts or other characterizations of future events or
circumstances, including any underlying assumptions, are
forward-looking statements. The words "anticipate," "believe,"
"continue," "could," "estimate," "expect," "forecast," "intend,"
"may," "might," "plan," "possible," "potential," "predict,"
"project," "should," "would" and similar expressions may identify
forward-looking statements, but the absence of these words does not
mean that a statement is not forward-looking. The forward-looking
statements contained in this document are based on our current
expectations and beliefs concerning future developments and their
potential effects on us taking into account information currently
available to us. There can be no assurance that future developments
affecting us will be those that we have anticipated. These
forward-looking statements involve a number of risks, uncertainties
(some of which are beyond our control) or other assumptions that
may cause actual results or performance to be materially different
from those expressed or implied by these forward-looking
statements. These risks include, but are not limited to: (1) the
inability to complete the proposed domestication and reorganization
transactions, due to the failure to obtain shareholder and stock
exchange approvals, or otherwise; (2) changes to the proposed
structure of the transactions that may be required or appropriate
as a result of applicable laws or regulations or as a condition to
obtaining shareholder or stock exchange approval of the
transactions; (3) the ability to meet and maintain listing
standards following the consummation of the transactions; (4) the
risk that the transactions disrupt current plans and operations;
(5) costs related to the transactions, operations and strategy; (6)
changes in applicable laws or regulations; (7) the possibility that
the Company may be adversely affected by other economic, business,
and/or competitive factors; (8) changes or events that impact the
cryptocurrency industry, including potential
regulation, that are out of our control; (9) the risk that our
business will not grow in line with our expectations or continue on
its current trajectory; (10) the possibility that our addressable
market is smaller than we have anticipated and/or that we may not
gain share of it; and (11) the possibility that there is a
disruption in mining impacting our ability to achieve expected
results or change in power dynamics impacting our results, (12) any
delay or failure to consummate the business mandates or achieve its
pipeline goals in banking and Gk8, (13) liquidity or economic
conditions impacting our anticipated use of proceeds (14)
regulatory concerns, technological challenges, cyber incidents or
exploits on decentralized networks (15) those other
risks contained in the Annual Information Form for the year ended
December 31, 2023 available on the
Company's profile at www.sedarplus.ca and its Management's
Discussion and Analysis, filed on March 26,
2024. Factors that could cause actual results to differ
materially from those described in such forward-looking statements
include, but are not limited to, a decline in the digital asset
market or general economic conditions; the possibility that our
addressable market is smaller than we have anticipated and/or that
we may not gain share of the stated addressable market; the failure
or delay in the adoption of digital assets and the blockchain
ecosystem; a delay or failure in developing infrastructure for our
business or our businesses achieving our banking and Gk8 mandates;
delays or other challenges in the mining business related to
hosting, power or our mining infrastructure; any challenges faced
with respect to decentralized networks, considerations
with respect to liquidity and capital planning and its impact on
our use of proceeds from our capital raise and changes in
applicable law or regulation and adverse regulatory developments.
Should one or more of these risks or uncertainties materialize,
they could cause our actual results to differ materially from the
forward-looking statements. We are not undertaking any obligation
to update or revise any forward looking statements whether as a
result of new information, future events or otherwise. You should
not take any statement regarding past trends or activities as a
representation that the trends or activities will continue in the
future. Accordingly, you should not put undue reliance on these
statements.
©Copyright Galaxy Digital 2024. All rights reserved.
Galaxy Digital Holdings LP's Consolidated Statements of
Financial Position (unaudited)
(in
thousands)
|
March 31,
2024
|
|
December 31,
2023
|
Assets
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalent
|
$
247,232
|
|
$
316,610
|
Digital
assets
|
2,035,304
|
|
1,078,587
|
Receivable for digital
asset trades
|
134,138
|
|
41,339
|
Digital assets loans
receivable, net of allowance
|
95,218
|
|
104,504
|
Digital assets
receivables
|
24,132
|
|
14,686
|
Investments (includes
$50.4 million and $0 of equity method investments,
respectively)
|
578,975
|
|
—
|
Assets posted as
collateral
|
173,390
|
|
318,195
|
Receivables
|
30,915
|
|
15,983
|
Derivative
assets
|
341,336
|
|
173,209
|
Prepaid expenses and
other assets
|
36,856
|
|
37,910
|
Loans receivable, net
of allowance
|
402,722
|
|
377,105
|
Due from related
party
|
6,200
|
|
5,007
|
Total current
assets
|
4,106,418
|
|
2,483,135
|
|
|
|
|
Digital assets
receivables
|
18,065
|
|
6,174
|
Investments (includes
$355.2 million and $290.4 million of equity method
investments, respectively)
|
822,412
|
|
735,103
|
Restricted digital
assets
|
42,908
|
|
41,356
|
Loans receivable,
non-current
|
—
|
|
10,259
|
Property and
equipment
|
271,880
|
|
259,965
|
Other non-current
assets
|
93,605
|
|
95,000
|
Goodwill
|
44,257
|
|
44,257
|
Total non-current
assets
|
1,293,127
|
|
1,192,114
|
Total
assets
|
$
5,399,545
|
|
$
3,675,249
|
|
|
|
|
Liabilities and
equity
|
|
|
|
Current
liabilities
|
|
|
|
Investments sold
short
|
100,265
|
|
25,295
|
Derivative
liabilities
|
395,835
|
|
160,642
|
Accounts payable and
accrued liabilities
|
62,790
|
|
69,212
|
Payable to
customers
|
80,740
|
|
3,503
|
Taxes
payable
|
26,348
|
|
25,936
|
Payable for digital
asset trades
|
48,817
|
|
4,176
|
Digital assets loans
payable
|
975,582
|
|
398,277
|
Loans
payable
|
275,415
|
|
93,069
|
Collateral
payable
|
684,838
|
|
581,362
|
Due to related
party
|
81,937
|
|
67,953
|
Lease
liability
|
3,964
|
|
3,860
|
Total current
liabilities
|
2,736,531
|
|
1,433,285
|
|
|
|
|
Notes
payable
|
421,405
|
|
408,053
|
Deferred tax
liability
|
40,815
|
|
33,894
|
Lease
liability
|
9,195
|
|
10,236
|
Total non-current
liabilities
|
471,415
|
|
452,183
|
Total
liabilities
|
3,207,946
|
|
1,885,468
|
|
|
|
|
Equity
|
|
|
|
Partners'
capital
|
2,191,599
|
|
1,789,781
|
Total
equity
|
2,191,599
|
|
1,789,781
|
|
|
|
|
Total liabilities
and equity
|
$
5,399,545
|
|
$
3,675,249
|
Galaxy Digital Holdings LP's Consolidated Statements of
Income (Loss) and Comprehensive Income (Loss) (unaudited)
(in
thousands)
|
Three months
ended
March 31, 2024
|
|
Three months
ended
March 31, 2023
|
Income
|
|
|
|
Fee revenue
|
$
28,128
|
|
$
13,584
|
Net realized gain on
digital assets
|
270,398
|
|
66,119
|
Net realized loss on
investments
|
(172,834)
|
|
(1,978)
|
Lending and staking
revenue
|
29,938
|
|
10,509
|
Net derivative
gain
|
83,640
|
|
55,084
|
Revenue from
proprietary mining
|
20,128
|
|
3,261
|
Other
income
|
335
|
|
163
|
|
259,733
|
|
146,742
|
|
|
|
|
Operating
expenses
|
|
|
|
Compensation and
compensation related
|
42,476
|
|
30,621
|
Equity based
compensation
|
17,989
|
|
23,270
|
General and
administrative
|
48,718
|
|
15,135
|
Professional
fees
|
13,373
|
|
9,817
|
Interest
|
19,848
|
|
5,539
|
Notes interest
expense
|
6,976
|
|
6,731
|
|
(149,380)
|
|
(91,113)
|
|
|
|
|
Other
|
|
|
|
Net unrealized gain on
digital assets
|
96,813
|
|
3,029
|
Net unrealized gain on
investments
|
235,852
|
|
82,713
|
Net loss on notes
payable - derivative
|
(9,713)
|
|
(1,305)
|
Foreign currency
loss
|
(121)
|
|
(138)
|
|
322,831
|
|
84,299
|
|
|
|
|
Income before income
taxes
|
433,184
|
|
139,928
|
Income taxes expense
(benefit)
|
11,520
|
|
5,726
|
Net income for the
period
|
$
421,664
|
|
$
134,202
|
|
|
|
|
Other comprehensive
income
|
|
|
|
Foreign currency
translation adjustment
|
$
(635)
|
|
$
(452)
|
|
|
|
|
Comprehensive income
for the period
|
$
421,029
|
|
$
133,750
|
|
Three months
ended
March 31, 2024
|
Three months
ended
March 31, 2023
|
GDH LP Net income
(loss) per unit:
|
|
|
Basic
|
$
1.30
|
$
0.42
|
Diluted
|
1.23
|
0.41
|
Weighted average
units:
|
|
|
Basic
|
325,305,262
|
319,379,246
|
Diluted
|
356,108,762
|
323,640,236
|
Reportable segments (unaudited)
Income and expenses by each reportable segment of GDH LP for the
three months ended March 31, 2024 are
as follows:
(in
thousands)
|
Global
Markets
|
Asset
Management
|
Digital
Infrastructure
Solutions
|
Corporate
and
Other
|
Totals
|
Income
(loss)
|
|
|
|
|
|
Fee
revenue(1)
|
|
|
|
|
|
Mining hosting
fees
|
$
—
|
$
—
|
$
10,141
|
$
—
|
$
10,141
|
Licensing
fees
|
1
|
—
|
807
|
(120)
|
688
|
Management and
performance fees
|
—
|
17,837
|
—
|
(747)
|
17,090
|
Advisory
fees
|
209
|
—
|
—
|
—
|
209
|
Total fee
revenue
|
210
|
17,837
|
10,948
|
(867)
|
28,128
|
Lending and staking
revenue
|
|
|
|
|
|
Lending
income
|
16,744
|
5
|
1
|
4
|
16,754
|
Blockchain
rewards
|
5,082
|
7,238
|
6,079
|
(5,215)
|
13,184
|
Total lending and
staking revenue
|
21,826
|
7,243
|
6,080
|
(5,211)
|
29,938
|
|
|
|
|
|
|
Net realized gain on
digital assets
|
270,305
|
93
|
—
|
—
|
270,398
|
Net realized gain
(loss) on investments
|
(183,529)
|
10,695
|
—
|
—
|
(172,834)
|
Net derivative
gain
|
82,545
|
—
|
1,095
|
—
|
83,640
|
Revenue from
proprietary mining
|
—
|
—
|
20,128
|
—
|
20,128
|
Other income
|
157
|
—
|
178
|
—
|
335
|
Total revenues and
gain (loss) from operations
|
191,514
|
35,868
|
38,429
|
(6,078)
|
259,733
|
|
|
|
|
|
|
Operating
expenses
|
64,429
|
15,804
|
40,880
|
28,267
|
149,380
|
|
|
|
|
|
|
Net unrealized gain on
digital assets
|
48,259
|
45,327
|
3,227
|
—
|
96,813
|
Net unrealized gain
(loss) on investments
|
179,710
|
57,477
|
(1,335)
|
—
|
235,852
|
Net loss on notes
payable - derivative
|
—
|
—
|
—
|
(9,713)
|
(9,713)
|
Foreign currency
loss
|
(121)
|
—
|
—
|
—
|
(121)
|
|
227,848
|
102,804
|
1,892
|
(9,713)
|
322,831
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
$
354,933
|
$
122,868
|
$
(559)
|
$
(44,058)
|
$
433,184
|
Income tax
expense
|
—
|
—
|
—
|
11,520
|
11,520
|
Net income
(loss)
|
$
354,933
|
$
122,868
|
$
(559)
|
$
(55,578)
|
$
421,664
|
Foreign currency
translation adjustment
|
—
|
—
|
—
|
(635)
|
(635)
|
Comprehensive income
(loss)
|
$
354,933
|
$
122,868
|
$
(559)
|
$
(56,213)
|
$
421,029
|
(1)
|
Asset Management fee
revenue includes management fees generated off the Partnership's
balance sheet venture investments. Licensing fees are attributable
to GK8, and include license fees paid by the Partnership for the
use of GK8's technology. All intercompany transactions are
eliminated in the Corporate & Other segment.
|
Income and expenses by each reportable segment of GDH LP for the
three months ended March 31, 2023 are
as follows:
(in
thousands)
|
Global
Markets
|
Asset
Management
|
Digital
Infrastructure
Solutions
|
Corporate
and
Other
|
Totals
|
Income
(loss)
|
|
|
|
|
|
Fee revenue
(1)
|
|
|
|
|
|
Mining hosting
fees
|
—
|
—
|
6,268
|
—
|
$
6,268
|
Licensing
fees
|
—
|
—
|
180
|
—
|
180
|
Management and
performance fees
|
31
|
4,902
|
—
|
(621)
|
4,312
|
Advisory
fees
|
2,208
|
—
|
—
|
—
|
2,208
|
Other fee
revenues
|
(54)
|
—
|
670
|
—
|
616
|
Total fee
revenue
|
2,185
|
4,902
|
7,118
|
(621)
|
13,584
|
Lending and staking
revenue
|
|
|
|
|
|
Lending
income
|
9,087
|
8
|
—
|
—
|
9,095
|
Blockchain
rewards
|
1,414
|
—
|
—
|
—
|
1,414
|
Total lending and
staking revenue
|
10,501
|
8
|
—
|
—
|
10,509
|
|
|
|
|
|
|
Net realized gain on
digital assets
|
63,893
|
2,226
|
—
|
—
|
66,119
|
Net realized gain
(loss) on investments
|
388
|
(2,366)
|
—
|
—
|
(1,978)
|
Net derivative
gain
|
55,084
|
—
|
—
|
—
|
55,084
|
Revenue from
proprietary mining
|
—
|
—
|
3,261
|
—
|
3,261
|
Other income
(expense)
|
37
|
(67)
|
45
|
148
|
163
|
Total revenues and
gain (loss) from operations
|
132,088
|
4,703
|
10,424
|
(473)
|
146,742
|
|
|
|
|
|
|
Operating
expenses
|
42,210
|
16,187
|
9,314
|
23,402
|
91,113
|
|
|
|
|
|
|
Net unrealized gain
(loss) on digital assets
|
(1,477)
|
4,506
|
—
|
—
|
3,029
|
Net unrealized gain on
investments
|
40,611
|
38,859
|
3,243
|
—
|
82,713
|
Net loss on notes
payable - derivative
|
—
|
—
|
—
|
(1,305)
|
(1,305)
|
Foreign currency
loss
|
(138)
|
—
|
—
|
—
|
(138)
|
|
38,996
|
43,365
|
3,243
|
(1,305)
|
84,299
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
$
128,874
|
$
31,881
|
$
4,353
|
$
(25,180)
|
$
139,928
|
Income tax
expense
|
—
|
—
|
—
|
5,726
|
5,726
|
Net income
(loss)
|
$
128,874
|
$
31,881
|
$
4,353
|
$
(30,906)
|
$
134,202
|
Foreign currency
translation adjustment
|
—
|
—
|
—
|
(452)
|
(452)
|
Comprehensive income
(loss)
|
$
128,874
|
$
31,881
|
$
4,353
|
$
(31,358)
|
$
133,750
|
(1)Asset Management fee revenue
includes management fees generated off the Partnership's balance
sheet venture investments, which are eliminated in the Corporate
& Other segment.
|
Assets and liabilities by reportable segment of GDH LP as of
March 31, 2024 are as follows:
(in
thousands)
|
Global
Markets
|
Asset
Management
|
Digital
Infrastructure
Solutions
|
Corporate and
Other
|
Totals
|
Total
assets
|
$
4,305,734
|
$
712,809
|
$
345,404
|
$
35,598
|
$
5,399,545
|
|
|
|
|
|
|
Total
liabilities
|
$
2,572,527
|
$
2,901
|
$
14,500
|
$
618,018
|
$
3,207,946
|
Assets and liabilities by reportable segment of GDH LP as of
December 31, 2023 are as follows:
(in
thousands)
|
Global
Markets
|
Asset
Management
|
Digital
Infrastructure
Solutions
|
Corporate and
Other
|
Totals
|
Total
assets
|
$
2,726,950
|
$
575,056
|
$
321,322
|
$
51,921
|
$
3,675,249
|
|
|
|
|
|
|
Total
liabilities
|
$
1,289,792
|
$
10,968
|
$
9,817
|
$
574,891
|
$
1,885,468
|
Select statement of financial position information
The fair value of select assets by reporting segment of GDH LP
as of March 31, 2024 is as
follows:
(in
thousands)
|
Global
Markets
|
Asset
Management
|
Digital
Infrastructure
Solutions
|
Corporate
and Other
|
Totals
|
Digital
assets
|
$ 1,985,168
|
$
93,044
|
$
—
|
$
—
|
$ 2,078,212
|
Digital assets
receivables
|
7,186
|
30,565
|
4,446
|
—
|
42,197
|
Assets posted as
collateral
|
173,390
|
—
|
—
|
—
|
173,390
|
Loans
receivable
|
497,940
|
—
|
—
|
—
|
497,940
|
Investments
|
847,559
|
543,197
|
10,631
|
—
|
1,401,387
|
Property and
equipment
|
—
|
—
|
264,698
|
7,182
|
271,880
|
|
$ 3,511,243
|
$
666,806
|
$
279,775
|
$
7,182
|
$ 4,465,006
|
The fair value of each asset class by reporting segment of GDH
LP as of December 31, 2023 is as
follows:
(in
thousands)
|
Global
Markets
|
Asset
Management
|
Digital
Infrastructure
Solutions
|
Corporate
and Other
|
Totals
|
Digital
assets
|
$ 1,052,013
|
$
67,930
|
$
—
|
$
—
|
$ 1,119,943
|
Digital assets
receivables
|
6,506
|
13,135
|
1,219
|
—
|
20,860
|
Assets posted as
collateral
|
318,195
|
—
|
—
|
—
|
318,195
|
Loans
receivable
|
491,868
|
—
|
—
|
—
|
491,868
|
Investments
|
244,807
|
476,262
|
14,034
|
—
|
735,103
|
Property and
equipment
|
109
|
—
|
252,552
|
7,304
|
259,965
|
|
$ 2,113,498
|
$
557,327
|
$
267,805
|
$
7,304
|
$ 2,945,934
|
Net Digital Assets Position
Net digital assets includes all digital assets categorized as
assets, less all digital assets categorized as liabilities on the
statement of financial position and is included in the Company's
liquidity measure. Net digital assets as of March 31, 2024 and December 31, 2023 is as follows:
(in
thousands)
|
BTC (4)
|
ETH (5)
|
Stablecoin
|
Other (5)
|
As of
March 31,
2024
|
Assets
|
|
|
|
|
|
Digital
assets
|
$
1,102,100
|
$
389,073
|
$
269,426
|
$
274,705
|
$
2,035,304
|
Digital asset loans
receivable, net of
allowance
|
2,897
|
74,362
|
17,001
|
958
|
95,218
|
Digital assets
receivable, current
|
—
|
—
|
—
|
24,132
|
24,132
|
Digital assets
receivable, non-current
|
—
|
—
|
—
|
18,065
|
18,065
|
Assets posted as
collateral - Digital
assets(1)
|
133,540
|
25,350
|
|
—
|
158,890
|
Restricted digital
assets, non-current(2)
|
—
|
—
|
—
|
42,908
|
42,908
|
|
1,238,537
|
488,785
|
286,427
|
360,768
|
2,374,517
|
Liabilities
|
|
|
|
|
|
Digital asset loans
payable
|
456,864
|
70,295
|
368,346
|
80,077
|
975,582
|
Collateral
payable(1)
|
514,870
|
142,443
|
2,066
|
2,374
|
661,753
|
|
971,734
|
212,738
|
370,412
|
82,451
|
1,637,335
|
Digital assets,
net
|
$
266,803
|
$
276,047
|
$
(83,985)
|
$
278,317
|
737,182
|
Stablecoins,
net(3)
|
$
—
|
$
—
|
$
(83,985)
|
$
—
|
(83,985)
|
Digital assets, net
excl. stablecoins
|
$
266,803
|
$
276,047
|
$
—
|
$
278,317
|
$
821,167
|
|
|
|
|
|
|
Bitcoin spot ETFs included in
Investments
|
514,849
|
—
|
—
|
—
|
514,849
|
(in
thousands)
|
BTC (4)
|
ETH (5)
|
Stablecoin
|
Other (5)
|
As of December
31, 2023
|
Assets
|
|
|
|
|
|
Digital
assets
|
$
589,011
|
$
174,978
|
$
179,222
|
$
135,376
|
$
1,078,587
|
Digital asset loans
receivable, net of
allowance
|
3,044
|
87,252
|
12,000
|
2,208
|
104,504
|
Digital assets
receivable, current
|
—
|
—
|
—
|
14,686
|
14,686
|
Digital assets
receivable, non-current
|
—
|
—
|
—
|
6,174
|
6,174
|
Assets posted as
collateral - Digital
assets(1)
|
197,092
|
119,012
|
—
|
—
|
316,104
|
Restricted digital
assets, non-current(2)
|
—
|
—
|
—
|
41,356
|
41,356
|
|
789,147
|
381,242
|
191,222
|
199,800
|
1,561,411
|
Liabilities
|
|
|
|
|
|
Digital asset loans
payable
|
48,202
|
14,603
|
297,762
|
37,710
|
398,277
|
Collateral
payable(1)
|
437,889
|
116,723
|
9,457
|
5,926
|
569,995
|
|
486,091
|
131,326
|
307,219
|
43,636
|
968,272
|
Digital assets,
net
|
$
303,056
|
$
249,916
|
$
(115,997)
|
$
156,164
|
593,139
|
Stablecoins,
net(3)
|
$
—
|
$
—
|
$
(115,997)
|
$
—
|
(115,997)
|
Digital assets, net
excl. stablecoins
|
$
303,056
|
$
249,916
|
$
—
|
$
156,164
|
$
709,136
|
|
|
|
|
|
|
Bitcoin spot ETFs included in
Investments
|
$
—
|
$
—
|
$
—
|
$
—
|
$
—
|
(1)
|
Excludes cash portion
of balance on the Partnership's statement of financial
position.
|
(2)
|
Represents TIA tokens
that are subject to a sale restriction of greater than one
year.
|
(3)
|
As of March 31, 2024,
and December 31, 2023, stablecoin liabilities were greater than
stablecoin assets.
|
(4)
|
Includes associated
tokens such as wBTC. The Partnership also held interests in
investment vehicles designed to hold BTC including Galaxy sponsored
BTC funds and Mt. Gox Investment Fund LP valued at
$142.4 million and $123.1 million as of March 31, 2024
and December 31, 2023 respectively, reflected in the investments
balance in addition to the digital assets noted above. The
Partnership also held bitcoin derivative positions not reflected
above in addition to the noted bitcoin investment
vehicles.
|
(5)
|
Includes associated
tokens such as wETH and stETH. The Partnership also held interests
in investment vehicles designed to hold ETH including Galaxy
sponsored ETH funds valued at $34.2 million and
$22.1 million as of March 31, 2024 and December 31, 2023
respectively, reflected in the investments balance in addition to
the digital assets noted above. The Partnership also held Ethereum
derivative positions not reflected above in addition to the noted
Ethereum investment vehicles.
|
(6)
|
Includes
$42.9 million and $12.0 million net SOL and
$93.7 million and $68.5 million net TIA as of March 31,
2024 and December 31, 2023 respectively. As of March 31, 2024, the
Partnership also held an interest in an investment vehicles
designed to hold SOL, the Galaxy sponsored Galaxy Digital Crypto
Vol Fund LLC valued at $104.1 million as of March 31, 2024,
reflected in the investments balance in addition to the digital
assets noted above. As of March 31, 2024 and December 31, 2023, the
Partnership also held digital asset derivative positions not
reflected above in addition to the noted investment
vehicle.
|
All figures are in U.S. Dollars unless
otherwise noted.
SOURCE Galaxy Digital Holdings Ltd.