Galaxy Announces Fourth Quarter and Full Year 2024 Financial Results

Yahoo

28-03-2025

NEW YORK, March 28, 2025 /CNW/ - Galaxy Digital Holdings Ltd. (TSX: GLXY) (the "Company" or "GDH Ltd.") today released financial results for the three and twelve months ended December 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.
— Financial Highlights
Net income of $174 million for the fourth quarter 2024 and $365 million for the full year 2024 ($1.02 per diluted share), which includes a $166 million accrued legal provision from a settlement with the New York Attorney General.
Net income of $341 million for the fourth quarter 2024 and $532 million for the full year 2024 ($1.49 per diluted share), excluding the accrued provision.
For the year-to-date ("YTD") period ending March 27, 2025, net loss before tax is estimated to be between $275 million and $325 million. During the same period, total equity declined to a range between $1.9 billion and $2.0 billion. YTD results were primarily driven by the depreciation of digital asset prices.1
— Corporate Updates
Helios Data Center: Subsequent to year-end, and further to the term sheet announced on November 7, 2024, Galaxy entered a 15-year lease agreement with CoreWeave. As part of the agreement, Galaxy will deliver 133 megawatts ("MW") of Critical IT Load to host CoreWeave's artificial intelligence ("AI") and high-performance computing ("HPC") infrastructure at our Helios data center campus in the panhandle region of West Texas.2 Over the 15-year term, Galaxy expects to generate approximately $4.5 billion of total revenue.
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 March 28, 2025, Galaxy filed an amendment to its registration statement responding to SEC comments, which is under review.
Legal Matter: On March 27, 2025, Galaxy reached an agreement with the New York State Attorney General to resolve civil claims relating to certain investments, trading, and public statements made in connection with the LUNA digital asset from late 2020 to 2022. As of December 31, 2024, the Partnership accrued a legal provision of $166 million, which includes the impact of discounting. The undiscounted amount of the settlement is $200 million, which is payable between 2025 and 2028.
SELECT GDH LP FINANCIAL METRICS
Q4
2024
Q3
2024
Q/Q
% Change
FY
2024
Equity Capital
$2,277M
$2,081M
9 %
—
Cash & Net Stablecoins3
$1,016M
$475M
114 %
—
Net Digital Assets Excluding Stablecoins4
$506M
$562M
(10) %
—
Spot Bitcoin and Ethereum ETFs
$669M
$469M
43 %
—
Net Income (loss)
$174M
($54M)
N.M.5
$365M
Book Value Per Share in CAD6
$9.51 CAD
$8.24 CAD
15 %
—
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) This preliminary, unaudited quarter-to-date financial information is as of March 27, 2025. Financial results exclude completion of the full quarterly valuation process of our investment portfolio. This data is subject to change as management completes its quarterly close procedures.
(2) Represents 200 MW of gross power capacity.
(3) Includes Cash Equivalents.
(4) Refer to page 16 of this release for a breakout of our net digital assets position; Excludes non-current net digital assets.
(5) Abbreviation for "Not Meaningful".
(6) Calculated as equity capital divided by outstanding Class A and Class B Units multiplied by the end of period foreign exchange rate. — Operating Businesses
Galaxy Global Markets
Counterparty trading and advisory revenue totaled $68 million in the fourth quarter, marking a 26% QoQ increase. For the full year 2024, Galaxy generated $215 million in counterparty trading and advisory revenue, exceeding the combined total from the previous two years. The sequential growth was primarily driven by robust derivatives activity and increased demand for our lending solutions. Counterparty trading volumes increased 56% versus the third quarter, fueled by heightened spot market activity, while our average loan book size expanded to $861 million, reflecting growing institutional demand for structured financing. As Galaxy continues to expand its platform and deepen client relationships, we successfully onboarded new institutional counterparties, closing the year with 1,328 total trading counterparties.
Investment Banking successfully closed 3 deals in the fourth quarter. Notable transactions included serving as the exclusive financial advisor to Attestant in its sale to Bitwise Asset Management and advising Thunder Bridge Capital on its merger with Coincheck.
KEY PERFORMANCE INDICATORS
Q4
2024
Q3
2024
Q/Q
% Change
FY
2024
Counterparty Trading and Advisory Revenue
$68.1M
$54.1M
26 %
$215M
Loan Book Size (Average)
$861M
$668M
29 %
$640M
Total Trading Counterparties
1,328
1,280
4 %
—
Active Trading Counterparties
315
296
6 %
—
Counterparty Trading and Advisory Revenue: revenue from counterparty-facing activities from our Derivatives, Credit, Over-the-Counter Trading, and Quantitative Trading businesses, net of associated funding charges, and fee revenue associated with the Advisory business. Loan Book Size (Average): This quarter reflects a revised methodology for calculating Loan Book Size (Average), This metric is now based on the average market value of all open loans, excluding uncommitted credit facilities. Previously, these facilities were included in the calculation—amounting to $225M in 4Q24. As a result of this change, the 3Q24 average loan book size, which had included $195M of uncommitted credit facilities, has been restated to align with the updated methodology. Active Trading Counterparties: Counterparties with whom we have traded within the past 12 months and who are still onboarded with Galaxy's trading business.Galaxy Asset Management
Galaxy Asset Management (GAM) reported management and performance fees of $8.6 million in the fourth quarter and a record $49 million for the full year 2024. Growth was driven by strong organic asset inflows, market appreciation and the successful execution in monetizing the FTX Estate's digital asset holdings for creditors. GAM closed the year with $5.7 billion of assets under management ("AUM") spanning more than 15 ETF and alternative investment strategies.
KEY PERFORMANCE INDICATORS
Q4
2024
Q3
2024
Q/Q
% Change
FY
2024
Management and Performance Fees
$8.6M
$8.1M
6 %
$49.0M
Total Assets Under Management
$5,660M
$4,636M
22 %
—
ETFs
$3,482M
$2,589M
34 %
—
Alternatives
$2,178M
$2,046M
6 %
—
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. Total AUM for Q3 2024 was updated from what was previously reported as AUM for quarterly close vehicles are reported as of the most recent information available for the applicable period. Digital Infrastructure
Mining revenue totaled $22.1 million in the fourth quarter, with expenses - net of curtailment credits - of $11.9 million, resulting in a 46% direct mining profit margin. Galaxy's average marginal cost to mine remained highly competitive at under $38,000 per bitcoin in the fourth quarter and approximately $26,000 for the full year 2024, underscoring the success of our power management strategy. Galaxy mined 977 BTC in 2024, but anticipates a decline in quarterly Hashrate Under Management and bitcoin production in the coming quarters as operations at the Helios Campus are retrofitted to support AI and HPC demands.
Blockchain Infrastructure continued its strong growth, generating $26.4 million in net blockchain rewards in the fourth quarter, representing a 147% QoQ increase. As of December 31, 2024, Assets Under Stake reached $4.2 billion, up from $240 million at the start of the year, driven by robust organic growth and the strategic acquisition of CryptoManufaktur in the third quarter.
KEY PERFORMANCE INDICATORS
Q4
2024
Q3
2024
Q/Q
% Change
FY
2024
Mining Revenue
$22.1M
$18.5M
19 %
$94.9M
Total Hashrate Under Management
6.1
6.2
(3) %
—
Number of Proprietary BTC Mined
187
176
6 %
977
Average Marginal Cost to Mine
< $38.0K
< $38.0K
N.M.
~ $26.0K
Net Blockchain Rewards1
$26.4M
$10.7M
147 %
$58.5M
Assets Under Stake
$4,235M
$3,394M
25 %
—(1) Blockchain rewards are net of staking costs.
Hashrate Under Management: the total combined hashrate of active proprietary and hosted mining capacity managed by Galaxy. 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: all figures are unaudited. AUS reflects 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.High-Performance Computing
Helios Data Center: Subsequent to year-end, and further to the term sheet announced on November 7, 2024, Galaxy entered a 15-year lease agreement with CoreWeave. As part of the agreement, Galaxy will deliver 133 megawatts ("MW") of Critical IT Load to host CoreWeave's artificial intelligence ("AI") and high-performance computing ("HPC") infrastructure at our Helios data center campus in the panhandle region of West Texas.1 Over the 15-year term, Galaxy expects to generate approximately $4.5 billion of total revenue.
Summary of Select Operating Expenses1
Operating expenses
Q4 2024
Q3 2024
Q/Q % Change
FY 2024
Compensation and compensation related
$66M
$40M
65 %
$191M
Equity based compensation
$16M
$13M
23 %
$58M
General and administrative
$235M
$48M
390 %
$378M
Mining costs
$12M
$10M
20 %
$48M
Trading, commission and custody expenses
$10M
$6M
67 %
$29M
Technology
$9M
$8M
13 %
$31M
Depreciation and amortization
$16M
$16M
— %
$56M
Legal settlement
$166M
$0M
N.M.
$166M
Other2
$22M
$8M
175 %
$48M
Professional fees
$13M
$11M
18 %
$51M
Interest
$40M
$29M
38 %
$110M
Notes interest expense
$10M
$7M
43 %
$31M
(1) Excludes blockchain reward distributions.
(2) "Other" includes expenses such as those related to impairment loss, marketing, provision for credit loss, insurance, fund administration and director fees. Additional detail can be found in Note 20 of GDH LP Financial Statements for this quarter.
Overview of Fourth Quarter Operating Expenses:
Compensation and compensation related expenses of $66 million increased by approximately $26 million QoQ, primarily driven by a bonus accrual adjustment.
General and administrative expenses increased by approximately $187 million QoQ, driven by a legal provision of $166 million, $7 million loss on disposal of mining equipment, $4 million provisions for credit losses on our receivables and a $4 million QoQ increase in trading, commission and custody expenses.
Professional fees of $13 million increased by approximately $2 million QoQ, primarily driven by higher legal expenses incurred during the quarter.
Interest expense rose approximately $11 million QoQ, reflecting increased non-dilutive borrowing activity, which is directly tied to increased Global Markets operating activity.
Notes interest expense increase by approximately $3 million QoQ, reflecting the interest on the new exchangeable note we issued in November 2024.
— Balance Sheet Net Digital Asset Exposure By Token
The Company's balance sheet maintains exposure to bitcoin, ether, and other digital assets through a diversified allocation across spot positions, ETFs, private equity holdings and other non-current investments.
Balance sheet net digital asset exposure as of December 31, 2024, is as follows:
— 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 $34.7 million and $78.9 million for the three and twelve months ended December 31, 2024, respectively.
Important U.S. Tax Information - Action Required by U.S. Shareholders
Galaxy shareholders who are U.S. taxpayers should be aware that there may be significant and adverse U.S. federal income tax consequences relating to Galaxy's PFIC status for 2024 and prior years and in connection with Galaxy's domestication from Cayman to Delaware unless they make certain elections on their originally filed U.S. federal income tax returns for 2024, which are generally due on April 15, 2025 (subject to allowable extensions). These consequences and, therefore, the need to take action apply to both direct and indirect holdings of Galaxy shares. These elections are described in the notice posted by Galaxy
in March 2024 on its website at https://investor.galaxy.com/financials/annual-reports/default.aspx. Before filing their U.S. federal income tax returns for 2024, direct and indirect Galaxy shareholders who are, or who have investors who are, U.S. taxpayers are urged to review the notice and to consult their tax advisors regarding the advisability of making these elections on their U.S. federal income tax returns for 2024.
Earnings Conference Call
An investor conference call will be held today, March 28, 2025, 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 1-800-245-3047, or 1-203-518-9765 (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 April 28, 2025, 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: 158488.
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 year ended December 31, 2024 and (ii) GDH Ltd.'s Management Discussion and Analysis and Consolidated Financial Statements for the year ended December 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.
This press release contains certain pre-released first quarter 2025 financial information (the "pre-released financial information"). The pre-released financial information contained in this press release is preliminary and represents the most current information available to management. The Partnership's actual consolidated financial statements for such period may result in material changes to the pre-released financial information summarized in this press release (including by any one financial metric, or all of the financial metrics) as a result of the completion of normal quarter accounting procedures and adjustments or due to other risks contained in the Annual Information Form for the year ended December 31, 2024. Although the Company believes the expectations reflected in this press release are based upon reasonable assumptions, the Company can give no assurance that actual results will not differ materially from these expectations.
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 pre-released financial information, Galaxy's business plans and goals, including with respect to the lease with CoreWeave 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 proposed domestication and reorganization 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 proposed domestication and reorganization transactions; (4) the risk that the proposed domestication and reorganization transactions disrupt current plans and operations; (5) costs related to AI/HPC plans, 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 and AI/HPC 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; (11) the possibility that there is a disruption or change in power dynamics impacting our results or current or future load capacity; (12) any delay or failure to consummate the business mandates or achieve its pipeline goals (13) technological challenges, cyber incidents or exploits; (14) risks related to retrofitting our existing facility from mining to AI and HPC infrastructure, including the timing of construction and its impact on lease revenue; (15) any inability or difficulty in obtaining financing for the AI and HPC financing on acceptable terms or at all; (16) changes to the AI and HPC infrastructure needs and their impact on future plans at the Helios campus; (17) risks associated with the leasing business, including those associated with counterparties; and (18) those other risks contained in the Annual Information Form for the year ended December 31, 2024 available on the Company's profile at www.sedarplus.ca and its Management's Discussion and Analysis, filed on March 28, 2025. Factors that could cause actual results to differ materially from those described in such forward-looking statements include, but are not limited to, financing and construction terms and conditions, 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 mandates; delays or other challenges in the mining and AI/HPC infrastructure business related to hosting, power or construction; any challenges faced with respect to exploits, considerations with respect to liquidity and capital planning 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 2025. All rights reserved.
Galaxy Digital Holdings LP's Consolidated Statements of Financial Position (unaudited)
(in thousands)
December 31, 2024December 31, 2023
AssetsCurrent assetsCash and cash equivalents
$ 462,103$ 316,610
Digital assets
2,952,6331,078,587
Receivable for digital asset trades
20,97441,339
Digital asset loans receivable, net of allowance
579,530104,504
Digital assets receivables
53,60814,686
Investments (includes $84.5 million and $0 of equity methodinvestments, respectively)
834,812—
Assets posted as collateral
277,147318,195
Receivables
30,31415,983
Derivative assets
207,653173,209
Prepaid expenses and other assets
26,44437,910
Loans receivable, net of allowance
476,620377,105
Due from related party
5,2635,007
Total current assets
5,927,1012,483,135
Digital assets receivables
7,1126,174
Investments (includes $433.6 million and $290.4 million of equity methodinvestments, respectively)
808,694735,103
Restricted digital assets
11,56041,356
Loans receivable, net of allowance, non-current
—10,259
Property and equipment
267,648259,965
Other non-current assets
107,30095,000
Goodwill
58,03744,257
Total non-current assets
1,260,3511,192,114
Total assets
$ 7,187,452$ 3,675,249
Liabilities and EquityCurrent liabilitiesInvestments sold short
6,52425,295
Derivative liabilities
165,858160,642
Accounts payable and accrued liabilities
163,64469,212
Payables to customers
19,5203,503
Taxes payable
5,31525,936
Payable for digital asset trades
20,9704,176
Digital asset loans payable
1,497,609398,277
Loans payable
510,71893,069
Collateral payable
1,399,655581,362
Due to related party
97,87167,953
Lease liability
3,2943,860
Total current liabilities
3,890,9781,433,285
Notes payable
845,186408,053
Other non-current liabilities
174,25644,130
Total non-current liabilities
1,019,442452,183
Total liabilities
4,910,4201,885,468
EquityPartners' capital
2,277,0321,789,781
Total equity
2,277,0321,789,781
Total liabilities and equity
$ 7,187,452$ 3,675,249
Galaxy Digital Holdings LP's Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) (unaudited)
(in thousands)
Year endedDecember 31, 2024December 31, 2023
IncomeFee revenue
$ 103,194$ 51,342
Net realized gain (loss) on digital assets
615,687311,830
Net realized gain (loss) on investments
(171,108)13,412
Lending and staking revenue
274,25452,216
Net derivative gain
267,769151,583
Revenue from proprietary mining
63,30533,121
Other income
1,4573571,154,558613,861
Operating expensesCompensation and compensation related
191,052138,401
Equity based compensation
58,48972,275
General and administrative
377,52375,637
Professional fees
51,07637,062
Blockchain reward distributions
130,2981,086
Interest
109,53924,653
Notes interest expense
30,80427,285(948,781)(376,399)
OtherNet unrealized gain (loss) on digital assets
(255,380)1,950
Net unrealized gain (loss) on investments
429,89984,415
Net gain (loss) on notes payable - derivative
(31,727)(9,603)
Foreign currency loss
1,317(493)144,10976,269
Income (loss) before income taxes
349,886313,731
Income taxes expense (benefit)
(15,426)17,833
Net income (loss) for the period
$ 365,312$ 295,898
Other comprehensive income (loss)Foreign currency translation adjustment
$ 1,190$ 88
Comprehensive income (loss) for the period
$ 366,502$ 295,986
(in thousands)
Three Months endedDecember 31, 2024Three Months ended December 31, 2023
IncomeFee revenue
$ 27,891$ 17,135
Net realized gain on digital assets
560,649293,149
Net realized gain on investments
(84,919)(55,299)
Lending and staking revenue
116,27016,893
Net derivative gain
62,46771,121
Revenue from proprietary mining
15,43012,449
Other income
29824698,086355,472
Operating expensesCompensation and compensation related
66,01542,154
Equity based compensation
16,38214,581
General and administrative
234,79115,529
Professional fees
12,82910,548
Blockchain reward distributions
60,760260
Interest
39,8298,983
Notes interest expense
9,6836,913(440,289)(98,968)
OtherNet unrealized gain (loss) on digital assets
(439,427)(22,501)
Net unrealized gain (loss) on investments
368,87692,932
Net gain (loss) on notes payable - derivative
(16,583)(8,581)
Foreign currency loss
(131)350(87,265)62,200
Income (loss) before income taxes
170,532318,704
Income taxes expense (benefit)
(3,765)17,247
Net income (loss) for the period
$ 174,297$ 301,457
Other comprehensive income (loss)Foreign currency translation adjustment
$ 218$ 85
Comprehensive income (loss) for the period
$ 174,515$ 301,542
Year endedDecember 31, 2024Year endedDecember 31, 2023
GDH LP Net income (loss) per unit:Basic
$ 1.08$ 0.92
Diluted
1.020.90
Weighted average units:Basic
336,730,894321,599,100
Diluted
357,988,647329,613,940
End of period share count:
343,440,123325,227,806
Reportable segments (unaudited)
Income and expenses by each reportable segment of GDH LP for the three months ended December 31, 2024 are as follows:
(in thousands)
Global Markets
AssetManagement
DigitalInfrastructureSolutions
Corporate
and Other (1)
Totals
Income (loss)Fee revenue(1)Mining hosting fees
$ —
$ —
$ 6,626
$ —
$ 6,626
Licensing fees
1
1
1,037
(120)
919
Management and performance fees
8,676
8,560
11
(663)
16,584
Advisory fees
3,762
—
—
—
3,762
Total fee revenue (1)
12,439
8,561
7,674
(783)
27,891
Lending and staking revenueLending income
27,546
(1)
1,524
3
29,072
Blockchain rewards
11,150
1,886
81,412
(7,250)
87,198
Total lending and staking revenue (1)(2)
38,696
1,885
82,936
(7,247)
116,270
Net realized gain on digital assets
511,511
49,138
—
—
560,649
Net realized gain (loss) on investments
(86,238)
1,319
—
—
(84,919)
Net derivative gain (loss)
62,501
—
(34)
—
62,467
Revenue from proprietary mining
—
—
15,430
—
15,430
Other income (expense)
(131)
59
150
220
298538,778
60,962
106,156
(7,810)
698,086
Compensation expense
36,300
16,892
13,669
15,536
82,397
Interest
37,742
—
—
2,087
39,829
Notes interest expense
—
—
—
9,683
9,683
Blockchain reward distributions (1)(2)
—
—
68,010
(7,250)
60,760
Depreciation and amortization
1,341
123
12,586
1,801
15,851
Other operating expenses
9,517
2,646
22,066
197,542
231,771
Operating expenses
84,900
19,661
116,331
219,399
440,289
Other incomeNet unrealized gain (loss) on digital assets
(409,911)
(29,723)
207
—
(439,427)
Net unrealized gain on investments
304,880
66,497
(2,501)
—
368,876
Net (loss) on notes payable - derivative
—
—
—
(16,583)
(16,583)
Foreign currency gain
(131)
—
—
—
(131)(105,162)
36,774
(2,294)
(16,583)
(87,265)
Income (loss) before income taxes
348,716
78,075
(12,469)
(243,792)
170,532
Income tax expense
—
—
—
(3,765)
(3,765)
Net income (loss) for the period
$ 348,716
$ 78,075
$ (12,469)
$ (240,027)
$ 174,297
Foreign currency translation adjustment
$ —
$ —
$ —
$ 218
$ 218
Comprehensive income (loss) for the period
$ 348,716
$ 78,075
$ (12,469)
$ (239,809)
$ 174,515(1) All intercompany transactions are eliminated in the Corporate and Other segment.
(2) The Partnership operates public proof of stake validation infrastructure which allows third parties to stake their digital assets on its validator nodes. Blockchain rewards include amounts earned by these third parties. These corresponding costs are included in blockchain reward distribution.
Income and expenses by each reportable segment of GDH LP for the three months ended December 31, 2023 are as follows:
(in thousands)
Global Markets
AssetManagement
DigitalInfrastructureSolutions
Corporateand Other (1)
Totals
Income (loss)Fee revenueHosting fees
$ —
$ —
$ 6,345
$ —
$ 6,345
Licensing fees
—
1
415
118
534
Management and performance... fees
414
8,369
1,443
(1,127)
9,099
Advisory fees
2,147
—
55
—
2,202
Other fee revenue
54
—
(1,099)
—
(1,045)
Total fee revenue (1)
2,615
8,370
7,159
(1,009)
17,135
Lending and staking revenueLending income
16,063
166
272
(975)
15,526
Blockchain rewards
—
1,367
—
—
1,367
Total lending and staking revenue
16,063
1,533
272
(975)
16,893
Net realized gain (loss) on digital assets
292,796
353
—
—
293,149
Net realized gain (loss) on investments
(55,036)
(263)
—
—
(55,299)
Net derivative gain (loss)
71,730
(468)
(141)
—
71,121
Revenue from proprietary mining
—
—
12,449
—
12,449
Other income (expense)
(35)
4
—
55
24328,133
9,529
19,739
(1,929)
355,472
Compensation
28,319
10,565
8,474
9,377
56,735
Interest
5,501
—
—
3,482
8,983
Notes interest expense
—
—
—
6,913
6,913
Depreciation and amortization
117
61
6,649
1,195
8,022
Blockchain reward distributions
—
—
260
—
260
Other operating expenses
26,110
3,914
(7,772)
(4,197)
18,055
Operating expenses
60,047
14,540
7,611
16,770
98,968
OtherNet unrealized gain (loss) on digital assets
(98,968)
75,248
1,219
—
(22,501)
Net unrealized loss on investments
65,922
25,675
1,335
—
92,932
Net gain on notes payable - derivative
—
—
—
(8,581)
(8,581)
Foreign currency loss
350
—
—
—
350(32,696)
100,923
2,554
(8,581)
62,200
Income (loss) before income taxes
235,390
95,912
14,682
(27,280)
318,704
Income tax benefit
—
—
—
17,247
17,247
Net income (loss) for the period
$ 235,390
$ 95,912
$ 14,682
$ (44,527)
$ 301,457
Foreign currency translation adjustment
—
—
—
85
85
Comprehensive income (loss) for the period
$ 235,390
$ 95,912
$ 14,682
$ (44,442)
$ 301,542(1) All intercompany transactions are eliminated in the Corporate and Other segment.
Income and expenses by each reportable segment of GDH LP for the year ended December 31, 2024 are as follows:
(in thousands)
Global Markets
AssetManagement
DigitalInfrastructureSolutions
Corporateand Other (1)
Totals
Income (loss)Fee revenueMining hosting fees
$ —
$ —
$ 31,566
$ —
$ 31,566
Licensing fees
2
2
3,256
(480)
2,780
Management and performance fees
17,896
49,026
11
(2,853)
64,080
Advisory fees
4,768
—
—
—
4,768
Total fee revenue (1)
22,666
49,028
34,833
(3,333)
103,194
Lending and staking revenueLending income
82,731
100
2,636
22
85,489
Blockchain rewards (1) (2)
20,813
14,790
174,420
(21,258)
188,765
Total lending and staking revenue
103,544
14,890
177,056
(21,236)
274,254
Net realized gain (loss) on digital assets
547,349
67,542
796
—
615,687
Net realized gain (loss) on investments
(187,058)
13,527
2,423
—
(171,108)
Net derivative gain
267,010
—
759
—
267,769
Revenue from proprietary mining
—
—
63,305
—
63,305
Other income
674
119
444
220
1,457754,185
145,106
279,616
(24,349)
1,154,558
Compensation expense
112,019
47,181
40,418
49,923
249,541
Blockchain reward distributions (2)
—
—
151,556
(21,258)
130,298
Interest
102,010
—
—
7,529
109,539
Notes interest expense
—
—
—
30,804
30,804
Depreciation and amortization
3,090
406
47,043
5,796
56,335
Other operating expenses
82,083
12,684
69,613
207,884
372,264
Operating expenses
299,202
60,271
308,630
280,678
948,781
Net unrealized gain (loss) on digital assets
(207,072)
(45,165)
(3,143)
—
(255,380)
Net unrealized gain (loss) on investments
368,331
64,904
(3,336)
—
429,899
Net loss on notes payable - derivative
—
—
—
(31,727)
(31,727)
Foreign currency loss
1,317
—
—
—
1,317162,576
19,739
(6,479)
(31,727)
144,109
Income (loss) before income taxes
$ 617,559
$ 104,574
$ (35,493)
$ (336,754)
$ 349,886
Income tax expense (benefit)
—
—
—
(15,426)
(15,426)
Net income (loss)
$ 617,559
$ 104,574
$ (35,493)
$ (321,328)
$ 365,312
Foreign currency translation adjustment
—
—
—
1,190
1,190
Comprehensive income (loss)
$ 617,559
$ 104,574
$ (35,493)
$ (320,138)
$ 366,502(1) All intercompany transactions are eliminated in the Corporate and Other segment.
(2) The Partnership operates public proof of stake validation infrastructure which allows third parties to stake their digital assets on its validator nodes. Blockchain rewards include amounts earned by these third parties. These corresponding costs are included in blockchain reward distribution.
Income and expenses by each reportable segment of GDH LP for the year ended December 31, 2023 are as follows:
(in thousands)
Global Markets
Asset Management
DigitalInfrastructureSolutions
Corporateand Other (1)
Totals
Income (loss)Fee revenue Mining hosting fees
$ —
$ —
$ 24,335
$ —
$ 24,335
Licensing fees
—
1
1,649
—
1,650
Management and performance fees
414
22,202
1,443
(3,220)
20,839
Advisory fees
4,463
—
55
—
4,518
Total fee revenue (1)
4,877
22,203
27,482
(3,220)
51,342
Lending and staking revenueLending income
48,572
190
272
(975)
48,059
Blockchain rewards
1,344
2,813
—
—
4,157
Total lending and staking revenue
49,916
3,003
272
(975)
52,216
Net realized gain (loss) on digital assets
307,057
4,773
—
—
311,830
Net realized gain (loss) on investments
(8,936)
22,348
—
—
13,412
Net derivative gain (loss)
150,715
1,074
(206)
—
151,583
Revenue from proprietary mining
—
—
33,121
—
33,121
Other income
175
(127)
254
55
357
Total revenues and gain (loss) from operations
503,804
53,274
60,923
(4,140)
613,861
Compensation expense
109,297
46,401
26,565
28,413
210,676
Blockchain reward distributions
—
—
1,086
—
1,086
Interest
19,825
—
—
4,828
24,653
Notes interest expense
—
—
—
27,285
27,285
Depreciation and amortization
401
197
22,798
4,521
27,917
Other operating expenses
57,137
10,051
(3,843)
21,437
84,782
Operating expenses
186,660
56,649
46,606
86,484
376,399
Net unrealized gain (loss) on digital assets
(73,492)
74,223
1,219
—
1,950
Net unrealized gain (loss) on investments
79,001
(2,193)
7,607
—
84,415
Net gain (loss) on notes payable - derivative
—
—
—
(9,603)
(9,603)
Foreign currency loss
(493)
—
—
—
(493)5,016
72,030
8,826
(9,603)
76,269
Income (loss) before income taxes
$ 322,160
$ 68,655
$ 23,143
$ (100,227)
$ 313,731
Income tax expense (benefit)
—
—
—
17,833
17,833
Net income (loss)
$ 322,160
$ 68,655
$ 23,143
$ (118,060)
$ 295,898
Foreign currency translation adjustment
—
—
—
88
88
Comprehensive income (loss)
$ 322,160
$ 68,655
$ 23,143
$ (117,972)
$ 295,986(1) All intercompany transactions are eliminated in the Corporate and Other segment.
Assets and liabilities by reportable segment of GDH LP as of December 31, 2024 are as follows:
(in thousands)
Global Markets
AssetManagement
Digital Infrastructure Solutions
Corporate andOther
Totals
Total assets
$ 6,089,936
$ 632,751
$ 356,713
$ 108,052
$ 7,187,452
Total liabilities
$ 3,644,943
$ 194
$ 23,497
$ 1,241,786
$ 4,910,420
Assets and liabilities by reportable segment of GDH LP as of December 31, 2023 are as follows:
(in thousands)
Global Markets
Asset Management
Digital InfrastructureSolutions
Corporate andOther
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
Select assets by reporting segment of GDH LP as of December 31, 2024 is as follows:
(in thousands)
Global Markets
AssetManagement
DigitalInfrastructureSolutions
Corporate and Other
Totals
Digital assets
$ 2,940,659
$ 23,534
$ —
$ —
$ 2,964,193
Digital assets receivables
12,027
47,390
1,303
—
60,720
Assets posted as collateral
277,147
—
—
—
277,147
Loans receivable (1)
1,056,150
—
—
—
1,056,150
Investments
1,087,588
547,466
8,452
—
1,643,506
Property and equipment
—
—
260,388
7,260
267,648(1) Includes digital asset and fiat loans.
Select assets by reporting segment of GDH LP as of December 31, 2023 is as follows:
(in thousands)
Global Markets
AssetManagement
DigitalInfrastructureSolutions
Corporate andOther
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 (1)
491,868
—
—
—
491,868
Investments
244,807
476,262
14,034
—
735,103
Property and equipment
109
—
252,552
7,304
259,965(1) Includes digital asset and fiat loans.
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 December 31, 2024 is as follows:
(in thousands)
BTC(3)
ETH(4)
Stablecoin
Other(5)
As of December 31,2024
AssetsDigital assets
$ 1,578,553
$ 453,503
$ 512,476
$ 408,101
$ 2,952,633
Digital asset loans receivable, net of allowance
2,540
94,338
393,733
88,919
579,530
Digital assets receivable, current
—
—
—
53,608
53,608
Digital assets receivable, noncurrent
—
—
—
7,112
7,112
Assets posted as collateral - Digital assets(1)
256,214
20,933
—
—
277,147
Restricted digital assets, non-current(2)
—
—
—
11,560
11,5601,837,307
568,774
906,209
569,300
3,881,590
LiabilitiesDigital asset loans payable
934,381
193,432
189,336
180,461
1,497,609
Collateral payable - Digital assets(1)
822,494
137,332
163,237
201,597
1,324,6601,756,875
330,764
352,573
382,058
2,822,269
Digital assets, net
$ 80,432
$ 238,010
$ 553,636
$ 187,242
$ 1,059,321
Stablecoins, net(2)
$ —
$ —
$ 553,636
$ —
$ 553,636
Digital assets, net excl. stablecoins
$ 80,432
$ 238,010
$ —
$ 187,242
$ 505,685
Digital asset investment vehicles included in investments
$ 768,948
$ 32,089
$ —
$ 219,706
$ 1,020,743(1) Excludes cash portion of balance on the Partnership's statement of financial position.
(2) Represents tokens that are subject to a sale restriction of greater than one year.
(3) Includes associated tokens such as wBTC. In addition to digital assets, net, the Partnership also held interests in investment vehicles designed to hold BTC, including spot ETFs, Galaxy sponsored BTC funds, Mt. Gox Investment Fund LP, and Xapo Holdings Limited reflected in the last row of this table.
(4) Includes associated tokens such as wETH and stETH. In addition to digital assets, net, the Partnership also held interests in investment vehicles designed to hold ETH, including spot ETFs and Galaxy sponsored ETH funds, reflected in the last row of this table.
(5) Includes $52.8 million net SOL and $27.7 million net TIA digital assets. In addition to digital assets, net, the Partnership also held interests in investment vehicles designed to hold digital assets, including the Galaxy sponsored Galaxy Digital Crypto Vol Fund LLC (includes $119.9 million SOL and $31.4 million of AVAX) and Ripple Lab Inc., reflected in the last row of this table.
(6) The Partnership also held digital asset derivative positions not reflected in this table.
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 December 31, 2023 is as follows:
(in thousands)
BTC(4)
ETH(5)
Stablecoin
Other(6)
As ofDecember 31, 2023(7)
AssetsDigital 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
41,356789,147
381,242
191,222
199,800
1,561,411
LiabilitiesDigital asset loans payable
48,202
14,603
297,762
37,710
398,277
Collateral payable - Digital assets(1)
437,889
116,723
9,457
5,926
569,995486,091
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
Digital asset investment vehicles included in investments
$ 130,583
$ 22,107
$ —
$ 37,171
$ 189,861(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 December 31, 2023, stablecoin liabilities were greater than stablecoin assets.
(4) Includes associated tokens such as wBTC. In addition to digital assets, net, the Partnership also held interests in investment vehicles designed to hold BTC, including bitcoin futures ETFs, Galaxy sponsored BTC funds, Mt. Gox Investment Fund LP, and Xapo Holdings Limited, net of associated investment liabilities, reflected in the last row of this table.
(5) Includes associated tokens such as wETH and stETH. In addition to digital assets, net, the Partnership also held interests in investment vehicles designed to hold ETH, including Galaxy sponsored ETH funds, reflected in the last row of this table.
(6) Includes $12.0 million net SOL and $68.5 million net TIA. In addition to digital assets, net, the Partnership also held interests in investment vehicles designed to hold digital assets, including Ripple Lab Inc., reflected in the last row of this table.
(7) The Partnership also held digital asset derivative positions not reflected in this table.
All figures are in U.S. Dollars unless otherwise noted.
SOURCE Galaxy Digital Holdings Ltd.
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