Latest news with #GDHLP
Globe and Mail
2 days ago
- Business
- Globe and Mail
Galaxy Digital Inc. Announces Pricing of Its Upsized Public Offering of Common Stock
NEW YORK , /CNW/ - Galaxy Digital Inc. ("Galaxy" or the "Company") (NASDAQ: GLXY) (TSX: GLXY), a global leader in digital assets and data center infrastructure, today announced the pricing of its upsized underwritten offering of 31,600,000 shares of its Class A common stock, consisting of 26,400,000 shares offered by Galaxy and 5,200,000 shares offered by certain stockholders of Galaxy, at the public offering price of $19.00 per share. The underwriters for the offering also have a 30-day option to purchase up to 4,740,000 additional secondary shares, at the public offering price less the underwriting discount. The size of the offering increased from the previously announced 29,000,000 shares to 31,600,000 shares. This is Galaxy's first underwritten public offering of its Class A common stock as a listed company on the Nasdaq Global Select Market. The offering is expected to close on June 3, 2025 , subject to customary closing conditions. Galaxy intends to use the net proceeds from the sale of the shares of Class A common stock offered in the offering by Galaxy to purchase newly issued limited partnership units ("LP Units") from its operating subsidiary, Galaxy Digital Holdings LP ("GDH LP"). GDH LP will use the proceeds from the sale of LP Units to finance the continued expansion of its artificial intelligence and high-performance computing infrastructure at its Helios data center campus in the panhandle region of West Texas , and for general corporate purposes. Galaxy will not receive any proceeds from the sale of the shares of the selling stockholders. Goldman Sachs & Co. LLC, Jefferies and Morgan Stanley are acting as active joint book-running managers for the offering; Canaccord Genuity, Cantor, Keefe, Bruyette & Woods, A Stifel Company, Piper Sandler and BTIG are acting as additional joint book-running managers for the offering; and ATB Capital Markets, The Benchmark Company, Compass Point, H.C. Wainwright & Co. and Rosenblatt are acting as co-managers for the offering. Galaxy Digital Partners acted as strategic advisor for the offering. This offering is being made only by means of a prospectus. A registration statement relating to these securities was declared effective by the Securities and Exchange Commission (the "SEC"). Before you invest, you should read the prospectus in that registration statement and other documents Galaxy has filed with the SEC for more complete information about Galaxy and this offering. You may get these documents for free by visiting EDGAR on the SEC website at Alternatively, a copy of the final prospectus related to the offering may be obtained from Galaxy, any underwriter or any dealer participating in the offering, when available, from: Goldman Sachs & Co. LLC, attention: Prospectus Department, 200 West Street, New York, NY 10282, by telephone: 1-866-471-2526 or by email at Prospectus-ny@ Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, New York, NY 10022, by telephone (877) 821-7388 or by email at Prospectus_Department@ or Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any shares of Class A common stock, nor shall there be any sale of shares of Class A common stock, in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The shares of Class A common stock subject to the offering have not been qualified for distribution by a prospectus in Canada and consequently may not be offered, sold or delivered in Canada or for the account of any Canadian resident except in transactions exempt from, or not subject to, the prospectus requirements of applicable Canadian securities laws. Shares of Class A common stock issued by the Company in Canada as part of the offering will be subject to resale restrictions for a period of four months and one day from the date of their issuance in accordance with applicable Canadian securities law. The TSX has neither approved nor disapproved the contents of this press release. No securities commission or similar regulatory authority in Canada has reviewed or passed on the merits of the offering. ABOUT GALAXY DIGITAL INC. Galaxy Digital Inc. (NASDAQ/TSX: GLXY) is a global leader in digital assets and data center infrastructure, delivering solutions that accelerate progress in finance and artificial intelligence. Our digital assets platform offers institutional access to trading, advisory, asset management, staking, self-custody, and tokenization technology. In addition, we invest in and operate cutting-edge data center infrastructure to power AI and high-performance computing, meeting the growing demand for scalable energy and compute solutions in the U.S. The Company is headquartered in New York City , with offices across North America , Europe , the Middle East and Asia . NOTE REGARDING FORWARD-LOOKING STATEMENTS This press release 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"). Forward-looking statements are statements other than historical facts and may include statements that address future operating, financial or business performance or Galaxy's strategies or expectations, including those about the offering and the timing of its closing. 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 the risks contained in filings we make with the Securities and Exchange Commission (the "SEC") from time to time, including in the prospectus for the offering and in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 , filed with the SEC on May 13, 2025 . Forward-looking statements speak only as of the date they are made. Except as required by law, we assume no obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements. 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.
Globe and Mail
14-05-2025
- Business
- Globe and Mail
Galaxy Announces First Quarter 2025 Financial Results
NEW YORK, May 13, 2025 /CNW/ - Galaxy Digital Inc. (TSX: GLXY) (the "Company" or "GDI") today released financial results for the three months ended March 31, 2025, 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 LP, its subsidiaries and affiliates including GDI, or any one of them, as the context requires.
Cision Canada
13-05-2025
- Business
- Cision Canada
Galaxy Announces First Quarter 2025 Financial Results
NEW YORK, May 13, 2025 /CNW/ - Galaxy Digital Inc. (TSX: GLXY) (the "Company" or "GDI") today released financial results for the three months ended March 31, 2025, 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 LP, its subsidiaries and affiliates including GDI, or any one of them, as the context requires. — U.S. Listing and Reorganization Galaxy held a special meeting of shareholders on May 9, 2025 wherein shareholders voted in favor of the reorganization and domestication of Galaxy as a Delaware incorporated entity. As of May 13, 2025, the Company and GDH LP reorganized and domesticated to the United States. The Company intends to list on Nasdaq on May 16, 2025. Galaxy transitioned to reporting its financial results in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"). — Financial Highlights Net loss of $295 million for the first quarter 2025, or a loss of $0.86 per diluted share, driven primarily by the depreciation of digital asset prices in the quarter and a one-time $57 million impairment charge and disposal costs related to the wind-down of mining operations at our Helios data center campus. Equity capital of $1.9 billion as of March 31, 2025, and holdings of approximately $1.1 billion in cash and net stablecoins. 1 As of May 12, 2025, second-quarter-to-date operating income was estimated between $160 million and $170 million, and as of the same date, equity capital was estimated at $2.2 billion. 2 — Corporate Updates Helios Data Center Campus: Subsequent to the end of the first quarter 2025, CoreWeave exercised its first option to access additional critical IT load for its artificial intelligence ("AI") and high-performance computing ("HPC") operations at Galaxy's Helios data center campus. Under the Phase II option agreement, Galaxy would deliver approximately 260 megawatts ("MW") of incremental critical IT load to CoreWeave, with deliveries expected to commence in 2027. This additional capacity would be structured on terms similar to those outlined in the previously announced 15-year, 133 MW lease agreement from March 28, 2025. With this expansion, CoreWeave's total committed capacity for AI and HPC operations at Helios would increase to approximately 393 MW of critical IT load. Note: Throughout this document, totals may not sum due to rounding. Percentage change calculations are based on unrounded results. (1) Includes $509M in Cash and Cash Equivalents, and $565M in Net Stablecoins. Net stablecoins includes all stablecoins categorized as assets, less all stablecoins categorized as liabilities on the statement of financial position. Net stablecoins is a non-GAAP measure. Refer to the reconciliation on page 10. (2) This preliminary, unaudited quarter-to-date financial information is as of May 12, 2025. Financial results exclude completion of the full quarterly valuation process of our investment portfolio and the performance of other quarter-end close procedures. This data is subject to change as management completes its quarterly close procedures. (3) Refer to page 5 of this release for a breakout of our balance sheet net digital assets exposure. (4) Abbreviation for "Not Meaningful". (5) Calculated as equity capital divided by outstanding Class A and Class B Units. — Segment Consolidation & GAAP Adoption In the first quarter 2025, Galaxy streamlined its financial reporting by consolidating its activities into two operating business segments, Digital Assets and Data Centers, along with a Treasury & Corporate segment. As part of Galaxy's successful domestication as a Delaware incorporated entity, effective May 13, 2025, we have transitioned from reporting our financial results under International Financial Reporting Standards ("IFRS") to reporting in accordance with U.S. GAAP. — Galaxy Financial Snapshot Gross revenues & gains/(losses) from operations was $12.9 billion for the first quarter, offset by $13.1 billion of gross transaction expenses. This reflects a quarter-over-quarter ("QoQ") decline of 21% driven by downward pressure of digital asset prices leading to softer client trading activity. GAAP requires the grossing up of purchases and sales of digital assets with clients and exchanges. Digital Assets generated adjusted gross profit 1 of $64.8 million in Q1 2025, a 36% decline QoQ, primarily due to the depreciation of digital asset prices, which led to reduced client trading activity and lower assets on platform. Despite these headwinds, the segment maintained positive operating income of $3.5 million for the quarter. Galaxy expects to begin generating Data Centers leasing revenue in the first half of 2026, when it starts delivering critical IT capacity to CoreWeave under Phase I of its lease agreement. Treasury & Corporate generated an operating loss of $392 million in Q1 2025, driven primarily by the depreciation of digital asset prices in the first quarter as well as a one-time $57 million impairment charge and disposal costs related to the wind-down of mining operations at Helios. GAAP Revenues and Transaction Expenses Q1 2025 Q4 2024 Q/Q % Change Gross Revenues & Gains/(Losses) from Operations $12,856M $16,352M (21) % Gross Transaction Expenses $13,059M $15,892M (18) % Segment Reporting Breakdown Q1 2025 Q4 2024 Q/Q % Change Digital Assets Adjusted Gross Profit 1 $64.8M $101M (36) % Global Markets 1,2 $43.2M $77.6M (44) % Asset Management & Infrastructure Solutions 1,3 $21.6M $23.4M (8) % Digital Assets Operating Income $3.5M $29.4M (88) % Data Centers Leasing Revenue - - - Data Centers Operating Income ($2.9M) ($2.1M) (35) % Treasury & Corporate Adjusted Gross Profit 1,4 ($268M) $360M N.M. Treasury & Corporate Operating Income ($392M) $102M N.M. Net Income ($295M) $118M N.M. (1) Adjusted Gross Profit is a non-GAAP financial measure. Please see Non-GAAP Financial Measures below for further information. (2) Includes Trading and Investment Banking; net of transaction expenses. (3) Includes Asset Management, Staking and GK8; net of transaction expenses. (4) Includes Bitcoin Mining; Treasury activities are net of transaction expenses. — Digital Assets Global Markets Global Markets adjusted gross profit 1 totaled $43.2 million in Q1 2025, declining 44% QoQ due to lower digital asset prices, which led to reduced market activity and client trading volumes. Digital asset trading volumes declined 20% QoQ. Average loan book size increased modestly to $874 million in Q1, driven by ongoing demand from new and existing clients for margin lending and increased interest in structured solutions. In Q1 2025, the Investment Banking team served as a co-manager on CoreWeave's Initial Public Offering. Global Markets Adjusted Gross Profit: Gross Profit from Galaxy trading activity, net of transaction expenses and fee revenue associated with the Investment Banking business. Loan Book Size (Average): Average market value of all open loans, excluding uncommitted credit facilities. Asset Management & Infrastructure Solutions Asset Management & Infrastructure Solutions generated $21.6 million of adjusted gross profit 1 in 1Q 2025, declining 8% from the prior quarter. The decrease was primarily driven by lower digital asset prices and reduced on-chain activity during the quarter. Galaxy ended the first quarter with approximately $7 billion in combined assets under management and assets under stake, down 29% QoQ as a result of declining digital asset prices. Galaxy continues to integrate its staking infrastructure with new digital asset custodians, who collectively manage hundreds of billions in assets, giving their clients access to our staking services through their custodial accounts. Assets on Platform: All figures are unaudited. Assets on Platform 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, fund of fund products and 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. Changes in Assets on Platform are generally the result of performance, contributions, withdrawals, liquidations, and opportunistic mandate wins. Assets on Platform for committed capital closed-end vehicles that have completed their investment period is reported as Net Asset Value ("NAV") plus unfunded commitment. Assets on Platform for quarterly close vehicles is reported as of the most recent quarter available for the applicable period. Assets on Platform for affiliated separately managed accounts is reported as NAV as of the most recently available estimate for the applicable period. Total Assets on Platform for Q4 2024 was updated from what was previously reported as quarterly close vehicles are reported as of the most recent information available for the applicable period. Note: $26M of staked venture positions are captured within both Assets Under Stake and Alternatives. (1) Adjusted Gross Profit is a non-GAAP financial measure. Please see Non-GAAP Financial Measures below for further information. — Data Centers High-Performance Computing Helios Data Center Campus: Subsequent to the end of the first quarter 2025, CoreWeave exercised its first option to access additional critical IT load for its artificial intelligence ("AI") and high-performance compute ("HPC") operations at Galaxy's Helios data center campus. Under the Phase II option agreement, Galaxy would deliver approximately 260 MW of incremental critical IT load to CoreWeave, with deliveries expected to commence in 2027. This additional capacity would be structured on terms similar to those outlined in the previously announced 15-year, 133 MW lease agreement from March 28, 2025. With this expansion, CoreWeave's total committed capacity for AI and HPC operations at Helios would increase to approximately 393 MW of critical IT load, marking a major milestone in scaling Galaxy's AI and HPC infrastructure platform. (1) Approximately 200 MW of gross power capacity for Phase I and approximately 400 MW of gross capacity in Phase II. (2) Will be completed in phases, with the full capacity for Phase I expected to be delivered by the end of the first half of 2026 and Phase II in 2027. (3) Based on committed contractual terms, internal estimates for capital expenditures, and assumes full capacity utilization of the 393MW of critical IT load. Upon energization of the full 393 MW, we expect to generate more than $700 million in revenue in the first 12 months. Anticipated Average Annual Revenue over the 15-year term includes the impact of annual escalators. Actual results may differ materially due to business, economic and competitive uncertainties and contingencies, which are beyond the control of the Company and its management and subject to change. — 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 March 31, 2025, is as follows: (1) Includes associated tokens such as wBTC. In addition to digital assets, net, Galaxy also held interests in investment vehicles designed to hold BTC, including bitcoin futures ETFs, Galaxy sponsored BTC funds, and Mt. Gox Investment Fund LP. (2) Includes associated tokens such as wETH and stETH. In addition to digital assets, net, Galaxy also held interests in investment vehicles designed to hold ETH, including spot ETFs and Galaxy sponsored ETH funds. (3) Includes $19.6 million net SOL and $21.7 million net TIA digital assets. In addition to digital assets, net, Galaxy also held interests in investment vehicles designed to hold digital assets, including the Galaxy sponsored Galaxy Digital Crypto Vol Fund LLC (includes $53.9 million SOL and $17.4 million of AVAX) and Ripple Labs Inc. Note: Galaxy also held digital asset derivative positions not reflected in this chart. Earnings Conference Call An investor conference call will be held today, May 13, 2025, at 8:30 AM Eastern Time. A live webcast with the ability to ask questions will be available at: The conference call can also be accessed by investors in the United States or Canada by dialing 1-800-445-7795, or 1-785-424-1699 (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 13, 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: 11158991. About Galaxy Digital Inc. (TSX: GLXY) Galaxy (TSX: GLXY) is a global leader in digital assets and data center infrastructure, delivering solutions that accelerate progress in finance and artificial intelligence. Our digital assets platform offers institutional access to trading, advisory, asset management, staking, self-custody, and tokenization technology. In addition, we invest in and operate cutting-edge data center infrastructure to power AI and high-performance computing, meeting the growing demand for scalable energy and compute solutions in the U.S. The Company is headquartered in New York City, with offices across North America, Europe, the Middle East and Asia. Additional information about Galaxy's businesses and products is available on Disclaimer 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. CAUTIONARY STATEMENT ABOUT FORWARD-LOOKING STATEMENTS This press release and the accompanying conference call 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 intended Nasdaq listing, Galaxy's business plans and goals, including with respect to the lease with CoreWeave, 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 meet and maintain listing standards following our expected listing on Nasdaq; (2) costs related to AI/HPC plans, the transactions, operations and strategy; (3) changes in applicable laws or regulations; (4) the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors; (5) changes or events that impact the cryptocurrency and AI/HPC industry, including potential regulation, that are out of our control; (6) the risk that our business will not grow in line with our expectations or continue on its current trajectory; (7) the possibility that our addressable market is smaller than we have anticipated and/or that we may not gain share of it; (8) the possibility that there is a disruption or change in power dynamics impacting our results or current or future load capacity; (9) any delay or failure to consummate the business mandates or achieve its pipeline goals (10) technological challenges, cyber incidents or exploits; (11) 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; (12) any inability or difficulty in obtaining financing for the AI and HPC financing on acceptable terms or at all; (13) changes to the AI and HPC infrastructure needs and their impact on future plans at the Helios campus; (14) risks associated with the leasing business, including those associated with counterparties; and (15) those other risks contained in filings we make with the Securities and Exchange Commission (the "SEC") from time to time, including in our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025, filed with the SEC on May 13, 2025 and available on Galaxy's profile at (our "Form 10-Q"). 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; a delay or failure in our anticipated Nasdaq listing; 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. Except as required by law, we assume no obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, or to update the reasons if actual results differ materially from those anticipated in the forward-looking statements. 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. This press release contains certain pre-released second 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 Company's actual consolidated financial statements for such period may result in material changes to the prereleased 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 our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025. 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. Non-GAAP Financial Measure In addition to our results determined in accordance with GAAP, this press release and the accompanying tables contain adjusted gross profit, which is a non-GAAP financial measure. Adjusted gross profit is unaudited, presented as supplemental disclosure and should not be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. Please see page 10 for a reconciliation of adjusted gross profit to revenues and gains / (losses) from operations (including for our individual segments) during the three months ended March 31, 2025 and three months ended December 31, 2024. It is important to note that the particular items we exclude from, or include in, adjusted gross profit may differ from the items excluded from, or included in, similar non-GAAP financial measures used by other companies in the same industry. We also periodically review our non-GAAP financial measures and may revise these measures to reflect changes in our business or otherwise. Adjusted gross profit is a helpful measure to our management and investors because it eliminates the impact of the directly attributable transaction expenses. As such, it provides useful information about our financial performance, enhances the overall understanding of our past performance and future prospects, allows for greater transparency with respect to important metrics used by our management for financial, risk management and operational decision-making and provides an additional tool for investors to use to understand and compare our operating results across accounting periods. March 31, 2025 December 31, 2024 Assets Current assets Cash and cash equivalents $ 509,438 $ 462,103 Digital intangible assets (includes $1,671.3 and $1,997.4 million measured at fair value) 2,123,860 2,547,581 Digital financial assets 514,479 359,665 Digital assets loan receivable, net of allowance 280,095 579,530 Investments 545,754 834,812 Assets posted as collateral 506,634 277,147 Derivative assets 128,353 207,653 Accounts receivable (includes $4.5 and $4.2 million due from related parties) 28,864 55,279 Digital assets receivable 17,674 53,608 Loans receivable 407,966 476,620 Prepaid expenses and other assets 29,884 26,892 Total current assets 5,093,001 5,880,890 Non-current assets Digital assets receivable 1,996 7,112 Investments (includes $669.6 and $745.5 million measured at fair value) 736,060 808,694 Digital intangible assets 15,030 20,979 Loans receivable, non-current 56,800 — Property and equipment, net 262,216 237,038 Other non-current assets 113,052 107,105 Goodwill 58,037 58,037 Total non-current assets 1,243,191 1,238,965 Total assets $ 6,336,192 $ 7,119,855 Liabilities and Equity Current liabilities Derivative liabilities 89,702 165,858 Accounts payable and accrued liabilities (includes $111.0 and $96.9 million due to related parties) 270,468 281,531 Digital assets borrowed 1,760,455 1,497,609 Payable to customers 19,288 19,520 Loans payable 345,249 510,718 Collateral payable 943,513 1,399,655 Other current liabilities 73,358 13,034 Total current liabilities 3,502,033 3,887,925 Non-current liabilities Notes payable 763,798 845,186 Digital assets borrowed - non-current 6,603 — Other non-current liabilities 162,114 192,392 Total non-current liabilities 932,515 1,037,578 Total liabilities 4,434,548 4,925,503 Commitments and contingencies (Note 17) Equity Unit holders' capital 1,901,644 2,194,352 Total equity 1,901,644 2,194,352 Total liabilities and equity $ 6,336,192 $ 7,119,855 Galaxy Digital Holdings LP's Consolidated Interim Statements of Income (Loss) and Comprehensive Income (Loss) (unaudited) Three Months Ended March 31, 2025 Three Months Ended March 31, 2024 Revenues 12,976,206 9,335,372 Net gain / (loss) on digital assets (18,223) 346,393 Net gain / (loss) on investments (133,167) 63,018 Net gain / (loss) on derivatives trading 31,059 83,640 Revenues and gains / (losses) from operations 12,855,875 9,828,423 Operating expenses: Transaction expenses 13,059,439 9,313,616 Compensation and benefits 56,953 61,071 General and administrative 86,575 19,685 Technology 9,887 6,492 Professional fees 20,772 13,629 Notes interest expense 14,071 6,976 Total operating expenses 13,247,697 9,421,469 Other income / (expense): Unrealized gain / (loss) on notes payable - derivative 89,606 (9,713) Other income / (expense), net 672 213 Total other income / (expense) 90,278 (9,500) Net income / (loss) before taxes $ (301,544) $ 397,454 Income taxes expense / (benefit) (6,112) 9,327 Net income / (loss) $ (295,432) $ 388,127 Net income/ (loss) attributed to: Unit holders of the Company $ (295,432) $ 388,127 Net income per unit: Basic $ (0.86) $ 1.19 Diluted $ (0.86) $ 1.10 Weighted average units outstanding used to compute net income per unit: Basic 345,233,801 325,159,324 Diluted 345,233,801 352,999,694 Reconciliation of Revenue and Gains/(Losses) from Operations The following table reconciles Revenues and gains / (losses) from operations to adjusted gross profit for the three months ended March 31, 2025 and December 31, 2024: Reconciliation of Cash & Net Stablecoins The following table reconciles the Company's cash and net stablecoin position to the reported financial statements as of March 31, 2025 and December 31, 2024: All figures are in U.S. Dollars unless otherwise noted.
Yahoo
28-03-2025
- Business
- Yahoo
Galaxy Announces Fourth Quarter and Full Year 2024 Financial Results
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 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 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 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: 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 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 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 Copies of the final versions of such documents can also be obtained, when available, without charge, via Galaxy's investor relations website: 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 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 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. View original content to download multimedia:
