NEW YORK, Nov. 13, 2020 /CNW/ - Galaxy Digital Holdings
Ltd. (TSX: GLXY) today released financial results for the three and
nine months ended September 30, 2020
for both itself and Galaxy Digital Holdings LP, as well as
corporate updates through the date of this press release.
"Galaxy Digital made progress across our business lines in the
third quarter, including record volumes in our Trading business,"
said Michael Novogratz, Founder and
CEO of Galaxy Digital. "We've taken several key steps forward in
the second half of 2020, including making critical senior hires,
expanding our capital base, and completing strategic actions to
position Galaxy Digital for the clear, incoming wave of
institutional adoption ahead of digital assets and blockchain
solutions by investors, corporates and governments."
Corporate Updates
- Galaxy Digital Holdings Ltd. (the "Company" or "GDH Ltd.")
closing of private investment in public equity financing:
-
- On November 12, 2020, GDH Ltd.
closed a private investment in public equity financing ("PIPE") of
$50 million of aggregate gross
proceeds led by a group of institutional investors. Galaxy Digital
Holdings LP (the "Partnership" or "GDH LP") intends to use the
proceeds from the PIPE for general corporate and working capital
purposes across its business lines, with a particular focus on
growing its client financing business and seeding new asset
management-related product offerings.
- Other corporate updates:
-
- On September 29, 2020, Galaxy
Digital announced the appointment of Damien
Vanderwilt as its Co-President and Head of Global Markets.
Vanderwilt joins Galaxy Digital from Goldman Sachs where he worked
for 20 years, most recently as a Partner and Global Head of FICC
Execution Services. He is expected to join Galaxy Digital in
January 2021, working alongside
fellow Co-President Christopher
Ferraro. In addition, Rhonda
Medina, Director of Business and Legal Affairs at Netflix,
has been appointed to the Board of Managers of the general partner
of the Partnership.
- Also in September 2020,
Amanda Fabiano joined Galaxy Digital
as its first Head of Mining. Fabiano joined from Fidelity
Investments, where she was previously the Director of Bitcoin
Mining. She focused on mining, bitcoin products, and bitcoin
education during her six-year tenure at the firm.
- In October 2020, Michael Ashe joined Galaxy Digital as its new
Head of Investment Banking. Ashe joined from Oppenheimer & Co.
where he was a senior member of the Industrial & Emerging
Technology Banking sector team since 2015.
Operating Highlights
- Galaxy Digital Trading ("GDT") delivered the best quarter in
its history in the third quarter, with trading volume of
approximately $1.4 billion in the
period, and up 75%+ year over year. The increase in trading volume
can be attributed to GDT's close management of its global
counterparty base which grew by 30 new counterparties in the third
quarter, the expanding roll out of its electronic trading platform,
and the growth of its crypto derivatives business. GDT's momentum
and market share gains have continued into October and November as
Bitcoin approaches 2017 highs and its counterparties remain engaged
and nimble. During the same period GDT's continued enhancements to
its product suite have generated ongoing demand across its spot,
lending, derivatives, and structured products businesses.
- As previously disclosed, Galaxy Digital Asset Management
("GDAM") had assets under management ("AUM") of $407.4 million at the end of the third quarter.
AUM consisted of $82.4 million in
GDAM's passive Bitcoin and Index fund products, and $325.0 million in the Galaxy EOS VC Fund.
-
- Galaxy Bitcoin Fund, LP, Galaxy Institutional Bitcoin Fund, LP,
and Galaxy Institutional Bitcoin Fund, Ltd. (collectively the
"Bitcoin Funds") offer institutional and accredited investors
institutionally wrapped bitcoin exposure supported by vetted
service providers, including Bakkt, and Fidelity Digital Assets as
custodians for the funds, Bloomberg L.P. as pricing agent, Deloitte
& Touche LLP for audit, and Ernst & Young LLP for tax. The
Galaxy Bitcoin Funds track the Bloomberg CFIX pricing of bitcoin
("XBT"), and the XBT returned 17.3% in the third quarter of 2020
and has returned 125.7% on a year to date basis through
November 12, 2020.
- Galaxy Benchmark Crypto Index Fund LP (the "Index Fund") is a
passively managed index fund which tracks the Bloomberg Galaxy
Crypto Index (the "BGCI"), an index co-branded with and
administered by Bloomberg which is designed to track the
performance of the largest, most liquid portion of the digital
asset market. The BGCI returned 32.3% in the third quarter of 2020
and has returned 126.7% on a year to date basis through
November 12, 2020.
-
- Galaxy Digital opened its Index fund to accredited investors
and digitized its subscription process through a third-party
platform, allowing for a more seamless subscription
experience.
- GDAM continues to leverage multiple sales and distribution
channels, including a partnership with CAIS, an industry-leading
alternative investment platform. Through CAIS's extensive
Registered Investment Advisor network and sales team, GDAM
continues to widen the potential investor base for its fund
products.
- Additionally, during the third quarter of 2020, the Galaxy
Interactive team who manages the Galaxy EOS VC Fund (the "EOS
Fund") made investments in Build a Rocket Boy, CoreLoop, ForeVR,
GreenPark, Polyarc, Rings, Skystone, Stream Captain, Tilt Five and
add-on investments in Big Run, CipherTrace, Bitski, Audigent, and
vAtom.
- In the third quarter, Galaxy Digital Investment Banking
continued to make progress on mandates for clients across
financing, mergers and acquisitions, and other strategic matters,
with several active mandates in various stages of execution.
-
- In August 2020, Galaxy Digital
Investment Banking served as sell-side advisor to Blockfolio on its
announced sale to FTX Trading Limited for $150.0 million, which subsequently closed in
October 2020. Blockfolio is a leading
mobile app for cryptocurrency portfolio tracking and management,
and has over 6 million users globally.
- Galaxy Digital launched a cryptocurrency mining practice
strategically focused on providing innovative and sophisticated
financial tools for North American miners. Galaxy Digital
Mining is actively growing its pipeline of potential clients and
partners.
- During the third quarter of 2020, the Principal Investments
team closed six new and four follow-on investments, representing
$7.5 million of invested
capital.
-
- Investments made during the third quarter bring capital
deployed for the nine months ended September
30, 2020 to $27.4 million
represented by 8 new investments and 13 follow-on investments.
- Investments made (including loans purchased) from January 9, 2018 through September 30, 2020 total $208.9 million and are represented by 43 new and
43 follow-on investments.
- Galaxy Digital invested in two of the most prominent DeFi, or
Decentralized Finance, investment funds in the sector, ParaFi
Capital and Robot Ventures.
Select GDH LP's Financial Highlights (Q3 2020)
- As of September 30, 2020, digital
assets, including digital assets posted as collateral, stood at
$241.6 million, an increase of
$147.4 million from December 31, 2019. This increase was primarily
due to the increase in the fair value of the digital assets during
the period, as the prices of digital assets held by the Partnership
increased, as well as an increase in the holdings of certain
digital assets. The digital assets balance as of September 30, 2020 include $44.3 million held by non-controlling
interests.
- As of September 30, 2020, the
Partnership had a material holding in bitcoin of $176.4 million (December
31, 2019 - $81.3 million),
which includes approximately $41.2
million held by non-controlling interests. As of
November 12, 2020, the holding in
bitcoin increased primarily due to contributions by non-controlling
interests into the Bitcoin Funds.
- Investments stood at $200.7
million as of September 30,
2020, an increase of $42.5
million from December 31,
2019. The change was primarily due to $27.4 million of new capital deployed by the
Principal Investments team during the period and an increase in
unrealized gains, which were partially offset by the sale of some
investments.
- Total equity increased by $90.5
million to $445.6 million for
the nine months ended September 30,
2020 primarily due to $55.4
million of net comprehensive income.
- As of September 30, 2020, the
Partnership's net book value1 per unit was approximately
C$2.05 (US$1.54), compared to C$1.62 (US$1.24) as
of December 31, 2019.
- For the three months ended September 30,
2020, net comprehensive income was $44.6 million, which primarily was a result of
realized and unrealized gains on digital assets and on investments,
partially offset by operating expenses. This compares to a net
comprehensive loss of $68.2 million
for the three months ended September 30,
2019, which was largely a result of an unrealized loss on
digital assets and operating expenses. For the nine months ended
September 30, 2020, net comprehensive
income was $55.4 million, as compared
to net comprehensive income of $58.4
million for the nine months ended September 30, 2019. The current year to date
income was largely a result of realized and unrealized gains on
digital assets and investments, partially offset by the year to
date operating expenses. The net comprehensive income for the nine
months ended September 30, 2019 was
largely a result of realized gains on digital assets, partially
offset by the year to date operating expenses.
_________________________
|
1 Net
book value includes non-controlling interests.
|
Corporate Structure
- Galaxy Digital is structured and trades as an umbrella
partnership C-corporation ("Up-C").
- Galaxy Digital's Up-C comprises two primary entities, a public
company listed on the Toronto Stock Exchange (GDH Ltd.), and a
partnership containing Galaxy's operating businesses, assets and
investments (GDH LP). This structure enables our founders and
employees to hold their interests in tax efficient form and is
similar to the approach used by several public alternative asset
managers.
- Ordinary Shares in GDH Ltd. represent the publicly traded float
of the firm. Each share represents a corresponding Class A unit in
GDH LP, equal to a 22.5% holding in the Partnership as of
September 30, 2020. As a result of
the PIPE financing each share represents a corresponding Class A
unit in GDH LP, equal to a 27.4% holding in the Company as of
November 12, 2020.
- Founder and employee interests are held primarily in the form
of Class B units in GDH LP. These are equal economically to Class A
units and can be converted on a one-for-one basis into shares of
GDH Ltd.
- From a reporting perspective, book value and earnings per share
figures are calculated on the combined, as-converted total share
count. As of September 30, 2020,
Galaxy had 65,125,264 ordinary shares and 224,253,231 Class B
units, for a total of 289,378,495 as-converted units, which is used
in the calculation of Net Book Value per Unit. The PIPE financing
that Galaxy Digital completed on November
12, 2020, subsequently resulted in 19,070,000 ordinary
shares being issued, with each share accompanied by a two-year
termed warrant to purchase 0.25 of an ordinary share, or 4,767,500
shares, with a C$8.25 strike price.
As of November 12, 2020, Galaxy had
84,474,714 ordinary shares and 223,973,781 Class B units, for a
total of 308,448,495 as-converted units.
GDH LP's Financial Results
|
September
30,
|
|
December
31,
|
|
2020
|
|
2019
|
Assets
|
|
|
|
Current
assets
|
|
|
|
Cash
|
$
|
54,666,020
|
|
|
$
|
106,262,780
|
|
Digital
assets
|
224,847,948
|
|
|
85,980,731
|
|
Investments
|
200,672,653
|
|
|
158,163,420
|
|
Receivable for digital
asset trades
|
590,657
|
|
|
330,609
|
|
Digital asset loans
receivable
|
23,657,167
|
|
|
16,061,945
|
|
Assets posted as
collateral
|
16,768,600
|
|
|
10,585,819
|
|
Receivables
|
2,216,386
|
|
|
1,853,169
|
|
Derivatives
|
2,072,522
|
|
|
—
|
|
Prepaid expenses and
other assets
|
2,328,841
|
|
|
2,580,255
|
|
Loans
receivable
|
—
|
|
|
11,719,738
|
|
|
527,820,794
|
|
|
393,538,466
|
|
|
|
|
|
Right of use
asset
|
4,725,670
|
|
|
5,182,993
|
|
Property and
equipment
|
3,703,037
|
|
|
4,057,662
|
|
|
8,428,707
|
|
|
9,240,655
|
|
Total
assets
|
$
|
536,249,501
|
|
|
$
|
402,779,121
|
|
|
|
|
|
Liabilities
|
|
|
|
Current
liabilities
|
|
|
|
Digital assets sold
short
|
$
|
12,077,789
|
|
|
$
|
18,616,860
|
|
Accounts payable and
accrued liabilities
|
15,055,582
|
|
|
11,719,494
|
|
Payable for digital
asset trades
|
3,808,919
|
|
|
250,158
|
|
Digital asset loans
payable
|
53,975,808
|
|
|
11,134,329
|
|
Collateral
payable
|
420,385
|
|
|
434,498
|
|
Lease
liability
|
759,260
|
|
|
772,003
|
|
|
86,097,743
|
|
|
42,927,342
|
|
|
|
|
|
Lease
liability
|
4,581,259
|
|
|
4,747,214
|
|
Total
liabilities
|
90,679,002
|
|
|
47,674,556
|
|
|
|
|
|
Equity
|
|
|
|
Partners'
capital
|
401,315,533
|
|
|
347,785,081
|
|
Non-controlling
interests
|
44,254,966
|
|
|
7,319,484
|
|
Total
equity
|
445,570,499
|
|
|
355,104,565
|
|
|
|
|
|
Total liabilities
and equity
|
$
|
536,249,501
|
|
|
$
|
402,779,121
|
|
|
Three months
ended
September 30,
2020
|
Three
months
ended
September 30,
2019
|
|
Nine months
ended
September 30,
2020
|
Nine months
ended
September 30,
2019
|
Income
(loss)
|
|
|
|
|
|
Advisory and
management fees
|
$
|
1,544,200
|
|
$
|
1,260,725
|
|
|
$
|
4,602,042
|
|
$
|
4,110,936
|
|
Net realized gain
(loss) on digital assets
|
10,473,168
|
|
(8,532,363)
|
|
|
20,838,311
|
|
107,038,137
|
|
Net realized gain
(loss) on investments
|
15,818,968
|
|
(18,159)
|
|
|
11,401,110
|
|
38,082,476
|
|
Interest
income
|
1,702,678
|
|
1,272,231
|
|
|
4,411,610
|
|
2,898,153
|
|
Net derivative gain
(loss)
|
(792,130)
|
|
5,187,275
|
|
|
6,081,183
|
|
10,886,584
|
|
|
28,746,884
|
|
(830,291)
|
|
|
47,334,256
|
|
163,016,286
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
Equity based
compensation
|
3,339,278
|
|
6,297,963
|
|
|
8,251,249
|
|
23,441,735
|
|
Compensation and
compensation related
|
6,376,099
|
|
7,551,497
|
|
|
19,370,264
|
|
22,230,967
|
|
General and
administrative
|
3,513,028
|
|
5,466,079
|
|
|
9,833,382
|
|
9,875,149
|
|
Professional
fees
|
1,709,746
|
|
2,269,488
|
|
|
4,212,947
|
|
5,886,115
|
|
Interest
|
1,867,101
|
|
637,525
|
|
|
4,138,742
|
|
2,264,779
|
|
Insurance
|
190,954
|
|
282,876
|
|
|
855,215
|
|
1,039,980
|
|
Director
fees
|
29,915
|
|
50,000
|
|
|
129,915
|
|
150,000
|
|
|
(17,026,121)
|
|
(22,555,428)
|
|
|
(46,791,714)
|
|
(64,888,725)
|
|
|
|
|
|
|
|
Net unrealized gain
(loss) on digital assets
|
16,156,476
|
|
(39,957,814)
|
|
|
26,877,763
|
|
(29,009,140)
|
|
Net unrealized gain
(loss) on investments
|
17,044,180
|
|
(4,761,276)
|
|
|
28,676,078
|
|
(10,583,501)
|
|
Unrealized foreign
currency gain (loss)
|
(29,476)
|
|
(136,911)
|
|
|
(595,158)
|
|
143,687
|
|
Realized foreign
currency gain (loss)
|
(334,790)
|
|
16,704
|
|
|
(193,250)
|
|
(183,034)
|
|
|
32,836,390
|
|
(44,839,297)
|
|
|
54,765,433
|
|
(39,631,988)
|
|
|
|
|
|
|
|
Income (loss) for
the period
|
$
|
44,557,153
|
|
$
|
(68,225,016)
|
|
|
$
|
55,307,975
|
|
$
|
58,495,573
|
|
|
|
|
|
|
|
Income (loss)
attributed to:
|
|
|
|
|
|
Unit holders of the
Partnership
|
41,423,998
|
|
(63,531,407)
|
|
|
49,779,599
|
|
57,004,219
|
|
Non-controlling
interests
|
3,133,155
|
|
(4,693,609)
|
|
|
5,528,376
|
|
1,491,354
|
|
|
$
|
44,557,153
|
|
$
|
(68,225,016)
|
|
|
$
|
55,307,975
|
|
$
|
58,495,573
|
|
Other
comprehensive income (loss)
|
|
|
|
|
|
Foreign currency
translation adjustment
|
78,455
|
|
(13,128)
|
|
|
95,248
|
|
(101,396)
|
|
|
|
|
|
|
|
Net income (loss)
and comprehensive income (loss) for the period
|
$
|
44,635,608
|
|
$
|
(68,238,144)
|
|
|
$
|
55,403,223
|
|
$
|
58,394,177
|
|
|
|
|
|
|
|
Net income (loss)
and comprehensive income (loss) attributed to:
|
|
|
|
|
|
Unit holders of the
Partnership
|
$
|
41,502,453
|
|
$
|
(63,544,535)
|
|
|
$
|
49,874,847
|
|
$
|
56,902,823
|
|
Non-controlling
interests
|
3,133,155
|
|
5,797,856
|
|
|
5,528,376
|
|
1,491,354
|
|
|
$
|
44,635,608
|
|
$
|
(68,238,144)
|
|
|
$
|
55,403,223
|
|
$
|
58,394,177
|
|
Income and expenses by each reportable segment of GDH LP for the
three months ended September 30, 2020
are as follows:
|
Trading
|
Principal
Investments
|
Asset
Management
|
Investment
Banking
|
Corporate
and Other
|
Totals
|
Income
(loss)
|
|
|
|
|
|
|
Advisory and
management fees
|
$
|
—
|
|
$
|
—
|
|
$
|
1,277,050
|
|
$
|
267,150
|
|
$
|
—
|
|
$
|
1,544,200
|
|
Net realized gain
(loss) on digital assets
|
10,912,286
|
|
(439,118)
|
|
—
|
|
—
|
|
—
|
|
10,473,168
|
|
Net realized gain on
investments
|
—
|
|
15,818,968
|
|
—
|
|
—
|
|
—
|
|
15,818,968
|
|
Interest
Income
|
1,241,123
|
|
461,511
|
|
—
|
|
—
|
|
44
|
|
1,702,678
|
|
Net derivative
loss
|
(792,130)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(792,130)
|
|
|
11,361,279
|
|
15,841,361
|
|
1,277,050
|
|
267,150
|
|
44
|
|
28,746,884
|
|
|
|
|
|
|
|
|
Operating
expenses
|
5,925,256
|
|
1,132,163
|
|
3,436,517
|
|
1,323,317
|
|
5,208,868
|
|
17,026,121
|
|
|
|
|
|
|
|
|
Net unrealized gain
on digital assets
|
5,379,862
|
|
10,776,614
|
|
—
|
|
—
|
|
—
|
|
16,156,476
|
|
Net unrealized gain
on investments
|
—
|
|
17,044,180
|
|
—
|
|
—
|
|
—
|
|
17,044,180
|
|
Unrealized foreign
currency loss
|
(29,476)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(29,476)
|
|
Realized foreign
currency loss
|
(334,790)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(334,790)
|
|
|
5,015,596
|
|
27,820,794
|
|
—
|
|
—
|
|
—
|
|
32,836,390
|
|
|
|
|
|
|
|
|
Net income (loss)
for the period, including non-controlling interests
|
$
|
10,451,619
|
|
$
|
42,529,992
|
|
$
|
(2,159,467)
|
|
$
|
(1,056,167)
|
|
$
|
(5,208,824)
|
|
$
|
44,557,153
|
|
Income and expenses by each reportable segment of GDH LP for the
three months ended September 30, 2019
are as follows:
|
Trading
|
Principal
Investments
|
Asset
Management
|
Investment
Banking
|
Corporate
and Other
|
Totals
|
Income
(loss)
|
|
|
|
|
|
|
Advisory and
management fees
|
$
|
—
|
|
$
|
—
|
|
$
|
1,260,725
|
|
$
|
—
|
|
$
|
—
|
|
$
|
1,260,725
|
|
Net realized loss on
digital assets
|
(8,073,212)
|
|
(459,151)
|
|
—
|
|
—
|
|
—
|
|
(8,532,363)
|
|
Net realized loss on
investments
|
—
|
|
(18,159)
|
|
—
|
|
—
|
|
—
|
|
(18,159)
|
|
Interest
Income
|
327,933
|
|
927,524
|
|
—
|
|
16,556
|
|
218
|
|
1,272,231
|
|
Net derivative gain
(loss)
|
5,008,525
|
|
190,000
|
|
(11,250)
|
|
—
|
|
—
|
|
5,187,275
|
|
|
(2,736,754)
|
|
640,214
|
|
1,249,475
|
|
16,556
|
|
218
|
|
(830,291)
|
|
|
|
|
|
|
|
|
Operating
expenses
|
7,268,827
|
|
1,576,050
|
|
4,181,199
|
|
1,578,080
|
|
7,951,272
|
|
22,555,428
|
|
|
|
|
|
|
|
|
Net unrealized loss
on digital assets
|
(33,151,646)
|
|
(6,806,168)
|
|
—
|
|
—
|
|
—
|
|
(39,957,814)
|
|
Net unrealized loss
on investments
|
—
|
|
(4,761,276)
|
|
—
|
|
—
|
|
—
|
|
(4,761,276)
|
|
Unrealized foreign
currency loss
|
(136,911)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(136,911)
|
|
Realized foreign
currency gain
|
16,704
|
|
—
|
|
—
|
|
—
|
|
—
|
|
16,704
|
|
|
(33,271,853)
|
|
(11,567,444)
|
|
—
|
|
—
|
|
—
|
|
(44,839,297)
|
|
|
|
|
|
|
|
|
Net loss for the
period, including non-controlling interests
|
$
|
(43,277,434)
|
|
$
|
(12,503,280)
|
|
$
|
(2,931,724)
|
|
$
|
(1,561,524)
|
|
$
|
(7,951,054)
|
|
$
|
(68,225,016)
|
|
Assets and liabilities by reportable segment of GDH LP as of
September 30, 2020 are as
follows:
|
Trading
|
Principal
Investments
|
Asset
Management
|
Investment
Banking
|
Corporate and
Other
|
Totals
|
Total
assets
|
$
|
218,388,530
|
|
$
|
291,835,575
|
|
$
|
5,012,174
|
|
$
|
1,801,917
|
|
$
|
19,211,305
|
|
$
|
536,249,501
|
|
|
|
|
|
|
|
|
Total
liabilities
|
$
|
71,822,898
|
|
$
|
246,793
|
|
$
|
6,589,594
|
|
$
|
43,281
|
|
$
|
11,976,436
|
|
$
|
90,679,002
|
|
Assets and liabilities by reportable segment of GDH LP as of
December 31, 2019 are as follows:
|
Trading
|
Principal
Investments
|
Asset
Management
|
Investment
Banking
|
Corporate and
Other
|
Totals
|
Total
assets
|
$
|
177,226,904
|
|
$
|
199,678,202
|
|
$
|
1,415,135
|
|
$
|
1,102,055
|
|
$
|
23,356,825
|
|
$
|
402,779,121
|
|
|
|
|
|
|
|
|
Total
liabilities
|
$
|
30,329,154
|
|
$
|
403,187
|
|
$
|
1,377,492
|
|
$
|
96,273
|
|
$
|
15,468,450
|
|
$
|
47,674,556
|
|
Select statement of financial position information
The fair value of each asset class by reporting segment of GDH
LP as of September 30, 2020 is as
follows:
|
Trading
|
Principal
Investments
|
Asset
Management
|
Investment
Banking
|
Corporate and
Other
|
Totals
|
Digital
assets:
|
|
|
|
|
|
|
Cryptocurrency
|
$
|
137,764,820
|
|
$
|
87,083,128
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
224,847,948
|
|
Digital assets posted
as collateral
|
16,768,600
|
|
—
|
|
—
|
|
—
|
|
—
|
|
16,768,600
|
|
Investments:
|
|
|
|
|
|
|
Pre-ICO
|
—
|
|
5,757,327
|
|
—
|
|
—
|
|
—
|
|
5,757,327
|
|
Convertible
Notes
|
—
|
|
7,570,019
|
|
—
|
|
—
|
|
—
|
|
7,570,019
|
|
Preferred
Stock
|
—
|
|
90,061,363
|
|
—
|
|
—
|
|
—
|
|
90,061,363
|
|
Common Stock
|
—
|
|
20,927,242
|
|
—
|
|
—
|
|
—
|
|
20,927,242
|
|
LP/LLC
Interests
|
—
|
|
64,346,281
|
|
—
|
|
—
|
|
—
|
|
64,346,281
|
|
Warrants/Trust
Units/Trust Shares
|
11,455,702
|
|
554,719
|
|
—
|
|
—
|
|
—
|
|
12,010,421
|
|
|
$
|
165,989,122
|
|
$
|
276,300,079
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
442,289,201
|
|
The fair value of each asset class by reporting segment of GDH
LP as of December 31, 2019 is as
follows:
|
Trading
|
Principal
Investments
|
Asset
Management
|
Investment
Banking
|
Corporate and
Other
|
Totals
|
Digital
assets:
|
|
|
|
|
|
|
Cryptocurrency
|
$
|
53,882,704
|
|
$
|
32,098,027
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
85,980,731
|
|
Digital assets posted
as collateral
|
8,208,653
|
|
—
|
|
—
|
|
—
|
|
—
|
|
8,208,653
|
|
Investments:
|
|
|
|
|
|
|
Pre-ICO
|
—
|
|
6,005,114
|
|
—
|
|
—
|
|
—
|
|
6,005,114
|
|
Convertible
Notes
|
—
|
|
5,255,579
|
|
—
|
|
—
|
|
—
|
|
5,255,579
|
|
Preferred
Stock
|
—
|
|
75,703,153
|
|
—
|
|
—
|
|
—
|
|
75,703,153
|
|
Common
Stock
|
—
|
|
32,476,631
|
|
—
|
|
—
|
|
—
|
|
32,476,631
|
|
LP/LLC
Interests
|
—
|
|
38,120,805
|
|
—
|
|
—
|
|
—
|
|
38,120,805
|
|
Warrants/Trust
Units
|
—
|
|
602,138
|
|
—
|
|
—
|
|
—
|
|
602,138
|
|
|
$
|
62,091,357
|
|
$
|
190,261,447
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
252,352,804
|
|
This press release should be read in conjunction with (i) GDH
LP's Management Discussion and Analysis and Consolidated Financial
Statements for the three and nine months ended September 30, 2020 and (ii) GDH Ltd.'s Management
Discussion and Analysis and Consolidated Financial Statements for
the three and nine months ended September
30, 2020 (together, the "Consolidated Financial Statements"
and "MD&As"), which have been filed on SEDAR at
www.sedar.com.
Grant of Stock Options
In the fourth quarter 2020, the
Company intends to grant an aggregate of 9,600,000 stock options to
acquire ordinary shares of the Company (the "Options") pursuant to
the Company's amended and restated stock option plan.
8,900,000 of the Options will be granted to new officers joining
the Company and 700,000 of the Options will be granted to new
employees and will be priced at the greater of C$3.50 or fair market value at the time of grant.
150,000 options will be granted to the new manager on the Board of
managers and will be priced at fair market value at the time of
grant. The Options are exercisable for a period of five years from
the date of grant.
About GDH Ltd. and GDH LP (Galaxy Digital)
Galaxy
Digital Holdings Ltd.'s only significant asset is a minority
investment in GDH LP. GDH LP is a diversified, financial services
and investment management company in the digital asset,
cryptocurrency and blockchain technology sector. GDH LP's
multi-disciplinary team has extensive experience spanning
investing, portfolio management, capital markets, operations, and
blockchain technology. GDH LP currently operates four distinct
business lines, which include: Trading, Asset Management, Principal
Investments and Investment Banking. The CEO of GDH Ltd. and the
general partner of GDH LP is Michael
Novogratz. GDH LP is headquartered in New York City, with offices in Tokyo, Japan, London, England, Hong Kong, Jersey
City, U.S., San Francisco,
U. S., and the Cayman Islands
(registered office). Additional information about GDH LP's
businesses and products is available on www.galaxydigital.io.
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 Digital.
The Company listed on the TSX via TSX Sandbox, an initiative
intended to facilitate listing applications that may not satisfy
the original listing requirements of TSX, but due to facts or
situations unique to a particular issuer otherwise warrant a
listing on TSX. The TSX has exercised its discretion to waive the
requirements of subsection 309(c)(i) of its manual (C$10 million in
treasury resulting from public raise) which the Company did not
meet and has approved the listing of the Company pursuant to TSX
Sandbox. Galaxy Digital's approval pursuant to TSX Sandbox was
conditioned upon public filing of an Annual Information Form and
prominent quarterly disclosure of digital assets and investments,
which the Company has completed and agreed to continue to provide.
The Company will remain listed pursuant to TSX Sandbox until such
time as it has completed a twelve-month period without significant
compliance issues after graduation. In addition, Galaxy Digital is
required to disclose the following two risk factors that were also
included in the most recent Annual Information Form for the
year-ended 2019: (1) The Company has limited operating history and
its business lines are nascent and subject to material legal,
regulatory, operational and other risks in every jurisdiction; and
(2) the market price and trading volume of the Company's ordinary
shares has been volatile and will likely continue to be so in
response to, among other factors, market fluctuations in digital
assets generally or the digital assets that Galaxy Digital holds or
trades.
The performance of the Bitcoin Funds and the Index Fund will
vary from the performance of their respective indices. BLOOMBERG is
a trademark or service mark of Bloomberg Finance L.P. GALAXY is a
trademark of GDCM. Bloomberg Finance L.P. and its affiliates
(collectively, Bloomberg) are not affiliated with GDCM, the GBCIF,
the Bitcoin Funds and their respective affiliates (collectively,
Galaxy). Bloomberg's association with Galaxy is to act as the
administrator and calculation agent of the CFIX and the BGCI
(collectively, the "Index"), which is the property of Bloomberg.
Neither Bloomberg nor Galaxy guarantee the timeliness,
accurateness, or completeness of any data or information relating
to the Index or results to be obtained. Neither Bloomberg nor
Galaxy make any warranty, express or implied, as to the Index, any
data or values relating thereto or any financial product or
instrument linked to, using as a component thereof or based on the
Index (Products) or results to be obtained therefrom, and expressly
disclaims all warranties of merchantability and fitness for a
particular purpose with respect thereto. To the maximum extent
allowed by law, Bloomberg, its licensees, Galaxy, and their
respective employees, contractors, agents, suppliers, and vendors
shall have no liability or responsibility whatsoever for any injury
or damages—whether direct, indirect, consequential, incidental,
punitive, or otherwise—arising in connection with the Index, any
data or values relating thereto or any Products—whether arising
from their negligence or otherwise.
Forward-Looking Statements
Certain information in this press release, including, but not
limited to, statements regarding the digital asset opportunity set
and momentum in the businesses, the Company or Partnership's
anticipated results and the use of proceeds for the PIPE, may
constitute forward looking information (collectively,
forward-looking statements), which can be identified by the use of
terms such as "may," "will," "should," "expect," "anticipate,"
"project," "estimate," "intend," "continue" or "believe" (or the
negatives) or other similar variations. Because of various risks
and uncertainties, including those referenced below, actual events
or results may differ materially from those reflected or
contemplated in such forward-looking statements. Forward looking
statements are subject to the risk that the global economy,
industry or the Company's businesses and investments do not perform
as anticipated, that revenue or expenses estimates may not be met
or may be materially less or more than those anticipated, that
trading momentum does not continue or the demand for trading
solutions declines, that expected fundraising for asset management
products is delayed, that advisory transactions may be modified or
not completed at all, that the mining business is not able to gain
traction with clients and partners and management's discretion to
reallocate the use of proceeds and those other risks contained in
the MD&A's and Annual Information Form (AIF) for the year ended
December 31, 2019. Factors that
could cause actual results of the Company and its businesses to
differ materially from those described in such forward-looking
statements include, but are not limited to, a decline in the
digital asset market or general economic conditions; the failure or
delay in the adoption of digital assets and the blockchain
ecosystem by institutions; a delay or failure in developing
infrastructure for the trading and mining businesses or achieving
mandates and gaining traction; failure to grow assets under
management and for advisory transactions, a decline in the
securities markets, an adverse development with respect to an
issuer or party to the transaction or failure to obtain a required
regulatory approval. In connection with the forward-looking
statements contained in this press release, the Company has made
assumptions that no significant events occur outside of the
Company's and Partnership's normal course of business.
Forward-looking statements are not guarantees of future
performance, accordingly, you should not put undue reliance on
forward-looking statements. Information identifying assumptions,
risks and uncertainties relating to the Company and the Partnership
are contained in Galaxy Digital's filings with the Canadian
securities regulators available at www.sedar.com. The
forward-looking statements in this press release are applicable
only as of the date of this release or as of the date specified in
the relevant forward-looking statement and Galaxy Digital
undertakes no obligation to update any forward-looking statement to
reflect events or circumstances after that date or to reflect the
occurrence of unanticipated events.
All figures are in U.S. Dollars unless
otherwise noted.
SOURCE Galaxy Digital Holdings Ltd.