Comprehensive
Income1 increased over
650% in the Fourth Quarter 2020
Counterparty trading volumes increased over
80% in the Fourth Quarter 2020
Net Book Value Per
Share2 increased over 75%
in the Fourth Quarter 2020
Assets Under Management ("AUM") increased over
100% in the Fourth Quarter 2020
NEW YORK, Feb. 24, 2021 /CNW/ - Galaxy Digital Holdings
Ltd. (TSX: GLXY) (the "Company" or "GDH Ltd.") today
announced preliminary financial results for the quarter ended
December 31, 2020 for both itself and
Galaxy Digital Holdings LP (the "Partnership" or "GDH LP").
Given the material change in the operating environment of the
cryptocurrency and digital sector since the Company reported Q3
2020 earnings, as well as the shifts in digital asset prices, the
management team believes it is prudent to provide our stakeholders
with an update on our performance for the quarter ended
December 31, 2020 and 2021
year-to-date.
Select Financial Highlights for the fourth quarter of 2020,
ended December 31, 2020
- The Company expects to report Comprehensive Income1
for the quarter ended December 31,
2020 to exceed $325 million,
representing a sequential quarter-over-quarter increase of over
650%.
- The Company also expects that the Partnership's Net Book Value
Per Share2 as of December 31,
2020 increased in excess of 75% since September 30, 2020.
- The primary drivers of these results include appreciation in
the value of the Company's digital assets and other principal
investments, as well as increased counterparty trading volumes and
revenues.
Select Operational Highlights for the fourth quarter of 2020,
ended December 31, 2020
- Galaxy Digital Trading ("GDT") expects to report a sequential
quarter-over-quarter counterparty trading volume increase of
approximately over 80%.
- Galaxy Digital Lending ("GDL") expects to report that the
Company's counterparty loan book grew in excess of 300% to more
than $110 million and that the
Company grew gross counterparty loan originations in excess of 90%
to $110 million in the period ended
December 31, 2020.
- There was no significant change in the Company's digital asset
holdings3 during the fourth quarter of 2020, and the
Company has, as a result, benefited from the increase in asset
prices since September 30, 2020.
- Galaxy Digital Asset Management ("GDAM") AUM(a) as
of December 31, 2020 was
approximately $815 million,
representing an increase of over 100% since September 30, 2020.
- GDAM saw an increase of over 200% in investor subscription
transactions, representing an over 400% increase in dollar terms.
In December 2020, GDAM launched the
CI Galaxy Bitcoin Fund (Ticker: BTCG), a TSX-listed closed end
mutual fund, in partnership with CI Financial. Additionally, the
Bloomberg Galaxy Bitcoin Index (Ticker: BTC) went live, and GDAM
entered into two new distribution partnerships.
- The Company completed seven new investments in companies and
held approximately 70 investments across 50 portfolio companies as
of December 31, 2020.
Select Operational Highlights as of February 19, 2021
- GDT counterparty trading volumes continued significant growth
between January 1, 2021 and
February 19, 2021 and represented
approximately 93% of counterparty trading volumes for the quarter
ended December 31, 2020.
- GDL continued to experience strong growth in the Company's
counterparty loan book for the period from January 1, 2021 to February 19, 2021, increasing in excess of 230%
to approximately $370 million and
grew gross counterparty loan originations in excess of 234% to
approximately $367 million since
December 31, 2020.
- There was no significant change in the Company's digital asset
holdings4 since December 31,
2020, and the Company has, as a result, benefited from the
increase in asset prices since the start of the year.
- GDAM's AUM(a) currently stands at approximately
$1,180 million as of February 19, 2021, representing an increase of
approximately 45% since December 31,
2020.
- Recent GDAM product launches include the Galaxy Ethereum Funds
and the CI Galaxy Bitcoin ETF, for which Galaxy has been named
sub-advisor and a preliminary prospectus has been filed in
Canada. The Galaxy Ethereum Funds
will track the newly launched Bloomberg Galaxy Ethereum Index
(Ticker: ETH), the third in the Bloomberg-Galaxy family of
indices.
- In the period between January 1,
2021 and February 19, 2021,
the Company completed eight new investments in companies and now
holds approximately 78 investments across 55 portfolio companies,
spanning blockchain-based payments, institutional custody, retail
consumer services platforms, smart contract digitization services,
cyber security and blockchain surveillance, mining and
mining-related services, staking services, and various
decentralized protocols covering network scaling, exchange,
lending, and open-source code collaboration.
The Company cautions that the data in this press release is
preliminary, unaudited and subject to change as management
completes its year-end financial procedures and annual independent
audit. Further, the Company may elect to provide different key
operating and financial metrics in the future, given its evolving
business mix. The Company plans to announce its fourth quarter and
2020 year-end results at the end of March
2021.
(a)
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AUM is an internal
estimate inclusive of a sub-advised fund, committed capital in a
closed-end vehicle, and seed investments by affiliates. Changes in
AUM are generally the result of performance, contributions, and
withdrawals.
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Disclaimers and Additional Information
This press
release contains certain pre-released fourth quarter 2020 and first
quarter 2021 financial information (the "pre-released financial
information"). The pre-released financial information contained in
this press release are preliminary and represent the most current
information available to the Company's management, as the Company
completes its year-end financial procedures. The Company'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, being below or above the
figures indicated) as a result of the completion of normal quarter
and year end accounting procedures and adjustments and annual
independent audit, and also what one might expect to be in the
final consolidated financial statements based on the financial
information summarized in this press release. 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.
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 the Company.
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. The Company'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, the Company 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 the Company holds or
trades.
No offering is being made by this material. This communication
is provided as a general source of information and should not be
considered personal, legal, accounting, tax or investment advice,
or construed as an endorsement or recommendation of any entity or
security discussed. Individuals should seek the advice of
professionals, as appropriate, regarding any particular investment.
Investors should consult their professional advisors prior to
implementing any changes to their investment strategies.
BLOOMBERG is a trademark or service mark of Bloomberg Finance
L.P. GALAXY is a trademark of Galaxy Digital Capital Management LP
(GDCM). Bloomberg Finance L.P. and its affiliates (collectively,
Bloomberg) are not affiliated with GDCM, the Galaxy Funds and their
respective affiliates (collectively, Galaxy). Bloomberg's
association with Galaxy is to act as the administrator and
calculation agent of the Indices (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 Company or Partnership's
anticipated fourth quarter 2020 and first quarter 2021 results, 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 in the release are subject to the risk that the
pre-released financial information is revised as a result of the
completion of normal quarter and year end accounting procedures
and adjustments, 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 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.
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 the Company'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 the Company 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.
About GDH Ltd. and GDH LP
The Company'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. The Partnership operates in
the following businesses: Trading, Asset Management, Principal
Investments, Investment Banking and Mining. 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, Chicago,
Illinois, 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.
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1
Excluding non-controlling interests.
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2 Net book
value excludes non-controlling interests.
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3
Excluding non-controlling interests.
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4
Excluding non-controlling interests.
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All figures are in U.S. Dollars unless
otherwise noted.
SOURCE Galaxy Digital Holdings Ltd.