Net comprehensive income1
increased over 1,100% since the Fourth Quarter 2019
Assets Under Management ("AUM")2 increased over
98% in the Fourth Quarter 2020
Counterparty trading volumes increased over 80% in the Fourth
Quarter 2020
Galaxy Digital is actively preparing for a
U.S. listing in the second half of 2021
Industry Veteran
Alex Ioffe joins as Chief Financial Officer, effective April 1, 2021
NEW YORK, March 30, 2021 /CNW/ - Galaxy Digital
Holdings Ltd. (TSX: GLXY) ("Galaxy Digital" the "Company" or "GDH
Ltd.") today released financial results for the year ended
December 31, 2020 for both itself and
Galaxy Digital Holdings LP (the "Partnership" or "GDH LP").
"I am proud to share the results of Galaxy Digital's
transformational fourth quarter, as net comprehensive income
increased over 1,100%, AUM increased over 98%, and counterparty
trading volumes increased over 80%," said Michael Novogratz, Founder and CEO of Galaxy
Digital. "That dramatic growth accelerated further into the first
quarter, which we expect to be another record quarter."
"Moreover, and as a key component of our growth strategy, I am
pleased to announce we are actively preparing for a U.S. listing in
the second half of 2021. I am also excited to welcome industry
veteran Alex Ioffe as our new Chief
Financial Officer, and I want to thank Ash Prithipaul for his
significant contributions and for leaving Galaxy well positioned
for even brighter days ahead. We believe our industry is at an
inflection point as we participate in a once in a lifetime secular
shift into cryptocurrencies as an institutionalized asset class.
Galaxy Digital is committed to leading our clients and the industry
through this transformation."
Select Financial Highlights for the Fourth Quarter 2020,
compared to Fourth Quarter 2019
- Net comprehensive income1 increased 1,175% to
$335.7 million, from a net
comprehensive loss of $31.2 million
in the prior year period.
-
- The increase was primarily a result of realized and unrealized
gains on digital assets and on investments, coupled with strong
contributions from our trading business, partially offset by higher
operating expenses.
- Income from our trading business increased 842% to $238.7 million, from a loss of $32.2 million in the prior period.
- Fair Value of Net Asset Holdings3 increased
272% to $813.5 million, from
$218.7 million in the prior year
period.
-
- The increase was primarily a result of unrealized gains on
digital assets and on investments.
- The Partnership had a material holding in bitcoin of
$433.0 million as of December 31, 2020, an increase of $351.8 million from December 31, 2019, excluding non-controlling
interests.
- Investments stood at $260.4
million as of December 31,
2020, an increase of $102.2
million from December 31,
2019. The change was primarily due to the increase in
unrealized gains and $39.3 million of
new capital deployed by the Principal Investments team during the
year, which were partially offset by the sale of some
investments.
Operating Highlights and Other Updates for the Fourth Quarter
2020, compared to Third Quarter 2020
- Galaxy Digital Trading ("GDT") generated a record in:
counterparty trading volumes, the size of its counterparty loan
book, and in gross counterparty loan book originations in the
fourth quarter 2020, compared to the third quarter 2020.
-
- In the quarter ended December 31,
2020, GDT counterparty volumes were up 80%+ sequentially
quarter over quarter and 230%+ year over year.
- In the quarter ended December 31,
2020, GDT's counterparty loan book grew in excess of 300% to
approximately $110 million, and the
Company grew gross counterparty loan originations in excess of 90%
to approximately $110 million.
- Galaxy Digital Asset Management ("GDAM") reported assets
under management ("AUM") of $807.3
million as of December 31,
2020, an increase of over 98% from $407.4 million as of September 30, 2020. AUM consisted of $482.3 million in GDAM's Galaxy Fund Management
products, and $325.0 million in the
Galaxy Interactive fund.
-
- Recent product launches include 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.
- Galaxy Bitcoin Fund, LP, Galaxy Institutional Bitcoin Fund, LP,
and Galaxy Institutional Bitcoin Fund, Ltd. (collectively the
"Bitcoin Funds") track the Bloomberg CFIX pricing of bitcoin
("XBT"), and the XBT returned 170.8% in the fourth quarter of 2020,
and 305.6% for the year ended December 31,
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"). The BGCI returned 120.5% in the fourth
quarter of 2020 and 276.7% for the year ended December 31, 2020.
- Galaxy Digital Investment Banking ("GDIB") continued to
make progress for clients across financing, mergers and
acquisitions, and other strategic matters, with several active
mandates in various stages of execution.
-
- GDIB recognized an advisory fee from serving as sell-side
advisor to Blockfolio on its announced sale to FTX Trading Limited
for $150.0 million, which closed in
October 2020. Blockfolio is a leading
mobile app for cryptocurrency portfolio tracking and management and
has over six million users globally.
- Principal Investments: The Company completed seven new
investments in companies and held approximately 70 investments
across 50 portfolio companies as of December
31, 2020.
_________________
|
1
|
Excluding
non-controlling interests ("NCI").
|
2
|
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.
|
3
|
This supplementary
financial measure is defined as Digital assets plus Investments,
less Digital assets sold short, less Investments sold short, less
Non-controlling interests.
|
Operating Highlights and Other Updates through March 22, 2021
- The Company has appointed Alex
Ioffe as its new Chief Financial Officer, effective
April 1, 2021. Mr. Ioffe was most
recently the CFO of Virtu Financial and prior to that spent over 15
years as CFO for the brokerage business at Interactive Brokers. Mr.
Ioffe is taking over the role from Ashwin
Prithipaul, who is stepping down to spend more time with his
family and will be remaining on through the second quarter of 2021
to ensure a smooth transition.
- Galaxy Digital Trading ("GDT") expects to generate
records in: counterparty trading volumes, the size of its
counterparty loan book, and in gross counterparty loan book
originations in the first quarter 2021.
-
- In the period between January 1,
2021 and March 22, 2021, GDT
counterparty trading volumes continued significant growth, up 40%+
from the quarter ended December 31,
2020, and over 270% year over year.
- GDT continued to experience strong growth in the Company's
counterparty loan book for the period from January 1, 2021 to March
22, 2021, increasing in excess of 240% to approximately
$380 million, and grew gross
counterparty loan originations in excess of 400% since December 31, 2020 to approximately $560 million.
- Galaxy Digital Asset Management ("GDAM") expects to
report preliminary assets under management ("AUM") of $1.24 billion as of March
22, 2021. AUM consisted of $911.0
million in GDAM's Galaxy Fund Management products, and
$325.0 million in the Galaxy
Interactive fund.
-
- Recent product launches include: the CI Galaxy Bitcoin ETF
(Ticker: BTCX), and the Galaxy Ethereum Funds. The Galaxy Ethereum
Funds track the newly launched Bloomberg Galaxy Ethereum Index
(Ticker: XET), the third in the Bloomberg-Galaxy family of
indices.
- In March 2021, Morgan Stanley
began offering its wealth management clients access to bitcoin
funds, including the Galaxy Bitcoin Fund LP, and the Galaxy
Institutional Bitcoin Fund LP.
- Galaxy Bitcoin Fund, LP, Galaxy Institutional Bitcoin Fund, LP,
and Galaxy Institutional Bitcoin Fund, Ltd. (collectively the
"Bitcoin Funds") track the Bloomberg CFIX pricing of bitcoin
("XBT"), and the XBT has returned 92.0% on a year-to-date basis
through March 22, 2021.
- Galaxy Benchmark Crypto Index Fund LP (the "Index Fund") is a
passively managed index fund which tracks the Bloomberg Galaxy
Crypto Index (the "BGCI"). The BGCI has returned 105.6% on a year
to date basis through March 22,
2021.
- Galaxy Digital Investment Banking ("GDIB") continued to
make progress for clients across financing, mergers and
acquisitions, and other strategic matters, with several active
mandates in various stages of execution.
-
- Key activities as of March 22,
2021 include consulting on a recent cryptocurrency company's
fundraising round.
- GDIB also acted as a Strategic Advisor in connection with a
public offering in the FinTech space.
- GDIB increased client coverage to 90%+ of its target
universe.
- Galaxy Digital Mining ("GDM") established its own
proprietary bitcoin mining operation, hosting its machines at a
third-party data center in the United
States, and has begun proprietary mining.
-
- GDM closed its first two mining financing deals.
- GDM has built a strong pipeline, speaking with over 70+
companies in the space.
- Principal Investments: The Company made 12 new
investments and now holds approximately 80 investments across
approximately 60 portfolio companies.
-
- The Company recognized a liquidity event of over $125 million from one of its portfolio companies
during the first quarter 2021.
- There was no significant change in the Company's digital asset
holdings (excluding non-controlling interests) since December 31, 2020, and the Company has, as a
result, benefited from the increase in asset prices since the start
of the year.
Select Financial Highlights for the Fiscal Year 2020 compared
to Fiscal Year 2019
- Net comprehensive income increased 1,396% to
$385.5 million, from $25.8 million in the prior year.
-
- The increase was primarily a result of realized and unrealized
gains on digital assets and on investments, coupled with strong
contributions from our trading business, partially offset by higher
operating expenses.
- Income from our trading business increased 202% to $270.9 million, from $89.6
million in the prior year.
- Fair Value of Net Asset Holdings increased 272% to
$813.5 million, from $218.7 million in the prior year.
-
- The increase was primarily a result of realized and unrealized
gains on digital assets and on investments.
- The Partnership had a material holding in bitcoin of
$433.0 million as of December 31, 2020, an increase of $351.8 million from December 31, 2019, excluding non-controlling
interests.
- Investments stood at $260.4
million as of December 31,
2020, an increase of $102.2
million from December 31,
2019. The change was primarily due to the increase in
unrealized gains and $39.3 million of
new capital deployed by the Principal Investments team during the
year, which were partially offset by the sale of some
investments.
Earnings Conference Call
An investor conference call will be held today, March 30, 2021 at 8:30 AM
Eastern Time. A live webcast with the ability to ask
questions will be available at:
https://www.galaxydigital.io/investor-relations/ or directly at:
http://public.viavid.com/index.php?id=143959. The conference call
can also be accessed by investors in the
United States or Canada by
dialing 1-877-407-0789, or 1-201-689-8562 (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 27, 2021, the recording will
also be available by dialing +1-844-512-2921, or 1-412-317-6671
(outside the U.S. and Canada)
passcode: 13717682.
About Galaxy Digital Holdings Ltd. (TSX: GLXY) ("GDH
Ltd.") and Galaxy Digital Holdings LP ("GDH
LP")
GDH 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
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, Amsterdam, Netherlands, Jersey City, U.S., San Francisco, U.S., Chicago, U.S., and the Cayman Islands (registered office).
Additional information about GDH LP's businesses and products is
available on www.galaxydigital.io.
This press release should be read in conjunction with (i) GDH
LP's Management Discussion and Analysis and Consolidated Financial
Statements for year ended December 31,
2020 and (ii) GDH Ltd.'s Management Discussion and Analysis
and Consolidated Financial Statements for the year ended
December 31, 2020 (together, the
"Consolidated Financial Statements" and "MD&As"), which have
been filed on SEDAR at www.sedar.com.
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 2020: (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 Funds 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 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.
This press release contains certain pre-released 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 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
end accounting procedures and adjustments, 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.
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.
Forward-Looking Statements
Certain information in this
press release, including, but not limited to, statements regarding
the Company's listing plans, the Company and Partnership's
anticipated first quarter 2021 results, digital asset opportunity
set and momentum in the businesses, 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 and lending momentum does not
continue or the demand for trading and lending solutions declines,
that expected fundraising for asset management products is delayed
or not achieved, that investment banking transactions may be
modified or not completed at all, that the mining business is not
able to gain traction with clients and partners and those other
risks contained in the Annual Information Form (AIF) for the year
ended December 31, 2020.
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, mining and investment
banking businesses or achieving mandates and gaining traction and
the failure to grow assets under management. 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.
Galaxy Digital Holdings LP's Financial Results
|
December 31,
2020
|
|
December 31,
2019
|
Assets
|
|
|
|
Current
assets
|
|
|
|
Cash
|
$
|
135,765,978
|
|
$
|
106,262,780
|
Digital
assets
|
850,380,264
|
|
85,980,731
|
Investments
|
260,383,297
|
|
158,163,420
|
Receivable for digital
asset trades
|
13,204,252
|
|
330,609
|
Digital asset loans
receivable
|
96,723,981
|
|
16,061,945
|
Digital assets
receivables
|
12,813,006
|
|
—
|
Assets posted as
collateral
|
15,768,380
|
|
10,585,819
|
Receivables
|
2,710,424
|
|
1,853,169
|
Due from
broker
|
4,452,369
|
|
16,590
|
Derivatives
|
15,921,618
|
|
—
|
Prepaid expenses and
other assets
|
6,493,753
|
|
2,563,665
|
Goodwill
|
15,514,746
|
|
—
|
Loans
receivable
|
8,509,587
|
|
11,719,738
|
|
1,438,641,655
|
|
393,538,466
|
|
|
|
|
Digital assets
receivables
|
6,911,175
|
|
—
|
Right of use
asset
|
4,573,229
|
|
5,182,993
|
Property and
equipment
|
3,693,301
|
|
4,057,662
|
Intangible
asset
|
2,406,000
|
|
—
|
|
17,583,705
|
|
9,240,655
|
Total
assets
|
$
|
1,456,225,360
|
|
$
|
402,779,121
|
|
|
|
|
Liabilities
|
|
|
|
Current
liabilities
|
|
|
|
Digital assets sold
short
|
$
|
5,277,878
|
|
$
|
18,616,860
|
Investments sold
short
|
4,384,290
|
|
—
|
Warrant
liability
|
20,781,207
|
|
—
|
Accounts payable and
accrued liabilities
|
34,153,778
|
|
11,719,494
|
Payable for digital
asset trades
|
31,144,419
|
|
250,158
|
Digital asset loans
payable
|
226,398,948
|
|
11,134,329
|
Collateral
payable
|
44,660,149
|
|
434,498
|
Lease
liability
|
742,333
|
|
772,003
|
|
367,543,002
|
|
42,927,342
|
|
|
|
|
Lease
liability
|
4,515,389
|
|
4,747,214
|
Total
liabilities
|
372,058,391
|
|
47,674,556
|
|
|
|
|
Equity
|
|
|
|
Partners'
capital
|
798,211,451
|
|
347,785,081
|
Non-controlling
interests
|
285,955,518
|
|
7,319,484
|
Total
equity
|
1,084,166,969
|
|
355,104,565
|
|
|
|
|
Total liabilities
and equity
|
$
|
1,456,225,360
|
|
$
|
402,779,121
|
|
Three months
ended
December 31, 2020
|
Three
months
ended
December 31, 2019
|
Year ended
December 31,
2020
|
Year ended
December 31,
2019
|
Income
(loss)
|
|
|
|
|
Advisory and
management fees
|
$
|
5,013,198
|
$
|
1,218,883
|
$
|
9,615,240
|
$
|
5,329,819
|
Net realized gain
(loss) on digital assets
|
250,269,733
|
(35,066,657)
|
271,108,044
|
71,971,480
|
Net realized gain
(loss) on investments
|
(605,241)
|
(160,116)
|
10,795,869
|
37,922,360
|
Interest
income
|
1,720,377
|
1,331,531
|
6,131,988
|
4,229,684
|
Net derivative gain
(loss)
|
(250,495)
|
1,538,481
|
5,699,318
|
12,425,065
|
Other
income
|
678,133
|
464,554
|
809,502
|
464,554
|
|
256,825,705
|
(30,673,324)
|
304,159,961
|
132,342,962
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
Equity based
compensation
|
3,599,871
|
4,689,425
|
11,851,120
|
28,131,160
|
Compensation and
compensation related
|
14,793,549
|
6,348,951
|
34,163,813
|
28,579,918
|
General and
administrative
|
6,060,336
|
2,785,227
|
15,126,938
|
12,660,376
|
Professional
fees
|
2,683,852
|
2,291,376
|
7,663,579
|
8,177,491
|
Interest
|
5,590,456
|
868,364
|
9,729,199
|
3,133,143
|
Insurance
|
234,785
|
282,109
|
1,090,000
|
1,322,089
|
Director
fees
|
118,607
|
50,000
|
248,522
|
200,000
|
|
(33,081,456)
|
(17,315,452)
|
(79,873,171)
|
(82,204,177)
|
|
|
|
|
|
Net unrealized gain
(loss) on digital assets
|
212,842,043
|
17,036,050
|
239,719,806
|
(11,973,090)
|
Net unrealized gain
(loss) on investments
|
61,911,034
|
(1,937,647)
|
90,587,112
|
(12,521,148)
|
Net unrealized loss
on warrant liability
|
(14,318,125)
|
—
|
(14,318,125)
|
—
|
Unrealized foreign
currency gain (loss)
|
77,716
|
4,299
|
(517,442)
|
147,986
|
Realized foreign
currency loss
|
(677,506)
|
(14,031)
|
(870,755)
|
(197,065)
|
|
259,835,162
|
15,088,671
|
314,600,596
|
(24,543,317)
|
|
|
|
|
|
Income (loss) for
the period
|
$
|
483,579,411
|
$
|
(32,900,105)
|
$
|
538,887,386
|
$
|
25,595,468
|
|
|
|
|
|
Income (loss)
attributed to:
|
|
|
|
|
Unit holders of the
Partnership
|
$
|
335,722,632
|
$
|
(31,233,915)
|
$
|
385,502,231
|
$
|
25,770,304
|
Non-controlling
interests
|
147,856,779
|
(1,666,190)
|
153,385,155
|
(174,836)
|
|
$
|
483,579,411
|
$
|
(32,900,105)
|
$
|
538,887,386
|
$
|
25,595,468
|
Other
comprehensive income (loss)
|
|
|
|
|
Foreign currency
translation adjustment
|
$
|
(78,632)
|
$
|
355,844
|
$
|
16,615
|
$
|
254,448
|
|
|
|
|
|
Comprehensive
income (loss) for the period
|
$
|
483,500,779
|
$
|
(32,544,261)
|
$
|
538,904,001
|
$
|
25,849,916
|
|
|
|
|
|
Comprehensive
income (loss) attributed to:
|
|
|
|
|
Unit holders of the
Partnership
|
$
|
335,644,000
|
$
|
(30,878,071)
|
$
|
385,518,846
|
$
|
26,024,752
|
Non-controlling
interests
|
147,856,779
|
(1,666,190)
|
153,385,155
|
(174,836)
|
|
$
|
483,500,779
|
$
|
(32,544,261)
|
$
|
538,904,001
|
$
|
25,849,916
|
Income and expenses by each reportable segment of GDH LP for the
three months ended December 31, 2020
are as follows:
|
Trading
|
Principal
Investments
|
Asset
Management
|
Investment
Banking
|
Mining
|
Corporate
and
Other
|
Totals
|
Income
(loss)
|
|
|
|
|
|
|
|
Advisory and
management fees
|
$
|
25,527
|
$
|
—
|
$
|
1,519,241
|
$
|
3,468,430
|
$
|
—
|
$
|
—
|
$
|
5,013,198
|
Net realized gain on
digital assets
|
236,158,249
|
2,493,599
|
11,617,885
|
—
|
—
|
—
|
250,269,733
|
Net realized loss on
investments
|
—
|
(605,241)
|
—
|
—
|
—
|
—
|
(605,241)
|
Interest
Income
|
2,068,268
|
(379,720)
|
—
|
31,631
|
—
|
198
|
1,720,377
|
Net derivative
gain
|
(250,495)
|
—
|
—
|
—
|
—
|
—
|
(250,495)
|
Other Income
(loss)
|
732,714
|
21,788
|
(44,993)
|
(31,376)
|
—
|
—
|
678,133
|
|
238,734,263
|
1,530,426
|
13,092,133
|
3,468,685
|
—
|
198
|
256,825,705
|
|
|
|
|
|
|
|
|
Operating
expenses
|
14,033,168
|
269,519
|
5,917,765
|
1,123,901
|
492,262
|
11,244,841
|
33,081,456
|
|
|
|
|
|
|
|
|
Net unrealized gain
on digital assets
|
70,314,704
|
8,280,090
|
134,247,249
|
—
|
—
|
—
|
212,842,043
|
Net unrealized gain
on investments
|
—
|
61,911,034
|
—
|
—
|
—
|
—
|
61,911,034
|
Net unrealized loss
on warrants
|
—
|
(14,318,125)
|
—
|
—
|
—
|
—
|
(14,318,125)
|
Unrealized foreign
currency gain
|
77,716
|
—
|
—
|
—
|
—
|
—
|
77,716
|
Realized foreign
currency loss
|
(677,506)
|
—
|
—
|
—
|
—
|
—
|
(677,506)
|
|
69,714,914
|
55,872,999
|
134,247,249
|
—
|
—
|
—
|
259,835,162
|
|
|
|
|
|
|
|
|
Net income (loss)
for the period, including non-controlling interests
|
$
|
294,416,009
|
$
|
57,133,906
|
$
|
141,421,617
|
$
|
2,344,784
|
$
|
(492,262)
|
$
|
(11,244,643)
|
$
|
483,579,411
|
Income and expenses by each reportable segment of GDH LP for the
three months ended December 31, 2019
are as follows:
|
Trading
|
Principal
Investments
|
Asset
Management
|
Investment
Banking
|
Corporate
and
Other
|
Totals
|
Income
(loss)
|
|
|
|
|
|
|
Advisory and
management fees
|
$
|
—
|
$
|
—
|
$
|
1,218,883
|
$
|
—
|
$
|
—
|
$
|
1,218,883
|
Net realized loss on
digital assets
|
(34,190,245)
|
(876,412)
|
—
|
—
|
—
|
(35,066,657)
|
Net realized loss on
investments
|
—
|
(160,116)
|
—
|
—
|
—
|
(160,116)
|
Interest
Income
|
337,871
|
977,179
|
—
|
16,276
|
205
|
1,331,531
|
Net derivative
gain
|
1,674,510
|
—
|
—
|
—
|
—
|
1,674,510
|
Other
Income
|
5,816
|
210,000
|
(11,266)
|
123,975
|
—
|
328,525
|
|
(32,172,048)
|
150,651
|
1,207,617
|
140,251
|
205
|
(30,673,324)
|
|
|
|
|
|
|
|
Operating
expenses
|
6,413,231
|
1,805,820
|
3,164,866
|
731,256
|
5,200,279
|
17,315,452
|
|
|
|
|
|
|
|
Net unrealized gain
(loss) on digital assets
|
21,898,982
|
(4,862,932)
|
—
|
—
|
—
|
17,036,050
|
Net unrealized loss
on investments
|
—
|
(1,937,647)
|
—
|
—
|
—
|
(1,937,647)
|
Unrealized foreign
currency gain
|
4,299
|
—
|
—
|
—
|
—
|
4,299
|
Realized foreign
currency loss
|
(14,031)
|
—
|
—
|
—
|
—
|
(14,031)
|
|
21,889,250
|
(6,800,579)
|
—
|
—
|
—
|
15,088,671
|
|
|
|
|
|
|
|
Net loss for the
period, including non-controlling interests
|
$
|
(16,696,029)
|
$
|
(8,455,748)
|
$
|
(1,957,249)
|
$
|
(591,005)
|
$
|
(5,200,074)
|
$
|
(32,900,105)
|
Assets and liabilities by reportable segment of GDH LP as of
December 31, 2020 are as follows:
|
Trading
|
Principal
Investments
|
Asset
Management
|
Investment
Banking
|
Mining
|
Corporate and
Other
|
Totals
|
Total
assets
|
$
|
750,207,683
|
$
|
357,529,140
|
$
|
307,720,036
|
$
|
7,120,603
|
$
|
3,633,111
|
$
|
30,014,787
|
$
|
1,456,225,360
|
|
|
|
|
|
|
|
|
Total
liabilities
|
$
|
333,320,691
|
$
|
101,160
|
$
|
18,170,148
|
$
|
22,374
|
$
|
—
|
$
|
20,444,018
|
$
|
372,058,391
|
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
|
$
|
177,234,992
|
$
|
192,890,378
|
$
|
8,194,871
|
$
|
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 December 31, 2020 is as
follows:
|
Trading
|
Principal
Investments
|
Asset
Management
|
Investment
Banking
|
Mining
|
Corporate and
Other
|
Totals
|
Digital
assets
|
$
|
444,215,956
|
$
|
118,555,236
|
$
|
287,609,072
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
850,380,264
|
Digital assets
receivable
|
—
|
19,724,181
|
—
|
—
|
—
|
—
|
19,724,181
|
Digital assets posted
as collateral
|
15,624,879
|
—
|
—
|
—
|
—
|
—
|
15,624,879
|
Investments:
|
|
|
|
|
|
|
|
Pre-ICO
|
—
|
500,000
|
—
|
—
|
—
|
—
|
500,000
|
Convertible
Notes
|
—
|
4,501,295
|
—
|
—
|
—
|
—
|
4,501,295
|
Preferred
Stock
|
—
|
86,258,050
|
—
|
—
|
—
|
—
|
86,258,050
|
Common Stock
|
—
|
29,970,097
|
—
|
—
|
—
|
—
|
29,970,097
|
LP/LLC
Interests
|
—
|
84,311,034
|
—
|
—
|
—
|
—
|
84,311,034
|
Warrants/Trust
Units/Trust Shares
|
51,181,618
|
3,661,203
|
—
|
—
|
—
|
—
|
54,842,821
|
|
$
|
511,022,453
|
$
|
347,481,096
|
$
|
287,609,072
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
1,146,112,621
|
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
|
$
|
53,882,704
|
$
|
25,318,291
|
$
|
6,779,736
|
$
|
—
|
$
|
—
|
$
|
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
|
$
|
183,481,711
|
$
|
6,779,736
|
$
|
—
|
$
|
—
|
$
|
252,352,804
|
All figures are in U.S. Dollars unless
otherwise noted.
SOURCE Galaxy Digital Holdings Ltd.