Partners' Capital decreased 11% in the quarter
amidst pronounced digital asset price declines
Counterparty trading volumes grew over 90% in
the quarter
Gross counterparty loan originations grew over
130% in the quarter
Assets Under Management
("AUM")1 increased 12% in the quarter
Investing in expansion through partnerships
and key leadership hires
NEW YORK, Aug. 16, 2021 /CNW/ - Galaxy Digital Holdings
Ltd. (TSX: GLXY) ("Galaxy Digital" the "Company" or "GDH Ltd.")
today released financial results for the three and six months ended
June 30, 2021 for both itself and
Galaxy Digital Holdings LP (the "Partnership" or "GDH LP").
"While the second quarter included significant volatility and
macro-related headwinds to near-term results, our core operating
activities including providing liquidity and execution services for
clients and counterparties, and our strategic investment portfolio,
delivered another quarter of rapid growth consistent with the pace
of adoption of the crypto economy," said Michael Novogratz, Founder and CEO of Galaxy
Digital.
"Even with the broad-based digital asset market declines within
the quarter, Galaxy again demonstrated strong counterparty trading
volume growth and continues to add more blue-chip partnerships
across the firm, most recently with Bloomberg and Goldman Sachs,"
Mr. Novogratz added.
Quarter-to-date Market and Company Updates, Third Quarter
2021:
- Since the end of the second quarter, total cryptocurrency
market capitalization has increased 33%2 and
institutional adoption trends have remained positive, reinforcing
our long-term thesis about the value and growth potential of this
asset class.
- Total value locked in decentralized finance (or "DeFi") for the
sector has increased over 30% quarter-to-date in the third quarter
20213.
- The 2021 Fidelity Digital Assets Institutional Investor Study
in July showed 71% of institutions expect to invest in digital
assets in the future, and 91% of those expecting to invest believe
it will be part of portfolios within the next five years.
- The Company continues to invest to drive growth through ongoing
product launches across the platform, including the Galaxy Vision
Hill Venture Fund-of-Funds I, the Galaxy Interactive Strategy, and
the live launch of Prime Services for select clients.
- As of July 31, 2021, Galaxy
Digital Asset Management reported preliminary
AUM1 that surpassed $1.6
billion.
- In June, the Company announced that it is serving as liquidity
provider for Goldman Sachs' Bitcoin futures block trades on the CME
Group, as Goldman expands its cryptocurrency offering.
- The Company has now deployed over $52
million of strategic capital into 14 different NFT-related
companies with direct investments and through Galaxy Interactive
Fund strategies.
- Key recent hires to fuel expansion include Tim Grant as Head of Europe and Jennifer
Lee as Chief People Officer.
______________________________
|
1
|
AUM is inclusive of
sub-advised funds, committed capital closed-end vehicles, seed
investments by affiliates, and fund of fund products associated
with the Vision Hill acquisition. Changes in AUM are generally
the result of performance, contributions, and
withdrawals.
|
2
|
Represents
coinmarketcap.com total cryptocurrency market capitalization quoted
price.
|
3
|
Represents total
value locked in DeFi according to defipulse.com.
|
Select Financial Highlights for the Second Quarter 2021,
compared to Second Quarter 2020
- Net comprehensive income4 decreased to a loss
of $175.8 million, from a net
comprehensive gain of $35.3 million
in the prior year period.
-
- During the quarter, our results were impacted by a
34%5 decline in overall digital asset prices and
a 41% decline in the price of Bitcoin, relative to the end of the
first quarter.
- While our core digital asset holdings experienced a
market-driven net loss during the quarter, these impacts were
offset in part by a combination of elevated counterparty trading
activity, gains in derivatives from hedging and other activities,
as well as continued strong growth across our operating businesses,
led by our market-neutral trading and liquidity provisioning.
- Furthermore, gains from our Principal Investments segment
increased to $214.1 million in the
quarter, and contributed significantly toward offsetting the impact
from broader digital asset price declines.
- Partners' Capital increased 320% to $1.5 billion, from $356.6
million at the end of the prior year period.
-
- During the quarter, Partners' Capital declined to $1.5 billion, from $1.7
billion, due to losses on our core long digital asset
positions. The 11% decline in Partners' Capital compared favorably
to short-term broader digital asset market declines and was offset
in part by gains in our investment portfolio, which grew to
$613 million from $351.6 million in the prior quarter.
- As of June 30, 2021, the
Partnership had a material net holding in Bitcoin of approximately
$550 million, excluding
non-controlling interests, versus $133.9
million at the end of the prior year period. The increase in
the value of holdings was primarily driven by the increase in
price, from the prior year end. As a reminder, we actively manage
our core digital asset holdings, including our material net Bitcoin
holding, to participate in the upside from favorable asset price
changes, and mitigate the impacts of adverse movements.
- During the quarter, the Partnership grew Cash
holdings6 to $410.2
million from $93.2 million in
the first quarter, as the firm realized gains from select
investments, and as short-term market declines allowed more
asset-intensive businesses to return liquidity to our core
treasury.
________________________________
|
4
|
Excluding
non-controlling interests ("NCI").
|
5
|
Represents
coinmarketcap.com total cryptocurrency market capitalization quoted
price.
|
6
|
Cash holdings reflect
Cash subject to trade settlement, as of June 30, 2021 in the amount
of $30 million.
|
Operating Highlights for the Second Quarter 2021, compared to
Second Quarter 2020
- Galaxy Digital Trading ("GDT") results reflected a solid
quarter, with continued growth in trading volumes and gross
counterparty loan originations in a period that included
significant volatility in digital asset prices.
-
- Counterparty trading volumes continued to experience
significant growth, increasing 90% from the quarter ended
March 31, 2021, and increasing over
560% year over year.
- Our electronic and derivatives liquidity provisioning, as well
as our quantitative trading strategies, demonstrated rapid growth
in-line with our counterparty-facing businesses, and delivered
increased profitability in the quarter amidst volatile market
conditions.
- While the Company's counterparty loan book decreased in the
quarter ending June 30, 2021 by 15%
to approximately $370 million due to
lower asset prices in the quarter, the Company grew gross
counterparty loan originations in excess of 130% since March 31, 2021 to approximately $1,560 million. The Company also experienced zero
defaults and continued to operate with an average collateralization
of over 100%, demonstrating consistent institutional-grade risk
management practices.
- GDT also onboarded 64 new counterparties to our trading
platform and continues to support additional tokens. We now provide
liquidity in 100 cryptocurrencies.
- Galaxy Digital Asset Management ("GDAM") reported
preliminary assets under management ("AUM") of $1.42 billion as of June
30, 2021, a 12% increase from the quarter ended March 31, 2021. AUM consisted of $933.0 million in GDAM's Galaxy Fund Management
products, and $489.6 million in the
Galaxy Interactive funds.
-
- Recent product launches include: Galaxy Vision Hill Venture
Fund of Funds I and the second Galaxy Interactive Fund.
- 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 20.37% on a year-to-date basis
through June 30, 2021.
- Galaxy Benchmark Crypto Index Fund LP (the "Index Fund") is a
passively managed index fund that tracks the Bloomberg Galaxy
Crypto Index (the "BGCI"). The BGCI has returned 90.58% on a
year-to-date basis through June 30,
2021.
- In May 2021, Galaxy Digital
acquired Vision Hill, a premier investment consultant and asset
manager in the digital asset sector, to create Galaxy Vision Hill.
This adds multi-manager, fund of fund offerings to the Company's
institutional asset management platform through the Galaxy Vision
Hill product suite. At acquisition, Galaxy Vision Hill has one fund
with $30 million in AUM.
- Galaxy Digital Investment Banking ("GDIB") was
instrumental in Galaxy Digital's acquisitions of BitGo Inc. and
Vision Hill, Inc., both of which were announced during the
quarter.
-
- GDIB is currently working on seven active mandates in various
stages of execution, with an active pipeline including many more
potential deals.
- Key activities as of June 30,
2021 include efforts primarily in capital raising, given the
significant amount of fundraising activity occurring throughout the
cryptocurrency and digital assets sector.
- Notably, GDIB won its first buy-side M&A engagement during
the quarter.
- Galaxy Digital Mining ("GDM") continued to expand both
its proprietary bitcoin mining operation and Mining Finance
("MiFi") offerings to support the full breadth of the mining
ecosystem, while publicizing ongoing commitments to managing its
carbon footprint and increasing the use of clean energy.
-
- GDM demonstrated continued business model flexibility through
both the execution of a resale agreement for its proprietary mining
equipment, and the development of a sale-leaseback offering for
large mining clients.
- GDM closed an additional bitcoin-based loan facility, its third
bitcoin-collateralized corporate loan to large public miners, for
Argo Blockchain.
- Proprietary mining operations in the second quarter of 2021
benefited from a decrease in network difficulty relative to the
first quarter of 2021.
- Based on forward purchase commitments, GDM continues to expect
to achieve up to 1,995 Petahash per second (PH/s) of mining
capacity from monthly deliveries through the end of 2022.
- GDM made public a dedication to managing its carbon footprint
and increasing the use of clean energy. As of June 30, 2021, GDM is utilizing sustainable
electricity power mix in excess of 69% and has a three-year target
to achieve an over-80% sustainable power mix.
- Principal Investments: The Company now holds 84
total investments across 68 portfolio companies.
-
- The Company made 14 new investments during the quarter, adding
new portfolio companies like Ramp, Tokemak and Aleo, all of which
we believe can be category-defining.
- Strong fundraising trends within the sector continue to provide
the company with flexibility to realize gains opportunistically. In
the quarter, the company realized an investment gain of over
$2 million from dividends received
from portfolio company Bullish Global in advance of its merger with
Far Peak Acquisition, a special purpose acquisition company, in
July 2021.
Corporate Updates
- Effective August 4, 2021, the
Company has successfully exited the TSX Sandbox program, having met
the applicable exit condition of no significant compliance issues
for a 12-month period.
- On August 12, 2021, the Company
announced the hiring of Tim Grant as
Head of Europe. Tim joins Galaxy
from Swiss Exchange SIX Group, where he was CEO of their digital
asset exchange SDX. Tim brings 20 years of experience across
crypto, fintech, and capital markets, and joins the Company to lead
international expansion efforts.
- The Company announced the hiring of Jennifer Lee as Chief People Officer. Jennifer
will join Galaxy Digital on September 27,
2021 from BlackRock, where she most recently served as
Managing Director and Global HR Business Partner for Technology and
the Chief Operating Officer. Jennifer brings over 20 years of
people management, benefits, and strategy experience, and joins the
Company to lead talent management and human resources
globally.
Earnings Conference Call
An investor conference call will be held today, August 16, 2021 at 8:30 AM
Eastern Time. A live webcast with the ability to ask
questions will be available at:
https://investor.galaxydigital.io/ or directly at:
http://public.viavid.com/index.php?id=145822. 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
September 6, 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: 13721694.
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, Amsterdam, 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 Condensed Consolidated
Interim Financial Statements for the three months and six months
ended June 30, 2021 and (ii) GDH
Ltd.'s Management Discussion and Analysis and Condensed
Consolidated Interim Financial Statements for the three months and
six months ended June 30, 2021
(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 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.
No Offer or Solicitation
This release shall not
constitute a solicitation of a proxy, consent or authorization with
respect to any securities or in respect of any of the proposed
reorganization and combination with BitGo. This release is for
informational purposes only and shall 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.
Additional Information
In connection with the proposed
reorganization and combination with BitGo, Galaxy will file a
registration statement, including a management circular/prospectus
and an information statement/prospectus, with the Securities and
Exchange Commission (the "SEC"). GALAXY AND BITGO SHAREHOLDERS ARE
ADVISED TO READ THE MANAGEMENT CIRCULAR/PROSPECTUS AND INFORMATION
STATEMENT/PROSPECTUS, RESPECTIVELY, WHEN SUCH DOCUMENTS BECOME
AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION.
Shareholders may obtain a free copy of the registration statement
and such other documents (when available) and any other relevant
documents filed with the SEC from the SEC's website at
http://www.sec.gov. Copies of the management circular/prospectus
and an information statement/prospectus can also be obtained, when
available, without charge, from Galaxy's website at
https://investor.galaxydigital.io/.
CAUTION ABOUT FORWARD-LOOKING STATEMENTS
The
information in this 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"). 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, including with
respect to mining capacity. Statements that are not historical
facts, including statements about the pending acquisition,
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. Forward-looking
statements in this release may include, for example, statements
about: our ability to complete the transactions within a particular
timeframe. The forward-looking statements contained in this report
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 occurrence of any event, change or other
circumstances that could result in the failure to consummate the
transactions; (2) the possibility that the terms and conditions set
forth in any definitive agreements with respect to the transactions
may differ materially from the terms and conditions set forth
herein; (3) the outcome of any legal proceedings that may be
instituted following the transactions and any definitive agreements
with respect thereto; (4) the inability to complete the
transactions due to the failure to satisfy conditions to closing in
the definitive agreements with respect to the transactions
including in respect of shareholder and stock exchange approvals;
(5) changes to the proposed structure of the transactions that may
be required or appropriate as a result of applicable laws or
regulations or as a condition to obtaining regulatory approval of
the transactions; (6) the ability to meet and maintain listing
standards following the consummation of the transactions; (7) the
risk that the transactions disrupts current plans and operations;
(8) costs related to the transactions; (9) changes in applicable
laws or regulations; (10) the possibility that the combined company
may be adversely affected by other economic, business, and/or
competitive factors; (11) changes or events that impact the
cryptocurrency industry, including potential regulation, that are
out of our control; (12) the risk that our business will not grow
in line with our expectations or continue on its current
trajectory; (13) the possibility that our addressable market is
smaller than we have anticipated and/or that we may not gain share
of it; (14) those other risks contained in the Annual Information
Form for the year ended December 31,
2020 available on the Company's profile at www.sedar.com and
(15) other risks and uncertainties to be indicated from time to
time in filings made with the SEC. 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.
Galaxy Digital Holdings LP's Financial Results
(in
thousands)
|
June 30,
2021
|
|
December 31,
2020
|
Assets
|
|
|
|
Current
assets
|
|
|
|
Cash
|
$
|
410,249
|
|
|
$
|
135,766
|
|
Digital
assets
|
1,579,665
|
|
|
850,380
|
|
Investments
|
613,005
|
|
|
260,383
|
|
Receivable for digital
asset trades
|
13,302
|
|
|
13,204
|
|
Digital asset loans
receivable
|
163,334
|
|
|
96,724
|
|
Digital assets
receivables
|
72,410
|
|
|
12,813
|
|
Assets posted as
collateral
|
41,377
|
|
|
15,768
|
|
Receivables
|
21,979
|
|
|
2,710
|
|
Due from
broker
|
150
|
|
|
4,452
|
|
Derivatives
|
34,329
|
|
|
15,922
|
|
Prepaid expenses and
other assets
|
40,121
|
|
|
6,494
|
|
Goodwill
|
24,645
|
|
|
15,515
|
|
Loans
receivable
|
110,474
|
|
|
8,510
|
|
|
3,125,040
|
|
|
1,438,641
|
|
|
|
|
|
Digital assets
receivables
|
18,927
|
|
|
6,911
|
|
Right of use
asset
|
4,268
|
|
|
4,573
|
|
Property and
equipment
|
6,105
|
|
|
3,693
|
|
Intangible
asset
|
1,971
|
|
|
2,406
|
|
|
31,271
|
|
|
17,583
|
|
Total
assets
|
$
|
3,156,311
|
|
|
$
|
1,456,224
|
|
|
|
|
|
Liabilities
|
|
|
|
Current
liabilities
|
|
|
|
Digital assets sold
short
|
$
|
1,412
|
|
|
$
|
5,278
|
|
Investments sold
short
|
10,704
|
|
|
4,384
|
|
Warrant
liability
|
50,045
|
|
|
20,781
|
|
Accounts payable and
accrued liabilities
|
144,039
|
|
|
34,154
|
|
Payables to
customers
|
150,829
|
|
|
—
|
|
Payable for digital
asset trades
|
54,225
|
|
|
31,144
|
|
Digital asset loans
payable
|
672,723
|
|
|
226,399
|
|
Loans
Payable
|
17,000
|
|
|
—
|
|
Collateral
payable
|
197,827
|
|
|
44,660
|
|
Lease
liability
|
710
|
|
|
742
|
|
|
1,299,514
|
|
|
367,542
|
|
|
|
|
|
Lease
liability
|
4,375
|
|
|
4,515
|
|
Total
liabilities
|
1,303,889
|
|
|
372,057
|
|
|
|
|
|
Equity
|
|
|
|
Partners'
capital
|
1,497,399
|
|
|
798,211
|
|
Non-controlling
interests
|
355,023
|
|
|
285,956
|
|
Total
equity
|
1,852,422
|
|
|
1,084,167
|
|
|
|
|
|
Total liabilities
and equity
|
$
|
3,156,311
|
|
|
$
|
1,456,224
|
|
(in
thousands)
|
Three
months
ended
June 30, 2021
|
Three
months
ended
June 30, 2020
|
Income
|
|
|
Advisory and
management fees
|
$
|
2,444
|
|
$
|
1,471
|
|
Net income from
digital asset mining
|
987
|
|
—
|
|
Leasing income from
mining equipment
|
632
|
|
—
|
|
Net realized gain
(loss) on digital assets
|
(161,112)
|
|
48,517
|
|
Net realized gain
(loss) on investments
|
41,363
|
|
(4,581)
|
|
Interest
income
|
16,835
|
|
1,270
|
|
Net derivative
gain
|
117,041
|
|
2,438
|
|
Other
income
|
3,357
|
|
—
|
|
|
21,547
|
|
49,115
|
|
|
|
|
Operating
expenses
|
|
|
Equity based
compensation
|
13,548
|
|
3,291
|
|
Compensation and
compensation related
|
(11,319)
|
|
5,810
|
|
General and
administrative
|
8,290
|
|
2,623
|
|
Professional
fees
|
11,527
|
|
1,368
|
|
Profit share
arrangement expense
|
8,033
|
|
—
|
|
Interest
|
18,467
|
|
1,260
|
|
Insurance
|
504
|
|
382
|
|
Director
fees
|
178
|
|
50
|
|
|
(49,228)
|
|
(14,784)
|
|
|
|
|
Net unrealized gain
(loss) on digital assets
|
(496,268)
|
|
(2,203)
|
|
Net unrealized gain
(loss) on investments
|
172,762
|
|
6,958
|
|
Revaluation of
warrant liability
|
2,663
|
|
—
|
|
Unrealized foreign
currency gain (loss)
|
(918)
|
|
(392)
|
|
Realized foreign
currency gain (loss)
|
(4)
|
|
(190)
|
|
|
(321,765)
|
|
4,173
|
|
|
|
|
Income (loss) for
the period
|
$
|
(349,446)
|
|
$
|
38,504
|
|
|
|
|
Income (loss)
attributed to:
|
|
|
Unit holders of the
Partnership
|
$
|
(175,834)
|
|
$
|
35,295
|
|
Non-controlling
interests
|
(173,612)
|
|
3,209
|
|
|
$
|
(349,446)
|
|
$
|
38,504
|
|
Other
comprehensive income
|
|
|
Foreign currency
translation adjustment
|
$
|
17
|
|
$
|
—
|
|
|
|
|
Comprehensive
income (loss) for the period
|
$
|
(349,429)
|
|
$
|
38,504
|
|
|
|
|
Comprehensive
income (loss) attributed to:
|
|
|
Unit holders of the
Partnership
|
$
|
(175,817)
|
|
$
|
35,295
|
|
Non-controlling
interests
|
(173,612)
|
|
3,209
|
|
|
$
|
(349,429)
|
|
$
|
38,504
|
|
Income and expenses by each reportable segment of GDH LP for the
three months ended June 30, 2021 are
as follows (in thousands):
|
Trading
|
Principal
Investments
|
Asset
Management
|
Investment
Banking
|
Mining
|
Corporate and Other
|
Totals
|
|
|
|
|
|
|
|
|
Advisory and
management fees
|
$
|
60
|
$
|
—
|
$
|
2,384
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
2,444
|
Net income from
digital
asset mining
|
—
|
—
|
—
|
—
|
987
|
—
|
987
|
Leasing income
from
mining equipment
|
—
|
—
|
—
|
—
|
632
|
—
|
632
|
Net realized gain
on
digital assets
|
(236,570)
|
(2,525)
|
77,983
|
—
|
—
|
—
|
(161,112)
|
Net realized gain
on
investments
|
—
|
41,363
|
—
|
—
|
—
|
—
|
41,363
|
Interest
income
|
16,816
|
19
|
—
|
—
|
—
|
—
|
16,835
|
Net derivative
gain
|
92,041
|
25,000
|
—
|
—
|
—
|
—
|
117,041
|
Other
income
|
1,220
|
2,062
|
75
|
—
|
—
|
—
|
3,357
|
|
(126,433)
|
65,919
|
80,442
|
—
|
1,619
|
—
|
21,547
|
|
|
|
|
|
|
|
|
Operating
expenses
|
33,746
|
1,316
|
5,794
|
336
|
618
|
7,418
|
49,228
|
|
|
|
|
|
|
|
|
Net unrealized gain
on
digital assets
|
(177,874)
|
(67,502)
|
(249,856)
|
—
|
(1,036)
|
—
|
(496,268)
|
Net unrealized gain
on
investments
|
—
|
172,762
|
—
|
—
|
—
|
—
|
172,762
|
Net unrealized loss
on
warrant liability
|
—
|
—
|
—
|
—
|
—
|
2,663
|
2,663
|
Unrealized
foreign
currency loss
|
(918)
|
—
|
—
|
—
|
—
|
—
|
(918)
|
Realized foreign
currency loss
|
(4)
|
—
|
—
|
—
|
—
|
—
|
(4)
|
|
(178,796)
|
105,260
|
(249,856)
|
—
|
(1,036)
|
2,663
|
(321,765)
|
|
|
|
|
|
|
|
|
Net income (loss)
for
the period, including
non-controlling
interests
|
$
|
(338,975)
|
$
|
169,863
|
$
|
(175,208)
|
$
|
(336)
|
$
|
(35)
|
$
|
(4,755)
|
$
|
(349,446)
|
Income and expenses by each reportable segment of GDH LP for the
three months ended June 30, 2020 are
as follows (in thousands):
|
Trading
|
Principal
Investments
|
Asset
Management
|
Investment
Banking
|
Corporate and Other
|
Totals
|
Income
(loss)
|
|
|
|
|
|
|
Advisory and
management fees
|
$
|
—
|
$
|
—
|
$
|
1,246
|
$
|
225
|
$
|
—
|
$
|
1,471
|
Net realized loss on
digital assets
|
48,710
|
(210)
|
17
|
—
|
—
|
48,517
|
Net realized gain on
investments
|
—
|
(4,581)
|
—
|
—
|
—
|
(4,581)
|
Interest
income
|
1,143
|
123
|
5
|
|
—
|
1,271
|
Net derivative
gain
|
2,438
|
—
|
—
|
—
|
—
|
2,438
|
|
52,291
|
(4,668)
|
1,268
|
225
|
—
|
49,116
|
|
|
|
|
|
|
|
Operating
expenses
|
4,810
|
789
|
3,003
|
769
|
5,413
|
14,784
|
|
|
|
|
|
|
|
Net unrealized gain
(loss) on
digital assets
|
(14,565)
|
9,137
|
3,225
|
—
|
—
|
(2,203)
|
Net unrealized gain
on
investments
|
—
|
6,958
|
—
|
—
|
—
|
6,958
|
Unrealized foreign
currency loss
|
(392)
|
—
|
—
|
—
|
—
|
(392)
|
Realized foreign
currency gain
|
(190)
|
—
|
—
|
—
|
—
|
(190)
|
|
(15,147)
|
16,095
|
3,225
|
—
|
—
|
4,173
|
|
|
|
|
|
|
|
Net loss for the
period,
including non-controlling
interests
|
$
|
32,334
|
$
|
10,638
|
$
|
1,490
|
$
|
(544)
|
$
|
(5,413)
|
$
|
38,505
|
Assets and liabilities by reportable segment of GDH LP as of
June 30, 2021 are as follows (in
thousands):
|
Trading
|
Principal
Investments
|
Asset
Management
|
Investment
Banking
|
Mining
|
Corporate and
Other
|
Totals
|
Total
assets
|
$
|
1,824,233
|
$
|
813,923
|
$
|
416,470
|
$
|
6,357
|
$
|
42,541
|
$
|
52,787
|
$
|
3,156,311
|
|
|
|
|
|
|
|
|
Total
liabilities
|
$
|
1,131,271
|
$
|
2,198
|
$
|
81,169
|
$
|
192
|
$
|
2,012
|
$
|
87,047
|
$
|
1,303,889
|
Assets and liabilities by reportable segment of GDH LP as of
December 31, 2020 are as follows (in
thousands):
|
Trading
|
Principal
Investments
|
Asset
Management
|
Investment
Banking
|
Mining
|
Corporate and
Other
|
Totals
|
Total
assets
|
$
|
751,138
|
$
|
357,529
|
$
|
307,720
|
$
|
6,190
|
$
|
3,633
|
$
|
30,014
|
$
|
1,456,224
|
|
|
|
|
|
|
|
|
Total
liabilities
|
$
|
333,321
|
$
|
101
|
$
|
18,170
|
$
|
22
|
$
|
—
|
$
|
20,443
|
$
|
372,057
|
Select statement of financial position information
The fair value of each asset class by reporting segment of GDH
LP as of June 30, 2021 is as follows
(in thousands):
|
Trading
|
Principal
Investments
|
Asset
Management
|
Investment
Banking
|
Mining
|
Corporate
and Other
|
Totals
|
Digital
assets
|
$
|
1,095,246
|
$
|
133,726
|
$
|
348,519
|
$
|
—
|
$
|
2,174
|
$
|
—
|
$
|
1,579,665
|
Digital assets
receivables
|
—
|
91,337
|
—
|
—
|
—
|
—
|
91,337
|
Digital assets posted
as
collateral
|
40,977
|
—
|
—
|
—
|
—
|
—
|
40,977
|
Investments:
|
|
|
|
|
|
|
|
Pre-Launch
network
|
—
|
3,138
|
—
|
—
|
—
|
—
|
3,138
|
Convertible
notes
|
|
7,032
|
|
|
|
|
7,032
|
Preferred
stock
|
—
|
178,848
|
—
|
—
|
—
|
—
|
178,848
|
Common stock
|
|
68,457
|
—
|
—
|
—
|
—
|
68,457
|
LP/LLC
interests
|
—
|
326,283
|
—
|
—
|
—
|
—
|
326,283
|
Warrants/Trust
units/Trust
shares
|
26,770
|
2,477
|
—
|
—
|
—
|
—
|
29,247
|
|
$
|
1,162,993
|
$
|
811,298
|
$
|
348,519
|
$
|
—
|
$
|
2,174
|
$
|
—
|
$
|
2,324,984
|
The fair value of each asset class by reporting segment of GDH
LP as of December 31, 2020 is as
follows (in thousands):
|
Trading
|
Principal
Investments
|
Asset
Management
|
Investment
Banking
|
Corporate and
Other
|
Totals
|
Digital
assets
|
$
|
444,216
|
$
|
118,555
|
$
|
287,609
|
$
|
—
|
$
|
—
|
$
|
850,380
|
Digital assets
receivables
|
—
|
19,724
|
—
|
—
|
—
|
19,724
|
Digital assets posted
as collateral
|
15,625
|
—
|
—
|
—
|
—
|
15,625
|
Investments:
|
|
|
|
|
|
|
Pre-Launch
network
|
—
|
500
|
—
|
—
|
—
|
500
|
Convertible
notes
|
—
|
4,501
|
—
|
—
|
—
|
4,501
|
Preferred
stock
|
—
|
86,258
|
—
|
—
|
—
|
86,258
|
Common
stock
|
—
|
29,970
|
—
|
—
|
—
|
29,970
|
LP/LLC
interests
|
—
|
84,311
|
—
|
—
|
—
|
84,311
|
Warrants/Trust
units/Trust shares
|
51,182
|
3,661
|
—
|
—
|
—
|
54,843
|
|
$
|
511,023
|
$
|
347,480
|
$
|
287,609
|
$
|
—
|
$
|
—
|
$
|
1,146,112
|
All figures are in U.S. Dollars unless
otherwise noted.
SOURCE Galaxy Digital Holdings Ltd.