Net comprehensive income1 was
$517 million; $1.2 billion YTD through September 30th
Preliminary quarter-to-date fourth quarter net
comprehensive income1 of ~$400
million2
Neal Katyal
joins as Senior Advisor and Chair of newly-formed Advisory
Board
NEW YORK, Nov. 15, 2021 /CNW/ - Galaxy Digital Holdings
Ltd. (TSX: GLXY) ("Galaxy Digital" the "Company" or "GDH Ltd.")
today released financial results for the three and nine months
ended September 30, 2021 for both
itself and Galaxy Digital Holdings LP (the "Partnership" or "GDH
LP").
"As the cryptoeconomy continues to mature and adoption
trends accelerate, driving both asset price increases and greater
quantities of institutional capital into the space, I have never
been more bullish about the future of our Company," said
Michael Novogratz, Founder and CEO
of Galaxy Digital.
"Our organic growth demonstrates our continued ability to
capitalize on opportunities, with our net comprehensive income
growing to $517 million from a net
comprehensive income of $41.5 million
in the prior year period. Year-to-date through November 12th, we have provided shareholders with
approximately $1.6 billion in net
comprehensive income, on the back of our strong operational and
investing portfolio growth. We look forward to our U.S. listing and
the close of our BitGo acquisition, which we now expect will occur
in the first quarter 2022."1,2
Quarter-to-date Company and Market Updates for Fourth Quarter
2021, through Friday, November 12th,
2021
- Net comprehensive income1 was approximately
$400 million quarter-to-date,
bringing Partners' Capital to approximately $2.4 billion.2
- As of October 31, 2021, Galaxy
Digital Asset Management reported preliminary
AUM3 of $3.2
billion, including $325
million of committed capital raised for the second fund
dedicated to the interactive sector in the Galaxy Interactive
strategy, which now manages $650
million in total.
- Since the end of the third quarter, total cryptocurrency market
capitalization has increased approximately 45%4 and
institutional adoption trends have remained positive for both
digital assets and the companies that support them, 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 20% quarter-to-date to $98 billion during the fourth quarter
2021.5
- The Company has now deployed $62
million of strategic capital into 22 different NFT-related
companies through direct investments and through Galaxy Interactive
Fund strategies. The Company also directly purchased two NFTs from
prominent collections.
- The Company continues to drive growth through ongoing product
launches across the platform, including the launch of two passively
managed ETFs focused on digital assets and blockchain (Tickers:
SATO and BLKC) through a partnership with Invesco, and the launch
of the GVH Market Neutral Fund of Funds, the third fund in the
suite of Galaxy Vision Hill ("GVH") products.
- In October 2021 our Investment
Banking business ("GDIB") acted as the exclusive advisor and sole
placement agent on a $50 million
capital raise for CoreWeave, a specialized cloud provider for both
proprietary and client use cases across the digital asset, machine
learning, and VFX rendering spaces.
- In November 2021, GDIB advised on
two M&A transactions which are
expected to be announced shortly, and served as Digital Assets
Advisor on a capital markets transaction which is expected to be
announced this week.
Select Financial Highlights for the Third Quarter
2021
- Net comprehensive income1 increased 1,146% to
$517 million, from a net
comprehensive income of $41.5 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
contribution from our trading business, partially offset by higher
operating expenses.
- Income from our trading business increased to $360.7 million, from income of $10.0 million in the third quarter of last
year.
- Net realized gains from investments were $32.6 million in the quarter, and net unrealized
gains from investments were $144.3
million in the quarter.
- Partners' Capital increased 405% to $2.0 billion, from $401.3
million at the end of the prior year period.
- During the quarter, Partners' Capital increased 35% to
$2.0 billion, from $1.5 billion, due to gains on our core long
digital asset positions as well as gains in our investment
portfolio, which grew to $779.9
million from $613.0 million in
the prior quarter.
- As of September 30, 2021, the
Partnership had a material net holding in Bitcoin of approximately
$555.2 million and Ethereum of
approximately $261.4 million,
excluding non-controlling interests. The increase in the value of
holdings was primarily driven by the increase in prices from the
prior year end. As a reminder, we actively manage our core digital
asset holdings, including our material net holdings, to participate
in the upside from favorable asset price changes, and mitigate the
impacts of adverse movements.
- Investments stood at $779.9
million as of September 30,
2021, an increase of $519.5
million from December 31,
2020. The change was primarily due to the increase in
unrealized gains and $206.6 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 for the Third Quarter 2021
- Galaxy Digital Trading ("GDT") results reflected a
strong quarter, with continued growth in both revenue from
counterparty trading and our loan book.
- For the nine months ended September 30,
2021, cumulative client-facing trading and lending, which
consists of electronic and derivatives liquidity provisioning, our
quantitative execution strategies, and our counterparty lending,
accounted for an approximately mid-teens percent contribution of
total GDT net revenues (consisting of net realized gains, net
unrealized gains, and net interest income).
- Within the third quarter, counterparty trading volumes
decreased 28% from record highs in the second quarter 2021, but
demonstrated a dramatic increase in excess of 280% versus the year
ago quarter.
- Within the third quarter, the Company's counterparty loan book
grew by 65% to approximately $615
million from the quarter ended June
30, 2021, and the Company grew cumulative gross counterparty
loan originations year-to-date to over $3
billion.
- GDT onboarded 43 new counterparties to our trading platform,
bringing our total trading counterparties to over 690, and
continues to provide liquidity in over 100 cryptocurrencies.
- Galaxy Digital Asset Management ("GDAM") reported
preliminary AUM of $2.2 billion as of
September 30, 2021, a 57% increase
from the quarter ended June 30, 2021,
and a 175% increase year-to-date. AUM consisted of $1.6 billion in GDAM's Galaxy Fund Management
products, and $650 million in the
Galaxy Interactive funds.
- GDAM announced a long-term strategic partnership with Invesco,
a $1.6 trillion asset manager, to
develop a comprehensive suite of U.S.-listed, physically backed,
digital asset ETFs and equities ETFs.
- GDAM also partnered with Alerian, a pioneering index provider
focused on building innovative index-based investment strategies,
to launch eight indices to-date cumulatively within the Alerian
Galaxy Global Blockchain Indexes and Alerian Galaxy Global
Cryptocurrency-Focused Blockchain Indexes.
- Recent product launches include the DeFi Index Fund, a
passively managed fund that seeks to track the performance of the
newly-launched Bloomberg Galaxy DeFi Index (ticker: DEFI).
- GVH successfully closed its $34
million oversubscribed GVH Venture Fund of Funds. The fund
focuses on providing access to less crowded segments of the private
market by investing in high-quality, diversified venture capital
funds specializing in early-stage private market investments.
- Galaxy Digital Investment Banking ("GDIB")
- GDIB continued to grow its client-facing and capital raising
team, including hiring a Managing Director to enhance origination
and execution efforts.
- GDIB is currently working on eight active mandates in various
stages of execution, with an active pipeline including many more
potential deals primarily in the capital raising space, given the
significant amount of fundraising activity occurring throughout the
cryptocurrency and digital assets sector.
- 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 bitcoin
mining ecosystem, while publicizing ongoing commitments for
managing its carbon footprint and increasing the use of clean
energy.
- Proprietary mining operations continued to mine bitcoin at a
greater than 80% discount to fair market value.
- Based on forward purchase commitments, GDM expects to achieve
up to 1,995 Petahash per second (PH/s) of mining capacity from
monthly deliveries through the end of 2022.
- GDM made a public commitment to manage its carbon footprint and
increase the use of clean energy. As of September 30, 2021, over 80% of GDM's energy use
comes from sustainable sources.
- Principal Investments: The Company now holds 110
total investments across 71 portfolio companies.
- The Company made a number of new investments during the
quarter, adding new portfolio companies like Pyth and Figment,
which we believe can be category-defining.
Corporate Updates
- Effective November 10, 2021,
Neal Katyal has joined the Company
as Senior Advisor and Chair of its newly-formed Advisory Board. Mr.
Katyal, a prominent American lawyer and academic, is a partner at
Hogan Lovells and the Paul and Patricia Saunders Professor of
National Security Law at Georgetown
University Law Center. Mr. Katyal and the Advisory Board
will advise the Company on strategy, regulatory policy, and
governmental affairs.
Earnings Conference Call
An investor conference call will be held today, November 15, 2021 at 8:30
AM Eastern Time. A live webcast will be available at
https://investor.galaxydigital.io/. 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
December 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: 13724360.
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 technology-driven financial services and
investment management firm that provides institutions and direct
clients with a full suite of financial solutions spanning the
digital assets ecosystem. Galaxy Digital operates in the following
businesses: Trading, Asset Management, Principal Investments,
Investment Banking, and Mining. Galaxy Digital's CEO and Founder is
Mike Novogratz. The Company is
headquartered in New York City,
with offices in Chicago,
San Francisco, London, Amsterdam, Tokyo, Hong
Kong, the Cayman Islands
(registered office), and New
Jersey.
Additional information about the Company'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 and nine months ended
September 30, 2021 and (ii) GDH
Ltd.'s Management Discussion and Analysis and Condensed
Consolidated Interim Financial Statements for the three and nine
months ended September 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.
This press release contains certain pre-released fourth quarter
2021 financial information (the "pre-released financial
information"). The pre-released financial information contained in
this press release is preliminary and represents the most current
information available to the Company's management. 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) as a result of the
completion of normal quarter and year end accounting procedures
and adjustments and annual independent audit. Although the Company
believes the expectations reflected in this press release are
based upon reasonable assumptions, the Company can give no
assurance that actual results will not differ materially from these
expectations.
No Offer or Solicitation
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
|
September 30,
2021
|
|
December 31,
2020
|
Assets
|
|
|
|
Current
assets
|
|
|
|
Cash
|
$
|
275,767
|
|
|
137,951
|
|
Digital assets (Note
7)
|
2,081,795
|
|
|
931,480
|
|
Receivable for digital
asset trades (Note 7)
|
12,781
|
|
|
13,204
|
|
Digital asset loans
receivable (Note 11)
|
283,466
|
|
|
96,724
|
|
Digital assets
receivables (Note 7)
|
215,904
|
|
|
12,813
|
|
Assets posted as
collateral (Notes 9, 11, 13)
|
30,370
|
|
|
15,768
|
|
Receivables (Note
10)
|
27,890
|
|
|
2,710
|
|
Due from
broker
|
166
|
|
|
4,452
|
|
Derivative assets
(Note 9)
|
53,297
|
|
|
39,025
|
|
Prepaid expenses and
other assets (Note 12)
|
37,419
|
|
|
6,494
|
|
Loans receivable (Note
13)
|
110,613
|
|
|
8,510
|
|
Due from related party
(Note 24)
|
6,362
|
|
|
—
|
|
|
3,135,830
|
|
|
1,269,131
|
|
|
|
|
|
Digital assets
receivables (Note 7)
|
18,386
|
|
|
6,911
|
|
Investments (Note
8)
|
779,858
|
|
|
260,383
|
|
Right of use asset
(Note 14)
|
15,666
|
|
|
4,573
|
|
Property and
equipment (Note 14)
|
8,553
|
|
|
3,693
|
|
Intangible assets
(Note 14)
|
3,713
|
|
|
2,406
|
|
Goodwill (Note
6)
|
24,645
|
|
|
15,515
|
|
|
850,821
|
|
|
293,481
|
|
Total
assets
|
$
|
3,986,651
|
|
|
$
|
1,562,612
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
Current
liabilities
|
|
|
|
Digital assets sold
short (Note 16)
|
$
|
—
|
|
|
$
|
5,278
|
|
Investments sold short
(Note 8)
|
—
|
|
|
4,384
|
|
Derivative liabilities
(Note 9)
|
23,117
|
|
|
23,103
|
|
Warrant liability
(Note 18)
|
40,693
|
|
|
20,781
|
|
Accounts payable and
accrued liabilities (Note 15)
|
171,055
|
|
|
34,154
|
|
Payables to customers
(Note 15)
|
140,183
|
|
|
—
|
|
Payable for digital
asset trades (Note 7)
|
8,713
|
|
|
33,329
|
|
Digital asset loans
payable (Note 11)
|
638,331
|
|
|
307,499
|
|
Loans payable (Note
13)
|
7,185
|
|
|
—
|
|
Collateral payable
(Note 9, 11, 13)
|
430,342
|
|
|
44,660
|
|
Deferred tax
liability
|
12,030
|
|
|
—
|
|
Lease liability (Note
17)
|
1,976
|
|
|
742
|
|
|
1,473,625
|
|
|
473,930
|
|
Lease liability (Note
17)
|
15,018
|
|
|
4,515
|
|
Total
liabilities
|
1,488,643
|
|
|
478,445
|
|
|
|
|
|
Equity
|
|
|
|
Partners' capital
(Note 18)
|
2,027,258
|
|
|
798,211
|
|
Non-controlling
interests (Note 19)
|
470,750
|
|
|
285,956
|
|
Total
equity
|
2,498,008
|
|
|
1,084,167
|
|
Total liabilities
and equity
|
$
|
3,986,651
|
|
|
$
|
1,562,612
|
|
(in
thousands)
|
Three
months
ended
September 30, 2021
|
Nine
months
ended
September 30, 2021
|
Income
|
|
|
Advisory and
management fees
|
$
|
3,524
|
|
$
|
7,881
|
|
Net income from
digital asset mining (Note 23)
|
2,016
|
|
3,927
|
|
Leasing income from
mining equipment (Note 23)
|
1,256
|
|
2,393
|
|
Net realized gain
(loss) on digital assets
|
149,688
|
|
655,243
|
|
Net realized gain on
investments
|
32,557
|
|
225,058
|
|
Interest
income
|
14,027
|
|
39,395
|
|
Net derivative
gain
|
12,844
|
|
148,743
|
|
Other
income
|
619
|
|
5,163
|
|
|
216,531
|
|
1,087,803
|
|
|
|
|
Operating
expenses
|
|
|
Equity based
compensation
|
24,192
|
|
44,839
|
|
Compensation and
compensation related
|
53,146
|
|
136,779
|
|
General and
administrative
|
31,058
|
|
44,689
|
|
Professional
fees
|
21,054
|
|
37,147
|
|
Profit share
arrangement expense
|
1,867
|
|
14,032
|
|
Interest
|
19,386
|
|
51,646
|
|
Insurance
|
429
|
|
1,083
|
|
Director
fees
|
115
|
|
501
|
|
|
(151,247)
|
|
(330,716)
|
|
|
|
|
Net unrealized gain
on digital assets
|
379,491
|
|
246,132
|
|
Net unrealized gain
on investments
|
144,284
|
|
377,329
|
|
Revaluation of
warrant liability
|
9,352
|
|
(24,802)
|
|
Unrealized foreign
currency gain (loss)
|
(225)
|
|
1,925
|
|
Realized foreign
currency gain (loss)
|
(4)
|
|
(359)
|
|
|
532,898
|
|
600,225
|
|
|
|
|
Income (loss) for
the period
|
$
|
598,182
|
|
$
|
1,357,312
|
|
|
|
|
Income (loss)
attributed to:
|
|
|
Unit holders of the
Partnership
|
$
|
517,059
|
|
$
|
1,201,182
|
|
Non-controlling
interests
|
81,123
|
|
156,130
|
|
|
$
|
598,182
|
|
$
|
1,357,312
|
|
Other
comprehensive income
|
|
|
Foreign currency
translation adjustment
|
$
|
40
|
|
$
|
338
|
|
|
|
|
Comprehensive
income (loss) for the period
|
$
|
598,222
|
|
$
|
1,357,650
|
|
|
|
|
Comprehensive
income (loss) attributed to:
|
|
|
Unit holders of the
Partnership
|
$
|
517,099
|
|
$
|
1,201,520
|
|
Non-controlling
interests
|
81,123
|
|
156,130
|
|
|
$
|
598,222
|
|
$
|
1,357,650
|
|
Income and expenses by each reportable segment of GDH LP for the
three months ended September 30, 2021
are as follows (in thousands):
|
Trading
|
Principal
Investments
|
Asset
Management
|
Investment
Banking
|
Mining
|
Corporate
and
Other
|
Totals
|
Income
(loss)
|
|
|
|
|
|
|
|
Advisory and
management fees
|
$
|
98
|
|
$
|
—
|
|
$
|
3,426
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
3,524
|
|
Net income from
digital
asset mining
|
—
|
|
—
|
|
—
|
|
—
|
|
2,016
|
|
—
|
|
2,016
|
|
Leasing income
from
mining equipment
|
—
|
|
—
|
|
—
|
|
—
|
|
1,255
|
|
—
|
|
1,255
|
|
Net realized gain
on
digital assets
|
119,535
|
|
13,227
|
|
16,925
|
|
—
|
|
—
|
|
—
|
|
149,687
|
|
Net realized gain
on
investments
|
—
|
|
32,496
|
|
61
|
|
—
|
|
—
|
|
—
|
|
32,557
|
|
Interest
income
|
13,738
|
|
288
|
|
—
|
|
—
|
|
—
|
|
1
|
|
14,027
|
|
Net derivative
gain
|
12,844
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
12,844
|
|
Other
income
|
619
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
619
|
|
|
146,834
|
|
46,011
|
|
20,412
|
|
—
|
|
3,271
|
|
1
|
|
216,529
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
53,571
|
|
4,937
|
|
8,455
|
|
2,283
|
|
1,309
|
|
80,692
|
|
151,247
|
|
|
|
|
|
|
|
|
|
Net unrealized gain
on d
igital assets
|
267,697
|
|
44,387
|
|
66,712
|
|
—
|
|
695
|
|
—
|
|
379,491
|
|
Net unrealized
gain
(loss) on investments
|
—
|
|
149,478
|
|
(5,193)
|
|
—
|
|
—
|
|
—
|
|
144,285
|
|
Net unrealized gain
on
warrant liability
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
9,352
|
|
9,352
|
|
Unrealized
foreign
currency loss
|
(215)
|
|
(10)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(225)
|
|
Realized foreign
currency loss
|
(4)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(4)
|
|
|
267,478
|
|
193,855
|
|
61,519
|
|
—
|
|
695
|
|
9,352
|
|
532,899
|
|
|
|
|
|
|
|
|
|
Net income (loss)
for
the period, including
non-controlling interests
|
$
|
360,741
|
|
$
|
234,929
|
|
$
|
73,476
|
|
$
|
(2,283)
|
|
$
|
2,657
|
|
$
|
(71,339)
|
|
$
|
598,181
|
|
Income and expenses by each reportable segment of GDH LP for the
three months ended September 30, 2020
are as follows (in thousands):
|
Trading
|
Principal
Investments
|
Asset
Management
|
Investment
Banking
|
Mining
|
Corporate
and
Other
|
Totals
|
Income
(loss)
|
|
|
|
|
|
|
|
Advisory and
management fees
|
$
|
—
|
|
$
|
—
|
|
$
|
1,277
|
|
$
|
267
|
|
$
|
—
|
|
$
|
—
|
|
$
|
1,544
|
|
Net realized gain
(loss) o
n digital assets
|
10,913
|
|
20
|
|
(460)
|
|
—
|
|
—
|
|
—
|
|
10,473
|
|
Net realized gain
on
investments
|
—
|
|
15,819
|
|
—
|
|
—
|
|
—
|
|
—
|
|
15,819
|
|
Interest
income
|
1,241
|
|
461
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1,702
|
|
Net derivative
gain
|
(792)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(792)
|
|
|
11,362
|
|
16,300
|
|
817
|
|
267
|
|
—
|
|
—
|
|
28,746
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
6,419
|
|
866
|
|
2,986
|
|
1,521
|
|
—
|
|
5,234
|
|
17,026
|
|
|
|
|
|
|
—
|
|
|
|
Net unrealized gain
(loss)
on digital assets
|
5,380
|
|
7,092
|
|
3,685
|
|
—
|
|
—
|
|
—
|
|
16,157
|
|
Net unrealized gain
on
investments
|
—
|
|
17,044
|
|
—
|
|
—
|
|
—
|
|
—
|
|
17,044
|
|
Unrealized
foreign
currency loss
|
(29)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(29)
|
|
Realized foreign
currency
gain
|
(335)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(335)
|
|
|
5,016
|
|
24,136
|
|
3,685
|
|
—
|
|
—
|
|
—
|
|
32,837
|
|
|
|
|
|
|
|
|
|
Net loss for the
period,
including non-c
ontrolling interests
|
$
|
9,959
|
|
$
|
39,570
|
|
$
|
1,516
|
|
$
|
(1,254)
|
|
$
|
—
|
|
$
|
(5,234)
|
|
$
|
44,557
|
|
Assets and liabilities by reportable segment of GDH LP as of
September 30, 2021 are as follows (in
thousands):
|
Trading
|
Principal
Investments
|
Asset
Management
|
Investment
Banking
|
Mining
|
Corporate
and Other
|
Totals
|
Total
assets
|
$
|
2,164,384
|
|
$
|
1,195,343
|
|
$
|
511,719
|
|
$
|
6,757
|
|
$
|
50,809
|
|
$
|
57,639
|
|
$
|
3,986,651
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
$
|
1,333,103
|
|
$
|
192
|
|
$
|
8,046
|
|
$
|
143
|
|
$
|
1,318
|
|
$
|
145,841
|
|
$
|
1,488,643
|
|
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
|
$
|
896,729
|
|
$
|
319,980
|
|
$
|
306,065
|
|
$
|
6,190
|
|
$
|
3,633
|
|
$
|
30,015
|
|
$
|
1,562,612
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
$
|
439,708
|
|
$
|
101
|
|
$
|
18,170
|
|
$
|
22
|
|
$
|
—
|
|
$
|
20,444
|
|
$
|
478,445
|
|
Select statement of financial position information
The fair value of each asset class by reporting segment of GDH
LP as of September 30, 2021 is as
follows (in thousands):
|
Trading
|
Principal
Investments
|
Asset
Management
|
Investment
Banking
|
Mining
|
Corporate
and Other
|
Totals
|
Digital
assets
|
$
|
1,446,519
|
|
$
|
183,519
|
|
$
|
446,359
|
|
$
|
—
|
|
$
|
5,398
|
|
$
|
—
|
|
$
|
2,081,795
|
|
Digital assets
receivables
|
—
|
|
234,290
|
|
—
|
|
—
|
|
—
|
|
—
|
|
234,290
|
|
Digital assets posted
as collateral
|
30,170
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
30,170
|
|
Investments:
|
|
|
|
|
|
|
|
Pre-Launch
Network
|
—
|
|
5,143
|
|
—
|
|
—
|
|
—
|
|
—
|
|
5,143
|
|
Convertible
Notes
|
—
|
|
6,261
|
|
—
|
|
—
|
|
—
|
|
—
|
|
6,261
|
|
Preferred
Stock
|
—
|
|
241,462
|
|
—
|
|
—
|
|
—
|
|
—
|
|
241,462
|
|
Common
Stock
|
—
|
|
141,901
|
|
—
|
|
—
|
|
—
|
|
—
|
|
141,901
|
|
LP/LLC
Interests
|
—
|
|
370,732
|
|
—
|
|
—
|
|
—
|
|
—
|
|
370,732
|
|
Warrants/Trust
Units/Trust Shares
|
—
|
|
14,359
|
|
—
|
|
—
|
|
—
|
|
—
|
|
14,359
|
|
|
$
|
1,476,689
|
|
$
|
1,197,667
|
|
$
|
446,359
|
|
$
|
—
|
|
$
|
5,398
|
|
$
|
—
|
|
$
|
3,126,113
|
|
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
|
$
|
544,796
|
|
$
|
100,730
|
|
$
|
285,954
|
|
$
|
—
|
|
$
|
—
|
|
$
|
931,480
|
|
Digital assets
receivables
|
9,332
|
|
10,392
|
|
—
|
|
—
|
|
—
|
|
$
|
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
|
30,654
|
|
24,189
|
|
—
|
|
—
|
|
—
|
|
54,843
|
|
|
$
|
600,407
|
|
$
|
340,851
|
|
$
|
285,954
|
|
$
|
—
|
|
$
|
—
|
|
$
|
1,227,212
|
|
1
|
Excluding
non-controlling interests ("NCI").
|
2
|
Note: This quarter to
date financial data is as of November 12, 2021, preliminary,
unaudited and subject to change as management completes its
year-end
financial procedures and annual independent audit; excluding
non-controlling interests.
|
3
|
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.
|
|
4
|
Represents
coinmarketcap.com total cryptocurrency market capitalization quoted
price.
|
5
|
Represents total
value locked in DeFi according to defipulse.com.
|
SOURCE Galaxy Digital Holdings Ltd.