Equity capital was $1.8
billion as of December 31,
2023, and $2.1 billion as of
February 29, 20241
Net income of $296
million for the full year 2023
Income before tax of approximately
$300 million year-to-date through
February
20241
Assets Under Management ("AUM") increased to
$10.1 billion as of February 29, 20242
GalaxyOne client platform is now servicing
approximately 75 institutional clients with more than $1 billion in assets as of March 25, 2024
NEW
YORK, March 26, 2024 /PRNewswire/ -- Galaxy
Digital Holdings Ltd. (TSX: GLXY) (the "Company" or "GDH Ltd.")
today released financial results for the three and twelve months
ended December 31, 2023, for both
itself and Galaxy Digital Holdings LP (the "Partnership" or "GDH
LP"). In this press release, a reference to "Galaxy", "we", "our"
and similar words refer to GDH Ltd., its subsidiaries and
affiliates including GDH LP, or any one of them, as the context
requires.
Preliminary Financial Highlights
Through February 29,
20241
Since the end of the fourth quarter 2023, digital asset prices
materially changed and our business has benefited from heightened
market volatility and increased trading volumes. For the
year-to-date period ending February 29,
2024, Galaxy Digital Holdings LP's income before tax is
estimated to be approximately $300
million, driven primarily by the appreciation of digital
asset prices and growth in our operating businesses. Galaxy Digital
Holdings LP's equity capital increased to approximately
$2.1 billion over the same
period.
Corporate Updates
US Listing and Reorganization: Galaxy continues to
work on completing its proposed reorganization and domestication to
become a Delaware-incorporated
company and subsequently list on the Nasdaq, upon completion of
ongoing SEC review and subject to stock exchange, shareholder and
applicable regulatory approvals of such transactions.
Share Buyback Program: As announced on May 26, 2023, the Company commenced a new normal
course issuer bid on May 31, 2023,
and is eligible to purchase up to 10.1 million ordinary shares. For
the period between July 1, 2023, and
December 31, 2023, Galaxy repurchased
approximately 1.2 million shares at an average price of CAD
$4.69.
Select GDH LP
Financial Metrics
|
Q4
2023
|
Q3
2023
|
Q/Q %
Change
|
FY
2023
|
Equity
Capital
|
$1,790M
|
$1,466M
|
22 %
|
$1,790M
|
Liquidity
|
$910M
|
$749M
|
21 %
|
$910M
|
Cash & Net
Stablecoins3
|
$201M
|
$395M
|
(49) %
|
$201M
|
Net Digital Assets
Excluding Stablecoins4
|
$709M
|
$354M
|
100 %
|
$709M
|
Net Income
(loss)
|
$302M
|
($94M)
|
421 %
|
$296M
|
Book Value Per Share
in CAD5
|
$7.28
|
$6.12
|
19 %
|
$7.28
|
|
Note: Throughout this
document, totals may not sum due to rounding. Quarter-over-quarter
and year-over-year percentage change calculations are based on
unrounded results.
|
(1)
|
This preliminary,
unaudited quarter-to-date financial information is as of February
29, 2024. Financial results include impacts of non-cash equity
based compensation but exclude completion of the full quarterly
valuation process of our investment portfolio. This data is subject
to change as management completes its quarterly close
procedures.
|
(2)
|
Refer to Key Terms on
page 3 of this release for details on AUM.
|
(3)
|
Includes Cash
Equivalents.
|
(4)
|
Refer to page 16 of
this release for a breakout of our net digital assets
position.
|
(5)
|
Calculated as equity
capital divided by outstanding Class A and Class B Units multiplied
by the end of period foreign exchange rate.
|
Galaxy Global Markets
Galaxy Global Markets ("GGM") offers institutional-grade
expertise and access to a broad range of digital asset products,
including digital asset spot and derivatives trading, structured
products, financing, as well as capital markets and M&A
advisory services for corporate clients. GGM operates in two
discrete business units – Trading and Investment Banking.
Trading
Trading reported counterparty trading revenue of
$115 million for the full year 2023
and $44 million in the fourth
quarter. Counterparty trading revenue increased 210%
quarter-over-quarter ("QoQ"), primarily driven by increased revenue
from derivatives and favorable asset price movements. Counterparty
trading volumes increased 3% versus the third quarter, and our
average loan book size expanded to $635
million. Galaxy continues to onboard new counterparties and
ended 2023 with 1,052 total trading counterparties.
Key Performance
Indicators
|
Q4
2023
|
Q3
2023
|
Q/Q %
Change
|
FY
2023
|
Loan Book Size
(Average)
|
$635M
|
$580M
|
9 %
|
$542M
|
Counterparty Loan
Originations
|
$269M
|
$117M
|
129 %
|
$661M
|
Counterparty Trading
Volumes QoQ Change
|
3 %
|
70 %
|
N.M.1
|
-
|
Total Trading
Counterparties
|
1,052
|
1,027
|
2 %
|
1,052
|
Active Trading
Counterparties
|
272
|
284
|
(4) %
|
272
|
(1)
|
Abbreviation for "Not
Meaningful".
|
Investment Banking
Investment Banking successfully closed five deals in
2023, despite the backdrop for deal execution remaining
challenging. In the fourth quarter, the team completed a
restructuring mandate with Prime Trust. Galaxy also realized
revenue associated with both advising online gaming platform,
Gamercraft, on its seed financing round, and for serving as the
exclusive financial advisor to Securitize on its acquisition of
Onramp Invest. Galaxy is executing against a pipeline of mandates
representing $2.2 billion in
potential deal value.
Key Performance
Indicators
|
Q4
2023
|
Q3
2023
|
Q/Q %
Change
|
FY
2023
|
Deals
Closed
|
1
|
2
|
(50) %
|
5
|
Pipeline
|
23
|
24
|
(4) %
|
23
|
Deal Value of
Pipeline
|
$2.2B
|
$2.2B
|
— %
|
$2.2B
|
_____
KEY TERMS
Counterparty Trading Revenue: revenue from
counterparty-facing activities from our Derivatives, Credit,
Over-the-Counter Trading, and Quantitative Trading businesses, net
of associated funding charges.
Loan Book Size (Average): average market value of all
open loans, un-funded arrangements to finance delayed
trading/settlement (for example over weekends), and uncommitted
credit facilities in the period.
Counterparty Loan Originations: market values of all
loans, credit facility draws, and credit facilities originated to
external counterparties in the period. Does not include rolled
loans as new originations; rolled loans can be generally defined as
loans where the maturity was extended but no other material terms
were changed.
Active Trading Counterparties: counterparties with whom
we have traded within the past 12 months and who are still
onboarded with Galaxy's trading business.
Pipeline: the number of open engagements and transactions
the Investment Banking team has in market.
Deal Value of Pipeline: the theoretical aggregate deal
value associated with the Investment Banking pipeline.
Galaxy Asset
Management
Galaxy Asset Management ("GAM") provides investors access
to the digital asset ecosystem via a diverse suite of
institutional-grade investment vehicles that span passive, active,
and venture strategies.
GAM management fees were $22.2
million for the full year 2023 and $8.4 million in the fourth quarter. GAM reported
Assets Under Management of approximately $5.2 billion as of December 31, 2023, a 203% increase year-over-year
("YoY"), driven primarily by net inflows from newly managed
opportunistic mandates. Subsequent to quarter-end, GAM reported a
record preliminary AUM of $10.1
billion as of February 29,
2024, as a result of market appreciation and net inflows
from newly managed opportunistic assets. On January 11, 2024, GAM, in partnership with
Invesco, announced the launch of the Invesco Galaxy
Bitcoin ETF (ticker: BTCO).
Key Performance
Indicators
|
Q4
2023
|
Q3
2023
|
Q/Q %
Change
|
FY
2023
|
Management and
Performance Fees
|
$8.4M
|
$4.7M
|
79 %
|
$22.2M
|
Total
AUM
|
$5,179M
|
$3,917M
|
32 %
|
$5,179M
|
Passive
AUM
|
$1,589M
|
$768M
|
107 %
|
$1,589M
|
Active AUM1
|
$2,169M
|
$1,704M
|
27 %
|
$2,169M
|
Venture
AUM
|
$1,421M
|
$1,445M
|
(2) %
|
$1,421M
|
|
Note: In Galaxy's
monthly AUM disclosures, the "funds" line item consists of AUM held
in GAM's Passive, Active, and Venture funds, but excludes
opportunistic assets.
|
(1)
|
Includes opportunistic
AUM. "Opportunistic" AUM are near-term or mid-term engagements to
unwind portfolios managed by GAM. Opportunistic AUM was $2,078M as
of December 31, 2023, and $1,612M as of September 30,
2023.
|
_____
KEY TERMS
Assets Under Management: all figures are unaudited. AUM
is inclusive of sub-advised funds, committed capital closed-end
vehicles, seed investments by affiliates, affiliated and
unaffiliated separately managed accounts, engagements to unwind
portfolios, and fund of fund products. Changes in AUM are generally
the result of performance, contributions, withdrawals, liquidations
and opportunistic mandate wins.
- AUM for committed capital closed-end vehicles that have
completed their investment period is reported as NAV (Net Asset
Value) plus unfunded commitment.
- AUM for quarterly close vehicles is reported as of the most
recent quarter available for the applicable period.
- AUM for affiliated separately managed accounts is reported as
NAV as of the most recently available estimate for the applicable
period.
Passive Strategies: single- and multi-asset private
funds, as well as a suite of regulated spot digital asset
exchange-traded funds offered through partnerships with asset
managers globally.
Active Strategies: Galaxy's Liquid Crypto
(formally "Liquid Alpha") strategy and the management of certain
opportunistic mandates.
Venture Strategies: organized around two investment
themes: Interactive Ventures and Crypto Ventures.
Galaxy Interactive is GAM's sector-focused venture arm, managing
client capital across three funds. GAM's Crypto
Ventures sleeve invests client capital across two global,
multi-manager venture funds and manages a subset of Galaxy's
balance sheet venture investments.
Galaxy Digital Infrastructure
Solutions
Galaxy Digital Infrastructure Solutions ("GDIS") consists
of proprietary and hosted bitcoin mining services, GK8
self-custody technology solutions, and validator services.
Mining
Mining revenue was $58.5M for the full year 2023 and $18.7 million in the fourth quarter. We reached
4.1 exahash per second ("EH/s") of Hashrate Under Management
("HUM") across our proprietary and hosted footprint, exceeding our
2023 year-end target HUM. As of February 29,
2024, we reached 5.4 EH/s in HUM. As anticipated, our
average marginal cost to mine in the fourth quarter increased
relative to prior quarters due to fewer opportunities to
economically curtail our mining operations and a higher network
hashrate. For the full year 2023, Galaxy mined 1,077
bitcoin from our proprietary mining operations at an
average marginal cost to mine of less than $8,000.
Key Performance
Indicators
|
Q4
2023
|
Q3
2023
|
Q/Q %
Change
|
FY
2023
|
Mining
Revenue
|
$18.7M
|
$14.3M
|
31 %
|
$58.5M
|
Proprietary Mining
Revenue
|
$12.4M
|
$8.8M
|
41 %
|
$33.1M
|
Hosted and Other
Mining Revenue1
|
$6.2M
|
$5.5M
|
13 %
|
$25.4M
|
Total Hashrate Under
Management
|
4.1 EH/s
|
3.9 EH/s
|
3 %
|
4.1 EH/s
|
Proprietary Mining
Hashrate
|
1.9 EH/s
|
1.8 EH/s
|
3 %
|
1.9 EH/s
|
Hosted Mining
Hashrate
|
2.2 EH/s
|
2.1 EH/s
|
3 %
|
2.2 EH/s
|
Number of
Proprietary BTC Mined
|
333
|
309
|
8 %
|
1,077
|
Average Marginal
Cost to Mine
|
<$15.5K
|
< $0
|
N.M.
|
<$8K
|
(1)
|
Includes revenue from
hosting clients, leasing agreements and other mining related
activities.
|
Self-Custody and Validator
Solutions
Self-Custody and Validator Solutions are focus areas in
our continued commitment to the future of
decentralized networks. This includes supporting the
integrity of protocols and ecosystem projects by operating
validator nodes to secure blockchains, and by offering self-custody
technology solutions to institutions through GK8.
Key Performance
Indicators
|
Q4
2023
|
Q3
2023
|
Q/Q %
Change
|
FY
2023
|
GK8 Total Client
Count
|
21
|
16
|
31 %
|
21
|
Assets Under
Stake
|
$243M
|
$120M
|
102 %
|
$243M
|
_____
KEY TERMS
Hashrate Under Management: the total combined hashrate of
active proprietary and hosted mining capacity managed by
Galaxy.
Proprietary Mining Hashrate: the hashrate attributed to
Galaxy owned and operated mining rigs.
Hosted Mining Hashrate: the hashrate attributed to
third-party machines operated by Galaxy for a client.
Number of Proprietary BTC Mined: the total amount of
bitcoin mined from proprietary mining operations.
Average Marginal Cost to Mine: the marginal cost of
production for each bitcoin generated during the
period. The calculation excludes depreciation, mark-to-market on
power contracts, and corporate overhead.
GK8 Total Client Count: the total number of clients
contracted to use GK8's technology solutions.
Assets Under Stake: the total notional value of assets
bonded to Galaxy validators, based on prices as of the end of the
specified period. This includes certain Galaxy balance sheet assets
and third party assets.
GDH Ltd.'s Financial
Highlights
As the only significant asset of GDH Ltd. is its minority
interest in GDH LP, its results are driven by the results of GDH
LP. GDH Ltd. accounts for its investment in this associate (GDH LP)
using the equity method. The investment, initially recorded at
cost, is increased or decreased to recognize GDH Ltd.'s share of
the earnings and losses of GDH LP. As of December 31, 2023, a reversal of a previously
recognized impairment assessment was required under International
Financial Reporting Standards and GDH Ltd.'s minority interest in
GDH LP was marked up based on the TSX year-end closing share price.
An impairment expense reversal of $307.7
million and $390.9 million was
recognized during the three and twelve months ended December 31, 2023, respectively.
The net comprehensive income (loss) of GDH Ltd. was $371.6 million and $454.8
million for the three and twelve months ended December 31, 2023, respectively.
Important U.S. Tax Information -
Action Required by U.S. Shareholders
Galaxy shareholders who are U.S. taxpayers should be aware that
there may be significant and adverse U.S. federal income tax
consequences relating to Galaxy's PFIC status for 2023 and prior
years and in connection with Galaxy's domestication from Cayman to
Delaware unless they make certain
elections on their originally filed U.S. federal income tax returns
for 2023, which are generally due on April
18, 2024 (subject to allowable extensions). These
consequences and, therefore, the need to take action apply to both
direct and indirect holdings of Galaxy shares. These elections are
described in the notice posted by Galaxy in March 2024 on its website at
https://investor.galaxy.com/financials/annual-reports/default.aspx.
Before filing their U.S. federal income tax returns for 2023,
direct and indirect Galaxy shareholders who are, or who have
investors who are, U.S. taxpayers are urged to review the notice
and to consult their tax advisors regarding the advisability of
making these elections on their U.S. federal income tax returns for
2023.
Earnings Conference Call
An investor conference call will be held today, March 26, 2023, at 8:30 AM
Eastern Time. A live webcast with the ability to ask
questions will be available at: https://investor.galaxy.com/. The
conference call can also be accessed by investors in the United States or Canada by dialing 1-844-746-0741, or
1-412-317-5107 (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 26, 2023, the recording will
also be available by dialing 1-844-512-2921, or 1-412-317-6671
(outside the U.S. and Canada) and
using the passcode: 10186798.
About Galaxy Digital Holdings Ltd.
(TSX: GLXY) ("GDH Ltd.") and Galaxy Digital Holdings LP ("GDH
LP")
Galaxy (TSX: GLXY) is a digital asset and blockchain leader
providing access to the growing digital economy. We serve a
diversified client base, including institutions, startups, and
qualified individuals. Since 2018, Galaxy has been building a
holistic financial platform spanning three complementary operating
businesses: Global Markets, Asset Management, and Digital
Infrastructure Solutions. Our offerings include, amongst others,
trading, lending, strategic advisory services, institutional-grade
investment solutions, proprietary bitcoin mining and
hosting services, network validator services, and the development
of enterprise self-custodial technology. The company is
headquartered in New York City,
with global offices across North
America, Europe, and
Asia. Additional information about
Galaxy's businesses and products is available on
www.galaxy.com.
This press release should be read in conjunction with (i) GDH
LP's Management Discussion and Analysis and Consolidated Financial
Statements for the year ended December 31,
2023 and (ii) GDH Ltd.'s Management Discussion and Analysis
and Consolidated Financial Statements for the year ended
December 31, 2023 (together, the
"Consolidated Financial Statements" and "MD&As"), which have
been filed on SEDAR at www.sedarplus.ca.
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.
This press release contains certain pre-released first quarter
2024 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 management. The Partnership'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 accounting procedures and adjustments
or due to other risks contained in the Annual Information Form for
the year ended December 31, 2023.
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
As previously announced, the Company intends to complete its
proposed reorganization and domestication to become a Delaware-based company, and subsequently list
on the Nasdaq, upon completion of the SEC's ongoing review and
subject to stock exchange approval of such listing. The proposed
reorganization and domestication is subject to approval by
shareholders the Company and applicable regulatory authorities,
including the Toronto Stock Exchange. In connection with the
proposed reorganization and domestication, the Company has filed a
registration statement, including a management information
circular/prospectus, with the SEC, which has not yet become
effective. SHAREHOLDERS ARE ADVISED TO READ THE FINAL VERSIONS OF
SUCH DOCUMENTS, WHEN AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT
INFORMATION. Shareholders may obtain a free copy of the
registration statement (including the management information
circular/prospectus) and any other relevant documents from the
SEC's website at http://www.sec.gov. Copies of the final versions
of such documents can also be obtained, when available, without
charge, via Galaxy's investor relations website:
https://investor.galaxy.com/ The Company anticipates holding a
shareholder meeting to seek approval following the effectiveness of
the registration statement, and further details will be included in
the management information circular to be mailed to shareholders
and posted on the Company's SEDAR profile at
www.sedarplus.ca.
This document shall not constitute a solicitation of a proxy,
consent or authorization with respect to any securities or in
respect of the domestication or any of the other proposed
reorganization transactions. This document does 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.
CAUTION ABOUT FORWARD-LOOKING
STATEMENTS
The information in this document 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. Statements that are
not historical facts, including statements about Galaxy's
pre-released financial information, business pipelines for banking
and Gk8, mining goals, plans for share repurchases, focus on self
custody and validator solutions and our commitment to the future of
decentralized networks and the pending 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. The forward-looking
statements contained in this document 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
inability to complete the proposed domestication and reorganization
transactions, due to the failure to obtain shareholder and stock
exchange approvals, or otherwise; (2) 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 shareholder or stock exchange approval of the
transactions; (3) the ability to meet and maintain listing
standards following the consummation of the transactions; (4) the
risk that the transactions disrupt current plans and operations;
(5) costs related to the transactions, operations and strategy; (6)
changes in applicable laws or regulations; (7) the possibility that
the Company may be adversely affected by other economic, business,
and/or competitive factors; (8) changes or events that impact the
cryptocurrency industry, including potential
regulation, that are out of our control; (9) the risk that our
business will not grow in line with our expectations or continue on
its current trajectory; (10) the possibility that our addressable
market is smaller than we have anticipated and/or that we may not
gain share of it; and (11) the possibility that there is a
disruption in mining impacting our ability to achieve expected
results or change in power dynamics impacting our results, (12) any
delay or failure to consummate the business mandates or achieve its
pipeline goals in banking and Gk8, (13) price and trading volume
volatility with respect to the Company's shares and its impact on
share repurchases and the cost of such repurchases, (14) regulatory
concerns, technological challenges, cyber incidents or exploits on
decentralized networks (15) those other risks
contained in the Annual Information Form for the year ended
December 31, 2023 available on the
Company's profile at www.sedarplus.ca and its Management's
Discussion and Analysis, filed on March 26,
2024. Factors that could cause actual results 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 possibility that our
addressable market is smaller than we have anticipated and/or that
we may not gain share of the stated addressable market; the failure
or delay in the adoption of digital assets and the blockchain
ecosystem; a delay or failure in developing infrastructure for our
business or our businesses achieving our banking and Gk8 mandates;
delays or other challenges in the mining business related to
hosting, power or our mining infrastructure; any challenges
faced with respect to decentralized networks,
considerations with respect to liquidity and capital planning and
its impact on share repurchases and changes in applicable law or
regulation and adverse regulatory developments. 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.
©Copyright Galaxy Digital 2024. All rights reserved.
Galaxy Digital Holdings LP's Consolidated Statements of
Financial Position (unaudited)
(in
thousands)
|
December 31,
2023
|
|
December 31,
2022
|
Assets
|
|
|
|
Current
assets
|
|
|
|
Cash and cash
equivalent
|
$
316,610
|
|
$
542,101
|
Digital
assets
|
1,078,587
|
|
566,690
|
Receivable for digital
asset trades
|
41,339
|
|
9,063
|
Digital assets loans
receivable, net of allowance
|
104,504
|
|
49,971
|
Digital assets
receivables
|
14,686
|
|
12,423
|
Assets posted as
collateral
|
318,195
|
|
25,138
|
Receivables
|
15,983
|
|
10,887
|
Derivative
assets
|
173,209
|
|
17,719
|
Prepaid expenses and
other assets
|
37,910
|
|
32,818
|
Loans
receivable
|
377,105
|
|
62,611
|
Due from related
party
|
5,007
|
|
13,857
|
Total current
assets
|
2,483,135
|
|
1,343,278
|
|
|
|
|
Digital assets
receivables
|
6,174
|
|
5,154
|
Investments (includes
$290.4 and $235.4 million of equity method investments,
respectively)
|
735,103
|
|
595,122
|
Restricted digital
assets
|
41,356
|
|
—
|
Loans receivable,
non-current
|
10,259
|
|
100,977
|
Property and
equipment
|
259,965
|
|
208,538
|
Other non-current
assets
|
95,000
|
|
68,429
|
Goodwill
|
44,257
|
|
24,645
|
Total non-current
assets
|
1,192,114
|
|
1,002,865
|
Total
assets
|
$
3,675,249
|
|
$
2,346,143
|
|
|
|
|
Liabilities and
equity
|
|
|
|
Current
liabilities
|
|
|
|
Investments sold
short
|
25,295
|
|
91
|
Derivative
liabilities
|
160,642
|
|
16,568
|
Accounts payable and
accrued liabilities
|
69,212
|
|
67,081
|
Payable to
customers
|
3,503
|
|
9,591
|
Taxes
payable
|
25,936
|
|
22,717
|
Payable for digital
asset trades
|
4,176
|
|
2,557
|
Digital assets loans
payable
|
398,277
|
|
170,566
|
Loans
payable
|
93,069
|
|
—
|
Collateral
payable
|
581,362
|
|
131,506
|
Due to related
party
|
67,953
|
|
53,984
|
Lease
liability
|
3,860
|
|
4,467
|
Total current
liabilities
|
1,433,285
|
|
479,128
|
|
|
|
|
Notes
payable
|
408,053
|
|
384,515
|
Deferred tax
liability
|
33,894
|
|
31,302
|
Lease
liability
|
10,236
|
|
12,406
|
Total non-current
liabilities
|
452,183
|
|
428,223
|
Total
liabilities
|
1,885,468
|
|
907,351
|
|
|
|
|
Equity
|
|
|
|
Partners'
capital
|
1,789,781
|
|
1,438,792
|
Total
equity
|
1,789,781
|
|
1,438,792
|
|
|
|
|
Total liabilities
and equity
|
$
3,675,249
|
|
$
2,346,143
|
Galaxy Digital Holdings LP's Consolidated Statements of
Income (Loss) and Comprehensive Income (Loss) (unaudited)
(in
thousands)
|
Year ended
December 31, 2023
|
|
Year ended
December 31, 2022
|
Income
|
|
|
|
Fee revenue
|
$
51,342
|
|
$
35,576
|
Net realized gain on
digital assets
|
311,830
|
|
55,138
|
Net realized gain on
investments
|
13,412
|
|
42,022
|
Lending and staking
revenue
|
52,216
|
|
36,762
|
Net derivative
gain
|
151,583
|
|
191,520
|
Revenue from
proprietary mining
|
33,121
|
|
29,911
|
Other
income
|
357
|
|
28,533
|
|
613,861
|
|
419,462
|
|
|
|
|
Operating
expenses
|
|
|
|
Compensation and
compensation related
|
138,401
|
|
127,909
|
Equity based
compensation
|
72,275
|
|
100,849
|
General and
administrative
|
76,723
|
|
163,955
|
Professional
fees
|
37,062
|
|
28,223
|
Interest
|
24,653
|
|
38,896
|
Notes interest
expense
|
27,285
|
|
37,029
|
|
(376,399)
|
|
(496,861)
|
|
|
|
|
Other
|
|
|
|
Net unrealized gain
(loss) on digital assets
|
1,950
|
|
(659,169)
|
Net unrealized gain
(loss) on investments
|
84,415
|
|
(496,184)
|
Net gain (loss) on
notes payable - derivative
|
(9,603)
|
|
57,998
|
Net gain on warrant
liability
|
—
|
|
20,322
|
Foreign currency
loss
|
(493)
|
|
(316)
|
Loss attributable to
non-controlling interests liability
|
—
|
|
97,219
|
|
76,269
|
|
(980,130)
|
|
|
|
|
Income (loss) before
income taxes
|
313,731
|
|
(1,057,529)
|
Income taxes expense
(benefit)
|
17,833
|
|
(35,952)
|
Net income (loss)
for the period
|
$
295,898
|
|
$
(1,021,577)
|
|
|
|
|
Other comprehensive
income (loss)
|
|
|
|
Foreign currency
translation adjustment
|
$
88
|
|
$
(1,726)
|
|
|
|
|
Comprehensive income
(loss) for the period
|
$
295,986
|
|
$
(1,023,303)
|
(in
thousands)
|
Three months
ended
December 31, 2023
|
|
Three months
ended
December 31, 2022
|
Income
|
|
|
|
Fee revenue
|
$
17,135
|
|
$
7,681
|
Net realized gain on
digital assets
|
293,149
|
|
(73,420)
|
Net realized gain on
investments
|
(55,299)
|
|
(22,131)
|
Lending and staking
revenue
|
16,893
|
|
5,676
|
Net derivative
gain
|
71,121
|
|
11,699
|
Revenue from
proprietary mining
|
12,449
|
|
8,581
|
Other
income
|
24
|
|
24,381
|
|
355,472
|
|
(37,533)
|
|
|
|
|
Operating
expenses
|
|
|
|
Compensation and
compensation related
|
42,154
|
|
15,462
|
Equity based
compensation
|
14,581
|
|
19,215
|
General and
administrative
|
15,789
|
|
62,566
|
Professional
fees
|
10,548
|
|
12,952
|
Interest
|
8,983
|
|
5,479
|
Notes interest
expense
|
6,913
|
|
14,916
|
|
(98,968)
|
|
(130,590)
|
|
|
|
|
Other
|
|
|
|
Net unrealized gain
(loss) on digital assets
|
(22,501)
|
|
5,037
|
Net unrealized gain
(loss) on investments
|
92,932
|
|
(123,866)
|
Net gain (loss) on
notes payable - derivative
|
(8,581)
|
|
1,442
|
Net gain on warrant
liability
|
—
|
|
317
|
Foreign currency
loss
|
350
|
|
(3,609)
|
Loss attributable to
non-controlling interests liability
|
—
|
|
(7,941)
|
|
62,200
|
|
(128,620)
|
|
|
|
|
Income (loss) before
income taxes
|
318,704
|
|
(296,743)
|
Income taxes expense
(benefit)
|
17,247
|
|
(8,968)
|
Net income (loss)
for the period
|
$
301,457
|
|
$
(287,775)
|
|
|
|
|
Other comprehensive
income (loss)
|
|
|
|
Foreign currency
translation adjustment
|
$
85
|
|
$
(1,016)
|
|
|
|
|
Comprehensive income
(loss) for the period
|
$
301,542
|
|
$
(288,791)
|
|
Year ended
December 31, 2023
|
Year ended
December 31, 2022
|
GDH LP Net income
(loss) per unit:
|
|
|
Basic
|
$
0.92
|
$
(3.13)
|
Diluted
|
0.90
|
(3.13)
|
Weighted average
units:
|
|
|
Basic
|
321,599,100
|
326,024,679
|
Diluted
|
329,613,940
|
326,024,679
|
Reportable segments (unaudited)
Income and expenses by each reportable segment of GDH LP for the
three months ended December 31, 2023
are as follows:
(in
thousands)
|
Global
Markets
|
Asset
Management
|
Digital
Infrastructure
Solutions
|
Corporate
and
Other
|
Totals
|
Income
(loss)
|
|
|
|
|
|
Fee
revenue(1)
|
2,615
|
8,370
|
7,159
|
(1,009)
|
17,135
|
Net realized gain on
digital assets
|
292,796
|
353
|
—
|
—
|
293,149
|
Net realized loss on
investments
|
(55,036)
|
(263)
|
—
|
—
|
(55,299)
|
Lending and staking
revenue
|
16,063
|
1,533
|
272
|
(975)
|
16,893
|
Net derivative gain
(loss)
|
71,730
|
(468)
|
(141)
|
—
|
71,121
|
Revenue from
proprietary mining
|
—
|
—
|
12,449
|
—
|
12,449
|
Other income
(expense)
|
(35)
|
4
|
—
|
55
|
24
|
|
328,133
|
9,529
|
19,739
|
(1,929)
|
355,472
|
|
|
|
|
|
|
Operating
expenses
|
60,047
|
14,540
|
7,611
|
16,770
|
98,968
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
Net unrealized gain
(loss) on digital assets
|
(98,968)
|
75,248
|
1,219
|
—
|
(22,501)
|
Net unrealized gain on
investments
|
65,922
|
25,675
|
1,335
|
—
|
92,932
|
Net (loss) on notes
payable - derivative
|
—
|
—
|
—
|
(8,581)
|
(8,581)
|
Foreign currency
gain
|
350
|
—
|
—
|
—
|
350
|
|
(32,696)
|
100,923
|
2,554
|
(8,581)
|
62,200
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
$
235,390
|
$
95,912
|
$
14,682
|
$
(27,280)
|
$
318,704
|
Income tax
expense
|
—
|
—
|
—
|
17,247
|
17,247
|
Net income (loss)
for the period
|
$
235,390
|
$
95,912
|
$
14,682
|
$
(44,527)
|
$
301,457
|
Foreign currency
translation adjustment
|
—
|
—
|
—
|
85
|
85
|
Comprehensive income
(loss) for the period
|
$
235,390
|
$
95,912
|
$
14,682
|
$
(44,442)
|
$
301,542
|
(1)
|
Asset Management fee
revenue includes management fees generated off the Partnership's
balance sheet venture investments which are eliminated in the
Corporate & Other segment.
|
Income and expenses by each reportable segment of GDH LP for the
three months ended December 31, 2022
are as follows:
(in
thousands)
|
Global
Markets
|
Asset
Management
|
Digital
Infrastructure
Solutions
|
Corporate
and
Other
|
Totals
|
Income
(loss)
|
|
|
|
|
|
Fee revenue
|
$
3,137
|
$
5,105
|
$
439
|
$
(1,000)
|
$
7,681
|
Net realized gain
(loss) on digital assets
|
(127,889)
|
54,469
|
—
|
—
|
$
(73,420)
|
Net realized gain
(loss) on investments
|
(22,997)
|
866
|
—
|
—
|
$
(22,131)
|
Lending and staking
revenue
|
5,549
|
127
|
—
|
—
|
$
5,676
|
Net derivative gain
(loss)
|
11,760
|
(61)
|
—
|
—
|
$
11,699
|
Revenue from
proprietary mining
|
—
|
—
|
8,581
|
—
|
$
8,581
|
Other income
(expense)
|
135
|
(156)
|
540
|
23,862
|
$
24,381
|
|
(130,305)
|
60,350
|
9,560
|
22,862
|
(37,533)
|
|
|
|
|
|
|
Operating
expenses
|
66,834
|
8,673
|
15,429
|
39,654
|
130,590
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
Net unrealized gain
(loss) on digital assets
|
(33,922)
|
38,959
|
—
|
—
|
5,037
|
Net unrealized loss on
investments
|
(220)
|
(116,862)
|
(6,784)
|
—
|
(123,866)
|
Net gain on notes
payable - derivative
|
—
|
—
|
—
|
1,442
|
1,442
|
Net gain on warrant
liability
|
—
|
—
|
—
|
317
|
317
|
Foreign currency
loss
|
(3,609)
|
—
|
—
|
—
|
(3,609)
|
Gain attributable to
non-controlling interests liability
|
—
|
(7,941)
|
—
|
—
|
(7,941)
|
|
(37,751)
|
(85,844)
|
(6,784)
|
1,759
|
(128,620)
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
$
(234,890)
|
$
(34,167)
|
$
(12,653)
|
$
(15,033)
|
$
(296,743)
|
Income tax
benefit
|
—
|
—
|
—
|
(8,968)
|
(8,968)
|
Net income (loss) for
the period
|
$
(234,890)
|
$
(34,167)
|
$
(12,653)
|
$
(6,065)
|
$
(287,775)
|
Foreign currency
translation adjustment
|
—
|
—
|
—
|
(1,016)
|
(1,016)
|
Comprehensive income
(loss) for the period
|
$
(234,890)
|
$
(34,167)
|
$
(12,653)
|
$
(7,081)
|
$
(288,791)
|
Income and expenses by each reportable segment of GDH LP for the
year ended December 31, 2023 are as
follows:
(in
thousands)
|
Global
Markets
|
Asset
Management
|
Digital
Infrastructure
Solutions
|
Corporate
and
Other
|
Totals
|
Income
(loss)
|
|
|
|
|
|
Fee
revenue(1)
|
$
4,877
|
$
22,203
|
$
27,482
|
$
(3,220)
|
$
51,342
|
Net realized gain on
digital assets
|
307,057
|
4,773
|
—
|
—
|
311,830
|
Net realized gain
(loss) on investments
|
(8,936)
|
22,348
|
—
|
—
|
13,412
|
Lending and staking
revenue
|
49,916
|
3,003
|
272
|
(975)
|
52,216
|
Net derivative gain
(loss)
|
150,715
|
1,074
|
(206)
|
—
|
151,583
|
Revenue from
proprietary mining
|
—
|
—
|
33,121
|
—
|
33,121
|
Other income
(expense)
|
175
|
(127)
|
254
|
55
|
357
|
|
503,804
|
53,274
|
60,923
|
(4,140)
|
613,861
|
|
|
|
|
|
|
Operating
expenses
|
186,660
|
56,649
|
46,606
|
86,484
|
376,399
|
|
|
|
|
|
|
Net unrealized gain
(loss) on digital assets
|
(73,492)
|
74,223
|
1,219
|
—
|
1,950
|
Net unrealized gain
(loss) on investments
|
79,001
|
(2,193)
|
7,607
|
—
|
84,415
|
Net loss on notes
payable - derivative
|
—
|
—
|
—
|
(9,603)
|
(9,603)
|
Foreign currency
loss
|
(493)
|
—
|
—
|
—
|
(493)
|
|
5,016
|
72,030
|
8,826
|
(9,603)
|
76,269
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
$
322,160
|
$
68,655
|
$
23,143
|
$
(100,227)
|
$
313,731
|
Income tax
expense
|
—
|
—
|
—
|
17,833
|
17,833
|
Net income
(loss)
|
$
322,160
|
$
68,655
|
$
23,143
|
$
(118,060)
|
$
295,898
|
Foreign currency
translation adjustment
|
—
|
—
|
—
|
88
|
88
|
Comprehensive income
(loss)
|
$
322,160
|
$
68,655
|
$
23,143
|
$
(117,972)
|
$
295,986
|
(1)
|
Asset Management fee
revenue includes management fees generated off the Partnership's
balance sheet venture investments which are eliminated in the
Corporate & Other segment.
|
Income and expenses by each reportable segment of GDH LP for the
year ended December 31, 2022 are as
follows:
(in
thousands)
|
Global
Markets
|
Asset
Management
|
Digital
Infrastructure
Solutions
|
Corporate
and
Other
|
Totals
|
Income
(loss)
|
|
|
|
|
|
Fee revenue
|
$
14,704
|
$
16,248
|
$
5,624
|
$
(1,000)
|
$
35,576
|
Net realized gain
(loss) on digital assets
|
(192,830)
|
247,968
|
—
|
—
|
55,138
|
Net realized gain
(loss) on investments
|
(34,405)
|
76,427
|
—
|
—
|
42,022
|
Lending and staking
revenue
|
36,119
|
643
|
—
|
—
|
36,762
|
Net derivative gain
(loss)
|
191,581
|
(61)
|
—
|
—
|
191,520
|
Revenue from
proprietary mining
|
—
|
—
|
29,911
|
—
|
29,911
|
Other income
|
370
|
1,878
|
540
|
25,745
|
28,533
|
|
15,539
|
343,103
|
36,075
|
24,745
|
419,462
|
|
|
|
|
|
|
Operating
expenses
|
200,727
|
56,551
|
70,629
|
168,954
|
496,861
|
|
|
|
|
|
|
Net unrealized loss on
digital assets
|
(216,043)
|
(443,126)
|
—
|
—
|
(659,169)
|
Net unrealized loss on
investments
|
(102,747)
|
(360,978)
|
(32,459)
|
—
|
(496,184)
|
Net gain on notes
payable - derivative
|
—
|
—
|
—
|
57,998
|
57,998
|
Net gain on warrant
liability
|
—
|
—
|
—
|
20,322
|
20,322
|
Foreign currency
loss
|
(316)
|
—
|
—
|
—
|
(316)
|
Loss attributable to
non-controlling interests liability
|
—
|
97,219
|
—
|
—
|
97,219
|
|
(319,106)
|
(706,885)
|
(32,459)
|
78,320
|
(980,130)
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
$ (504,294)
|
$
(420,333)
|
$
(67,013)
|
$
(65,889)
|
$
(1,057,529)
|
Income tax
benefit
|
—
|
—
|
—
|
(35,952)
|
(35,952)
|
Net income
(loss)
|
$ (504,294)
|
$
(420,333)
|
$
(67,013)
|
$
(29,937)
|
$
(1,021,577)
|
Foreign currency
translation adjustment
|
—
|
—
|
—
|
(1,726)
|
(1,726)
|
Comprehensive income
(loss)
|
$ (504,294)
|
$
(420,333)
|
$
(67,013)
|
$
(31,663)
|
$
(1,023,303)
|
Assets and liabilities by reportable segment of GDH LP as of
December 31, 2023 are as follows:
(in
thousands)
|
Global
Markets
|
Asset
Management
|
Digital
Infrastructure
Solutions
|
Corporate
and Other
|
Totals
|
Total
assets
|
$
2,726,950
|
$
575,056
|
$
321,322
|
$
51,921
|
$
3,675,249
|
|
|
|
|
|
|
Total
liabilities
|
$
1,289,792
|
$
10,968
|
$
9,817
|
$
574,891
|
$
1,885,468
|
Assets and liabilities by reportable segment of GDH LP as of
December 31, 2022 are as follows:
(in
thousands)
|
Global
Markets
|
Asset
Management
|
Digital
Infrastructure
Solutions
|
Corporate
and Other
|
Totals
|
Total
assets
|
$
1,476,489
|
$
536,061
|
$
251,624
|
$
81,969
|
$
2,346,143
|
|
|
|
|
|
|
Total
liabilities
|
$
338,336
|
$
1,084
|
$
10,519
|
$
557,412
|
$
907,351
|
Select statement of financial position information
The fair value of select assets by reporting segment of GDH LP
as of December 31, 2023 is as
follows:
(in
thousands)
|
Global
Markets
|
Asset
Management
|
Digital
Infrastructure
Solutions
|
Corporate
and Other
|
Totals
|
Digital
assets
|
$ 1,052,013
|
$
67,930
|
$
—
|
$
—
|
$ 1,119,943
|
Digital assets
receivables
|
6,506
|
13,135
|
1,219
|
—
|
20,860
|
Assets posted as
collateral
|
318,195
|
—
|
—
|
—
|
318,195
|
Loans
receivable
|
491,868
|
—
|
—
|
—
|
491,868
|
Investments
|
244,807
|
476,262
|
14,034
|
—
|
735,103
|
Property and
equipment
|
109
|
—
|
252,552
|
7,304
|
259,965
|
|
$ 2,113,498
|
$
557,327
|
$
267,805
|
$
7,304
|
$ 2,945,934
|
The fair value of each asset class by reporting segment of GDH
LP as of December 31, 2022 is as
follows:
(in
thousands)
|
Global
Markets
|
Asset
Management
|
Digital
Infrastructure
Solutions
|
Corporate
and Other
|
Totals
|
Digital
assets
|
$
566,690
|
$
—
|
$
—
|
$
—
|
$
566,690
|
Digital assets
receivables
|
10,713
|
6,864
|
—
|
—
|
17,577
|
Assets posted as
collateral
|
25,138
|
—
|
—
|
—
|
25,138
|
Loans
receivable
|
213,559
|
—
|
—
|
—
|
213,559
|
Investments
|
124,668
|
464,027
|
6,427
|
—
|
595,122
|
Property and
equipment
|
126
|
—
|
200,829
|
7,583
|
208,538
|
|
$
940,894
|
$
470,891
|
$
207,256
|
$
7,583
|
$ 1,626,624
|
Net Digital Assets Position
Net digital assets includes all digital assets categorized as
assets, less all digital assets categorized as liabilities on the
statement of financial position and is included in the Company's
liquidity measure. Net digital assets as of December 31, 2023 is as follows:
(in
thousands)
|
As of
December 31,
2023
|
As of
December 31,
2022
|
Assets
|
|
|
Digital
assets
|
$
1,078,587
|
$
566,690
|
Bitcoin(1)
|
589,011
|
222,229
|
Ether(1)
|
174,978
|
54,219
|
USDT
|
104,539
|
62,267
|
USDC
|
74,624
|
199,479
|
TIA
|
27,138
|
—
|
All other
|
108,297
|
28,496
|
Digital asset loans
receivable, net of allowance
|
104,504
|
49,971
|
Digital assets
receivable, current
|
14,686
|
12,423
|
Digital assets
receivable, noncurrent
|
6,174
|
5,154
|
Assets posted as
collateral - Digital assets(2)
|
316,104
|
25,138
|
Restricted digital
assets, noncurrent(3)
|
41,356
|
—
|
|
1,561,411
|
659,376
|
Liabilities
|
|
|
Digital asset loans
payable
|
398,277
|
170,566
|
Collateral
payable(2)
|
569,995
|
73,458
|
|
968,272
|
244,024
|
Digital assets,
net
|
$
593,139
|
$
415,352
|
Stablecoins,
net(4)
|
$
(115,997)
|
$
281,048
|
Digital assets, net
excl. stablecoins
|
$
709,136
|
$
134,304
|
(1)
|
December 31, 2023
balances include associated tokens such as wBTC, wETH and
stETH.
|
(2)
|
Excludes cash portion
of balance on the Partnership's balance sheet.
|
(3)
|
As of December 31,
2023, this balance represents TIA tokens that are subject to a sale
restriction of greater than one year.
|
(4)
|
As of December 31,
2023, stablecoin liabilities were greater than stablecoin
assets.
|
SOURCE Galaxy Digital Holdings Ltd.