Galaxy Digital Reports $300M in Income Before Tax, Driven By Appreciation of Digital Asset Prices
Galaxy Digital Holdings Ltd. (TSX: GLXY) released financial results for the three and twelve months ended December 31, 2023, for both itself and Galaxy Digital Holdings LP.
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.”
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.”
Galaxy Global Markets says that it “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 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.”
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.”
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).”