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. Galaxy Digital operates in the following businesses: Trading, Asset Management, Investment Banking, Mining and Principal Investments. Galaxy Digital's CEO and Founder is Mike Novogratz. The Company is headquartered in New York City, with offices in Chicago, London, Amsterdam, Tokyo, Hong Kong, the Cayman Islands (registered office), and New Jersey.
Additional information about GDH LP's businesses and products is available on www.galaxydigital.io.
Net comprehensive income increased 345% to $1.7 billion versus prior year
Partners' Capital increased 226% to $2.6 billion versus prior year
Assets Under Management ("AUM") increased 256% since Q4 2020
Galaxy remains committed to listing in the U.S. and closing the BitGo acquisition
NEW YORK, March 31, 2022 /CNW/ - Galaxy Digital Holdings Ltd. (TSX: GLXY) ("Galaxy Digital" the "Company" or "GDH Ltd.") today released financial results for the year ended December 31, 2021 for both itself and Galaxy Digital Holdings LP (the "Partnership" or "GDH LP").
"2021 was a transformational year for both Galaxy Digital and our industry. While providing shareholders a net comprehensive income of $1.7 billion for the full year 2021, we also grew headcount over 200% to support continued growth across all our businesses," said Michael Novogratz, Founder and CEO of Galaxy Digital.
"We remain committed to scaling our platform services, and building the pre-eminent technology-driven financial services and investment management firm, a strategy I firmly believe will continue enhancing long-term shareholder value."
Corporate Updates
BitGo Acquisition: Galaxy and BitGo intend to complete the proposed transaction, and have renegotiated the acquisition agreement from May 5, 2021 with the following terms:
U.S. Listing: 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 ongoing SEC review and subject to stock exchange approval of such listing.
Quarter-to-date Company and Market Updates for First Quarter 2022, through Monday, March 28th, 2022
Net comprehensive income1 is expected to be a loss of $110 million to $130 million, quarter-to-date, bringing Partners' Capital to approximately $2.45 billion. The Company's operating business lines are expected to remain profitable.3
Since the end of the fourth quarter 2021, total cryptocurrency market capitalization has decreased approximately 4%.4
Total value locked in decentralized finance (or "DeFi") for the sector has decreased approximately 16% quarter-to-date to $82 billion during the first quarter 2022.5
Institutional adoption trends remained positive with over $9 billion of private market deals announced year-to-date in 2022 alone according to Pitchbook, leading asset managers BlackRock, Fidelity, and others adding crypto investment products directly and through partnerships, and major traditional financial institutions such as JPMorgan Chase & Co and HSBC announcing a presence within the metaverse.
As a continuation of our partnership with Goldman Sachs, in March 2022 we announced our trading desk executed the first OTC cryptocurrency non-deliverable option transaction.
The Company continues to drive growth through ongoing product launches across the platform, including the launch of the CI Galaxy Multi-Crypto ETF in February 2022, in a continuation of our partnership with CI.
Also in February 2022, our Investment Banking business ("GDIB") team worked on two fundraising rounds, Qredo's $85 million Series A financing, where we were the exclusive financial advisor and sole placement agent, and Compute North's $80 million Series C financing, where we advised the Compute North team on the equity financing.
As a continuation of GDIB's relationship with Blockdaemon, a leading blockchain infrastructure company for node management and staking, our team acted as exclusive financial advisor on Blockdaemon's announced acquisition of Gem in March 2022.
GDIB also served as financial advisor and capital markets advisor to the Thunder Bridge IV, a special purpose acquisition vehicle company, on its merger agreement with Coincheck, a multi-cryptocurrency marketplace and digital asset exchange.
Select Financial Highlights for the Fourth Quarter 2021
Net comprehensive income1 increased 55% to $521.3 million, from net comprehensive income of $335.6 million in the prior year period.
Operating Highlights for the Fourth Quarter 2021
Galaxy Digital Trading ("GDT") results reflected a strong quarter, with continued growth in client count, and revenue from counterparty trading and our loan and yield portfolio.
Galaxy Digital Asset Management ("GDAM") reported preliminary AUM of $2.9 billion as of December 31, 2021, a 29% increase from the quarter ended September 30, 2021, and a 256% increase year-to-date. AUM consisted of $2.2 billion in GDAM's Galaxy Fund Management products, and $658 million in the Galaxy Interactive venture franchise6.
Galaxy Digital Investment Banking ("GDIB") served as advisor on five fundraising and M&A transactions during the quarter, and is actively executing on several active mandates for leading companies in the blockchain and cryptocurrency ecosystem. For the full year 2021, GDIB completed eight deals. Within the fourth quarter 2021, GDIB completed the following transactions:
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 maintaining an over 80% sustainable energy mix for all mining operations.
Principal Investments ("GDPI"): The Company now holds 122 investments across 86 portfolio companies as of December 31, 2021. Within the fourth quarter 2021, GDPI made investments in a number of companies including Chaos Labs, Sealance, and Skolem.
Additional Corporate Updates
Hiring: The Company has hired a number of senior executives for key leadership roles including:
Board of Directors: in March 2022, the Company appointed Jane Dietze to its Board of Directors. Ms. Dietze is the Chief Investment Officer and Vice President of Brown University.
Sustainability Program: the Company publicly launched a Sustainability Program and Strategy in February 2022, underscoring the Company's commitment to responsible environmental practices, a robust corporate governance strategy and an equitable, inclusive environment for employees. The Program is overseen by the Company's Board of Directors, supported by an ESG Steering Committee comprised of senior executives across the Company's business lines and corporate functions.
