Mike Novogratz's Galaxy Digital Holdings Ltd (OTC ) reported its second consecutive record quarter on Tuesday, raking in $422 million in net income for the three months through March 2024. The digital asset manager swung from a loss to a profit in the fourth quarter of 2023. in a major turnaround from a disastrous 2022 when it posted a $1 billion net loss.
First-quarter revenue across its three operating units nearly tripled compared to the $120 million it generated in the same quarter a year earlier. The figure also represented a 40% increase compared to the previous quarter, when Galaxy Digital reported net income of $302 million, according to an earnings release.
Galaxy Digital, which runs cryptocurrency lending, trading, mining and banking services businesses, noted that 2024 is off to a great start with rising prices of key cryptocurrencies such as. The company shared that as of the end of March, they had already raised around $2.2 billion in equity capital, thanks to the $402 million it added in the first quarter.
On the operational front, Galaxy reported a key milestone by managing a hash rate of 5.7 exahash per second. This led to record bitcoin mining revenue of $31.5 million during the quarter, a 69% increase from the previous quarter. The company mined 373 bitcoins at an average marginal cost of less than $19,500 per bitcoin.
Other business highlights reveal that Galaxy's trading division achieved $66 million in counterparty trading revenue, up 79% from the first quarter of 2023. This boost was primarily due to higher derivatives revenue and favorable movements in cryptocurrency prices. the assets. Additionally, trading volumes increased by 78%, the average loan portfolio size increased to $664 million, and the number of trading counterparties expanded to 1,161.
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In the quarter, the Investment Banking division closed a deal, acting as an advisor to CryptoSlam, which received a strategic investment from Spirit Blockchain Capital. The investment banking pipeline remains strong, the company says, with potential deal values totaling $2.2 billion.
“Our first quarter results underscore the strength and resilience of our business model,” said Mike Novogratz, CEO of Galaxy Digital Holdings Ltd. “We continue to see strong demand for our digital asset products and services, which positions us well. for future growth.”
Galaxy's asset management franchise generated fees of $17.8 million, up 113% from the previous quarter. Assets under management (AUM) increased to $7.8 billion, driven by net inflows and market appreciation. The company launched the Invesco Galaxy bitcoin ETF and two new XTrackers exchange-traded products in partnership with DWS Group.
Galaxy closed a $125 million equity capital raising in April. The fresh capital will be injected into working capital, expansion of business operations and infrastructure development of the Helios mining facility.
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