Galaxy Announces Third Quarter 2022 Financial Results

Crypto05 artjazz Galaxy Announces Third Quarter 2022 Financial Results

<br /> Galaxy Announces Third Quarter 2022 Financial Results<br />

Canada NewsWire


Net comprehensive loss of

$68.1 million

for the quarter



The Company maintains a strong liquidity position of

$1.5 billion




The Company continues to onboard counterparties and invest in strategic opportunities




Damien Vanderwilt

, Co-President and Head of Global Markets, to transition to Senior Advisor and Board Director



NEW YORK


,


Nov. 9, 2022


/CNW/ –


Galaxy Digital Holdings Ltd.


(TSX: GLXY) (“Galaxy Digital”, “Galaxy”, the “Company” or “GDH Ltd.”) today released financial results for the three and nine months ended

September 30, 2022

for both itself and Galaxy Digital Holdings LP (the “Partnership” or “GDH LP”).

“While our industry continues to face macroeconomic headwinds and structural evolution, Galaxy remains focused on building for the future state of institutional adoption by taking deliberate steps to transform and simplify our operations,” said

Michael Novogratz

, Founder and CEO of Galaxy Digital.

“Retaining

$1.5 billion

in liquidity, including over

$1.0 billion

in cash, the Company continues to be in a position of strength for both organic and inorganic growth, as we focus on building for the future. Additionally, I’d like to thank

Damien Vanderwilt

for his contributions to the Company and look forward to continuing to work with him as he transitions to being Senior Advisor and Board Director.”



Select Financial Highlights for the Third Quarter 2022


  • Net comprehensive loss

    was

    $68.1 million

    , compared to a

    $517.9 million

    gain in the prior year period.
    • The loss was primarily related to unrealized losses on investments in our Principal Investments business, driven by reduced valuations on certain investments due to external market conditions, and increased Operating Expense for our Mining business due to impairments in Mining assets, driven by dislocations in the mining space. The net comprehensive loss was partially offset by profitability in our Trading business.
    • Within the quarter, the Partnership’s Trading business line was profitable largely due to realized and unrealized gains on digital assets, contributing

      $52.8 million

      to net comprehensive income in the quarter.


  • Partners’ Capital

    was

    $1.8 billion

    at the end of the quarter, down 12% from

    $2.0 billion

    in the prior year period.
    • During the quarter, Partners’ Capital decreased 3% quarter-over-quarter to

      $1.8 billion

      due to the net comprehensive loss in the quarter.
      • This decrease was against the backdrop of a total

        cryptocurrency

        market capitalization increase of approximately 7% during the quarter.[1
    • The Company maintained a strong liquidity position of

      $1.5 billion

      as of

      September 30, 2022

      .
      • Liquidity includes

        $1.0 billion

        in cash and a net digital assets

        2

        position of

        $422.6 million

        .

        $235.8 million

        of that net digital assets

        2

        were held in non-algorithmic stablecoins, predominantly in USD Coin (“USDC”).
      • As of

        September 30, 2022

        , net digital assets[2] were

        $422.6 million

        , compared to

        $474.3 million

        as of

        June 30, 2022

        . The decrease in net digital assets

        2

        was primarily driven by selling certain liquid positions.


_____________________________



1

Represents coinmarketcap.com total cryptocurrency market capitalization quoted price as of 12:00AM UTC for total market capitalization.



2

Net digital assets includes all digital assets categorized as assets, less all digital assets categorized as liabilities on the statement of financial position, less non-controlling interests liabilities.



Operating Highlights for the Third Quarter 2022


  • Galaxy Trading (“GT”)

    reported continued growth in client count and strong revenue from our counterparty-facing businesses, against continued decreased counterparty trading volumes within the quarter.
    • Cumulative counterparty-facing GT Operational Net Revenue (“GT Operational Revenue”) within the quarter was approximately

      $20 million

      , with approximately 40% from our Quantitative Trading businesses, and the remaining approximately equally split between our Derivatives and Credit businesses.
    • Within the quarter, GT onboarded over 25 new counterparties to our trading platform, bringing our total trading counterparties to over 880, and continues to provide liquidity in over 100 cryptocurrencies.
    • Counterparty trading volumes decreased by approximately 55% from the quarter ended

      June 30, 2022

      , and decreased by just over 50% year over year.
    • The Company’s cumulative gross counterparty loan originations were approximately

      $590 million

      within the quarter, and the value of GT’s counterparty loan and yield portfolio increased 5% quarter over quarter.


  • Galaxy Asset Management (“GAM”)

    reported preliminary assets under management (“AUM”)

    3

    of nearly

    $2.0 billion

    as of

    September 30, 2022

    , a 17% increase from the quarter ended

    June 30, 2022

    .
    • AUM consisted of

      $875 million

      in GAM’s Galaxy Fund Management products, and just over

      $1.1 billion

      in the Galaxy Interactive venture franchise.
    • GAM strategically focused on scaling active strategies within our Galaxy Fund Management and Interactive products, and as a result, GAM saw positive net flows in the quarter.
    • Within the quarter Galaxy Interactive grew AUM to just over

      $1.1 billion

      . As of

      September 30, 2022

      , the fair market value of Galaxy Interactive’s first two closed funds, the Galaxy EOS VC Fund and Galaxy Interactive Fund I, are worth nearly double their investment costs in aggregate.


  • Galaxy Investment Banking (“GIB”)

    had a quarter of continued growth of its active deal pipeline, with a number of existing mandates expected to close in the next two quarters.
    • GIB is actively engaged in the markets’ prominent shift toward M&A activity, and accordingly, M&A-linked transactions and opportunities remain a primary focus for the team.
    • GIB continues to execute against an active pipeline of mandates representing over

      $1 billion

      in potential transaction value.
    • GIB continues to expand international coverage and added a new member to the Europe GIB team to strengthen our ability to serve our clients and meet demand across the globe.
    • Within the quarter, GIB advised Blockdaemon on its acquisition of Sepior, a digital asset security provider that offers advanced MPC-based solutions.

  • Galaxy Mining (“GM”)

    incurred a net comprehensive loss of

    $34.9 million

    in the quarter, largely due to non-cash operating impairments of Mining assets that increased Operating Expense, against the backdrop of our largest third-party hosting provider reducing capacity due to market conditions, rising energy prices and constrained access to capital markets.
    • GM is actively working on multiple longer-term solutions to diversify and reduce counterparty risk, in order to maintain our targeted goal of 3,000 Petahash per second (PH/s) of mining capacity for both proprietary and miner-finance operations, from monthly deliveries by the end of 2022.
    • Additionally, GM broke ground on its first proprietary mining site in

      Texas

      , which is expected to be fully energized and operational by

      January 2023

      , enabling GM to scale its self-mining responsibly and in a tax-efficient structure.
    • During the quarter, GM closed three existing machine leases at expected terms, without defaults, delinquencies, or losses. These small loans were, in aggregate, approximately

      $8 million

      , demonstrating the team’s continued prudent approach toward extending financing arrangements in the mining space.
    • GM announced an investment in Aspen Creek Digital Corporation (“ACDC”), and continues to host machines at their sustainably-focused facilities. ACDC is a

      bitcoin

      mining company focused on renewable energy, demonstrating GM’s ongoing commitment to sustainability and proper risk perimeters on hosting providers.


  • Principal Investments (“GPI”)

    : The Company now holds 152 investments across 107 portfolio companies as of

    September 30, 2022

    . Within the third quarter 2022, GPI made investments in a number of companies including Celestia, one of the leading projects focused on novel, modular blockchain architecture.


_________________________



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.



Corporate Updates


  • Senior Leadership Update:

    Effective

    mid-January 2023

    ,

    Damien Vanderwilt

    will step down from his role as Co-President at the Company. Concurrently, he will be named a Senior Advisor to Galaxy and join the Company’s Board of Directors. Since joining Galaxy last year, Damien has played a vital role in our efforts to institutionalize the digital asset space, as well as helping the Company navigate through an unprecedented period of global growth and transformation. Damien played an instrumental role in establishing several external partnerships and client relationships. He also contributed to various initiatives underscoring the firm’s focus on inclusion, diversity, and sustainability, and played a key part in recruiting, ensuring Galaxy has a deep bench of future leaders for many years to come.

  • US Listing:

    As previously announced, the Company intends to complete 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 approval of such listing. The company now expects the listing to occur in 2023.

  • Share Repurchase Program:

    As announced on

    May 16, 2022

    , the Company entered into a


    Share Repurchase Program


    and as of

    October 24, 2022

    , has purchased all 10,596,720 ordinary shares allowable at an average price of

    $6.65

    CAD. The Company will continue to use all available methods to manage its share capital when it believes that the current market price of its shares does not reflect their intrinsic value and if doing so is consistent with the objective of creating long term shareholder value.

  • Update on Exposure to FTX.com

    : On

    November 8, 2022

    , FTX.com (“FTX”), a digital asset exchange on which the Partnership holds cash and digital assets, announced that it entered into a non-binding arrangement with Binance Holdings Ltd. to provide liquidity. As of the date of this filing, the Partnership has an exposure of approximately

    $76.8 million

    of cash and digital assets to FTX, of which

    $47.5 million

    is currently in the withdrawal process.



GDH Ltd.’s Financial Highlights (Q3 2022)

  • 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 its associate (GDH LP) using the equity method. GDH Ltd. had been carrying its investment at cost initially and subsequently increased or decreased it to recognize GDH Ltd.’s share of the earnings and losses of GDH LP. As of

    September 30, 2022

    , an impairment assessment was required under International Financial Reporting Standards and GDH Ltd.’s minority interest in GDH LP was marked down based on the TSX closing share price at quarter end. An impairment expense of

    $143.5 million

    was recognized. The net comprehensive loss of GDH Ltd was

    $332.2 million

    for the nine months ended

    September 30

    , 2022.



Earnings Conference Call

An investor conference call will be held today,

November 9, 2022

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 1-877-300-8521, or 1-412-317-6026 (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

November 30, 2022

, the recording will also be available by dialing +1-844-512-2921, or 1-412-317-6671 (outside the U.S. and

Canada

) passcode: 10172419.



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 institutions, startups, and qualified individuals access to the

crypto

economy. Our full suite of financial services is custom-made for a digitally native ecosystem, spanning multiple synergistic business lines: Trading, Asset Management, Investment Banking, Mining, and Ventures.

Galaxy’s CEO and Founder

Michael Novogratz

leads a team of

crypto

enthusiasts and institutional veterans working together on a mission to engineer a new economic paradigm. The Company is headquartered in

New York City

, with offices in

Chicago

,

New Jersey

,

London

,

Amsterdam

,

Hong Kong

,

Tokyo

and the

Cayman Islands

(reg. office).

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 Condensed Consolidated Interim Financial Statements for the three and nine months ended

September 30, 2022

and (ii) GDH Ltd.’s Management Discussion and Analysis and Condensed Consolidated Interim Financial Statements for the three and nine months ended

September 30, 2022

(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.


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 Digital’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.sedar.com

.

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 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. Forward-looking statements in this document may include, for example, statements about our mining business and its go-forward strategy, our ability to complete the proposed domestication and reorganization transactions within a particular timeframe, our senior executive transition and our plans with respect to share capital. 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; (11) those other risks contained in the Annual Information Form for the year ended

December 31, 2021

available on the Company’s profile at

www.sedar.com

and its Management’s Discussion and Analysis, filed on

November 9, 2022

and (12) 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.

©Copyright Galaxy Digital 2022. All rights reserved.



Galaxy Digital Holdings LP’s Consolidated Statements of Financial Position (unaudited)


(in thousands)



September 30, 2022



December 31, 2021



Assets



Current assets


Cash and cash equivalent


$                     1,038,176


$                         840,776


Digital assets


865,463


2,420,777


Receivable for digital asset trades


16,208


8,332


Digital assets loans receivable, net of allowance


110,336


192,684


Digital assets receivables


21,012


52,998


Assets posted as collateral


98,976


71,400


Receivables


11,746


26,665


Derivative assets


23,909


45,669


Prepaid expenses and other assets


52,252


25,768


Loans receivable


76,028


190,087


Due from related party




25,023


Total current assets


2,314,106


3,900,179


Digital assets receivables


11,172


18,659


Investments


748,163


1,069,776


Right of use assets


13,234


11,746


Property and equipment


143,116


58,187


Deferred tax asset


20,184


10,259


Intangible assets


2,742


3,087


Goodwill


24,645


24,645


Total non-current assets


963,256


1,196,359



Total assets



$                     3,277,362



$                     5,096,538



Liabilities and equity



Current liabilities


Investments sold short


7,960


11,630


Derivative liabilities


19,334


25,567


Warrant liability


318


20,488


Accounts payable and accrued liabilities


77,795


146,243


Payable to customers


22,771


142,441


Taxes payable


16,981


42,341


Payable for digital asset trades


4,589


13,216


Digital assets loans payable


501,119


905,013


Loans payable


112,528


33,289


Collateral payable


206,187


480,088


Due to related party


24,703




Lease liability


3,660


2,164


Non-controlling interest liability


56,652


161,536


Total current liabilities


1,054,597


1,984,016


Notes payable


425,629


475,330


Deferred tax liability


9,256


25,608


Lease liability


12,792


13,233


Total non-current liabilities


447,677


514,171



Total liabilities


1,502,274


2,498,187



Equity


Partners’ capital


1,775,088


2,598,351



Total equity


1,775,088


2,598,351



Total liabilities and equity



$                     3,277,362



$                     5,096,538



Galaxy Digital Holdings LP’s Consolidated Statements of Comprehensive Income (unaudited)


(in thousands)



Three months

ended



September 30,

2022



Three months

ended



September 30,

2021



Nine months

ended



September 30,

2022



Nine months

ended September 30,

2021



Income


Advisory and management fees


$                 4,608


$                 3,524


$               22,710


$                 7,881


Net realized gain on digital assets


4,715


130,465


128,558


698,639


Net realized gain (loss) on investments


(8,776)


32,557


64,153


225,058


Income from lending


6,395


14,027


31,086


39,395


Net derivative gain


17,825


32,078


179,821


105,355


Income from mining


5,614


3,799


26,370


7,700


Other income


2,295


619


4,297


5,163



32,676



217,069



456,995



1,089,191



Operating expenses


Compensation and compensation related


37,247


53,146


112,447


136,780


Equity based compensation


27,738


24,192


81,634


44,839


General and administrative


49,281


4,004


101,389


19,526


Professional fees


(4,260)


21,054


15,271


37,147


Profit share arrangement expense




1,867




14,032


Interest


8,543


19,386


33,417


51,646


Notes interest expense


7,504




22,113





(126,053)



(123,649)



(366,271)



(303,970)


Net unrealized gain (loss) on digital assets


69,437


355,245


(664,206)


222,540


Net unrealized (loss) gain on investments


(39,299)


177,894


(372,318)


401,229


Net (loss) gain on notes payable – derivative


(1,041)




56,556




Net gain (loss) on warrant liability


307


9,352


20,005


(24,802)


Foreign currency gain (loss)


2,579


(229)


3,293


1,566


(Gain) loss attributable to non-controlling interests

liability


(8,857)


(89,723)


105,160


(164,730)



23,126



452,539



(851,510)



435,803



(Loss) income before income taxes



(70,251)



545,959



(760,786)



1,221,024


Income taxes


(2,357)


28,126


(26,984)


28,126



Net (Loss) income for the period



$             (67,894)



$            517,833



$           (733,802)



$         1,192,898



Other comprehensive income (loss)


Foreign currency translation adjustment


$                   (222)


$                      40


$                   (710)


$                    338



Net comprehensive (loss) income for the period



$             (68,116)



$            517,873



$           (734,512)



$         1,193,236



Three months

ended



September 30, 2022



Three months

ended



September 30, 2021



Nine months

ended



September 30, 2022



Nine months

ended



September 30, 2021



Net income (loss) per unit:


Basic


$                           (0.21)


$                             1.62


$                           (2.24)


$                             3.77


Diluted


(0.21)


1.48


(2.29)


3.43



Weighted average units:


Basic


326,187,757


319,815,465


327,599,342


316,314,861


Diluted


326,187,757


349,210,552


342,921,483


348,041,169



Reportable segments (unaudited)

Income and expenses by each reportable segment of GDH LP for the three months ended

September 30, 2022

are as follows (in thousands):



(in thousands)



Trading



Principal

Investments



Asset

Management



Investment

Banking



Mining



Corporate



and Other



Totals



Income (loss)


Advisory and

management fees


383




3,374


851






4,608


Net realized gain (loss)

on digital assets


29,738


(17,226)


(7,797)








4,715


Net realized gain (loss)

on investments


(6,568)


(2,208)










(8,776)


Income from lending


6,260


135










6,395


Net derivative gain


17,825












17,825


Income from mining










5,614




5,614


Other income


796


1,453


46








2,295



48,434



(17,846)



(4,377)



851



5,614







32,676



Operating expenses



37,144



1,767



12,890



2,464



40,517



31,271



126,053


Net unrealized gain

(loss) on digital assets


36,257


15,366


17,814








69,437


Net unrealized gain

(loss) on investments


2,499


(41,161)


(637)








(39,299)


Net gain on notes

payable – derivative












(1,041)


(1,041)


Net gain on warrant

liability












307


307


Foreign currency gain


2,739










(160)


2,579


Loss attributable to

non-controlling

interests liability






(8,857)








(8,857)



41,495



(25,795)



8,320











(894)



23,126



Income (loss) before

income taxes



$           52,785



$          (45,408)



$            (8,947)



$            (1,613)



$          (34,903)



$          (32,165)



$          (70,251)


Income tax benefit












(2,357)



(2,357)



Net income (loss) for

the period



$           52,785



$          (45,408)



$            (8,947)



$            (1,613)



$          (34,903)



$          (29,808)



$          (67,894)


Foreign currency

translation adjustment












(222)


(222)



Comprehensive

income (loss) for the

period



$           52,785



$          (45,408)



$            (8,947)



$            (1,613)



$          (34,903)



$          (30,030)



$          (68,116)

Income and expenses by each reportable segment of GDH LP for the three months ended

September 30, 2021

are as follows (in thousands):



(in thousands)



Trading



Principal

Investments



Asset

Management



Investment

Banking



Mining



Corporate



and Other



Totals



Income (loss)


Advisory and

management fees


$                  62


$                  —


$             3,462


$                  —


$                  —


$                  —


$             3,524


Net realized gain (loss)

on digital assets


100,314


13,227


16,924








$         130,465


Net realized gain (loss)

on investments


12,675


19,821


61








$           32,557


Income from lending


13,739


288










$           14,027


Net derivative gain

(loss)


32,078












$           32,078


Income from mining










3,799




$             3,799


Other income


619












$                619



159,487



33,336



20,447







3,799







217,069



Operating expenses



55,227



4,937



10,667



2,283



2,689



47,846



123,649


Net unrealized gain

(loss) on digital assets


244,146


44,387


66,712








355,245


Net unrealized gain

(loss) on investments


(385)


183,472


(5,193)








177,894


Net gain (loss) on

warrant liability












9,352


9,352


Foreign currency gain


(219)


(10)










(229)


(Gain) loss attributable

to non-controlling

interests liability






(89,723)








(89,723)



243,542



227,849



(28,204)











9,352



452,539



Income (loss) before

income taxes



$         347,802



$         256,248



$         (18,424)



$           (2,283)



$             1,110



$         (38,494)



$         545,959


Income tax expense












28,126


28,126


Net income (loss) for

the period



$         347,802



$         256,248



$         (18,424)



$           (2,283)



$             1,110



$         (66,620)



$         517,833


Foreign currency

translation adjustment












40


40



Comprehensive

income (loss) for the

period



$         347,802



$         256,248



$         (18,424)



$           (2,283)



$             1,110



$         (66,580)



$         517,873

Assets and liabilities by reportable segment of GDH LP as of

September 30, 2022

are as follows (in thousands):



(in thousands)



Trading



Principal

Investments



Asset

Management



Investment

Banking



Mining



Corporate and

Other



Totals



Total assets


$        1,931,023


$           822,108


$             86,938


$             22,853


$           349,598


$             64,842


$        3,277,362



Total liabilities


$           876,591


$                  242


$             56,886


$               2,102


$               3,037


$           563,416


$        1,502,274

Assets and liabilities by reportable segment of GDH LP as of

December 31, 2021

are as follows (in thousands):



(in thousands)



Trading



Principal

Investments



Asset

Management



Investment

Banking



Mining



Corporate and Other



Totals



Total assets


$       2,971,090


$       1,277,707


$          193,436


$            10,727


$          292,942


$          350,636


$        5,096,538



Total liabilities


$       1,666,488


$                 174


$          171,784


$                 122


$              3,202


$          656,417


$        2,498,187



Select statement of financial position information

The fair value of each asset class by reporting segment of GDH LP as of

September 30, 2022

is as follows (in thousands):



(in thousands)



Trading



Principal

Investments



Asset

Management



Investment

Banking



Mining



Corporate

and Other



Totals


Digital assets


$          776,609


$            29,363


$             59,491


$                 —


$             —


$                —


$          865,463


Digital assets receivables


7,647


24,537










32,184


Digital assets posted as

collateral


98,976












98,976



Investments:


Pre-Launch Network


2,500


4,300










6,800


Convertible Notes


5,368


14,643










20,011


Preferred Stock




297,331






2,100




299,431


Common Stock


8,379


114,139




390






122,908


LP/LLC Interests




298,979










298,979


Warrants/Trust

Units/Trust Shares




34










34



$          899,479



$          783,326



$             59,491



$               390



$        2,100



$                —



$       1,744,786

The fair value of each asset class by reporting segment of GDH LP as of

December 31, 2021

is as follows (in thousands):



(in thousands)



Trading



Principal

Investments



Asset

Management



Investment

Banking



Mining



Corporate

and Other



Totals


Digital assets


$     2,121,772


$        123,210


$        165,300


$                 —


$          10,495


$                 —


$     2,420,777


Digital assets receivables




71,657










71,657


Digital assets posted as

collateral


71,400












71,400



Investments:


Pre-Launch Network




6,393










6,393


Convertible Notes




9,768










9,768


Preferred Stock




382,182










382,182


Common Stock


34,991


236,303










271,294


LP/LLC Interests




383,279










383,279


Warrants/Trust Units


7,963


8,897










16,860



$     2,236,126



$     1,221,689



$        165,300



$                 —



$          10,495



$                 —



$     3,633,610



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, less non-controlling interests liabilities, and is included in the Company’s liquidity measure. Net digital assets as of

September 30, 2022

is as follows (in thousands):




(in thousands)




As of



September 30, 2022



As of



December 31, 2021



Assets


Digital assets


$                          865,463


$                       2,420,777


Digital asset loans receivable, net of allowance


110,336


192,684


Digital assets receivable, current


21,012


52,998


Digital assets receivable, noncurrent


11,172


18,659


Assets posted as collateral


98,976


71,400


1,106,959


2,756,518



Liabilities


Payables to customers

1


13,112


18,565


Digital asset loans payable


501,119


905,013


Collateral payable

1


113,515


458,949


Non-controlling interests liability


56,652


161,536


684,398


1,544,063



Digital assets, net



$                          422,561



$                       1,212,455


Stablecoins, net


$                          235,839


$                          240,634



Digital assets, net excl. stablecoins



$                          186,722



$                          971,821



1

Excludes cash portion of consolidated balance on the Partnership’s balance sheet.


All figures are in U.S. Dollars unless otherwise noted.

SOURCE Galaxy Digital Holdings Ltd.

rt Galaxy Announces Third Quarter 2022 Financial Results

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