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Galaxy Announces Second Quarter 2024 Financial Results

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Equity capital was $2.1 billion as of June 30, 2024

Net loss of $177 million for the second quarter, driven primarily by net losses on digital assets and investments as a result of a decline in digital asset markets

Net income of $245 million for the six months ended June 30, 2024, driven by strong operating performance and positive digital asset markets

Assets Under Stake of $3.3 billion as of July 18, 2024, up from $486 million at the end of March 2024

NEW YORK, Aug. 1, 2024 /CNW/ – Galaxy Digital Holdings Ltd. (TSX: GLXY) (the “Company” or “GDH Ltd.”) today released financial results for the three months and six months ended June 30, 2024, 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.

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. On July 26, 2024, Galaxy filed an amendment to its registration statement responding to SEC comments, which is under review.

CryptoManufaktur Acquisition: On July 19, 2024, Galaxy announced that it acquired the assets of CryptoManufaktur (“CMF”), a blockchain node operator that provides trusted, secure services to decentralized protocols across the digital asset ecosystem. The addition of CMF brings approximately $1 billion in Ether assets under stake (“AUS”), raising the Company’s total AUS to $3.3 billion as of July 18, 2024. As part of the transaction, CMF’s seasoned three-person engineering team, led by founder Thorsten Behrens, joined Galaxy’s Blockchain Infrastructure team, which provides staking and validator services to investors, protocols, and digital asset platforms.

Select GDH LP Financial Metrics

Q2 2024

Q1 2024

Q/Q % Change

Equity Capital

$2,129M

$2,192M

(3) %

Liquidity

$1,328M

$1,499M

(11) %

Cash & Net Stablecoins1

$409M

$163M

150 %

Net Digital Assets Excluding Stablecoins2

$501M

$821M

(39) %

Spot Bitcoin ETFs

$418M

$515M

(19) %

Net Income (loss)

($177M)

$422M

N.M.3

Book Value Per Share in CAD4

$8.45 CAD

$9.11 CAD

(7) %

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)

Includes Cash Equivalents.

(2)

Refer to page 15 of this release for a breakout of our net digital assets position.

(3)

Abbreviation for “Not Meaningful”.

(4)

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, financing, capital markets and M&A advisory services to a diversified client base. GGM operates in two discrete business units – Trading and Investment Banking.

Trading

Trading reported counterparty trading revenue of $24 million in the second quarter. The decrease was primarily driven by lower trading volumes, which decreased by 19% quarter-over-quarter (“QoQ”), and unfavorable asset price movements. Despite the QoQ decrease, our counterparty trading business generated approximately $90 million in revenue year-to-date through June, a nearly 80% increase relative to the first half of 2023. Galaxy’s average loan book size expanded to $699 million, driven by increased borrowing demand from both new and existing counterparties. Galaxy continues to onboard new counterparties, including large traditional institutions, and ended the second quarter with 1,212 total trading counterparties.

Key Performance Indicators

Q2 2024

Q1 2024

Q/Q % Change

Counterparty Trading Revenue

$24M

$66M

(64) %

Loan Book Size (Average)

$699M

$664M

5 %

Total Trading Counterparties

1,212

1,161

4 %

Active Trading Counterparties

294

281

5 %

Investment Banking

Investment Banking successfully closed two deals in the second quarter, serving as the exclusive financial advisor to Toposware in its sale to Polygon and to another client on its strategic financing. In the quarter, Galaxy also served as the exclusive financial advisor to Bitstamp in its pending sale to Robinhood, which is expected to close in the first half of 2025 at which time Galaxy expects to recognize the revenue associated with this deal. Galaxy is executing against a pipeline of mandates representing $2.1 billion in potential deal value.

Key Performance Indicators

Q2 2024

Q1 2024

Q/Q % Change

Deals Closed

2

1

100 %

Pipeline

19

20

(5) %

Deal Value of Pipeline

$2.1B

$2.2B

(5) %

____

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.

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 reported assets under management (“AUM”) of approximately $4.6 billion and management and performance fees of $14.5 million in the second quarter, down 42% and 19% QoQ respectively, primarily driven by the continued successful liquidation of assets associated with an ongoing opportunistic mandate to unwind portfolios on behalf of the FTX estate and market depreciation. In the quarter, GAM announced a collaboration with State Street Global Advisors to develop a suite of manager-directed digital asset ETFs that will offer investors exposure to companies in the digital asset space, going beyond crypto and bitcoin. Subsequent to quarter-end, GAM, in partnership with Invesco, announced the launch of the Invesco Galaxy Ethereum ETF (ticker: QETH). GAM conducted a $113 million initial close for Galaxy Ventures Fund I LP at the end of June, a venture capital fund focused on investing in early-stage companies across crypto protocols, software infrastructure, and financialized applications.  

Key Performance Indicators

Q2 2024

Q1 2024

Q/Q % Change

Management and Performance Fees

$14.5M

$17.8M

(19) %

Total AUM1

$4,563M

$7,818M

(42) %

     Passive AUM

$2,392M

$2,730M

(12) %

     Active AUM2

$632M

$3,584M

(82) %

     Venture AUM

$1,539M

$1,504M

2 %

(1)

In Galaxy’s monthly AUM disclosures, the “funds” line item consists of AUM held in GAM’s Passive, Active, and Venture funds, excluding opportunistic assets. Total AUM for Q1 2024 was updated from what was previously reported as AUM for quarterly close vehicles are reported as of the most recent information available for the applicable period.

(2)

Includes opportunistic AUM. “Opportunistic” AUM are near-term or mid-term engagements to unwind portfolios managed by GAM. Opportunistic AUM was $520M as of June 30, 2024 and $3,440M as of March 31, 2024.

____

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 Fund and the management of certain opportunistic mandates.

Venture Strategies: organized around two investment themes: Interactive Ventures and Crypto Ventures. Galaxy Interactive invests at the intersection of content, technology, and social commerce, managing client capital across three funds. GAM’s Crypto Ventures sleeve includes Galaxy’s inaugural crypto venture fund, which is focused on investing in early-stage companies across crypto protocols, software infrastructure, and financialized applications, as well as two global, multi-manager venture funds and 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 blockchain infrastructure.

Mining

Mining revenue was $24.0 million for the second quarter, relative to power purchase costs and external hosting expenses, net of curtailment credits, of $10.5 million, resulting in a 56% direct mining profit margin. The QoQ decrease in revenue was primarily driven by the Bitcoin halving in April. Currently, Galaxy has 200 megawatts of energized mining capacity and is bringing on an additional 300 megawatts of high-voltage capacity in the third quarter of 2025. Galaxy has firm capacity approval from both the Electric Reliability Council of Texas and the Wind Energy Transmission of Texas to scale up to 800 megawatts of power from the existing interconnect. In the first quarter, we expanded our campus by purchasing an additional 160 acres adjacent to Helios. We now have a total of 320 acres of contiguous land and have submitted additional load studies and a new interconnection request that are pending approval.

Key Performance Indicators

Q2 2024

Q1 2024

Q/Q % Change

Mining Revenue

$24.0M

$31.5M

(24) %

Proprietary Mining Revenue

$16.3M

$20.1M

(19) %

Hosted and Other Mining Revenue1

$7.7M

$11.4M

(32) %

Total Hashrate Under Management

5.6 EH/s

5.7 EH/s

(3) %

Proprietary Mining Hashrate

2.9 EH/s

3.1 EH/s

(5) %

Hosted Mining Hashrate

2.6 EH/s

2.6 EH/s

(1) %

Number of Proprietary BTC Mined

242

373

(35) %

Average Marginal Cost to Mine 

<$22.5K

<$19.5K

N.M.

(1)

Includes revenue from hosting clients and other mining related activities.

Blockchain Infrastructure and GK8

Blockchain Infrastructure and GK8 continue to build and invest in the technology that powers the digital assets ecosystem. Blockchain Infrastructure expanded its Assets Under Stake by 341% QoQ to $2.1 billion as of June 30th, with Galaxy growing to become one of the largest validators globally on the Solana network. As of July 18, 2024, AUS grew to $3.3 billion with the addition of approximately $1 billion in Ether AUS from the acquisition of CMF. GK8 continues to execute against its pipeline of enterprise clients.

Key Performance Indicators

Q2 2024

Q1 2024

Q/Q % Change

Assets Under Stake

$2,144M

$486M

341 %

GK8 Total Client Count

22

21

5 %

_____

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 machines.

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 average marginal cost of production for each bitcoin generated during the period. The calculation excludes depreciation, mark-to-market on power contracts, and corporate overhead.

Assets Under Stake: all figures are unaudited. AUS reflects 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, Galaxy affiliate assets, and third party assets.

GK8 Total Client Count: the total number of clients contracted to use GK8’s technology solutions.

Summary of Operating Expenses

Operating expenses

Q2 2024

Q1 2024

Q/Q % Change

Compensation and compensation related

$43M

$42M

1 %

Equity based compensation

$12M

$18M

(36) %

General and administrative

$45M

$48M

(6) %

Mining costs

$10M

$15M

(31) %

Trading and commission expense

$4M

$6M

(35) %

Technology

$7M

$6M

13 %

Depreciation and amortization

$14M

$11M

18 %

Impairment reversal

$0M

$0M

N.M.

Other

$9M

$8M

13 %

Professional fees

$14M

$13M

2 %

Staking costs

$32M

$1M

N.M.

Interest

$21M

$20M

5 %

Notes interest expense

$7M

$7M

1 %

Note:

Quarter-over-quarter percentage change calculations are based on unrounded results.

Overview of Second Quarter Operating Expenses:

Compensation and compensation related expenses of $43 million were roughly flat QoQ.Equity based compensation decreased by approximately $6 million QoQ, primarily driven by fully vested high-priced equity grants issued in 2021, partially offset by new grants issued in 2022, 2023 and 2024 at lower share prices.General and administrative expenses declined by approximately $3 million from the first quarter of 2024, driven by lower mining costs and trading and commission expenses, partially offset by higher depreciation and amortization costs.Mining costs decreased by approximately $5 million QoQ; reflecting our actively managed power strategy, leading to a reduction in electricity costs.Trading commission expenses decreased by approximately $2 million QoQ, on account of lower trading volumes in the quarter.Depreciation and amortization expenses increased by over $2 million QoQ, reflecting the additional depreciation from new mining machines and electrical infrastructure that were energized during the prior quarter.Professional fees of $14 million were slightly up QoQ.Staking costs was a new line item this quarter, and reflected the staking rewards that Galaxy generates from its AUS, which were paid to the delegators. This amount offsets the staking rewards received, which were included in the Lending and Staking revenue.Interest expense of $21 million was up approximately $1 million QoQ, reflecting our ability to source non-dilutive wholesale financing to help fund our Trading and Lending businesses and consistent with our risk management principles of sound Asset and Liability Management and maintaining substantial liquidity buffers.

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. The net comprehensive income (loss) of GDH Ltd. was $(49.4) million for the three months ended June 30, 2024 and $60.6 million for the six months ended June 30, 2024.

Earnings Conference Call

An investor conference call will be held today, August 1, 2024, 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 1-800-274-8461, or 1-203-518-9814 (outside the U.S. and Canada) using the Conference ID: GALAXY. 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 September 1, 2024, 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: 11156334.

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 three and six months ended June 30, 2024 and (ii) GDH Ltd.’s Management Discussion and Analysis and Consolidated Financial Statements for the three and six months ended June 30, 2024 (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 is not an offer to buy or sell, nor is it a solicitation of an offer to buy or sell, interests in the fund or any advisory services or any other security or to participate in any advisory services or trading strategy. If any offer and sale of securities is made, it will be pursuant to the confidential offering memorandum of the fund (the Offering Memorandum or fund prospectus (“Prospectus”)). Any decision to make an investment in the fund should be made after reviewing such Offering Memorandum or Prospectus, conducting such investigations as the investor deems necessary and consulting the investor’s own investment, legal, accounting and tax advisors in order to make an independent determination of the suitability and consequences of an investment.

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 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 business pipelines for banking and Gk8, mining goals, 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) liquidity or economic conditions impacting our business (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 August 1, 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 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)

June 30, 2024

December 31, 2023

Assets

Current assets

Cash and cash equivalent

$                         314,033

$                         316,610

Digital assets

1,954,398

1,078,587

Receivable for digital asset trades

26,907

41,339

Digital assets loans receivable, net of allowance

177,230

104,504

Digital assets receivables

44,576

14,686

Investments (includes $45.1 million and $0 of equity method investments, respectively)

508,380

Assets posted as collateral

203,942

318,195

Receivables

25,840

15,983

Derivative assets

153,470

173,209

Prepaid expenses and other assets

27,780

37,910

Loans receivable, net of allowance

404,991

377,105

Due from related party

31,891

5,007

Total current assets

3,873,438

2,483,135

Digital assets receivables

3,854

6,174

Investments (includes $394.8 million and $290.4 million of equity method investments, respectively)

800,315

735,103

Restricted digital assets

15,863

41,356

Digital asset loans receivable, non-current

12,881

Loans receivable, non-current

10,259

Property and equipment

267,431

259,965

Other non-current assets

107,284

95,000

Goodwill

44,257

44,257

Total non-current assets

1,251,885

1,192,114

Total assets

$                     5,125,323

$                     3,675,249

Liabilities and equity

Current liabilities

Investments sold short

115,240

25,295

Derivative liabilities

118,770

160,642

Accounts payable and accrued liabilities

73,118

69,212

Payable to customers

94,816

3,503

Taxes payable

12,636

25,936

Payable for digital asset trades

34,751

4,176

Digital assets loans payable

950,178

398,277

Loans payable

211,384

93,069

Collateral payable

811,656

581,362

Due to related party

87,403

67,953

Lease liability

3,960

3,860

Total current liabilities

2,513,912

1,433,285

Notes payable

427,679

408,053

Deferred tax liability

46,734

33,894

Lease liability

8,271

10,236

Total non-current liabilities

482,684

452,183

Total liabilities

2,996,596

1,885,468

Equity

Partners’ capital

2,128,727

1,789,781

Total equity

2,128,727

1,789,781

Total liabilities and equity

$                     5,125,323

$                     3,675,249

 

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

(in thousands)

Three months ended

Six months ended

June 30, 2024

June 30, 2023

June 30, 2024

June 30, 2023

Income

Fee revenue

$                 26,483

$                 11,097

$                 54,611

$                 25,526

Net realized gain (loss) on digital assets

(161,738)

20,179

108,660

86,298

Net realized gain (loss) on investments

12,826

48,334

(160,008)

46,356

Lending and staking revenue

54,371

10,809

84,309

21,318

Net derivative gain

105,322

9,641

188,962

64,725

Revenue from proprietary mining

16,312

8,563

36,440

10,980

Other income

140

43

475

206

53,716

108,666

313,449

255,409

Operating expenses

Compensation and compensation related

42,921

34,632

85,397

65,252

Equity based compensation

11,601

15,655

29,590

38,925

General and administrative

44,721

14,742

92,777

29,647

Mining costs

10,452

(130)

25,638

5,830

Trading and commission expense

4,112

2,341

10,434

3,285

Technology

7,356

4,599

13,852

8,994

Depreciation and amortization

13,505

7,318

24,932

11,765

Impairment reversal

(5,932)

(11,914)

Other

9,296

6,546

17,921

11,687

Professional fees

13,704

8,785

27,077

18,603

Staking costs

32,034

308

32,696

539

Interest

20,927

4,334

40,775

9,873

Notes interest expense

7,040

6,790

14,016

13,521

(172,948)

(85,246)

(322,328)

(176,360)

Other

Net unrealized gain (loss) on digital assets

42,900

(4,774)

139,713

(1,745)

Net unrealized gain (loss) on investments

(114,314)

(65,850)

121,538

16,863

Net loss on notes payable – derivative

(2,573)

(799)

(12,286)

(2,104)

Foreign currency gain (loss)

1,474

63

1,353

(75)

(72,513)

(71,360)

250,318

12,939

Income before income taxes

(191,745)

(47,940)

241,439

91,988

Income taxes expense (benefit)

(14,736)

(1,900)

(3,216)

3,826

Net income for the period

$             (177,009)

$               (46,040)

$              244,655

$                 88,162

Other comprehensive income

Foreign currency translation adjustment

1,724

$                        39

1,089

(416)

Comprehensive income for the period

$             (175,285)

$               (46,001)

$              245,744

$                 87,746

 

Three months ended

Six months ended

June 30, 2024

June 30, 2023

June 30, 2024

June 30, 2023

GDH LP Net income (loss) per unit:

Basic

$                        (0.52)

$                        (0.14)

$                          0.74

$                          0.28

Diluted

(0.52)

(0.14)

0.70

0.27

Weighted average units:

Basic

338,212,221

321,392,562

331,685,773

320,391,466

Diluted

338,212,221

321,392,562

350,414,148

327,417,371

Reportable segments (unaudited)

Income and expenses by each reportable segment of GDH LP for the three months ended June 30, 2024 are as follows:

(in thousands)

Global
Markets

Asset
Management

Digital
Infrastructure
Solutions

Corporate

 and Other

Totals

Income (loss)

Fee revenue(1)

Mining hosting fees

$                   —

$                   —

$                  7,775

$                   —

$              7,775

Licensing fees

612

(120)

492

Management and performance fees

3,694

14,535

(734)

17,495

Advisory fees

721

721

Total fee revenue

4,415

14,535

8,387

(854)

26,483

Lending and staking revenue

Lending income

16,012

8

16,020

Blockchain rewards

578

3,808

37,497

(3,532)

38,351

Total lending and staking revenue

16,590

3,808

37,497

(3,524)

54,371

Net realized gain on digital assets

(178,808)

16,274

796

(161,738)

Net realized gain (loss) on investments

10,206

2,620

12,826

Net derivative gain

105,550

(228)

105,322

Revenue from proprietary mining

16,312

16,312

Other income

(4)

33

111

140

Total revenues and gain (loss) from operations

(42,051)

37,270

62,875

(4,378)

53,716

Operating expenses

68,604

13,781

69,230

21,333

172,948

Net unrealized gain on digital assets

136,323

(86,685)

(6,738)

42,900

Net unrealized gain (loss) on investments

(81,230)

(34,369)

1,285

(114,314)

Net loss on notes payable – derivative

(2,573)

(2,573)

Foreign currency loss

1,474

1,474

56,567

(121,054)

(5,453)

(2,573)

(72,513)

Income (loss) before income taxes

$           (54,088)

$           (97,565)

$               (11,808)

$           (28,284)

$         (191,745)

Income tax expense

(14,736)

(14,736)

Net income (loss)

$           (54,088)

$           (97,565)

$               (11,808)

$           (13,548)

$         (177,009)

Foreign currency translation adjustment

1,724

1,724

Comprehensive income (loss)

$           (54,088)

$           (97,565)

$               (11,808)

$           (11,824)

$         (175,285)

(1)

Asset Management fee revenue includes management fees generated off the Partnership’s balance sheet venture investments. Licensing fees are attributable to GK8, and include license fees paid by the Partnership for the use of GK8’s technology. All intercompany transactions are eliminated in the Corporate & Other segment.

Income and expenses by each reportable segment of GDH LP for the six months ended June 30, 2024 are as follows:

(in thousands)

Global
Markets

Asset
Management

Digital
Infrastructure
Solutions

Corporate

 and Other(1)

Totals

Income (loss)

Fee revenue (1)

Mining hosting fees

$                   —

$                   —

$                17,916

$                   —

17,916

Licensing fees

1

1,419

(240)

1,180

Management and performance fees

3,694

32,372

(1,481)

34,585

Advisory fees

930

930

Total fee revenue

4,625

32,372

19,335

(1,721)

54,611

Lending and staking revenue

Lending income

32,756

5

2

12

32,775

Blockchain rewards

5,660

11,046

43,575

(8,747)

51,534

Total lending and staking revenue

38,416

11,051

43,577

(8,735)

84,309

Net realized gain on digital assets

91,497

16,367

796

108,660

Net realized gain (loss) on investments

(173,323)

13,315

(160,008)

Net derivative gain

188,095

867

188,962

Revenue from proprietary mining

36,440

36,440

Other income

153

33

289

475

149,463

73,138

101,304

(10,456)

313,449

Operating expenses

133,033

29,585

110,110

49,600

322,328

Net unrealized gain on digital assets

184,582

(41,358)

(3,511)

139,713

Net unrealized gain (loss) on investments

98,480

23,108

(50)

121,538

Net loss on notes payable – derivative

(12,286)

(12,286)

Foreign currency loss

1,353

1,353

284,415

(18,250)

(3,561)

(12,286)

250,318

Income (loss) before income taxes

$          300,845

$            25,303

$               (12,367)

$           (72,342)

$          241,439

Income tax expense

(3,216)

(3,216)

Net income (loss)

$          300,845

$            25,303

$               (12,367)

$           (69,126)

$          244,655

Foreign currency translation adjustment

1,089

1,089

Comprehensive income (loss)

$          300,845

$            25,303

$               (12,367)

$           (68,037)

$          245,744

(1)

Asset Management fee revenue includes management fees generated off the Partnership’s balance sheet venture investments. Licensing fees are attributable to GK8, and include license fees paid by the Partnership for the use of GK8’s technology. All intercompany transactions are eliminated in the Corporate & Other segment.

Income and expenses by each reportable segment of GDH LP for the three months ended June 30, 2023 are as follows:

(in thousands)

Global
Markets

Asset
Management

Digital
Infrastructure
Solutions

Corporate

 and Other

Totals

Income (loss)

Fee revenue (1)

Mining hosting fees

6,548

$           6,548

Licensing fees

610

610

Management and performance fees

4,216

(762)

3,454

Advisory fees

57

57

Other fee revenues

428

428

Total fee revenue

57

4,216

7,586

(762)

11,097

Lending and staking revenue

Lending income

9,990

9

9,999

Blockchain rewards

(706)

1,516

810

Total lending and staking revenue

9,284

1,525

10,809

Net realized gain on digital assets

17,601

2,578

20,179

Net realized gain (loss) on investments

23,725

24,609

48,334

Net derivative gain

8,769

1,008

(136)

9,641

Revenue from proprietary mining

8,563

8,563

Other income (expense)

96

(96)

11

32

43

Total revenues and gain (loss) from operations

59,532

33,840

16,024

(730)

108,666

Operating expenses

40,894

13,790

7,748

22,814

85,246

Net unrealized gain (loss) on digital assets

(1,067)

(3,707)

(4,774)

Net unrealized gain on investments

(23,726)

(45,532)

3,408

(65,850)

Net loss on notes payable – derivative

(799)

(799)

Foreign currency loss

63

63

(24,730)

(49,239)

3,408

(799)

(71,360)

Income (loss) before income taxes

$         (6,092)

$           (29,189)

$               11,684

$        (24,343)

$       (47,940)

Income tax expense

(1,900)

(1,900)

Net income (loss)

$         (6,092)

$           (29,189)

$               11,684

$        (22,443)

$       (46,040)

Foreign currency translation adjustment

39

39

Comprehensive income (loss)

$         (6,092)

$           (29,189)

$               11,684

$        (22,404)

$       (46,001)

(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 six months ended June 30, 2023 are as follows:

(in thousands)

Global
Markets

Asset
Management

Digital
Infrastructure
Solutions

Corporate

 and Other

Totals

Income (loss)

Fee revenue (1)

Mining hosting fees

$                —

$                    —

$               12,816

$                 —

$         12,816

Licensing fees

790

790

Management and performance fees

9,148

(1,382)

7,766

Advisory fees

2,265

2,265

Other fee revenues

(54)

1,943

1,889

Total fee revenue

2,211

9,148

15,549

(1,382)

25,526

Lending and staking revenue

Lending income

19,078

17

19,095

Blockchain rewards

707

1,516

2,223

Total lending and staking revenue

19,785

1,533

21,318

Net realized gain on digital assets

82,633

3,665

86,298

Net realized gain (loss) on investments

24,099

22,257

46,356

Net derivative gain

63,319

1,542

(136)

64,725

Revenue from proprietary mining

10,980

10,980

Other income (expense)

134

(163)

55

180

206

Total revenues and gain (loss) from operations

192,181

37,982

26,448

(1,202)

255,409

Operating expenses

83,103

29,978

17,062

46,217

176,360

Net unrealized gain (loss) on digital assets

(1,744)

(1)

(1,745)

Net unrealized gain on investments

16,647

(6,435)

6,651

16,863

Net loss on notes payable – derivative

(2,104)

(2,104)

Foreign currency loss

(75)

(75)

14,828

(6,436)

6,651

(2,104)

12,939

Income (loss) before income taxes

$       123,906

$               1,568

$               16,037

$        (49,523)

$         91,988

Income tax expense

3,826

3,826

Net income (loss)

$       123,906

$               1,568

$               16,037

$        (53,349)

$         88,162

Foreign currency translation adjustment

(416)

(416)

Comprehensive income (loss)

$       123,906

$               1,568

$               16,037

$        (53,765)

$         87,746

(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.

Assets and liabilities by reportable segment of GDH LP as of June 30, 2024 are as follows:

(in thousands)

Global
Markets

Asset
Management

Digital
Infrastructure
Solutions

Corporate
and Other

Totals

Total assets

$        3,972,284

$           643,731

$           351,145

$           158,163

$        5,125,323

Total liabilities

$        2,356,282

$               1,250

$             10,055

$           629,009

$        2,996,596

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

Select statement of financial position information

Select assets by reporting segment of GDH LP as of June 30, 2024 is as follows:

(in thousands)

Global
Markets

Asset
Management

Digital
Infrastructure
Solutions

Corporate
and Other

Totals

Digital assets

$     1,925,574

$          44,687

$                     —

$                 —

$     1,970,261

Digital assets receivables

12,241

35,253

936

48,430

Assets posted as collateral

203,942

203,942

Loans receivable

595,102

595,102

Investments

764,285

532,084

12,326

1,308,695

Property and equipment

260,258

7,173

267,431

$     3,501,144

$        612,024

$            273,520

$            7,173

$     4,393,861

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

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 June 30, 2024 and December 31, 2023 is as follows:

(in thousands)

BTC (3)

ETH (4)

Stablecoin

Other (5)

As of

June 30, 2024

Assets

Digital assets

$           1,202,920

$              344,110

$              236,122

$              171,246

$           1,954,398

Digital asset loans receivable, net of allowance

16,656

28,612

118,733

26,110

190,111

Digital assets receivable, current

44,576

44,576

Digital assets receivable, non-current

3,854

3,854

Assets posted as collateral – Digital assets(1)

163,950

28,594

1,429

193,973

Restricted digital assets, non-current(2)

15,863

15,863

1,383,526

401,316

354,855

263,078

2,402,775

Liabilities

Digital asset loans payable

620,602

57,089

242,529

29,958

950,178

Collateral payable(1)

584,957

145,166

17,807

14,621

762,551

Payables to customers

94,586

94,586

1,300,145

202,255

260,336

44,579

1,807,315

Digital assets, net

$               83,381

$              199,061

$               94,519

$              218,499

595,460

Stablecoins, net

$                       —

$                       —

$               94,519

$                       —

94,519

Digital assets, net excl. stablecoins

$               83,381

$              199,061

$                       —

$              218,499

$              500,941

Bitcoin spot ETFs included in Investments

418,068

418,068

(1)

Excludes cash portion of balance on the Partnership’s statement of financial position.

(2)

Represents TIA and SOL tokens that are subject to a sale restriction of greater than one year.

(3)

Includes associated tokens such as wBTC. The Partnership also held interests in investment vehicles designed to hold BTC, including Galaxy sponsored BTC funds and Mt. Gox Investment Fund LP, valued at $129.1 million as of June 30, 2024 reflected in the investments balance in addition to the digital assets noted above. The Partnership also held bitcoin derivative positions not reflected above in addition to the noted bitcoin investment vehicles. 

(4)

Includes associated tokens such as wETH and stETH. The Partnership also held interests in investment vehicles designed to hold ETH, including Galaxy sponsored ETH funds, valued at $42.3 million as of June 30, 2024 reflected in the investments balance in addition to the digital assets noted above. The Partnership also held Ether derivative positions not reflected above in addition to the noted Ether investment vehicles.

(5)

Includes $43.6 million net SOL and $45.3 million net TIA. The Partnership also held an interest in investment vehicles designed to hold SOL, the Galaxy sponsored Galaxy Digital Crypto Vol Fund LLC valued at $91.4 million as of June 30, 2024 reflected in the investments balance in addition to the digital assets noted above, and the Partnership held digital asset derivative positions not reflected above in addition to the noted investment vehicle.

(in thousands)

BTC (4)

ETH (5)

Stablecoin

Other (5)

As of December
31, 2023

Assets

Digital assets

$              589,011

$              174,978

$              179,222

$              135,376

$           1,078,587

Digital asset loans receivable, net of allowance

3,044

87,252

12,000

2,208

104,504

Digital assets receivable, current

14,686

14,686

Digital assets receivable, non-current

6,174

6,174

Assets posted as collateral – Digital assets(1)

197,092

119,012

316,104

Restricted digital assets, non-current(2)

41,356

41,356

789,147

381,242

191,222

199,800

1,561,411

Liabilities

Digital asset loans payable

48,202

14,603

297,762

37,710

398,277

Collateral payable(1)

437,889

116,723

9,457

5,926

569,995

486,091

131,326

307,219

43,636

968,272

Digital assets, net

$              303,056

$              249,916

$            (115,997)

$              156,164

593,139

Stablecoins, net(3)

$                       —

$                       —

$            (115,997)

$                       —

(115,997)

Digital assets, net excl. stablecoins

$              303,056

$              249,916

$                       —

$              156,164

$              709,136

Bitcoin spot ETFs included in Investments

$                       —

$                       —

$                       —

$                       —

$                       —

(1)

Excludes cash portion of balance on the Partnership’s statement of financial position.

(2)

Represents TIA tokens that are subject to a sale restriction of greater than one year.

(3)

As of December 31, 2023, stablecoin liabilities were greater than stablecoin assets.

(4)

Includes associated tokens such as wBTC. The Partnership also held interests in investment vehicles designed to hold BTC, including ProShares Bitcoin Strategy ETF, Galaxy sponsored BTC funds, and Mt. Gox Investment Fund LP, valued at $123.1 as of December 31, 2023 reflected in the investments balance in addition to the digital assets noted above. The Partnership also held bitcoin derivative positions not reflected above in addition to the noted bitcoin investment vehicles.  

(5)

Includes associated tokens such as wETH and stETH. The Partnership also held interests in investment vehicles designed to hold ETH, including Galaxy sponsored ETH funds, valued at $22.1 million as of December 31, 2023 reflected in the investments balance in addition to the digital assets noted above. The Partnership also held Ethereum derivative positions not reflected above in addition to the noted Ethereum investment vehicles.

(6)

Includes $12.0 million net SOL and $68.5 million net TIA. The Partnership also held digital asset derivative positions not reflected above.

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

 

SOURCE Galaxy Digital Holdings Ltd.

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Gentoo Media – Mandatory notification of trade

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ST JULIANS, Malta, Nov. 14, 2024 /PRNewswire/ — MJ Foundation Fundacja Rodzinna, a company related to Mateusz Juroszek, Board Member and primary insider of Gentoo Media Inc. (Gentoo) has today acquired 115,604 shares in Gentoo at a price of SEK 24,996 per share. After this transaction, close associates of Mateusz Juroszek hold 24,027,766 shares in Gentoo.

This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act.

For further information, contact:
Tore Formo, Group CFO, tore.formo@g2m.com, +47 91668678

About Gentoo Media

Gentoo Media is a market-leading affiliate connecting operators and players in the online gambling and sports betting industry. Gentoo Media offers an array of iGaming affiliate solutions, such as paid marketing expertise and quality traffic through our prominent industry sites including AskGamblers, Time2Play, CasinoTopsOnline, WSN and Casinomeister. In 2024, Gentoo Media (formerly GiG Media) became Gentoo Media Inc. following a legal split separating the Media and Platform and Sportsbook business in Gaming Innovation Group (GiG) into two independently listed companies. Gentoo Media Inc. is dual listed on the Oslo Stock Exchange (ticker “G2MNO”) and Nasdaq Stockholm (ticker “G2M”). www.gentoomedia.com

This information was brought to you by Cision http://news.cision.com

https://news.cision.com/gentoo-media-inc/r/gentoo-media—mandatory-notification-of-trade,c4066199

View original content:https://www.prnewswire.co.uk/news-releases/gentoo-media—mandatory-notification-of-trade-302305030.html

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Xinhua Silk Road: World IoT expo 2024 opens in E. China’s Wuxi to showcase future of smart connectivity

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BEIJING, Nov. 14, 2024 /PRNewswire/ — The World Internet of Things (IoT) Exposition 2024 kicked off on Monday in Wuxi City of east China’s Jiangsu Province, attracting industry leaders, representatives of enterprises and experts from across the globe to discuss industry trends and demonstrate innovative applications.

At the expo’s opening ceremony, Wuxi unveiled a national pilot project in intelligent connected vehicles, which aims to create a cohesive mode for car owners, vehicles and cities connection, contributing Wuxi’s expertise to smart vehicle initiatives.

Additionally, a new smart sensing chip engineering center was launched, representing an investment of over 1 billion yuan and focusing on high-density large-scale substrates and other advanced chip technologies to strengthen the city’s integrated circuit development.

The event also saw the release of several major IoT research achievements, including the 2024 IoT innovation development Taihu index and the 2024 white paper on advanced sensing technology and applications.

The three-day event features exhibitions, panel discussions, and thematic sessions that showcase the latest development in IoT innovations and applications. This year’s expo is poised to drive Wuxi’s high-quality growth in IoT while promoting global tech collaboration and knowledge sharing in the IoT field.

Wuxi has become a navigator of the IoT industry in China. The latest statistics show that in 2023, the scale of the IoT industrial cluster in Wuxi surpassed 450 billion yuan, taking the lead in Jiangsu Province.

Original link: https://en.imsilkroad.com/p/343117.html

SOURCE Xinhua Silk Road

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Agoda Highlights Five Urban Hikes for Adventurous Travelers

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SINGAPORE, Nov. 14, 2024 /PRNewswire/ — Digital travel platform Agoda introduces five urban hikes across Asia, offering travelers a chance to experience the perfect blend of city life and nature. These hikes, ranging from family-friendly to more challenging trails, provide an unmatched perspective on some of Asia’s most dynamic cities.

Whether it’s Elephant Hill in Taipei, with its stunning views of the Taipei 101, or Hong Kong’s famous Dragon Back, active travelers are in for a treat when embarking on these city hike adventures.

Andrew Smith, Senior Vice President, Supply at Agoda said: “Asia is special to have so many incredible hike routes right in the heart of these popular cities. The five highlighted hikes are just a sample of the many breathtaking city trails the continent has to offer. Adventurous travelers will want to try them all and thankfully Agoda helps make travel affordable with great value deals on over 4.5 million properties globally.”

These are the five city hikes, ranked from easiest to most challenging:

Kuala Lumpur’s Bukit Nanas Forest Reserve offers a unique experience of trekking through a tropical rainforest right in the city center. The trail is relatively easy, with well-marked paths and informative signboards about the local flora and fauna, making it a great choice for families and nature enthusiasts.

Elephant Hill in Taipei offers a short but rewarding climb. The trail is well-maintained and provides stunning views of Taipei’s skyline, including the famous Taipei 101. It’s an ideal spot for those looking to enjoy a quick escape into nature without straying far from the city.

In Singapore, the Southern Ridges trail offers a moderate hike through a series of interconnected parks and gardens. Spanning 10 kilometers, this trail provides a lush green corridor amidst the urban environment, with highlights including the Henderson Waves bridge and panoramic views of the city.

Namsan in Seoul presents a slightly more challenging hike, leading to the N Seoul Tower. The trail is popular among locals and tourists alike, offering a mix of natural beauty and cultural landmarks, with several routes to choose from depending on the desired difficulty level.

Finally, Hong Kong’s Dragon’s Back is a favorite for its breathtaking views of the coastline and the South China Sea. This moderately challenging hike is known for its undulating ridges and scenic vistas, providing a rewarding experience for those willing to tackle its ups and downs.

In each of these city hike destinations, Agoda offers great value accommodation. In addition to holiday properties, Agoda’s 130,000 flight routes and 300,000 activities ensure the platform is the one-stop travel solution to help booking an entire trip. The latest Agoda deals can be found in the Agoda app or on agoda.com/deals.

— ENDS —

 

View original content to download multimedia:https://www.prnewswire.com/apac/news-releases/agoda-highlights-five-urban-hikes-for-adventurous-travelers-302304670.html

SOURCE Agoda

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