Net comprehensive income1 grew
to $860 million
Assets Under Management ("AUM")2 increased 58%
Counterparty loan originations grew over 510%
Erin Brown joins Executive Team as
Chief Operating Officer
Galaxy Digital has agreed to acquire BitGo
NEW YORK, May 17, 2021 /CNW/ - Galaxy Digital
Holdings Ltd. (TSX: GLXY) ("Galaxy Digital" the "Company" or
"GDH Ltd.") today released financial results for the three months
ended March 31, 2021 for both itself
and Galaxy Digital Holdings LP (the "Partnership" or "GDH LP").
"Galaxy Digital reported another consecutive record quarter, as
net comprehensive income grew to $860
million from $336 million in the prior quarter, AUM
increased 58% in the quarter, and counterparty loan
originations increased over 510%," said Michael Novogratz, Founder and CEO of Galaxy
Digital.
"Beyond delivering dramatic organic growth, we announced we will
acquire BitGo, which will establish Galaxy Digital as the first
full-service digital asset financial platform for institutions and
ensure our business is aligned with broader institutional
adoption."
Select Financial Highlights for the First Quarter 2021,
compared to First Quarter 2020
- Net comprehensive income1 increased to
$860.2 million, from a net
comprehensive loss of $26.9 million
in the prior year period.
-
- The increase was primarily a result of realized and unrealized
gains on digital assets and on investments, coupled with strong
contribution from our trading business, partially offset by higher
operating expenses.
- Income from our trading business increased to $508.7 million, from a loss of $31.5 million in the first quarter of last
year.
- Net realized gains from investments were $151.1 million in the quarter.
- Fair Value of Net Asset Holdings3 increased
128% to $1.85 billion, from
$813.5 million at the end of the
prior year.
-
- The increase was primarily a result of gains on digital assets
and on investments.
- As of March 31, 2021, the
Partnership had a material net holding in Bitcoin of approximately
$761.8 million, excluding
non-controlling interests. The increase in the value of holdings
was primarily driven by the increase in price.
- Investments stood at $351.6
million as of March 31, 2021,
an increase of $91.2 million from
December 31, 2020. The change was
primarily due to the increase in unrealized gains and $40.9 million of new capital deployed by the
Principal Investments team during the year, which were partially
offset by the sale of some investments.
_______________________________
|
1
|
Excluding
non-controlling interests ("NCI").
|
2
|
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.
|
3
|
This supplementary
financial measure is defined as Digital assets plus Investments,
less Digital assets sold short, less Investments sold short, less
Non-controlling interests.
|
Operating Highlights for the First Quarter 2021, compared to
First Quarter 2020
- Galaxy Digital Trading ("GDT") reported records in:
counterparty trading volumes, the size of its counterparty loan
book, and in gross counterparty loan book originations.
-
- Counterparty trading volumes continued to experience
significant growth, increasing 50% from the quarter ended
December 31, 2020, and over 290% year
over year.
- GDT continued to experience strong growth in the Company's
counterparty loan book for the quarter ending March 31, 2021, increasing in excess of 290% to
approximately $440 million, and grew
gross counterparty loan originations in excess of 510% since
December 31, 2020 to approximately
$670 million.
- GDT also onboarded over 100 new counterparties in the quarter,
and added over 30 approved cryptocurrency tokens to our platform,
meaning GDT now makes markets in over 90 cryptocurrencies.
- Galaxy Digital Asset Management ("GDAM") reported
preliminary assets under management ("AUM") of $1.27 billion as of March
31, 2021, a 58% increase from the quarter ended December 31, 2020. AUM consisted of $950.0 million in GDAM's Galaxy Fund Management
products, and $325.0 million in the
Galaxy Interactive fund.
-
- Recent product launches include: the CI Galaxy Bitcoin ETF
(Ticker: BTCX), and the Galaxy Ethereum Funds, which track the
newly launched Bloomberg Galaxy Ethereum Index (Ticker: ETH), the
third in the Bloomberg-Galaxy family of indices.
- In March 2021, Morgan Stanley
began offering its wealth management clients access to bitcoin
funds, including the Galaxy Bitcoin Fund LP, and the Galaxy
Institutional Bitcoin Fund LP.
- Galaxy Bitcoin Fund, LP, Galaxy Institutional Bitcoin Fund, LP,
and Galaxy Institutional Bitcoin Fund, Ltd. (collectively the
"Bitcoin Funds") track the Bloomberg CFIX pricing of bitcoin
("XBT"), and the XBT has returned 101.92% on a year-to-date basis
through March 31, 2021.
- Galaxy Benchmark Crypto Index Fund LP (the "Index Fund") is a
passively managed index fund which tracks the Bloomberg Galaxy
Crypto Index (the "BGCI"). The BGCI has returned 118.32% on a
year-to-date basis through March 31,
2021.
- Galaxy Digital Investment Banking ("GDIB") continued to
make progress for clients across financing, mergers and
acquisitions, and other strategic matters, with several active
mandates in various stages of execution.
-
- Key activities as of March 31,
2021 include consulting on a recent cryptocurrency company's
fundraising round.
- GDIB also acted as a Strategic Advisor in connection with a
public offering in the FinTech space.
- GDIB increased client coverage to 90%+ of its target
universe.
- Galaxy Digital Mining ("GDM") established its own
proprietary bitcoin mining operation, hosting its machines at a
third-party data center in the United
States, and has begun proprietary mining.
-
- GDM closed its first two mining financing deals.
- GDM has built a strong pipeline, speaking with over 70+
companies in the space.
- Based on forward purchase commitments, GDM expects to achieve
up to 1,995 Petahash per second (PH/s) of mining capacity delivered
monthly through the end of 2022.
- Principal Investments: The Company made 12 new
investments and now holds approximately 80 investments across
approximately 60 portfolio companies.
-
- The Company recognized a liquidity event of over $125 million from one of its portfolio companies
during the quarter.
Corporate Updates
- The Company has appointed Erin
Brown as its Chief Operating Officer, effective immediately.
Erin is a seasoned executive with significant experience in
treasury, risk and trading operations. She most recently served as
Chief Risk Officer at Jump Trading, and previously was the Head of
Global Treasury and Operations at DRW.
Pending Acquisition of BitGo
- Galaxy Digital announced on May 5,
2021 that it has agreed to acquire BitGo, the leading
independent digital assets infrastructure provider. The acquisition
will position Galaxy Digital as a leading global full-service
platform for institutions seeking access to the crypto economy,
offering an unparalleled breadth of industry-leading products and
services at scale.
- Under the terms of the merger agreement, the consideration to
BitGo shareholders will consist of 33.8 million of newly issued
shares of Galaxy Digital common stock and $265 million in cash, subject to certain
adjustments and deferred purchase considerations, implying an
aggregate transaction value of approximately $1.2 billion based on Galaxy Digital's closing
share price on May 4, 2021.
- Galaxy Digital will use its balance sheet to fund the cash
consideration, a significant portion of which will be deferred up
to 12 months post-close. Additionally, Galaxy Digital will issue
incremental shares of its common stock to BitGo's shareholders in
exchange for BitGo's net digital assets at close. The BitGo
acquisition diversifies the business with greater contribution from
reoccurring revenue that is significantly less correlated with
digital asset prices.
- The acquisition accelerates product innovation and development
capabilities by adding over 50 engineers and key product and
security infrastructure personnel.
- Immediate revenue synergy opportunities, paired with BitGo's
strong base business and growth trajectory, support the value of
the acquisition.
- The transaction has been approved by the boards of directors of
both Galaxy Digital and BitGo. The acquisition is expected to close
in the fourth quarter of 2021, subject to approval by Galaxy
Digital's shareholders of the domestication of Galaxy Digital as a
Delaware corporation and the
internal restructuring, as well as certain related matters and
other acquisition-related closing conditions and regulatory
approvals.
Earnings Conference Call
An investor conference call will be held today, May 17, 2021 at 8:30 AM
Eastern Time. A live webcast with the ability to ask
questions will be available at:
https://www.galaxydigital.io/investor-relations/ or directly
at: http://public.viavid.com/index.php?id=144722. The conference
call can also be accessed by investors in the United States or Canada by dialing 1-877-407-0789, or
1-201-689-8562 (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
June 14, 2021, the recording will
also be available by dialing 1-844-512-2921, or 1-412-317-6671
(outside the U.S. and Canada)
passcode: 13719351.
About Galaxy Digital Holdings Ltd. (TSX: GLXY) ("GDH
Ltd.") and Galaxy Digital Holdings LP ("GDH
LP")
GDH Ltd.'s only significant asset is a minority investment in
GDH LP. GDH LP is a diversified, financial services and investment
management company in the digital asset, cryptocurrency and
blockchain technology sector. GDH LP's multi-disciplinary team has
extensive experience spanning investing, portfolio management,
capital markets, operations, and blockchain technology. GDH LP
operates in the following businesses: Trading, Asset Management,
Principal Investments, Investment Banking and Mining. The CEO of
GDH Ltd. and the general partner of GDH LP is Michael Novogratz. GDH LP is headquartered in
New York City, with offices in
Tokyo, Japan, London, Amsterdam, Hong
Kong, Amsterdam,
Netherlands, Jersey City,
U.S., San Francisco, U.S.,
Chicago, U.S., and the
Cayman Islands (registered
office).
Additional information about GDH LP's businesses and products is
available on www.galaxydigital.io.
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 months ended
March 31, 2021 and (ii) GDH Ltd.'s
Management Discussion and Analysis and Condensed Consolidated
Interim Financial Statements for the three months ended
March 31, 2021 (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.
The Company listed on the TSX via TSX Sandbox, an initiative
intended to facilitate listing applications that may not satisfy
the original listing requirements of TSX, but due to facts or
situations unique to a particular issuer otherwise warrant a
listing on TSX. The TSX has exercised its discretion to waive the
requirements of subsection 309(c)(i) of its manual (C$10 million in
treasury resulting from public raise) which the Company did not
meet and has approved the listing of the Company pursuant to TSX
Sandbox. Galaxy Digital's approval pursuant to TSX Sandbox was
conditioned upon public filing of an Annual Information Form and
prominent quarterly disclosure of digital assets and investments,
which the Company has completed and agreed to continue to provide.
The Company will remain listed pursuant to TSX Sandbox until such
time as it has completed a twelve-month period without significant
compliance issues after graduation. In addition, Galaxy Digital is
required to disclose the following two risk factors that were also
included in the most recent Annual Information Form for the
year-ended 2020: (1) The Company has limited operating history and
its business lines are nascent and subject to material legal,
regulatory, operational and other risks in every jurisdiction; and
(2) the market price and trading volume of the Company's ordinary
shares has been volatile and will likely continue to be so in
response to, among other factors, market fluctuations in digital
assets generally or the digital assets that Galaxy Digital holds or
trades.
The performance of the Funds will vary from the performance of
their respective indices.
BLOOMBERG is a trademark or service mark of Bloomberg Finance L.P.
GALAXY is a trademark of Galaxy Digital Capital Management LP
(GDCM). Bloomberg Finance L.P. and its affiliates (collectively,
Bloomberg) are not affiliated with GDCM, the Galaxy Funds and their
respective affiliates (collectively, Galaxy). Bloomberg's
association with Galaxy is to act as the administrator and
calculation agent of the Indices (collectively, the "Index"), which
is the property of Bloomberg. Neither Bloomberg nor Galaxy
guarantee the timeliness, accurateness, or completeness of any data
or information relating to the Index or results to be obtained.
Neither Bloomberg nor Galaxy make any warranty, express or implied,
as to the Index, any data or values relating thereto or any
financial product or instrument linked to, using as a component
thereof or based on the Index (Products) or results to be obtained
therefrom, and expressly disclaims all warranties of
merchantability and fitness for a particular purpose with respect
thereto. To the maximum extent allowed by law, Bloomberg, its
licensees, Galaxy, and their respective employees, contractors,
agents, suppliers, and vendors shall have no liability or
responsibility whatsoever for any injury or damages—whether direct,
indirect, consequential, incidental, punitive, or otherwise—arising
in connection with the Index, any data or values relating thereto
or any Products—whether arising from their negligence or
otherwise.
No Offer or Solicitation
This report shall not
constitute a solicitation of a proxy, consent or authorization with
respect to any securities or in respect of any of the proposed
transactions. This report is for informational purposes only and
shall 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.
Additional Information
In connection with the proposed
reorganization and combination, Galaxy will file a registration
statement, including a management circular/prospectus and an
information statement/prospectus, with the Securities and Exchange
Commission (the "SEC"). GALAXY AND BITGO SHAREHOLDERS ARE ADVISED
TO READ THE MANAGEMENT CIRCULAR/PROSPECTUS AND INFORMATION
STATEMENT/PROSPECTUS, RESPECTIVELY, WHEN SUCH DOCUMENTS BECOME
AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION.
Shareholders may obtain a free copy of the registration statement
and such other documents (when available) and any other relevant
documents filed with the SEC from the SEC's website at
http://www.sec.gov. Copies of the management circular/prospectus
and an information statement/prospectus can also be obtained, when
available, without charge, from Galaxy's website at
https://investor.galaxydigital.io/.
CAUTION ABOUT FORWARD-LOOKING STATEMENTS
The
information in this report 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
acquisition, 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 presentation
may include, for example, statements about: our ability to complete
the transactions; our expectations around the performance of our
and the target's business; our success in retaining or recruiting,
or changes required in, our officers, key employees or directors
following the transactions; or our financial performance following
the transactions. The forward-looking statements contained in this
report 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 occurrence of any event, change or
other circumstances that could result in the failure to consummate
the transactions; (2) the possibility that the terms and conditions
set forth in any definitive agreements with respect to the
transactions may differ materially from the terms and conditions
set forth herein; (3) the outcome of any legal proceedings that may
be instituted following the transactions and any definitive
agreements with respect thereto; (4) the inability to complete the
transactions due to the failure to satisfy conditions to closing in
the definitive agreements with respect to the transactions
including in respect of shareholder and stock exchange approvals;
(5) 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 regulatory approval of
the transactions; (6) the ability to meet and maintain listing
standards following the consummation of the transactions; (7) the
risk that the transactions disrupts current plans and operations;
(8) costs related to the transactions; (9) changes in applicable
laws or regulations; (10) the possibility that the combined company
may be adversely affected by other economic, business, and/or
competitive factors; (11) changes or events that impact the
cryptocurrency industry, including potential regulation, that are
out of our control; (12) the risk that our business will not grow
in line with our expectations or continue on its current
trajectory; (13) the possibility that our addressable market is
smaller than we have anticipated and/or that we may not gain share
of it; (14) those other risks contained in the Annual Information
Form for the year ended December 31,
2020 available on the Company's profile at www.sedar.com and
(15) 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.
Galaxy Digital Holdings LP's Financial Results
(in
thousands)
|
March 31,
2021
|
December 31,
2020
|
Assets
|
|
|
Current
assets
|
|
|
Cash
|
$
|
93,163
|
|
$
|
135,766
|
Digital
assets
|
2,006,367
|
|
850,380
|
Investments
|
351,643
|
|
260,383
|
Receivable for digital
asset trades
|
28,845
|
|
13,204
|
Digital asset loans
receivable
|
293,274
|
|
96,724
|
Digital assets
receivables
|
149,287
|
|
12,813
|
Assets posted as
collateral
|
36,840
|
|
15,768
|
Receivables
|
34,510
|
|
2,710
|
Due from
broker
|
16,355
|
|
4,452
|
Derivatives
|
37,179
|
|
15,922
|
Prepaid expenses and
other assets
|
15,317
|
|
6,494
|
Goodwill
|
15,515
|
|
15,515
|
Loans
receivable
|
60,226
|
|
8,510
|
|
3,138,521
|
|
1,438,641
|
|
|
|
Digital assets
receivables
|
28,227
|
|
6,911
|
Right of use
asset
|
4,421
|
|
4,573
|
Property and
equipment
|
6,264
|
|
3,693
|
Intangible
asset
|
1,945
|
|
2,406
|
|
40,857
|
|
17,583
|
Total
assets
|
$
|
3,179,378
|
|
$
|
1,456,224
|
|
|
|
Liabilities
|
|
|
Current
liabilities
|
|
|
Digital assets sold
short
|
$
|
5,240
|
|
$
|
5,278
|
Investments sold
short
|
14,771
|
|
4,384
|
Warrant
liability
|
52,708
|
|
20,781
|
Accounts payable and
accrued liabilities
|
111,093
|
|
34,154
|
Payable for digital
asset trades
|
18,684
|
|
31,144
|
Digital asset loans
payable
|
572,936
|
|
226,399
|
Loans
Payable
|
42,400
|
|
—
|
Collateral
payable
|
188,323
|
|
44,660
|
Lease
liability
|
726
|
|
742
|
|
1,006,881
|
|
367,542
|
|
|
|
Lease
liability
|
4,447
|
|
4,515
|
Total
liabilities
|
1,011,328
|
|
372,057
|
|
|
|
Equity
|
|
|
Partners'
capital
|
1,677,959
|
|
798,211
|
Non-controlling
interests
|
490,091
|
|
285,956
|
Total
equity
|
2,168,050
|
|
1,084,167
|
|
|
|
Total liabilities
and equity
|
$
|
3,179,378
|
|
$
|
1,456,224
|
(in
thousands)
|
Three Months
Ended
March 31, 2021
|
Three Months
Ended
March 31, 2020
|
Income
|
|
|
Advisory and
management fees
|
$
|
1,913
|
|
$
|
1,587
|
Net income from
digital asset mining (Note 23)
|
923
|
|
—
|
Leasing income from
mining equipment (Note 23)
|
506
|
|
—
|
Net realized gain
(loss) on digital assets
|
666,668
|
|
(38,152)
|
Net realized gain on
investments
|
151,138
|
|
163
|
Interest
income
|
8,533
|
|
1,439
|
Net derivative
gain
|
18,859
|
|
4,435
|
Other
income
|
1,187
|
|
—
|
|
849,727
|
|
(30,528)
|
|
|
|
Operating
expenses
|
|
|
Equity based
compensation
|
7,099
|
|
1,621
|
Compensation and
compensation related
|
94,952
|
|
7,184
|
General and
administrative
|
5,341
|
|
3,196
|
Professional
fees
|
4,566
|
|
1,638
|
Profit share
arrangement expense
|
4,134
|
|
—
|
Interest
|
13,792
|
|
1,011
|
Insurance
|
150
|
|
282
|
Director
fees
|
208
|
|
50
|
|
(130,242)
|
|
(14,982)
|
|
|
|
Net unrealized gain
on digital assets
|
362,909
|
|
12,924
|
Net unrealized gain
on investments
|
60,282
|
|
4,674
|
Revaluation of
warrant liability
|
(36,817)
|
|
—
|
Unrealized foreign
currency gain (loss)
|
3,068
|
|
(174)
|
Realized foreign
currency gain (loss)
|
(350)
|
|
332
|
|
389,092
|
|
17,756
|
|
|
|
Income (loss) for
the period
|
$
|
1,108,577
|
|
$
|
(27,754)
|
|
|
|
Income (loss)
attributed to:
|
|
|
Unit holders of the
Partnership
|
$
|
859,958
|
|
$
|
(26,941)
|
Non-controlling
interests
|
248,619
|
|
(813)
|
|
$
|
1,108,577
|
|
$
|
(27,754)
|
Other
comprehensive income
|
|
|
Foreign currency
translation adjustment
|
$
|
284
|
|
$
|
17
|
|
|
|
Comprehensive
income (loss) for the period
|
$
|
1,108,861
|
|
$
|
(27,737)
|
|
|
|
Comprehensive
income (loss) attributed to:
|
|
|
Unit holders of the
Partnership
|
$
|
860,242
|
|
$
|
(26,924)
|
Non-controlling
interests
|
248,619
|
|
(813)
|
|
$
|
1,108,861
|
|
$
|
(27,737)
|
Income and expenses by each reportable segment of GDH LP for the
three months ended March 31, 2021 are
as follows (in thousands):
|
Trading
|
Principal
Investments
|
Asset
Management
|
Investment
Banking
|
Mining
|
Corporate
and
Other
|
Totals
|
Income
(loss)
|
|
|
|
|
|
|
|
Advisory and
management fees
|
$
|
95
|
|
$
|
—
|
|
$
|
1,818
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
1,913
|
Net income from
digital asset mining
|
—
|
|
—
|
|
—
|
|
—
|
|
923
|
|
—
|
|
923
|
Leasing income from
mining equipment
|
—
|
|
—
|
|
—
|
|
—
|
|
506
|
|
—
|
|
506
|
Net realized gain on
digital assets
|
480,356
|
|
45,515
|
|
140,797
|
|
—
|
|
—
|
|
—
|
|
666,668
|
Net realized gain on
investments
|
—
|
|
151,138
|
|
—
|
|
—
|
|
—
|
|
—
|
|
151,138
|
Interest
income
|
8,511
|
|
22
|
|
—
|
|
—
|
|
—
|
|
—
|
|
8,533
|
Net derivative
gain
|
18,859
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
18,859
|
Other
income
|
866
|
|
321
|
|
—
|
|
—
|
|
—
|
|
—
|
|
1,187
|
|
508,687
|
|
196,996
|
|
142,615
|
|
—
|
|
1,429
|
|
—
|
|
849,727
|
|
|
|
|
|
|
|
|
Operating
expenses
|
73,811
|
|
10,349
|
|
4,236
|
|
864
|
|
715
|
|
40,267
|
|
130,242
|
|
|
|
|
|
|
|
|
Net unrealized gain
on digital assets
|
158,617
|
|
94,818
|
|
109,251
|
|
—
|
|
223
|
|
—
|
|
362,909
|
Net unrealized gain
on investments
|
—
|
|
60,282
|
|
—
|
|
—
|
|
—
|
|
—
|
|
60,282
|
Net unrealized loss
on warrant liability
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(36,817)
|
|
(36,817)
|
Unrealized foreign
currency loss
|
3,068
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
3,068
|
Realized foreign
currency loss
|
(2)
|
|
(348)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(350)
|
|
161,683
|
|
154,752
|
|
109,251
|
|
—
|
|
223
|
|
(36,817)
|
|
389,092
|
|
|
|
|
|
|
|
|
Net income (loss)
for the period, including non-controlling interests
|
$
|
596,559
|
|
$
|
341,399
|
|
$
|
247,630
|
|
$
|
(864)
|
|
$
|
937
|
|
$
|
(77,084)
|
|
$
|
1,108,577
|
Income and expenses by each reportable segment of GDH LP for the
three months ended March 31, 2020 are
as follows (in thousands):
|
Trading
|
Principal
Investments
|
Asset
Management
|
Investment
Banking
|
Corporate
and
Other
|
Totals
|
Income
(loss)
|
|
|
|
|
|
|
Advisory and
management fees
|
$
|
—
|
|
$
|
—
|
|
$
|
1,237
|
|
$
|
350
|
|
$
|
—
|
|
$
|
1,587
|
|
Net realized loss on
digital assets
|
(37,016)
|
|
(532)
|
|
(604)
|
|
—
|
|
—
|
|
(38,152)
|
|
Net realized gain on
investments
|
—
|
|
163
|
|
—
|
|
—
|
|
—
|
|
163
|
|
Interest
income
|
1,090
|
|
337
|
|
5
|
|
7
|
|
—
|
|
1,439
|
|
Net derivative
gain
|
4,435
|
|
—
|
|
—
|
|
—
|
|
—
|
|
4,435
|
|
|
(31,491)
|
|
(32)
|
|
638
|
|
357
|
|
—
|
|
(30,528)
|
|
|
|
|
|
|
|
|
Operating
expenses
|
3,974
|
|
1,047
|
|
3,318
|
|
1,242
|
|
5,401
|
|
14,982
|
|
|
|
|
|
|
|
|
Net unrealized gain
(loss) on digital assets
|
14,565
|
|
(1,469)
|
|
(172)
|
|
—
|
|
—
|
|
12,924
|
|
Net unrealized gain
on investments
|
—
|
|
4,674
|
|
—
|
|
—
|
|
—
|
|
4,674
|
|
Unrealized foreign
currency loss
|
(174)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(174)
|
|
Realized foreign
currency gain
|
332
|
|
—
|
|
—
|
|
—
|
|
—
|
|
332
|
|
|
14,723
|
|
3,205
|
|
(172)
|
|
—
|
|
—
|
|
17,756
|
|
|
|
|
|
|
|
|
Net loss for the
period, including non-controlling interests
|
$
|
(20,742)
|
|
$
|
2,126
|
|
$
|
(2,852)
|
|
$
|
(885)
|
|
$
|
(5,401)
|
|
$
|
(27,754)
|
|
Assets and liabilities by reportable segment of GDH LP as of
March 31, 2021 are as follows (in
thousands):
|
Trading
|
Principal
Investments
|
Asset
Management
|
Investment
Banking
|
Mining
|
Corporate and
Other
|
Totals
|
Total
assets
|
$
|
1,800,692
|
|
$
|
775,031
|
|
$
|
504,388
|
|
$
|
6,244
|
|
$
|
57,608
|
|
$
|
35,415
|
|
$
|
3,179,378
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
$
|
867,495
|
|
$
|
101
|
|
$
|
6,276
|
|
$
|
155
|
|
$
|
40,504
|
|
$
|
96,797
|
|
$
|
1,011,328
|
|
Assets and liabilities by reportable segment of GDH LP as of
December 31, 2020 are as follows (in
thousands):
|
Trading
|
Principal
Investments
|
Asset
Management
|
Investment
Banking
|
Mining
|
Corporate and
Other
|
Totals
|
Total
assets
|
$
|
751,138
|
|
$
|
357,529
|
|
$
|
307,720
|
|
$
|
6,190
|
|
$
|
3,633
|
|
$
|
30,014
|
|
$
|
1,456,224
|
|
|
|
|
|
|
|
|
|
Total
liabilities
|
$
|
333,321
|
|
$
|
101
|
|
$
|
18,170
|
|
$
|
22
|
|
$
|
—
|
|
$
|
20,443
|
|
$
|
372,057
|
|
Select statement of financial position information
The fair value of each asset class by reporting segment of GDH
LP as of March 31, 2021 is as follows
(in thousands):
|
Trading
|
Principal
Investments
|
Asset
Management
|
Investment
Banking
|
Mining
|
Corporate and
Other
|
Totals
|
Digital
assets
|
$
|
1,248,656
|
|
$
|
271,299
|
|
$
|
484,954
|
|
$
|
—
|
|
$
|
1,458
|
|
$
|
—
|
|
$
|
2,006,367
|
|
Digital assets
receivables
|
—
|
|
177,514
|
|
—
|
|
—
|
|
—
|
|
—
|
|
177,514
|
|
Digital assets posted
as collateral
|
36,622
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
36,622
|
|
Investments:
|
|
|
|
|
|
|
|
Pre-Launch
Network
|
—
|
|
950
|
|
—
|
|
—
|
|
—
|
|
—
|
|
950
|
|
Convertible
Notes
|
—
|
|
4,399
|
|
—
|
|
—
|
|
—
|
|
—
|
|
4,399
|
|
Preferred
Stock
|
—
|
|
109,671
|
|
—
|
|
—
|
|
—
|
|
—
|
|
109,671
|
|
Common Stock
|
—
|
|
56,112
|
|
—
|
|
—
|
|
—
|
|
—
|
|
56,112
|
|
LP/LLC
Interests
|
—
|
|
155,021
|
|
—
|
|
—
|
|
—
|
|
—
|
|
155,021
|
|
Warrants/Trust
Units/Trust Shares
|
25,485
|
|
5
|
|
—
|
|
—
|
|
—
|
|
—
|
|
25,490
|
|
|
$
|
1,310,763
|
|
$
|
774,971
|
|
$
|
484,954
|
|
$
|
—
|
|
$
|
1,458
|
|
$
|
—
|
|
$
|
2,572,146
|
|
The fair value of each asset class by reporting segment of GDH
LP as of December 31, 2020 is as
follows (in thousands):
|
Trading
|
Principal
Investments
|
Asset
Management
|
Investment
Banking
|
Corporate and
Other
|
Totals
|
Digital
assets
|
$
|
444,216
|
|
$
|
118,555
|
|
$
|
287,609
|
|
$
|
—
|
|
$
|
—
|
|
$
|
850,380
|
|
Digital assets
receivables
|
—
|
|
19,724
|
|
—
|
|
—
|
|
—
|
|
19,724
|
|
Digital assets posted
as collateral
|
15,625
|
|
—
|
|
—
|
|
—
|
|
—
|
|
15,625
|
|
Investments:
|
|
|
|
|
|
|
Pre-Launch
Network
|
—
|
|
500
|
|
—
|
|
—
|
|
—
|
|
500
|
|
Convertible
Notes
|
—
|
|
4,501
|
|
—
|
|
—
|
|
—
|
|
4,501
|
|
Preferred
Stock
|
—
|
|
86,258
|
|
—
|
|
—
|
|
—
|
|
86,258
|
|
Common
Stock
|
—
|
|
29,970
|
|
—
|
|
—
|
|
—
|
|
29,970
|
|
LP/LLC
Interests
|
—
|
|
84,311
|
|
—
|
|
—
|
|
—
|
|
84,311
|
|
Warrants/Trust
Units
|
51,182
|
|
3,661
|
|
—
|
|
—
|
|
—
|
|
54,843
|
|
|
$
|
511,023
|
|
$
|
347,480
|
|
$
|
287,609
|
|
$
|
—
|
|
$
|
—
|
|
$
|
1,146,112
|
|
All figures are in U.S. Dollars unless
otherwise noted.
SOURCE Galaxy Digital Holdings Ltd.