Net comprehensive income1 increased over 1,100% since the Fourth Quarter 2019
Assets Under Management ("AUM")2 increased over 98% in the Fourth Quarter 2020
Counterparty trading volumes increased over 80% in the Fourth Quarter 2020
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Select Financial Highlights for the Fourth Quarter 2020, compared to Fourth Quarter 2019
- Net comprehensive income1 increased 1,175% to
$335.7 million , from a net comprehensive loss of$31.2 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 contributions from our trading business, partially offset by higher operating expenses.
- Income from our trading business increased 842% to
$238.7 million , from a loss of$32.2 million in the prior period. - Fair Value of
Net Asset Holdings 3 increased 272% to$813.5 million , from$218.7 million in the prior year period. - The increase was primarily a result of unrealized gains on digital assets and on investments.
- The Partnership had a material holding in bitcoin of
$433.0 million as ofDecember 31, 2020 , an increase of$351.8 million fromDecember 31, 2019 , excluding non-controlling interests. - Investments stood at
$260.4 million as ofDecember 31, 2020 , an increase of$102.2 million fromDecember 31, 2019 . The change was primarily due to the increase in unrealized gains and$39.3 million of new capital deployed by the Principal Investments team during the year, which were partially offset by the sale of some investments.
Operating Highlights and Other Updates for the Fourth Quarter 2020, compared to Third Quarter 2020
- Galaxy Digital Trading ("GDT") generated a record in: counterparty trading volumes, the size of its counterparty loan book, and in gross counterparty loan book originations in the fourth quarter 2020, compared to the third quarter 2020.
- In the quarter ended
December 31, 2020 , GDT counterparty volumes were up 80%+ sequentially quarter over quarter and 230%+ year over year. - In the quarter ended
December 31, 2020 , GDT's counterparty loan book grew in excess of 300% to approximately$110 million , and the Company grew gross counterparty loan originations in excess of 90% to approximately$110 million . - Galaxy Digital Asset Management ("GDAM") reported assets under management ("AUM") of
$807.3 million as ofDecember 31, 2020 , an increase of over 98% from$407.4 million as ofSeptember 30, 2020 . AUM consisted of$482.3 million inGDAM's Galaxy Fund Management products, and$325.0 million in the Galaxy Interactive fund. - Recent product launches include the CI Galaxy Bitcoin Fund (Ticker: BTCG), a TSX-listed closed end mutual fund in partnership with CI Financial. Additionally, the Bloomberg Galaxy Bitcoin Index (Ticker: BTC) went live.
Galaxy Bitcoin Fund, LP ,Galaxy Institutional Bitcoin Fund, LP , andGalaxy Institutional Bitcoin Fund, Ltd. (collectively the "Bitcoin Funds") track the Bloomberg CFIX pricing of bitcoin ("XBT"), and the XBT returned 170.8% in the fourth quarter of 2020, and 305.6% for the year endedDecember 31, 2020 .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 returned 120.5% in the fourth quarter of 2020 and 276.7% for the year endedDecember 31, 2020 .- 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.
- GDIB recognized an advisory fee from serving as sell-side advisor to Blockfolio on its announced sale to
FTX Trading Limited for$150.0 million , which closed inOctober 2020 . Blockfolio is a leading mobile app for cryptocurrency portfolio tracking and management and has over six million users globally. - Principal Investments: The Company completed seven new investments in companies and held approximately 70 investments across 50 portfolio companies as of
December 31, 2020 .
_________________ | |
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 and Other Updates through
- The Company has appointed
Alex Ioffe as its new Chief Financial Officer, effectiveApril 1, 2021 .Mr. Ioffe was most recently the CFO of Virtu Financial and prior to that spent over 15 years as CFO for the brokerage business at Interactive Brokers.Mr. Ioffe is taking over the role fromAshwin Prithipaul , who is stepping down to spend more time with his family and will be remaining on through the second quarter of 2021 to ensure a smooth transition. - Galaxy Digital Trading ("GDT") expects to generate records in: counterparty trading volumes, the size of its counterparty loan book, and in gross counterparty loan book originations in the first quarter 2021.
- In the period between
January 1, 2021 andMarch 22, 2021 , GDT counterparty trading volumes continued significant growth, up 40%+ from the quarter endedDecember 31, 2020 , and over 270% year over year. - GDT continued to experience strong growth in the Company's counterparty loan book for the period from
January 1, 2021 toMarch 22, 2021 , increasing in excess of 240% to approximately$380 million , and grew gross counterparty loan originations in excess of 400% sinceDecember 31, 2020 to approximately$560 million . - Galaxy Digital Asset Management ("GDAM") expects to report preliminary assets under management ("AUM") of
$1.24 billion as ofMarch 22, 2021 . AUM consisted of$911.0 million inGDAM'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. The Galaxy Ethereum Funds track the newly launched Bloomberg Galaxy Ethereum Index (Ticker: XET), 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 theGalaxy Bitcoin Fund LP , and theGalaxy Institutional Bitcoin Fund LP . Galaxy Bitcoin Fund, LP ,Galaxy Institutional Bitcoin Fund, LP , andGalaxy Institutional Bitcoin Fund, Ltd. (collectively the "Bitcoin Funds") track the Bloomberg CFIX pricing of bitcoin ("XBT"), and the XBT has returned 92.0% on a year-to-date basis throughMarch 22, 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 105.6% on a year to date basis throughMarch 22, 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 22, 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.
- 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 first quarter 2021. - There was no significant change in the Company's digital asset holdings (excluding non-controlling interests) since
December 31, 2020 , and the Company has, as a result, benefited from the increase in asset prices since the start of the year.
Select Financial Highlights for the Fiscal Year 2020 compared to Fiscal Year 2019
- Net comprehensive income increased 1,396% to
$385.5 million , from$25.8 million in the prior year. - The increase was primarily a result of realized and unrealized gains on digital assets and on investments, coupled with strong contributions from our trading business, partially offset by higher operating expenses.
- Income from our trading business increased 202% to
$270.9 million , from$89.6 million in the prior year. - Fair Value of
Net Asset Holdings increased 272% to$813.5 million , from$218.7 million in the prior year. - The increase was primarily a result of realized and unrealized gains on digital assets and on investments.
- The Partnership had a material holding in bitcoin of
$433.0 million as ofDecember 31, 2020 , an increase of$351.8 million fromDecember 31, 2019 , excluding non-controlling interests. - Investments stood at
$260.4 million as ofDecember 31, 2020 , an increase of$102.2 million fromDecember 31, 2019 . The change was primarily due to the increase in unrealized gains and$39.3 million of new capital deployed by the Principal Investments team during the year, which were partially offset by the sale of some investments.
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Disclaimers and Additional Information
The TSX has not approved or disapproved of the information contained herein.
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.
The performance of the Funds will vary from the performance of their respective indices.
BLOOMBERG is a trademark or service mark of
This press release contains certain pre-released first quarter 2021 financial information (the "pre-released financial information"). The pre-released financial information contained in this press release are preliminary and represent the most current information available to the Company's management, as the Company completes its financial procedures. The Company's actual consolidated financial statements for such period may result in material changes to the pre-released financial information summarized in this press release (including by any one financial metric, or all of the financial metrics, being below or above the figures indicated) as a result of the completion of normal quarter end accounting procedures and adjustments, and also what one might expect to be in the final consolidated financial statements based on the financial information summarized in this press release. Although the Company believes the expectations reflected in this press release are based upon reasonable assumptions, the Company can give no assurance that actual results will not differ materially from these expectations.
No offering is being made by this material. This communication is provided as a general source of information and should not be considered personal, legal, accounting, tax or investment advice, or construed as an endorsement or recommendation of any entity or security discussed. Individuals should seek the advice of professionals, as appropriate, regarding any particular investment. Investors should consult their professional advisors prior to implementing any changes to their investment strategies.
Forward-Looking Statements
Certain information in this press release, including, but not limited to, statements regarding the Company's listing plans, the Company and Partnership's anticipated first quarter 2021 results, digital asset opportunity set and momentum in the businesses, may constitute forward looking information (collectively, forward-looking statements), which can be identified by the use of terms such as "may," "will," "should," "expect," "anticipate," "project," "estimate," "intend," "continue" or "believe" (or the negatives) or other similar variations. Because of various risks and uncertainties, including those referenced below, actual events or results may differ materially from those reflected or contemplated in such forward-looking statements. Forward looking statements are subject to the risk that the global economy, industry or the Company's businesses and investments do not perform as anticipated, that revenue or expenses estimates may not be met or may be materially less or more than those anticipated, that trading and lending momentum does not continue or the demand for trading and lending solutions declines, that expected fundraising for asset management products is delayed or not achieved, that investment banking transactions may be modified or not completed at all, that the mining business is not able to gain traction with clients and partners and those other risks contained in the Annual Information Form (AIF) for the year ended
Assets | ||||||
Current assets | ||||||
Cash | $ | 135,765,978 | $ | 106,262,780 | ||
Digital assets | 850,380,264 | 85,980,731 | ||||
Investments | 260,383,297 | 158,163,420 | ||||
Receivable for digital asset trades | 13,204,252 | 330,609 | ||||
Digital asset loans receivable | 96,723,981 | 16,061,945 | ||||
Digital assets receivables | 12,813,006 | — | ||||
Assets posted as collateral | 15,768,380 | 10,585,819 | ||||
Receivables | 2,710,424 | 1,853,169 | ||||
Due from broker | 4,452,369 | 16,590 | ||||
Derivatives | 15,921,618 | — | ||||
Prepaid expenses and other assets | 6,493,753 | 2,563,665 | ||||
15,514,746 | — | |||||
Loans receivable | 8,509,587 | 11,719,738 | ||||
1,438,641,655 | 393,538,466 | |||||
Digital assets receivables | 6,911,175 | — | ||||
Right of use asset | 4,573,229 | 5,182,993 | ||||
Property and equipment | 3,693,301 | 4,057,662 | ||||
Intangible asset | 2,406,000 | — | ||||
17,583,705 | 9,240,655 | |||||
Total assets | $ | 1,456,225,360 | $ | 402,779,121 | ||
Liabilities | ||||||
Current liabilities | ||||||
Digital assets sold short | $ | 5,277,878 | $ | 18,616,860 | ||
Investments sold short | 4,384,290 | — | ||||
Warrant liability | 20,781,207 | — | ||||
Accounts payable and accrued liabilities | 34,153,778 | 11,719,494 | ||||
Payable for digital asset trades | 31,144,419 | 250,158 | ||||
Digital asset loans payable | 226,398,948 | 11,134,329 | ||||
Collateral payable | 44,660,149 | 434,498 | ||||
Lease liability | 742,333 | 772,003 | ||||
367,543,002 | 42,927,342 | |||||
Lease liability | 4,515,389 | 4,747,214 | ||||
Total liabilities | 372,058,391 | 47,674,556 | ||||
Equity | ||||||
Partners' capital | 798,211,451 | 347,785,081 | ||||
Non-controlling interests | 285,955,518 | 7,319,484 | ||||
Total equity | 1,084,166,969 | 355,104,565 | ||||
Total liabilities and equity | $ | 1,456,225,360 | $ | 402,779,121 |
Three months | Three months | Year ended | Year ended | |||||
Income (loss) | ||||||||
Advisory and management fees | $ | 5,013,198 | $ | 1,218,883 | $ | 9,615,240 | $ | 5,329,819 |
Net realized gain (loss) on digital assets | 250,269,733 | (35,066,657) | 271,108,044 | 71,971,480 | ||||
Net realized gain (loss) on investments | (605,241) | (160,116) | 10,795,869 | 37,922,360 | ||||
Interest income | 1,720,377 | 1,331,531 | 6,131,988 | 4,229,684 | ||||
Net derivative gain (loss) | (250,495) | 1,538,481 | 5,699,318 | 12,425,065 | ||||
Other income | 678,133 | 464,554 | 809,502 | 464,554 | ||||
256,825,705 | (30,673,324) | 304,159,961 | 132,342,962 | |||||
Operating expenses | ||||||||
Equity based compensation | 3,599,871 | 4,689,425 | 11,851,120 | 28,131,160 | ||||
Compensation and compensation related | 14,793,549 | 6,348,951 | 34,163,813 | 28,579,918 | ||||
General and administrative | 6,060,336 | 2,785,227 | 15,126,938 | 12,660,376 | ||||
Professional fees | 2,683,852 | 2,291,376 | 7,663,579 | 8,177,491 | ||||
Interest | 5,590,456 | 868,364 | 9,729,199 | 3,133,143 | ||||
Insurance | 234,785 | 282,109 | 1,090,000 | 1,322,089 | ||||
Director fees | 118,607 | 50,000 | 248,522 | 200,000 | ||||
(33,081,456) | (17,315,452) | (79,873,171) | (82,204,177) | |||||
Net unrealized gain (loss) on digital assets | 212,842,043 | 17,036,050 | 239,719,806 | (11,973,090) | ||||
Net unrealized gain (loss) on investments | 61,911,034 | (1,937,647) | 90,587,112 | (12,521,148) | ||||
Net unrealized loss on warrant liability | (14,318,125) | — | (14,318,125) | — | ||||
Unrealized foreign currency gain (loss) | 77,716 | 4,299 | (517,442) | 147,986 | ||||
Realized foreign currency loss | (677,506) | (14,031) | (870,755) | (197,065) | ||||
259,835,162 | 15,088,671 | 314,600,596 | (24,543,317) | |||||
Income (loss) for the period | $ | 483,579,411 | $ | (32,900,105) | $ | 538,887,386 | $ | 25,595,468 |
Income (loss) attributed to: | ||||||||
Unit holders of the Partnership | $ | 335,722,632 | $ | (31,233,915) | $ | 385,502,231 | $ | 25,770,304 |
Non-controlling interests | 147,856,779 | (1,666,190) | 153,385,155 | (174,836) | ||||
$ | 483,579,411 | $ | (32,900,105) | $ | 538,887,386 | $ | 25,595,468 | |
Other comprehensive income (loss) | ||||||||
Foreign currency translation adjustment | $ | (78,632) | $ | 355,844 | $ | 16,615 | $ | 254,448 |
Comprehensive income (loss) for the period | $ | 483,500,779 | $ | (32,544,261) | $ | 538,904,001 | $ | 25,849,916 |
Comprehensive income (loss) attributed to: | ||||||||
Unit holders of the Partnership | $ | 335,644,000 | $ | (30,878,071) | $ | 385,518,846 | $ | 26,024,752 |
Non-controlling interests | 147,856,779 | (1,666,190) | 153,385,155 | (174,836) | ||||
$ | 483,500,779 | $ | (32,544,261) | $ | 538,904,001 | $ | 25,849,916 |
Income and expenses by each reportable segment of
Trading | Principal | Asset | Investment | Mining | Corporate and Other | Totals | ||||||||
Income (loss) | ||||||||||||||
Advisory and management fees | $ | 25,527 | $ | — | $ | 1,519,241 | $ | 3,468,430 | $ | — | $ | — | $ | 5,013,198 |
Net realized gain on digital assets | 236,158,249 | 2,493,599 | 11,617,885 | — | — | — | 250,269,733 | |||||||
Net realized loss on investments | — | (605,241) | — | — | — | — | (605,241) | |||||||
Interest Income | 2,068,268 | (379,720) | — | 31,631 | — | 198 | 1,720,377 | |||||||
Net derivative gain | (250,495) | — | — | — | — | — | (250,495) | |||||||
Other Income (loss) | 732,714 | 21,788 | (44,993) | (31,376) | — | — | 678,133 | |||||||
238,734,263 | 1,530,426 | 13,092,133 | 3,468,685 | — | 198 | 256,825,705 | ||||||||
Operating expenses | 14,033,168 | 269,519 | 5,917,765 | 1,123,901 | 492,262 | 11,244,841 | 33,081,456 | |||||||
Net unrealized gain on digital assets | 70,314,704 | 8,280,090 | 134,247,249 | — | — | — | 212,842,043 | |||||||
Net unrealized gain on investments | — | 61,911,034 | — | — | — | — | 61,911,034 | |||||||
Net unrealized loss on warrants | — | (14,318,125) | — | — | — | — | (14,318,125) | |||||||
Unrealized foreign currency gain | 77,716 | — | — | — | — | — | 77,716 | |||||||
Realized foreign currency loss | (677,506) | — | — | — | — | — | (677,506) | |||||||
69,714,914 | 55,872,999 | 134,247,249 | — | — | — | 259,835,162 | ||||||||
Net income (loss) for the period, including non-controlling interests | $ | 294,416,009 | $ | 57,133,906 | $ | 141,421,617 | $ | 2,344,784 | $ | (492,262) | $ | (11,244,643) | $ | 483,579,411 |
Income and expenses by each reportable segment of
Trading | Principal | Asset | Investment | Corporate and Other | Totals | |||||||
Income (loss) | ||||||||||||
Advisory and management fees | $ | — | $ | — | $ | 1,218,883 | $ | — | $ | — | $ | 1,218,883 |
Net realized loss on digital assets | (34,190,245) | (876,412) | — | — | — | (35,066,657) | ||||||
Net realized loss on investments | — | (160,116) | — | — | — | (160,116) | ||||||
Interest Income | 337,871 | 977,179 | — | 16,276 | 205 | 1,331,531 | ||||||
Net derivative gain | 1,674,510 | — | — | — | — | 1,674,510 | ||||||
Other Income | 5,816 | 210,000 | (11,266) | 123,975 | — | 328,525 | ||||||
(32,172,048) | 150,651 | 1,207,617 | 140,251 | 205 | (30,673,324) | |||||||
Operating expenses | 6,413,231 | 1,805,820 | 3,164,866 | 731,256 | 5,200,279 | 17,315,452 | ||||||
Net unrealized gain (loss) on digital assets | 21,898,982 | (4,862,932) | — | — | — | 17,036,050 | ||||||
Net unrealized loss on investments | — | (1,937,647) | — | — | — | (1,937,647) | ||||||
Unrealized foreign currency gain | 4,299 | — | — | — | — | 4,299 | ||||||
Realized foreign currency loss | (14,031) | — | — | — | — | (14,031) | ||||||
21,889,250 | (6,800,579) | — | — | — | 15,088,671 | |||||||
Net loss for the period, including non-controlling interests | $ | (16,696,029) | $ | (8,455,748) | $ | (1,957,249) | $ | (591,005) | $ | (5,200,074) | $ | (32,900,105) |
Assets and liabilities by reportable segment of
Trading | Principal | Asset | Investment | Mining | Corporate and | Totals | ||||||||
Total assets | $ | 750,207,683 | $ | 357,529,140 | $ | 307,720,036 | $ | 7,120,603 | $ | 3,633,111 | $ | 30,014,787 | $ | 1,456,225,360 |
Total liabilities | $ | 333,320,691 | $ | 101,160 | $ | 18,170,148 | $ | 22,374 | $ | — | $ | 20,444,018 | $ | 372,058,391 |
Assets and liabilities by reportable segment of
Trading | Principal | Asset | Investment | Corporate and | Totals | |||||||
Total assets | $ | 177,234,992 | $ | 192,890,378 | $ | 8,194,871 | $ | 1,102,055 | $ | 23,356,825 | $ | 402,779,121 |
Total liabilities | $ | 30,329,154 | $ | 403,187 | $ | 1,377,492 | $ | 96,273 | $ | 15,468,450 | $ | 47,674,556 |
Select statement of financial position information
The fair value of each asset class by reporting segment of
Trading | Principal | Asset | Investment | Mining | Corporate and | Totals | ||||||||
Digital assets | $ | 444,215,956 | $ | 118,555,236 | $ | 287,609,072 | $ | — | $ | — | $ | — | $ | 850,380,264 |
Digital assets receivable | — | 19,724,181 | — | — | — | — | 19,724,181 | |||||||
Digital assets posted as collateral | 15,624,879 | — | — | — | — | — | 15,624,879 | |||||||
Investments: | ||||||||||||||
Pre-ICO | — | 500,000 | — | — | — | — | 500,000 | |||||||
Convertible Notes | — | 4,501,295 | — | — | — | — | 4,501,295 | |||||||
Preferred Stock | — | 86,258,050 | — | — | — | — | 86,258,050 | |||||||
Common Stock | — | 29,970,097 | — | — | — | — | 29,970,097 | |||||||
LP/LLC Interests | — | 84,311,034 | — | — | — | — | 84,311,034 | |||||||
Warrants/Trust Units/Trust Shares | 51,181,618 | 3,661,203 | — | — | — | — | 54,842,821 | |||||||
$ | 511,022,453 | $ | 347,481,096 | $ | 287,609,072 | $ | — | $ | — | $ | — | $ | 1,146,112,621 |
The fair value of each asset class by reporting segment of
Trading | Principal | Asset | Investment | Corporate and | Totals | |||||||
Digital assets | $ | 53,882,704 | $ | 25,318,291 | $ | 6,779,736 | $ | — | $ | — | $ | 85,980,731 |
Digital assets posted as collateral | 8,208,653 | — | — | — | — | 8,208,653 | ||||||
Investments: | ||||||||||||
Pre-ICO | — | 6,005,114 | — | — | — | 6,005,114 | ||||||
Convertible Notes | — | 5,255,579 | — | — | — | 5,255,579 | ||||||
Preferred Stock | — | 75,703,153 | — | — | — | 75,703,153 | ||||||
Common Stock | — | 32,476,631 | — | — | — | 32,476,631 | ||||||
LP/LLC Interests | — | 38,120,805 | — | — | — | 38,120,805 | ||||||
Warrants/Trust Units | — | 602,138 | — | — | — | 602,138 | ||||||
$ | 62,091,357 | $ | 183,481,711 | $ | 6,779,736 | $ | — | $ | — | $ | 252,352,804 |
All figures are in
SOURCE
© Canada Newswire, source