Galaxy Digital Posts Stellar Q1 2024 Results, ETF Launch & Infrastructure Investments Underway
Summary:
Galaxy Digital's Q1 2024 financial performance showed net earnings of $422 million, a 40% increase from the last quarter, largely driven by record gains from mining and management fees. The company's managed hash rate reached 5.7 exahash per second, as it mined 373 Bitcoins at an average cost of less than $19,500. Management and performance fees reached a high of $17.8 million. Galaxy also launched a Bitcoin ETF in the US and introduced Bitcoin and Ether offerings in Europe. The company's assets under management climbed to nearly $7.8 billion. Galaxy raised approximately $125 million in April, planning to invest in its Helios mining facility infrastructure in Texas.
In the first quarter of 2024, Galaxy Digital has demonstrated stellar financial performance, posting net earnings of $422 million. This represents a leap of 40% from the last quarter, driven by record profits from both mining and management fees. The company's mining enterprise generated a record-smashing $31.5 million in revenue, marking a striking increase of 69% from the last quarter. Such growth was predominantly influenced by the expansion of mining capacity, with its managed hash rate attaining 5.7 exahash per second (EH/s). Over the quarter, Galaxy mined 373 Bitcoin (BTC) with an average cost of less than $19,500 each. The initial quarter of 2024 also saw asset management thriving for Galaxy Digital. Management and performance fees soared to an all-time high of $17.8 million — a significant 113% surge from the previous quarter. Galaxy Digital and Invesco unveiled a Bitcoin exchange-traded fund (ETF) in the United States in January. In April, Galaxy introduced Bitcoin (BTC) and Ether (ETH) offerings to the European market through two exchange-traded commodities (ETCs), in collaboration with DWS Group. The company’s trading operations marked a rise of 78% in revenue at $66 million, mainly driven by positive derivative gains and asset price movements. Galaxy's loan book witnessed an increase in average size reaching $664 million. As of March 31, 2024, Galaxy's managed assets soared to roughly $7.8 billion, marking an uptick of 219% year-over-year and a 50% boost from the last quarter. Its equity capital also experienced substantial growth, reaching $2.2 billion, a 22% increase from the previous quarter. The company’s staked assets doubled to $1.5 billion as Galaxy aims to be the second-largest validator on the Solana network. In April, Galaxy raised an estimated $125 million in funding with plans to invest in improving its Helios mining facility infrastructure, situated in West Texas. The existing infrastructure at Helios can sustain 180 megawatts, though Galaxy has received approval to upgrade capacity to 800 megawatts at the site.
Published At
5/14/2024 10:04:05 PM
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