Galaxy Digital posts $1.71 billion net income for 2021, still awaits SEC on Nasdaq listing


Galaxy Digital Holdings Ltd. (TSX: GLXY) today released its fourth quarter and full year 2021 financial results, which saw the company post net income of $1.71 billion. This is an increase from 2020 net income of $385.5 million.

The company attributes the increase to strong contributions from investment firms “generating realized and unrealized gains on digital assets and on investments.” Net realized and unrealized gains on digital assets also contributed to revenue with $1.01 billion and $451.5 million, respectively. On investments, net realized and unrealized gains were $231.4 million and $547.0 million, respectively.

For the fourth quarter, the company reported quarterly net income of $521.3 million, up from $517 million in the third quarter of 2021 and $475.2 million in the fourth quarter of 2020.

In terms of finances, the company ended the year with $2.42 billion in digital assets, up from a balance of $931.5 million at the start of the year. Galaxy Digital Asset Management, in particular, said it has about $2.9 billion in assets under management.

The year also ended with $811.1 million in cash compared to its 2020 year-end balance of $138.0 million. This puts the Current Assets balance at $3.94 billion while Current Liabilities ended at $1.98 billion.

The company also provided an update on its acquisition of BitGo, renegotiating terms that were set in May 2021. The deal is now expected to consist of 44.8 million newly issued Galaxy Digital shares and $265 million in cash. , bringing the value of the trade to $1.16. billion. After closing, BitGo shareholders will own 12% of the resulting company.

The acquisition is expected to be completed between the second and fourth quarters of 2022, primarily depending on Galaxy Digital’s domestication as a Delaware-based company. However, this is subject to the company’s ongoing review by the SEC.

“[Galaxy Digital] remains determined to do so. [We adjusted] the deal in line with BitGo’s growth since [the] original agreement. [We will] continue to work on the integration through to close,” CEO Mike Novogratz said on the earnings call.

This review is also central to the company’s Nasdaq listing plans, saying it intends to “complete its proposed reorganization and domestication” once the SEC review is completed.

For the first quarter of 2022, the company expects an overall net loss of $110 million to $130 million, but maintained that its operating businesses should “remain profitable.”

The company earlier announced that it had made its first OTC crypto transaction with Goldman Sachs.

Galaxy Digital Holdings Ltd. last traded at $24.82 on the TSX.

Information for this briefing was found via Sedar and Galaxy Digital. The author has no security or affiliation related to this organization. Not a buy or sell recommendation. Always do additional research and consult a professional before purchasing a title. The author holds no license.


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