Galaxy Digital Holdings Ltd. (TSX: GLXY) released financial results for the three months ended March 31, 2024, for both itself and Galaxy Digital Holdings LP.
Galaxy says that it 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 May 13, 2024, Galaxy filed an amendment “to its registration statement responding to SEC comments, which is under review.”
Equity Capital Raise: Subsequent to quarter-end, on April 12, 2024, Galaxy announced the close of its US$125 million bought deal financing.
Pursuant to the Offering, the company issued “a total of 12,100,000 ordinary shares on a bought deal basis at an offering price of C$14.00 per Ordinary Share for aggregate gross proceeds of C$169,400,000 (or approximately US$125 million equivalent).”
The net proceeds of the Offering will “be used for working capital and general purposes, including among other things, to advance the following business objectives: expansion of our trading operations in the United States and internationally, and completion of the planning for the next phase of expansion of the Helios mining facility’s infrastructure.”
As noted in the update, 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, structured products, financing, as well as capital markets and M&A advisory services for corporate clients.”
GGM operates in two discrete business units – Trading and Investment Banking.
Trading reported counterparty trading “revenue of $66 million in the first quarter, primarily driven by increased revenue from derivatives and favorable asset price movements.”
In-line with this, counterparty trading volumes “increased 78% versus the prior quarter, and our average loan book size expanded to $664 million.”
Galaxy continues to onboard new counterparties and “ended the first quarter with 1,161 total trading counterparties.”
Investment Banking successfully closed one deal in the first quarter, “serving as advisor to CryptoSlam, the leading aggregator of NFT data across blockchain ecosystems, who received a strategic investment from Spirit Blockchain Capital. Galaxy is executing against a pipeline of mandates representing $2.2 billion in potential deal value.”
As noted in the update, Galaxy is a digital asset and blockchain firm “providing access to the growing digital economy.”
They 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.”
Their 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.”