Galaxy Digital Holdings Ltd. (TSX: GLXY) (“Galaxy Digital” or “the Company”), a financial services and investment management innovator in the digital asset, cryptocurrency, and blockchain technology sectors is providing a preliminary quarter-to-date company update, in light of recent market conditions.
The Company believes that the current digital asset and broader market conditions warrant providing shareholders, counterparties, and clients intra-quarter visibility regarding its capital and liquidity position, as well as its operating resilience. The Company’s treasury does not utilize algorithmic stablecoins.
The Company remains in a strong capital and liquidity position and is well-positioned for long-term growth. The Company will continue to manage the pace of investment to consider the macroeconomic backdrop as it has throughout its history, and our experienced management team continues to believe there are significant opportunities for Galaxy Digital as we navigate current market conditions.
- The company has a liquidity position of approximately $1.6 billion, including $800 million in cash and over $800 million in net digital assets, with the majority of net digital assets in non-algorithmic stablecoins.
- Quarter-to-date Net comprehensive income is expected to be a loss of approximately $300 million, bringing Partners’ Capital to $2.2 billion, a decline of 12% versus March 31, 2022.
- In comparison, since March 31, 2022, total cryptocurrency market capitalization has decreased approximately 40% to $1.2 trillion.
- The Company will continue to invest in our long-term growth strategy while considering the current macroeconomic backdrop, including:
- Launching new Asset Management funds;
- Scaling proprietary bitcoin mining and the ability to serve as a key advisor to ecosystem players;
- Expanding our lending portfolio and meeting the rapidly-growing trading liquidity demand;
- Adding engineering and other headcount to support growth plans in a scaled manner; and;
- Investing in technology and product acquisitions.
- The Company reconfirms the previously-stated commentary that Galaxy Digital Trading (“GDT”) experienced no operational or execution-related disruptions. GDT counterparty loan and yield portfolio has continued to experience zero defaults, credit degradations or liquidations. Moreover, average collateralization levels remain well-over 100%