Mike Novogratz's Galaxy Digital Holdings Ltd (OTC:BRPHF) on Tuesday reported its second consecutive record-setting quarter, raking in $422 million in net income for the three months through March 2024. The digital asset manager swung from a loss to a profit in Q4 2023 in a major turnaround from a disastrous 2022 when it booked a $1 billion net loss.
The Q1 revenue across its three operating units nearly tripled when compared to the $120 million it generated in the same quarter a year earlier. The figure also represented a 40% increase when compared to the previous quarter, when Galaxy Digital reported a net income of $302 million, according to an earnings statement.
Galaxy Digital, which runs businesses in crypto lending, trading, mining, and banking services, noted that 2024 has been off to a great start with rising prices for key cryptocurrencies like Bitcoin. The company shared that by the end of March, they had already pulled in around $2.2 billion in equity capital, thanks to the $402 million it added in the first quarter.
On the operational front, Galaxy reported a key milestone by managing a hashrate of 5.7 exahash per second. This led to a record bitcoin mining revenue of $31.5 million for the quarter, a 69% increase from the previous quarter. The company mined 373 bitcoins at an average marginal cost of less than $19,500 per bitcoin.
Other business highlights reveal that Galaxy’s trading division earned $66 million in counterparty trading revenue, up 79% from the Q1 2023. This boost was mainly due to higher derivatives revenue and favorable asset price movements. Additionally, trading volumes surged by 78%, the average loan book size grew to $664 million, and the number of trading counterparties expanded to 1,161.
In the quarter, the Investment Banking division closed one deal, acting as an advisor to CryptoSlam, which received a strategic investment from Spirit Blockchain Capital. The investment banking pipeline remains strong, the company says, with potential deal values totaling $2.2 billion.
"Our first-quarter results underscore the strength and resilience of our business model," said Mike Novogratz, CEO of Galaxy Digital Holdings Ltd. "We continue to see robust demand for our digital asset products and services, positioning us well for future growth."
Galaxy’s asset management franchise generated fees of $17.8 million, up 113% from the prior quarter. Assets under management (AUM) rose to $7.8 billion, driven by net inflows and market appreciation. The company launched the Invesco Galaxy Bitcoin ETF and two new XTrackers Exchange Traded Commodities in partnership with DWS Group.
Galaxy closed a $125 million equity capital raise in April. The fresh capital will be injected into working capital, expansion of trading operations, and development of the Helios mining facility’s infrastructure.