Galaxy Digital’s Q1 Earnings Soar: Mining Revenue and Management Fees Hit Record Highs

  • Sergey Maga
  • 15 May, 2024 12:20
Galaxy Digital’s Q1 Earnings Soar: Mining Revenue and Management Fees Hit Record Highs

Galaxy Digital has reported a stellar performance in the first quarter of 2024, with net income soaring by 40% to reach $422 million. This significant growth was primarily fueled by unprecedented revenue from its mining operations and an increase in management fees, according to Cointelegraph.

The company’s mining division alone generated a record $31.5 million in revenue, marking a 69% increase from the previous quarter. This surge was largely driven by an expansion of Galaxy’s mining capacity, which now boasts a hash rate of 5.7 exahashes per second. During the quarter, Galaxy successfully mined 373 Bitcoin, achieving this at an impressively low average cost of less than $19,500 per Bitcoin.

Asset management also saw remarkable growth, with management and performance fees reaching a record $17.8 million, more than doubling the figures from the previous quarter. The growth in this segment underscores Galaxy Digital’s robust financial management and innovative investment strategies.

Further bolstering its market position, Galaxy Digital, in collaboration with Invesco, launched a spot Bitcoin ETF in the United States earlier this year. Following this, the firm expanded its cryptocurrency offerings in Europe, launching two exchange-traded commodities (ETCs) in partnership with DWS Group, featuring Bitcoin and Ether.

On the trading front, Galaxy’s operations reported a 78% increase in revenue to $66 million, primarily due to gains from derivatives and positive asset price movements. The average size of its loan book also grew significantly to $664 million.

With total assets under management ballooning to approximately $7.8 billion, marking a 219% year-over-year increase and a 50% rise from the previous quarter, Galaxy Digital is cementing its status as a powerhouse in the digital assets space. The company’s equity capital also experienced substantial growth, rising 22% quarter-over-quarter to $2.2 billion.

Looking ahead, Galaxy Digital is poised for further expansion, having recently raised about $125 million in financing. This capital will be utilized to enhance the infrastructure of its Helios mining facility in West Texas, which is approved to scale up to 800 megawatts.

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