Galaxy Digital’s Revenues Soar with Record Levels of Mining and Fees
Galaxy Digital reported a solid first quarter of 2024 with net income of $422 million, up 40% from the previous quarter. This surge was supported by record revenues from the mining and management fee segments.
Mine operations generated a record $31.5 million in revenue, up 69% from the previous quarter, according to the company. This growth was primarily driven by mining capacity expansion, with hash rate under management (HUM) reaching 5.7 exahashes per second (EH/s).
During the quarter, Galaxy mined 373 Bitcoin (BTC) at an average cost of less than $19,500.
Asset Management also delivered strong performance for the company in the first quarter. Management and performance fees increased 113% from the previous quarter to $17.8 million.
Last January, Galaxy Digital and Invesco launched a spot Bitcoin exchange-traded fund (ETF) in the United States. Last April, the company partnered with DWS Group to launch two exchange-traded products (ETCs) to expand its BTC and Ether (ETH) offerings in European markets.
The trading operation reported revenue of $66 million, an increase of 78%, driven primarily by gains in derivatives and positive movements in asset prices. Galaxy reported that the average size of its loan book increased to $664 million.
Galaxy’s assets under management soared to approximately $7.8 billion as of March 31, 2024, up 219% year-over-year and 50% quarter-over-quarter.
Equity capital also grew significantly, reaching $2.2 billion, a 22% increase quarter-over-quarter. Equity assets grew 100% in the first quarter, reaching $1.5 billion, as Galaxy worked to become the second-largest validator on the Solana network.
Last April, the company raised about $125 million in funding. Galaxy plans to use the capital to strengthen the infrastructure of its Helios mining facility located in West Texas. Helios’ current infrastructure can support 180 megawatts, while Galaxy has approval to scale up to 800 megawatts at the site.
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