Galaxy Digital Holdings Ltd. (TSX: GLXY) released today its Q4 and full-year 2021 financial results, which saw the company posting a net income of $1.71 billion. This is an increase from 2020’s net income of $385.5 million.
The company attributes the increase to the strong contributions from investment businesses “driving realized and unrealized gains on digital assets and on investments.” Net realized and unrealized gain on digital assets also contributed to the income with $1.01 billion and $451.5 million, respectively. On investments, net realized and unrealized gains came in at $231.4 million and $547.0 million, respectively.
For Q4, the firm recorded a quarterly net income of $521.3 million, up from Q3 2021’s $517 million and Q4 2020’s $475.2 million.
Looking at the financials, the company ended the year with $2.42 billion worth of digital assets from a balance of $931.5 million at the start of the year. Galaxy Digital Asset Management, in particular, reported holding approximately $2.9 billion in assets under management.
The year also ended with $811.1 million in cash compared to its 2020 year-end balance of $138.0 million. This puts the balance of current assets at $$3.94 billion while current liabilities ended at $1.98 billion.
The firm also provided an update on its BitGo acquisition, renegotiating the terms that were set back in May 2021. The transaction is now expected to consist of 44.8 million newly issued Galaxy Digital shares and $265 million in cash, effectively putting the transaction’s value at $1.16 billion. Following the closing, BitGo shareholders will own 12% of the resulting firm.
The acquisition is expected to close between Q2 and Q4 2022, mainly dependent on the domestication of Galaxy Digital as a Delaware-based company. However, this is subject to the SEC’s ongoing review of the company.
“[Galaxy Digital] remains committed to getting it done. [We adjusted] the deal in accordance with BitGo’s growth since [the] original deal. [We will] continue to work on integration until closing,” said CEO Mike Novogratz in the earnings call.
This review is also central to the firm’s Nasdaq listing plans, saying it intends to “complete its proposed reorganization and domestication” once the SEC review is complete.
For Q1 2022, the firm is expecting a net comprehensive loss of $110 million – $130 million, but maintained that its operating business lines are “expected to remain profitable.”
The firm announced earlier that it has conducted its first over-the-counter crypto transaction with Goldman Sachs.
Galaxy Digital Holdings Ltd. last traded at $24.82 on the TSX.
Information for this briefing was found via Sedar and Galaxy Digital. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
