Michael Novogratz’s Galaxy Digital Holdings has turned a profit of $296 million in 2023, recovering from a loss of $1 billion in the previous year, as the upward movement of cryptocurrency prices has picked up.
Interestingly, the final quarter of 2023 turned the results for the company when it generated a net income of $302 million, compared to a loss of $288 million in the corresponding quarter of the precious year. Even in the third quarter of 2023, it had a loss of $94 million.
“Since the end of the fourth quarter 2023, digital asset prices materially changed, and our business has benefited from heightened market volatility and increased trading volumes,” the company stated.
Indeed, the price of Bitcoin and other digital assets picked up at the end of 2023 with the anticipation of the approval of Bitcoin exchange-traded funds (ETFs) in the United States. Further, with the approval last January, the bull market received a further push as Bitcoin neared $74,000.
The Boom in Crypto Prices Pushed the Revenue
The financials of Galaxy Digital, released yesterday (Tuesday), revealed its total annual revenue last year to be $613.8 million, a gain of over 46 percent. A realized gain of $311.8 million from digital assets pushed the total revenue higher. Another significant revenue generator was from derivatives, which brought in $151.5 million. Revenue from staking and lending services came in at $52.2 million, while the figure from mining operations was $33.1 million.
The asset under management of the cryptocurrency funds managed by Galaxy Digital increased by over 200 percent in 2023 to reach $5.2 billion at the end of the year. The number almost doubled in the next two consecutive months to reach $10.1 billion at the end of February 2024.
“For the year-to-date period ending February 29, 2024, Galaxy Digital Holdings LP’s income before tax is estimated to be approximately $300 million, driven primarily by the appreciation of digital asset prices and growth in our operating businesses. Galaxy Digital Holdings LP’s equity capital increased to approximately $2.1 billion over the same period,” the company added.
Michael Novogratz’s Galaxy Digital Holdings has turned a profit of $296 million in 2023, recovering from a loss of $1 billion in the previous year, as the upward movement of cryptocurrency prices has picked up.
Interestingly, the final quarter of 2023 turned the results for the company when it generated a net income of $302 million,…
