Galaxy Digital’s revenue soars with mining, fees at record levels

Galaxy Digital reported a robust first quarter in 2024, with net income climbing to $422 million, a 40% increase from the previous quarter. The surge was supported by record earnings in mining and management fees.

According to the company, its mining operations generated a record-breaking $31.5 million in revenue, representing a 69% rise from the previous quarter. The growth was primarily driven by its expansion of mining capacity, with its hash rate under management (HUM) reaching 5.7 exahash per second (EH/s).

During the quarter, Galaxy mined 373 Bitcoin (BTC) at an average cost of less than $19,500.

Asset management was also a strong performer for the company in the first quarter. Management and performance fees reached a record $17.8 million — a 113% increase from the previous quarter.

Galaxy’s hash rate under management. Source: Galaxy Digital

In January, Galaxy Digital and Invesco launched a spot Bitcoin exchange-traded fund (ETF) in the United States. In April, the company expanded its offerings of BTC and Ether (ETH) in the European market by launching two exchange-traded commodities (ETCs) in partnership with DWS Group.

Trading operations reported revenue of $66 million, marking a 78% increase primarily fueled by gains from derivatives and positive movements in asset prices. Galaxy reported that the average size of its loan book grew to $664 million.

Galaxy’s assets under management surged to approximately $7.8 billion as of March 31, 2024, marking a 219% increase year-over-year and 50% jump from the previous quarter.

Its equity capital also saw significant growth, rising to $2.2 billion, up 22% quarter-over-quarter. Assets under stake grew by 100% in the first quarter, reaching $1.5 billion as Galaxy moves to become the second largest validator on the Solana network.

In April, the company raised approximately $125 million in financing. Galaxy plans to use the capital to enhance the infrastructure of its Helios mining facility located in West Texas. The current infrastructure at Helios can support 180 megawatts, while Galaxy was granted approval to scale up to 800 megawatts at the site.

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