Q1 2024 Galaxy Digital Holdings Ltd Earnings Call Transcript
Key Points
- Galaxy Digital Holdings Ltd (BRPHF) reported a significant increase in net income to $422 million, up $120 million quarter-over-quarter and $287 million year-over-year.
- The company successfully completed a strategic equity capital raise of USD 125 million to capitalize on growth opportunities and digital asset adoption.
- Assets under management grew by 50% quarter-over-quarter to $7.8 billion, driven by new mandates and inflows into global range of ETFs.
- Record revenue of $31.5 million in the digital infrastructure solutions business, representing a 69% increase quarter-over-quarter.
- Expansion of global market operations, including derivatives trading which saw a 25% increase in notional derivatives volumes after exceeding the $8 billion threshold.
- The new regulatory requirements for over-the-counter derivatives trading in the US will drive additional operating expenses and capital requirements.
- The decrease in assets under management from a record $10.1 billion in February to $7.8 billion in March due to dispositions of locked assets in the FTX bankruptcy process.
- Potential volatility in earnings due to the correlation with Bitcoin price fluctuations and market conditions.
- Challenges in the political and regulatory environment, particularly with the upcoming election cycle that could impact the crypto market and business operations.
- The need for significant investment in infrastructure and operational capabilities to support regulatory compliance and international expansion.
Good morning, and welcome to Galaxy's first-quarter 2024 earnings call. Today's call is being recorded. (Operator Instructions) At this time I would like to turn the conference over to Jonathan Goldowsky, Head of Investor Relations. Please go ahead.
Good morning, and welcome to Galaxy's first quarter 2024 earnings call. Before we begin, please note that our remarks today may include forward-looking statements. Actual results may differ materially from those indicated or implied by our forward-looking statements as a result of various factors, including those identified in our filings with the Canadian securities regulatory authority on SEDAR plus and available on our website for any future filings we make with other securities regulators.
Forward-looking statements speak only as of today and will not be updated. In addition, none of the information on this call constitutes a recommendation solicitation or offered by Galaxy or its affiliates to buy or sell any securities
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