By
Steve Muchoki
April 25th, 2024
Galaxy Digital also unveiled its financial earnings. The results turned out to be strong.
New York-based digital asset management and trading firm Galaxy Digital Holdings Ltd (TSX: GLXY) has unveiled its plans to pursue a public listing in the United States, a move that is now imperative following the record of improved earnings by the firm in Q4 2020, as well as the previous fiscal year. As detailed in the official announcement, the company’s Chief Executive Officer Michael Novogratz noted the public debut move will be happening in the second half of 2021.
Accompanying this news is the appointment of a new Chief Financial Officer, Alex Ioffe who will be replacing Ash Prithipaul effective April 1, 2021. Novogratz has highlighted the ascension of Ioffe as a key component of the company’s growth.
“As a key component of our growth strategy, I am pleased to announce we are actively preparing for a US listing in the second half of 2021. I am also excited to welcome industry veteran Alex Ioffe as our new Chief Financial Officer, and I want to thank Ash Prithipaul for his significant contributions and for leaving Galaxy well-positioned for even brighter days ahead,” Novogratz said in a statement. “We believe our industry is at an inflection point as we participate in a once-in-a-lifetime secular shift into cryptocurrencies as an institutionalized asset class. Galaxy Digital is committed to leading our clients and the industry through this transformation.”
The exact details about the proposed public exchange debut were not revealed but it comes as the latest major cryptocurrency-based firm eyeing such a move following social trading app, eToro and Coinbase cryptocurrency exchange.
Galaxy Digital Listing as the Success Proof of Improved Earnings
In the same announcement in which Galaxy Digital Holdings Ltd revealed its proposed listing plans, the company’s financial earnings were also unveiled. Per the figures shared, the firm increased its net comprehensive income for the Fourth Quarter by 1,175% to $335.7 million, up from a net comprehensive loss of $31.2 million in the year-ago period.
The bulk of the income growth was attributed to both its realized and unrealized gains on digital assets and on investments as well as the upsurge in its trading business whose income increased 842% to $238.7 million, from a loss of $32.2 million in the year-ago period.
For the entire 2020 fiscal year, the income increased 1,396% to $385.5 million, from $25.8 million in the prior year. Additionally, Galaxy Digital increased its Bitcoin holdings to $433.0 million as of December 31, 2020, an increase of $351.8 million from December 31, 2019, excluding all non-controlling interests.
For the year under review, trading activities were on the upside generating a 202% growth to $270.9 million, from $89.6 million achieved in the year-ago period. Should these earnings be sustained in subsequent quarters, Galaxy Digital will be making its entry into the broader US market with profitability as a feather in its cap.