Galaxy Digital reports net income of $302 million for last year's Q4 earnings

Companies • March 26, 2024, 7:49AM EDT

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Quick Take

Galaxy Digital reported $302 million of net income for the fourth quarter of last year — a 421% increase compared to Q3.
The company also said it had registered a before-tax income of “approximately $300 million” through the end of February.

Mike Novogratz's Galaxy Digital reported a massive swing from loss to profit on Tuesday when it announced it had generated $302 million of net income during the fourth quarter of last year.

The result represented a 421% increase when compared to the previous quarter, when Galaxy Digital reported a net loss of $94 million, according to an earnings statement. Galaxy Digital's Q4 results were also a significant increase on 2022's end-of-year earnings when the company registered a net loss of $288 million.

Galaxy Digital, which operates businesses in lending, trading, mining and banking services, sought to highlight that 2024 has been positive so far amid rising prices for key cryptocurrencies like bitcoin. The company said it had already generated a before-tax income of "approximately $300 million" through the end of February, "driven primarily by the appreciation of digital asset prices and growth in our operating businesses."

The firm also said its assets under management exceeded $10 billion at the end of last month. That includes more than $27 million in Celestia, also according to the earnings statement. Galaxy Digital's AUM in Q4 of last year came in at about $5.2 billion, the statement also said.

Galaxy Digital also reported $18.7 million in mining revenue for Q4, a 31% increase from the previous quarter.

"Our average marginal cost to mine in the fourth quarter increased relative to prior quarters due to fewer opportunities to economically curtail our mining operations and a higher network hashrate," the company said in its statement. "For the full year 2023, Galaxy mined 1,077 bitcoin from our proprietary mining operations at an average marginal cost to mine of less than $8,000."

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RT Watson is a senior reporter at The Block who covers a wide array of topics including U.S.-based companies, blockchain gaming and NFTs. Formerly covered entertainment at The Wall Street Journal, where he wrote about Disney, Netflix, Warner Bros. and the creator economy while focusing primarily on technological disruption across media. Previous to that he covered corporate, economic and political news in Brazil while at Bloomberg. RT has interviewed a diverse cast of characters including CEOs, media moguls, top influencers, politicians, blue-collar workers, drug traffickers and convicted criminals. Holds a master's degree in Digital Sociology.