Galaxy Digital Reports Q3 Earnings of $517M

Galaxy Digital (TSX: GLXY), the publicly listed cryptocurrency conglomerate helmed by Mike Novogratz, saw its third-quarter income grow to $517 million, according to a Monday earnings release. That’s an increase of 1,146% from the $41.5 million the firm made in 2020′s third quarter.

In addition, Galaxy said preliminary income for the fourth quarter of this year currently stands at approximately $400 million for the period Sept. 30 to Nov. 12.

The company reported income of $1.2 billion year to date through Sept. 30.

Galaxy’s results reflect a booming crypto industry with areas like decentralized finance (DeFi) and non-fungible tokens (NFTs) adding to the firm’s revenues.

Galaxy has deployed $62 million of strategic capital into 22 different NFT-related companies through direct investments and through Galaxy Interactive Fund strategies, according to a press release. The firm also directly purchased two NFTs from prominent collections.

That said, the firm’s trading business represents the lion’s share of money-generating operations. Trading accounted for $360.7 million of the $517 million in third-quarter revenues.

Read more: Galaxy Digital’s Entertainment Arm Raises $325M Fund for NFT, Gaming Bets

“Year-to-date through November 12th, we have provided shareholders with approximately $1.6 billion in net comprehensive income, on the back of our strong operational and investing portfolio growth,” Novogratz said in a statement. “We look forward to our U.S. listing and the close of our BitGo acquisition, which we now expect will occur in the first quarter 2022.”

Galaxy Digital reported assets under management (AUM) of $3.2 billion, as of Oct. 31, 2021.

Novogratz said on Galaxy’s earnings call that it wouldn’t surprise him to see a “pretty sharp move” in bitcoin, ether and other cryptos by year-end, though he expects there to be a correction at some point in the first quarter of next year. “Being an investor in crypto after the kind of move we’ve had is difficult,” Novogratz said.

Shares of Toronto-listed Galaxy Digital were down about 1.3% Monday to $40.41. Bitcoin edged higher about 0.1% while ether rose 1.6%.

UPDATE (Nov. 15, 16:58 UTC): Adds conference call commentary and share price info at end.