NEW YORK, Nov. 26, 2019 /CNW/ - Galaxy Digital Holdings
Ltd. (TSXV: GLXY) ("Galaxy Digital", "GDH Ltd.", or the "Company")
today released both Galaxy Digital Holdings LP's ("GDH LP" or the
"Partnership") and GDH Ltd.'s financial results for the three and
nine months ended September 30, 2019
("Q3 2019" or "the third quarter"), as well as the Partnership's
corporate updates through the date of this press release.
"While the third quarter proved to be another challenging one
for the cryptocurrency markets broadly, the teams here at Galaxy
Digital continued to make forward progress across each of our three
primary operating business lines as well as to conservatively
allocate new capital where we saw pockets of clear value in the
industry," said Michael Novogratz,
Founder and CEO of Galaxy Digital. "Whether one points to Trading's
OTC market share gains and entry into the structured and derivative
product markets, Asset Management's launch of the new bitcoin
funds, Advisory Services' successful work on two IPOs on the NYSE
and Nasdaq, or our Venture and Principal Investment teams'
continued and acute focus on portfolio management and positioning,
the second half of 2019 has seen the Company leverage our
relationships and insights to improve our standing in the digital
assets, cryptocurrency and blockchain technology industry."
Corporate Updates
- As previously announced, Ashwin
Prithipaul was appointed Chief Financial Officer of the
Company and GDH LP at the end of September. Prior to his
appointment as CFO, Prithipaul had been the Chief Accounting
Officer at Galaxy Digital since August
2018, and has over 15 years of accounting and finance
experience in the financial services industry. Before joining
Galaxy Digital, Prithipaul was the Director of Financial Reporting
at Assured Guaranty (NYSE: AGO). Previously, he was a senior
manager in the Banking and Capital Markets practice at
PricewaterhouseCoopers in New York
and London. Prithipaul assumed the
role of CFO from Donna Milia, who
remains at the Company as a senior advisor.
- As part of its previously announced share repurchase program,
as of November 21, 2019, the Company
repurchased a total of 792,054 shares at an average per share price
of C$1.25.
Business Highlights
- The Partnership's trading business, Galaxy Digital Trading
("GDT"), experienced an increase in both onboarded and actively
trading counterparties in Q3 relative to Q2. While GDT trading
volumes decreased over that same period, along with declines in the
overall market, the business increased market share as its volumes
decelerated at a slower pace than the broader market, as indicated
by volumes on trusted exchanges. The reduction in broad market
activity can be attributed to several factors, including
geopolitical and regulatory uncertainty stemming from Libra,
regulatory concerns related to international exchanges, and general
de-levering during the summer months. Despite this market headwind,
GDT expanded its counterparty outreach efforts and consistently
onboarded new strategic partners throughout the quarter.
- GDT's sustained enhancements to its product suite have
generated ongoing demand across its lending, derivatives, and
trading solutions. These solutions facilitate counterparty
retention and should advantageously position the business when spot
volumes reaccelerate again industry-wide.
-
- Products & Liquidity Solutions: Developments across its
product offerings continue to differentiate GDT. GDT has been one
of the first active participants in the listed structured product
market, and improvements to its technology infrastructure have
allowed for GDT to deliver streaming liquidity to counterparties
via API functionality.
- Onboarding & Operations: The Trading business continues to
benefit from GDT's first half investment in onboarding resources
across Compliance and Operations. GDT delivered a 10% increase in
the number of actively trading, onboarded counterparties in the
third quarter of 2019 over the prior quarter, and a 47% increase in
the number of total onboarded counterparties in this same
period.
- Market Insights: The increase in frequency of GDT's regular
trading commentary has yielded positive feedback from
counterparties who rely on GDT to help navigate the volatility of
the crypto market.
- Since the start of 2019, Galaxy Digital's Asset Management
business, Galaxy Digital Capital Management LP ("GDCM"), has been
capitalizing on the improvement in the digital asset market. Most
recently, in November 2019 GDCM
launched the Galaxy Bitcoin Fund and the Galaxy Institutional
Bitcoin Fund (collectively, the "Bitcoin Funds"). Both funds are
passively managed vehicles that are designed to mitigate the
operational complexities of managing direct bitcoin investments.
The funds offer institutional and accredited investors
institutionally wrapped bitcoin exposure supported by vetted
service providers, including Bakkt, a digital assets platform
founded by the Intercontinental Exchange (ICE), and Fidelity
Digital Assets as custodians for the funds, Bloomberg L.P. as
pricing agent, Deloitte & Touche LLP for audit, and Ernst &
Young LLP for tax. The Bitcoin Funds are a complimentary product
offered alongside the existing Galaxy Crypto Index Fund.
- The Galaxy Crypto Index Fund is a passively managed index fund
that tracks the Bloomberg Galaxy Crypto Index (the "BGCI" or the
"Index Fund"), an index co-branded and administered by Bloomberg
which is designed to track the performance of a basket of the
largest, most liquid digital assets, currently including Bitcoin,
Ethereum, and others. The BGCI has returned 7.96%, 110.15% and
-40.39% for the quarters ending March 31,
2019, June 30, 2019, and
September 30, 2019, respectively,
while returning 15.94% on a year to date basis through November 25, 2019.
- Additionally, during the third quarter of 2019 the Galaxy EOS
VC Fund LP (the "EOS Fund") made venture capital investments in
Loopland Group Holding LLC, Verisart, Inc., Immutable, Predictive
Pop, Inc., and a follow-on investment in FinCo Services, Inc.
- As of September 30, 2019, GDCM
had assets under management ("AUM") of $336.0 million, which consists of $11.0 million in the Galaxy Benchmark Crypto
Index Fund LP (as calculated per the terms of the fund's
partnership agreement) and $325.0
million of committed capital in the EOS Fund.
-
- In August 2019, as previously
announced, GDCM ceased operations of its third party cash
management strategy. As the digital asset and cryptocurrency
industry has continued to mature, access to traditional cash
management and banking services have become more readily
accessible. Furthermore, basic cash management services have
historically been a relatively low value-add and hence low fee
generating business. As a result, GDCM determined it would
discontinue efforts in marketing and managing this strategy in
favor of focusing its efforts towards other, higher margin fund
strategies. As a result, the Galaxy CM I Fund LP, was liquidated
with the investor being fully redeemed effective August 31, 2019.
- The Advisory Services business continued to make meaningful
progress during the third quarter of 2019 towards its strategic
goal of becoming the leading corporate finance and strategic
advisory firm in the blockchain technology and digital assets
sectors. The Advisory Services business has a number of active
mandates for potential financing transactions in various stages of
execution, and its investment banking backlog grew compared to the
end of the second quarter of 2019.
-
- In July 2019, Galaxy Digital
Advisors LLC ("GDA"), a subsidiary of GDH LP, obtained approval
from the Financial Industry Regulatory Authority ("FINRA") to act
as an underwriter to registered public offerings of equity, debt or
other corporate securities in the United
States.
- In November 2019 GDA served in
its first named roles on completed public equity offerings as Joint
Bookrunner for Canaan's initial
public offering on NASDAQ and as Co-Manager for Silvergate Bank's
initial public offering on the New York Stock Exchange.
- During the third quarter of 2019, the Principal Investments
team closed three new investments and seven follow-on investments,
representing $4.8 million and
$16.9 million of invested capital,
respectively.
-
- Investments (including loans purchased) made during the third
quarter bring capital deployed for the nine months ended
September 30, 2019 to $41.2 million represented by 9 new investments
and 16 follow-on investments.
- Investments made (including loans purchased) from January 9, 2018 through September 30, 2019 total $174.1 million and are represented by 34 new and
26 follow-on investments.
Select GDH LP's Financial Highlights (Q3 2019)
- As of September 30, 2019, digital
assets, including digital assets posted as collateral, stood at
$133.5 million, an increase of
$63.7 million from December 31, 2018. This increase was primarily
due to the increase in the fair value of the digital assets during
the period, as the prices of digital assets held by the Partnership
increased.
- Investments stood at $156.5
million as of September 30,
2019, a decrease of $22.9
million from December 31,
2018. The decrease was primarily a result of the partial
sale of Block.one shares, partially offset by unrealized gains on
certain other investments during the period as well as $24.8 million of new capital deployed by the
Principal Investments team over the nine month period.
- Total equity increased by $77.0
million during the nine month period to $382.7 million as of September 30, 2019 primarily due to $58.4 million of net comprehensive income and
further increased by $23.4 million of
equity based compensation which did not have a net effect on equity
due to the accounting treatment for such compensation.
- As of September 30, 2019, the
Partnership's net book value1 per unit was approximately
C$1.76 (US$1.33) representing an increase of
approximately 21% in C$ compared to C$1.46 (US$1.07) as
of December 31, 2018.
- For the three months ended September 30,
2019, net comprehensive loss was $68.2 million, as compared to net comprehensive
loss of $76.7 million for the three
months ended September 30, 2018. The
current quarter's loss was largely a result of an unrealized loss
on digital assets, i.e. cryptocurrencies which trade continuously
in the market, and operating expenses. The unrealized loss was
primarily on the Partnership's holdings of Bitcoin and Ethereum,
whose prices fell during the three months ended September 30, 2019.The net comprehensive loss for
the three months ended September 30,
2018 was primarily a result of realized loss on digital
assets and operating expenses. The realized loss was primarily on
the Partnership's holdings of Ethereum and Bitcoin. For the nine
months ended September 30, 2019, net
comprehensive income was $58.4
million, as compared to net comprehensive loss of
$175.7 million for the nine months
ended September 30, 2018. The current
year to date income was largely a result of realized gains on
digital assets, partially offset by the year to date operating
expenses. The realized gains were primarily on the Partnership's
holdings of Bitcoin and Ethereum. The net comprehensive loss for
the nine months ended September 30,
2018 was primarily a result of unrealized and realized loss
on digital assets. The realized loss was primarily on holdings of
Bitcoin and Ethereum, while the unrealized loss was primarily on
holdings of Wax and Kin.
_____________________________
|
1 Net
book value includes non-controlling interests.
|
GDH LP's Q3 2019 Financial Results
|
September
30,
|
|
December
31,
|
|
2019
|
|
2018
|
Assets
|
|
|
|
Current
assets
|
|
|
|
Cash
|
$
|
78,375,006
|
|
$
|
66,488,012
|
Digital
assets
|
124,697,695
|
|
69,765,339
|
Investments
|
156,540,340
|
|
179,365,696
|
Receivable for digital asset trades
|
2,472,350
|
|
8,579,058
|
Digital asset loans
receivable
|
7,359,896
|
|
—
|
Assets posted as
collateral
|
11,236,848
|
|
—
|
Receivables
|
2,056,531
|
|
1,238,694
|
Prepaid expenses and
other assets
|
2,749,186
|
|
2,002,880
|
Loans
receivable
|
14,890,368
|
|
2,369,024
|
|
400,378,220
|
|
329,808,703
|
|
|
|
|
Loans
receivable
|
13,810,751
|
|
15,892,320
|
Right of use
asset
|
5,335,434
|
|
—
|
Property and
equipment
|
4,116,657
|
|
4,223,252
|
|
23,262,842
|
|
20,115,572
|
Total
assets
|
$
|
423,641,062
|
|
$
|
349,924,275
|
|
|
|
|
Liabilities
|
|
|
|
Current
liabilities
|
|
|
|
Digital assets sold
short
|
$
|
8,892,355
|
|
$
|
18,666,957
|
Accounts payable and
accrued liabilities
|
11,468,306
|
|
14,558,914
|
Payable for digital
asset trades
|
7,444,945
|
|
9,832,737
|
Digital asset loans
payable
|
6,945,202
|
|
—
|
Collateral
payable
|
579,871
|
|
—
|
Lease
liability
|
785,022
|
|
—
|
Due to related
party
|
—
|
|
1,177,498
|
|
36,115,701
|
|
44,236,106
|
|
|
|
|
Lease
Liability
|
4,796,833
|
|
—
|
Total
liabilities
|
40,912,534
|
|
44,236,106
|
|
|
|
|
Equity
|
|
|
|
Partners'
capital
|
375,171,378
|
|
301,520,591
|
Non-controlling
interest
|
7,557,150
|
|
4,167,578
|
Total
equity
|
382,728,528
|
|
305,688,169
|
|
|
|
|
Total liabilities
and equity
|
$
|
423,641,062
|
|
$
|
349,924,275
|
|
Three
months
ended
September 30,
2019
|
Three
months
ended
September 30,
2018
|
|
Nine
months
ended
September 30,
2019
|
Nine
months
ended
September 30,
2018
|
Income
(loss)
|
|
|
|
|
|
Advisory and
management fees
|
$
|
1,260,725
|
$
|
1,473,297
|
|
$
|
4,110,936
|
$
|
2,806,510
|
Net realized gain
(loss) on digital assets
|
(8,532,363)
|
(38,067,497)
|
|
107,038,137
|
(52,733,347)
|
Realized gain (loss)
on investments
|
(18,159)
|
—
|
|
38,082,476
|
—
|
Interest
income
|
1,272,231
|
349,395
|
|
2,898,153
|
646,469
|
Other
income
|
5,187,275
|
185,837
|
|
10,886,584
|
205,659
|
|
(830,291)
|
(36,058,968)
|
|
163,016,286
|
(49,074,709)
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
Equity based
compensation
|
6,297,963
|
14,311,084
|
|
23,441,735
|
14,311,084
|
Compensation and
compensation related
|
7,551,497
|
5,031,095
|
|
22,230,967
|
19,147,279
|
Professional
fees
|
2,269,488
|
6,161,619
|
|
5,886,115
|
9,391,601
|
General and
administrative
|
5,466,079
|
2,671,498
|
|
9,875,149
|
5,634,518
|
Interest
|
637,525
|
1,310,341
|
|
2,264,779
|
4,294,669
|
Insurance
|
282,876
|
480,675
|
|
1,039,980
|
1,752,465
|
Director
fees
|
50,000
|
25,000
|
|
150,000
|
25,000
|
|
(22,555,428)
|
(29,991,312)
|
|
(64,888,725)
|
(54,556,616)
|
|
|
|
|
|
|
Net unrealized gain
(loss) on digital assets
|
(39,957,814)
|
366,717
|
|
(29,009,140)
|
(83,357,300)
|
Net unrealized gain
(loss) on investments
|
(4,761,276)
|
(4,172,597)
|
|
(10,583,501)
|
16,545,019
|
Unrealized foreign
currency gain (loss)
|
(136,911)
|
(1,474,820)
|
|
143,687
|
92,065
|
Realized foreign
currency gain (loss)
|
16,704
|
893,387
|
|
(183,034)
|
893,387
|
Goodwill
impairment
|
—
|
(6,216,914)
|
|
—
|
(6,216,914)
|
|
(44,839,297)
|
(10,604,227)
|
|
(39,631,988)
|
(72,043,743)
|
|
|
|
|
|
|
Income (loss) for
the period
|
$
|
(68,225,016)
|
$
|
(76,654,507)
|
|
$
|
58,495,573
|
$
|
(175,675,068)
|
|
|
|
|
|
|
Income (loss)
attributed to:
|
|
|
|
|
|
Unit holders of the
Partnership
|
(63,531,407)
|
(75,148,680)
|
|
57,004,219
|
(174,169,241)
|
Non-controlling
interest
|
(4,693,609)
|
(1,505,827)
|
|
1,491,354
|
(1,505,827)
|
|
$
|
(68,225,016)
|
$
|
(76,654,507)
|
|
$
|
58,495,573
|
$
|
(175,675,068)
|
Other
comprehensive income (loss)
|
|
|
|
|
|
Foreign currency
translation adjustment
|
(13,128)
|
(7,298)
|
|
(101,396)
|
(7,298)
|
|
|
|
|
|
|
Comprehensive
income (loss) for the period
|
$
|
(68,238,144)
|
$
|
(76,661,805)
|
|
$
|
58,394,177
|
$
|
(175,682,366)
|
|
|
|
|
|
|
Comprehensive
income (loss) attributed to:
|
|
|
|
|
|
Unit holders of the
Partnership
|
$
|
(63,544,535)
|
$
|
(75,155,978)
|
|
$
|
56,902,823
|
$
|
(174,176,539)
|
Non-controlling
interest
|
(4,693,609)
|
(1,505,827)
|
|
1,491,354
|
(1,505,827)
|
|
$
|
(68,238,144)
|
$
|
(76,661,805)
|
|
$
|
58,394,177
|
$
|
(175,682,366)
|
Income and expenses by each reportable segment of GDH LP for the
three months ended September 30, 2019 are as follows:
|
|
Principal
|
Asset
|
Advisory
|
Corporate
|
|
|
Trading
|
Investing
|
Management
|
Services
|
and
Other
|
Totals
|
Income
(loss)
|
|
|
|
|
|
|
Advisory and
management fees
|
$
|
—
|
$
|
—
|
$
|
1,260,725
|
$
|
—
|
$
|
—
|
$
|
1,260,725
|
Net realized loss on
digital assets
|
(8,073,212)
|
(459,151)
|
—
|
—
|
—
|
(8,532,363)
|
Net realized loss on
investments
|
—
|
(18,159)
|
—
|
—
|
—
|
(18,159)
|
Interest
Income
|
327,933
|
927,524
|
—
|
16,556
|
218
|
1,272,231
|
Other
Income
|
5,008,525
|
190,000
|
(11,250)
|
—
|
—
|
5,187,275
|
|
(2,736,754)
|
640,214
|
1,249,475
|
16,556
|
218
|
(830,291)
|
|
|
|
|
|
|
|
Operating
expenses
|
7,268,827
|
1,576,050
|
4,181,199
|
1,578,080
|
7,951,272
|
22,555,428
|
|
|
|
|
|
|
|
Net unrealized loss
on digital assets
|
(33,151,646)
|
(6,806,168)
|
—
|
—
|
—
|
(39,957,814)
|
Net unrealized loss
on investments
|
—
|
(4,761,276)
|
—
|
—
|
—
|
(4,761,276)
|
Unrealized foreign
currency loss
|
(136,911)
|
—
|
—
|
—
|
—
|
(136,911)
|
Realized foreign
currency gain
|
16,704
|
—
|
—
|
—
|
—
|
16,704
|
|
(33,271,853)
|
(11,567,444)
|
—
|
—
|
—
|
(44,839,297)
|
|
|
|
|
|
|
|
Net
loss
|
$
|
(43,277,434)
|
$
|
(12,503,280)
|
$
|
(2,931,724)
|
$
|
(1,561,524)
|
$
|
(7,951,054)
|
$
|
(68,225,016)
|
Income and expenses by each reportable segment of GDH LP for the
three months ended September 30, 2018
are as follows:
|
|
Principal
|
Asset
|
Advisory
|
Corporate
|
|
|
Trading
|
Investing
|
Management
|
Services
|
and
Other
|
Totals
|
Income
(loss)
|
|
|
|
|
|
|
Advisory and
management fees
|
$
|
—
|
$
|
—
|
$
|
1,370,658
|
$
|
102,639
|
$
|
—
|
$
|
1,473,297
|
Net realized loss on
digital assets
|
(36,945,357)
|
(1,122,140)
|
—
|
—
|
—
|
(38,067,497)
|
Interest
income
|
185,667
|
151,888
|
—
|
11,840
|
—
|
349,395
|
Other
income
|
187,754
|
(14,660)
|
12,743
|
—
|
—
|
185,837
|
|
(36,571,936)
|
(984,912)
|
1,383,401
|
114,479
|
—
|
(36,058,968)
|
|
|
|
|
|
|
|
Operating
expenses
|
6,343,281
|
3,510,693
|
4,343,292
|
3,564,262
|
12,229,784
|
29,991,312
|
|
|
|
|
|
|
|
Net unrealized gain
(loss) on digital assets
|
1,922,433
|
(1,555,716)
|
—
|
—
|
—
|
366,717
|
Net unrealized loss
on investments
|
(1,372,208)
|
(2,800,389)
|
—
|
—
|
—
|
(4,172,597)
|
Unrealized foreign
currency gain (loss)
|
82,989
|
—
|
—
|
11,921
|
(1,569,730)
|
(1,474,820)
|
Realized foreign
currency gain (loss)
|
(52,095)
|
—
|
—
|
—
|
945,482
|
893,387
|
Goodwill
impairment
|
—
|
—
|
—
|
—
|
(6,216,914)
|
(6,216,914)
|
|
581,119
|
(4,356,105)
|
—
|
11,921
|
(6,841,162)
|
(10,604,227)
|
|
|
|
|
|
|
|
Net
loss
|
$
|
(42,334,098)
|
$
|
(8,851,710)
|
$
|
(2,959,891)
|
$
|
(3,437,862)
|
$
|
(19,070,946)
|
$
|
(76,654,507)
|
Assets and liabilities by reportable segment of GDH LP as of
September 30, 2019 are as follows:
|
|
Principal
|
Asset
|
Advisory
|
Corporate
|
|
|
Trading
|
Investing
|
Management
|
Services
|
and
Other
|
Totals
|
Total
assets
|
$
|
207,572,115
|
$
|
195,640,729
|
$
|
2,150,689
|
$
|
943,034
|
$
|
17,334,495
|
$
|
423,641,062
|
|
|
|
|
|
|
|
Total
liabilities
|
$
|
24,137,303
|
$
|
238,137
|
$
|
245,528
|
$
|
22,988
|
$
|
16,268,578
|
$
|
40,912,534
|
Assets and liabilities by reportable segment of GDH LP as of
December 31, 2018 are as follows:
|
|
Principal
|
Asset
|
Advisory
|
Corporate
|
|
|
Trading
|
Investing
|
Management
|
Services
|
and
Other
|
Totals
|
Total
assets
|
$
|
121,987,903
|
$
|
209,065,821
|
$
|
2,427,877
|
$
|
1,081,640
|
$
|
15,361,034
|
$
|
349,924,275
|
|
|
|
|
|
|
|
Total
liabilities
|
$
|
28,720,908
|
$
|
162,086
|
$
|
105,946
|
$
|
157,811
|
$
|
15,089,355
|
$
|
44,236,106
|
Select statement of financial position information
The fair value of each asset class by reporting segment of GDH
LP as of September 30, 2019 is as follows:
|
|
Principal
|
Asset
|
Advisory
|
Corporate
|
|
|
Trading
|
Investing
|
Management
|
Services
|
and
Other
|
Totals
|
Digital
assets:
|
|
|
|
|
|
|
Cryptocurrency
|
$
|
114,075,206
|
$
|
10,622,489
|
$
|
—
|
$
|
—
|
|
$
|
124,697,695
|
Digital assets posted
as collateral
|
8,768,777
|
—
|
—
|
—
|
—
|
8,768,777
|
Investments:
|
|
|
|
|
|
|
Pre-ICO
|
—
|
6,602,001
|
—
|
—
|
—
|
6,602,001
|
Convertible
Notes
|
—
|
3,706,828
|
—
|
—
|
—
|
3,706,828
|
Preferred
Stock
|
—
|
75,369,122
|
—
|
—
|
—
|
75,369,122
|
Common
Stock
|
—
|
30,247,973
|
—
|
—
|
—
|
30,247,973
|
LP/LLC
Interests
|
—
|
39,016,786
|
—
|
—
|
—
|
39,016,786
|
Warrants/Trust
Units
|
—
|
1,597,630
|
—
|
—
|
—
|
1,597,630
|
|
$
|
122,843,983
|
$
|
167,162,829
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
290,006,812
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The fair value of each asset class by reporting segment of GDH
LP as of December 31, 2018 is as
follows:
|
|
Principal
|
Asset
|
Advisory
|
Corporate
|
|
|
Trading
|
Investing
|
Management
|
Services
|
and
Other
|
Totals
|
Digital
assets:
|
|
|
|
|
|
|
Cryptocurrency
|
$
|
62,662,014
|
$
|
7,103,325
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
69,765,339
|
Investments:
|
|
|
|
|
|
|
Pre-ICO
|
—
|
3,444,204
|
—
|
—
|
—
|
3,444,204
|
Convertible
Notes
|
—
|
1,250,000
|
—
|
—
|
—
|
1,250,000
|
Preferred
Stock
|
—
|
59,586,719
|
—
|
—
|
—
|
59,586,719
|
Common
Stock
|
—
|
80,483,775
|
—
|
—
|
—
|
80,483,775
|
LP/LLC
Interests
|
—
|
33,248,472
|
—
|
—
|
—
|
33,248,472
|
Warrants/Trust
Units
|
—
|
1,352,526
|
—
|
—
|
—
|
1,352,526
|
|
$
|
62,662,014
|
$
|
186,469,021
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
249,131,035
|
This press release should be read in conjunction with (i) GDH
LP's Management Discussion and Analysis and Condensed Consolidated
Interim Financial Statements for the three and nine months ended
September 30, 2019 and (ii) GDH
Ltd.'s Management Discussion and Analysis and Condensed
Consolidated Interim Financial Statements for the three and nine
months ended September 30, 2019
(together, the "Consolidated Financial Statements" and
"MD&As"), which have been filed on SEDAR at www.sedar.com.
About GDH Ltd. and GDH LP (Galaxy Digital)
Galaxy Digital Holdings Ltd.'s only significant asset is a
minority investment in GDH LP. GDH LP is a diversified,
multi-service merchant bank dedicated to the digital assets and
blockchain technology industry. GDH LP's multi-disciplinary team
has extensive experience spanning investing, portfolio management,
capital markets, operations, and blockchain technology. GDH LP
currently operates four distinct business lines, which include:
Trading, Asset Management, Principal Investing and Advisory
Services. The CEO of GDH Ltd. and the general partner of GDH LP is
Michael Novogratz. GDH LP is
headquartered in New York City,
with offices in Tokyo, Japan,
London, England, Hong Kong, Jersey
City, U.S., San Francisco,
U. S., and the Cayman Islands
(registered office). Additional information about GDH LP's
businesses and products is available on www.galaxydigital.io.
Disclaimers and Additional Information
The TSXV has neither approved nor disapproved the contents of
this press release. Neither the TSXV nor its Regulation Services
Provider (as that term is defined in the policies of the TSXV)
accepts responsibility for the adequacy or accuracy of this
release. The Ontario Securities Commission has not passed upon the
merits of the disclosure record of Galaxy Digital.
FINRA's approval of a continuing membership application does not
constitute or imply that FINRA approves of or endorses any
security or product offered by the member firm.
This press release is not an offer to sell or the solicitation
of an offer to sell or buy any security in any jurisdiction where
such an offer or solicitation would be illegal, nor shall there be
any sale of any security in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of that jurisdiction.
The private placement shares of the Galaxy Bitcoin Funds and the
Galaxy Crypto Index Fund (the "Funds") have not been registered
under the Securities Act of 1933, as amended (the "Securities Act")
or any state securities laws, and the shares are being offered
pursuant to an exemption from registration provided by Rule 506(c)
of Regulation D under the Securities Act and in reliance on similar
exemptions under applicable state laws. An investment in the shares
of the Funds is suitable only for sophisticated, well-informed
investors, and investors will be required to represent that they
are accredited investors as such term is defined in Rule 501(a) of
Regulation D under the Securities Act.
BLOOMBERG is a trademark or service mark of Bloomberg Finance
L.P. GALAXY is a trademark of Galaxy Digital Capital Management.
Bloomberg Finance L.P. and its affiliates (collectively, Bloomberg)
are not affiliated with Galaxy Digital Capital Management, the
Funds and their respective affiliates (collectively, Galaxy).
Bloomberg's association with Galaxy is to act as the administrator
and calculation agent of the CFIX and the Bloomberg Galaxy Crypto
Index (the "Indices"), which are the property of Bloomberg. Neither
Bloomberg nor Galaxy guarantee the timeliness, accurateness, or
completeness of any data or information relating to the Indices or
results to be obtained. Neither Bloomberg nor Galaxy make any
warranty, express or implied, as to the Indices, any data or values
relating thereto or any financial product or instrument linked to,
using as a component thereof or based on the Indices (Products) or
results to be obtained therefrom, and expressly disclaims all
warranties of merchantability and fitness for a particular purpose
with respect thereto. To the maximum extent allowed by law,
Bloomberg, it licensees, Galaxy and its and their respective
employees, contractors, agents, suppliers, and vendors shall have
no liability or responsibility whatsoever for any injury or
damages—whether direct, indirect, consequential, incidental,
punitive, or otherwise—arising in connection with the Index, any
data or values relating thereto or any Products—whether arising
from their negligence or otherwise.
Securities transactions are effected through Galaxy Digital
Advisors LLC, a member of FINRA and SIPC.
Forward-Looking Statements
Certain information in this press release, including, but not
limited to, statements regarding the future of the industry the
Company or Partnership's anticipated results, business or
opportunities, may constitute forward looking information
(collectively, forward-looking statements), which can be identified
by the use of terms such as "may," "will," "should," "expect,"
"anticipate," "project," "estimate," "intend," "continue" or
"believe" (or the negatives) or other similar variations. Because
of various risks and uncertainties, including those referenced
below, actual events or results may differ materially from those
reflected or contemplated in such forward-looking statements.
Forward looking statements are subject to the risk that the
industry or the Company's businesses do not perform as anticipated,
that revenue or expenses estimates may not be met or may be
materially less or more than those anticipated, that expected
advisory transactions may be modified or not completed at all and
those other risks discussed in the risks and uncertainties section
in the Partnership's and the Company's Management Discussion and
Analysis for the year ended December
31, 2018. Factors that could cause actual results of
the Company and its businesses to differ materially from those
described in such forward-looking statements include, but are not
limited to, a decline in the digital asset market or general
economic conditions; the failure or delay in the adoption of
digital assets and the blockchain ecosystem by institutions; a
delay or failure in developing infrastructure for the trading
business or achieving mandates; and for advisory transactions, a
decline in the securities markets, an adverse development with
respect to an issuer or party to the transaction or failure to
obtain a required regulatory approval. In connection with the
forward-looking statements contained in this press release, the
Company has made assumptions that no significant events occur
outside of the Company's and Partnership's normal course of
business. Forward-looking statements are not guarantees of
future performance, accordingly, you should not put undue reliance
on forward-looking statements. Information identifying assumptions,
risks and uncertainties relating to the Company and the Partnership
are contained in Galaxy Digital's filings with the Canadian
securities regulators available at www.sedar.com. The
forward-looking statements in this press release are applicable
only as of the date of this release or as of the date specified in
the relevant forward-looking statement and Galaxy Digital
undertakes no obligation to update any forward-looking statement to
reflect events or circumstances after that date or to reflect the
occurrence of unanticipated events.
All figures are in U.S. Dollars unless
otherwise noted.
SOURCE Galaxy Digital Holdings Ltd