Business Crypto

Galaxy Digital’s revenues are rising with mining fees reaching record levels

Getting your Trinity Audio player ready...

Galaxy Digital reported a strong first quarter in 2024, with net income rising to $422 million, an increase of 40% from the previous quarter. The rise was supported by record profits in mining and management fees.

According to the company, its mining operations generated record revenues of $31.5 million, representing a 69% increase from the previous quarter. The growth was primarily driven by its expansion in mining capacity, with its hash rate under management (HUM) reaching 5.7 exahashes per second (EH/s).

During the quarter, Galaxy mined 373 Bitcoin (BTC) at an average cost of less than $19,500.

Asset management was also a strong performer for the company in the first quarter. Management and performance fees reached a record high of $17.8 million, an increase of 113% from the previous quarter.

Galaxy hash rate is under management. Source: Galaxy Digital

In January, Galaxy Digital and Invesco launched a spot exchange-traded fund (ETF) for bitcoin in the US. In April, the company expanded its BTC and Ether (ETH) offerings in the European market by launching two exchange-traded commodities (ETCs) in partnership with DWS Group.

Trading operations recorded revenues of $66 million, representing a 78% increase primarily fueled by gains from derivatives and positive movements in asset prices. Galaxy reported that its average loan book size rose to $664 million.

Galaxy’s assets under management rose to approximately $7.8 billion as of March 31, 2024, representing a 219% increase year over year and a 50% jump from the previous quarter.

Its capital also saw significant growth, rising to $2.2 billion, an increase of 22% quarter-on-quarter. Assets under stake grew 100% in the first quarter, reaching $1.5 billion as Galaxy moves to become the second-largest validator on the Solana network.

In April, the company raised nearly $125 million in funding. Galaxy plans to use the capital to enhance the infrastructure of its Helios mining facility located in West Texas. The existing infrastructure at Helios can support 180 MW, while Galaxy has received approval to expand to 800 MW at the site.

magazine: The Real Risks to the Ethena Stablecoin Model (Not the One You Think)