Galaxy Digital has reported robust performance for the first quarter of 2024, with net profit surging to $422 million, marking a significant 40% increase from the previous quarter. The company attributed this surge to record revenue from both its mining operations and management fees.
In particular, Galaxy's mining operations achieved record revenue of $31.5 million, representing a substantial 69% increase from the prior quarter. This growth was primarily fueled by the expansion of its mining capabilities, as evidenced by its managed hash rate reaching 5.7 exahash per second. During the quarter, Galaxy successfully mined 373 Bitcoins at an average cost of less than $19,500.
The company's asset management arm also delivered strong results, with administrative and performance expenses reaching a record $17.8 million, marking a notable 113% increase from the previous quarter. In January, Galaxy Digital collaborated with Invesco to launch spot Bitcoin exchange-traded funds (ETFs) in the United States. Additionally, in April, the company expanded its offerings by introducing two exchange-traded commodities (ETCs) for Bitcoin and Ether into the European market in partnership with DWS Group.
Galaxy Digital's trading business reported revenue of $66 million, reflecting a substantial 78% increase driven by gains from derivatives and positive movements in asset prices. The company also noted that the average size of its loan book expanded to $664 million during the quarter.
As of March 31, Galaxy Group's assets under management soared to approximately $7.8 billion, marking a remarkable year-on-year increase of 219% and a month-on-month increase of 50%. Furthermore, the company's share capital experienced significant growth, rising to $2.2 billion, representing a 22% increase from the previous month. Additionally, Galaxy's staking activities surged by 100% in the first quarter, reaching $1.5 billion, with the company emerging as the second-largest validator on the Solana network.
In April, Galaxy Digital successfully raised approximately $125 million in financing, which it intends to utilize to enhance infrastructure at its Helios mining facility in West Texas. Notably, the current infrastructure at Helios can support 180 MW, and Galaxy has received approval to expand it to 800 MW at the site.
