Galaxy Digital reports $296M net income in 2023 after $1B loss in 2022

Prashant Jha10 hours agoGalaxy Digital reports $296M net income in 2023 after $1B loss in 2022The firm attributed the change in fortune to the changing market conditions from bearish to bullish, with AUM nearly doubling in the first two months of 2024.2747 Total views5 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTJoin us on social networksDigital asset management firm Galaxy Digital has reporteda net income of $296 million for 2023, marking a reversal in fortune after a disastrous 2022 with $1 billion in net loss.

The change in fortune for the digital asset management firm comes amid a change in crypto market trends from bearish to bullish.

The firm’s assets under management (AUM) grew from $1.7 billion to $5.1 billion in 2023 and nearly doubled in the first two months of 2024, reaching $10.1 billion by the end of February.

Mike Novogratz, Galaxy Digital’s founder and CEO, reported $302 million in net income for the fourth quarter of 2023, a 421% increase from the previous quarter. The firm also reported $18.7 million in mining revenue for Q4, recording 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 hash rate," 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.”

Galaxy Digital highlighted that the change in fortune came with the rising prices of major cryptocurrencies such as Bitcoin (BTC).

The company’s quarterly earning report highlighted that it had already made “approximately $300 million” in before-tax income, “driven primarily by the appreciation of digital asset prices and growth in our operating businesses.”

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The asset manager reported successfully closing five deals in 2023 on investment banking while highlighting the challenging market conditions. The team completed a restructuring mandate with Prime Trust in the fourth quarter.

The firm also reported realized revenue associated with advising online gaming platform Gamercraft on its seed financing round and serving as the exclusive financial adviser to Securitize on its acquisition of Onramp Invest. The firm reported mandates representing $2.2 billion in potential deal value.

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