Galaxy Digital It reported net income of $296M in 2023 after a loss of $1B in 2022

Galaxy Digital  It reported net income of $296M in 2023 after a loss of $1B in 2022



Digital asset management firm Galaxy Digital reports 2023 net income of $296 million.

The digital asset management firm's change of fortune comes as crypto market trends turn from bearish to bullish.

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 at the end of February.

Galaxy Digital founder and CEO Mike Novogratz reported net income of $302 million in the fourth quarter of 2023. The company reported mining revenue of $18.7 million for Q4, a 31% increase from the previous quarter.

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“In the fourth quarter, our mining costs increased compared to previous quarters due to fewer opportunities to economically block our mining operations and a higher network hash rate,” the company said in a statement.

“For the full year 2023, Galaxy mined 1,077 bitcoins from our proprietary mining operation at an average margin of less than $8,000.”

Galaxy Digital highlighted that the change in fortunes came in conjunction with the rise in the value of major cryptocurrencies such as Bitcoin (BTC).

The company's quarterly earnings report previously highlighted pre-tax earnings of nearly $300 million, “primarily based on the value of our digital assets and the growth of our existing commercial businesses.”

Related: Is Bitcoin Halving The Right Time To Invest In BTC?

The asset manager has successfully closed five deals on investment banking in 2023, highlighting the challenging market conditions. The group completed a restructuring mandate with Prime Trust in the fourth quarter.

The firm also announced that it has disbursed revenue related to advising online gaming platform Gamercraft on its seed financing round and serving as sole financial advisor to secure the acquisition of OnRamp Investments. The firm reported a contract value of $2.2 billion.

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