Galaxy Digital Holdings’ revenue and profits soared during the first quarter, driven by record performance from its mining operations amid a surge in cryptocurrency prices.
The digital asset-focused financial services company said Monday its net profit rose to $421.7 million, or $1.23 per share, in the three months to March, up about 214% from the same period a year earlier, according to its latest financial statements. . . The increase in net income was driven by a surge in the company’s revenue, which reached $259.7 million, up from $146.7 million in the same period last year. The strong results are the latest sign that Galaxy is on the mend after posting a net loss of $1 billion in 2022.
Breaking the company down by business segment, Galaxy’s mining operations generated revenue of $31.5 million, driving most of the company’s overall revenue growth in the first quarter. The division’s revenue windfall was fueled by its operational record hashrate of 5.7 Exahash per second for mining transactions. Notably, the revenue growth was coupled with similar revenue increases recorded in the first quarter in the company’s other two business segments: Global Markets and Wealth Management.
Last April, Galaxy raised $125 million, which it set aside to expand its trading business and develop its mining infrastructure.
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About the author
Elizabeth Napolitano is a data reporter covering business and technology news with a focus on cryptocurrency. Before she joined The Block, Elizabeth reported on BigTech, AI, crypto, and video games for CBS Moneywatch. As a CoinDesk reporter, she covered DeFi, NFTs, and US courts. She received a master’s degree in journalism from CUNY. Follow her on X: @LizKNapolitano