Galaxy Digital Posts Another Consecutive Record Quarter; Shares Plunge 8%

Shares of Galaxy Digital Holdings Ltd. (GLXY) dropped 8% in early trading Monday despite the company reporting a record first quarter. Galaxy Digital is an asset management firm operating in the digital asset, cryptocurrency, and blockchain technology industry.

Net comprehensive income rose to C$860.2 million in Q1 2021 compared to a loss of C$26.9 million in Q1 2020. The improvement was mainly due to the company’s holdings in digital assets and other investments in conjunction with its trading business. Higher operating expenses partially offset the strong performance.

Fair value of net asset holdings grew 128% to C$1.85 billion from C$813.5 million at the end of the previous year, mainly due to gains on digital assets and other investments.

Galaxy Digital’s Founder and CEO Michael Novogratz said, “Galaxy Digital reported another consecutive record quarter, as net comprehensive income grew to $860 million from $336 million in the prior quarter, AUM increased 58% in the quarter, and counterparty loan originations increased over 510%.”

“Beyond delivering dramatic organic growth, we announced we will acquire BitGo, which will establish Galaxy Digital as the first full-service digital asset financial platform for institutions and ensure our business is aligned with broader institutional adoption,” added Novogratz.

BitGo’s acquisition has been approved by the boards of directors of Galaxy Digital and is expected to close in Q4 2021. (See Galaxy Digital Holdings Ltd. stock analysis on TipRanks)

Last week, Stifel Nicolaus analyst Deepak Kaushal maintained a Buy rating on GLXY while raising its price target to $40.00 (from C$34.00) for 46% upside potential.

Kaushal is the only analyst to have offered a stock rating for GLXY in the last three months. Shares have risen approximately 150% year-to-date.

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