Blockchain
Galaxy Digital Announces First Quarter 2021 Financial Results
Galaxy Digital Holdings Ltd. (TSX: GLXY) (“Galaxy Digital” the “Company” or “GDH Ltd.”) today released financial results for the three months ended March 31, 2021 for both itself and Galaxy Digital Holdings LP (the “Partnership” or “GDH LP”).
“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%,” said Michael Novogratz, Founder and CEO of Galaxy Digital.
“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.”
Select Financial Highlights for the First Quarter 2021, compared to First Quarter 2020
- Net comprehensive income1 increased to $860.2 million, from a net comprehensive loss of $26.9 million in the prior year period.
- The increase was primarily a result of realized and unrealized gains on digital assets and on investments, coupled with strong contribution from our trading business, partially offset by higher operating expenses.
- Income from our trading business increased to $508.7 million, from a loss of $31.5 million in the first quarter of last year.
- Net realized gains from investments were $151.1 million in the quarter.
- Fair Value of Net Asset Holdings3 increased 128% to $1.85 billion, from $813.5 million at the end of the prior year.
- The increase was primarily a result of gains on digital assets and on investments.
- As of March 31, 2021, the Partnership had a material net holding in Bitcoin of approximately $761.8 million, excluding non-controlling interests. The increase in the value of holdings was primarily driven by the increase in price.
- Investments stood at $351.6 million as of March 31, 2021, an increase of $91.2 million from December 31, 2020. The change was primarily due to the increase in unrealized gains and $40.9 million of new capital deployed by the Principal Investments team during the year, which were partially offset by the sale of some investments.
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_______________________________ |
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|
1 |
Excluding non-controlling interests (“NCI”). |
|
2 |
AUM is an internal estimate inclusive of a sub-advised fund, committed capital in a closed-end vehicle, and seed investments by affiliates. |
|
3 |
This supplementary financial measure is defined as Digital assets plus Investments, less Digital assets sold short, less Investments sold short, less Non-controlling interests. |
Operating Highlights for the First Quarter 2021, compared to First Quarter 2020
- Galaxy Digital Trading (“GDT”) reported records in: counterparty trading volumes, the size of its counterparty loan book, and in gross counterparty loan book originations.
- Counterparty trading volumes continued to experience significant growth, increasing 50% from the quarter ended December 31, 2020, and over 290% year over year.
- GDT continued to experience strong growth in the Company’s counterparty loan book for the quarter ending March 31, 2021, increasing in excess of 290% to approximately $440 million, and grew gross counterparty loan originations in excess of 510% since December 31, 2020 to approximately $670 million.
- GDT also onboarded over 100 new counterparties in the quarter, and added over 30 approved cryptocurrency tokens to our platform, meaning GDT now makes markets in over 90 cryptocurrencies.
- Galaxy Digital Asset Management (“GDAM”) reported preliminary assets under management (“AUM”) of $1.27 billion as of March 31, 2021, a 58% increase from the quarter ended December 31, 2020. AUM consisted of $950.0 million in GDAM’s Galaxy Fund Management products, and $325.0 million in the Galaxy Interactive fund.
- Recent product launches include: the CI Galaxy Bitcoin ETF (Ticker: BTCX), and the Galaxy Ethereum Funds, which track the newly launched Bloomberg Galaxy Ethereum Index (Ticker: ETH), the third in the Bloomberg-Galaxy family of indices.
- In March 2021, Morgan Stanley began offering its wealth management clients access to bitcoin funds, including the Galaxy Bitcoin Fund LP, and the Galaxy Institutional Bitcoin Fund LP.
- Galaxy Bitcoin Fund, LP, Galaxy Institutional Bitcoin Fund, LP, and Galaxy Institutional Bitcoin Fund, Ltd. (collectively the “Bitcoin Funds”) track the Bloomberg CFIX pricing of bitcoin (“XBT”), and the XBT has returned 101.92% on a year-to-date basis through March 31, 2021.
- Galaxy Benchmark Crypto Index Fund LP (the “Index Fund”) is a passively managed index fund which tracks the Bloomberg Galaxy Crypto Index (the “BGCI”). The BGCI has returned 118.32% on a year-to-date basis through March 31, 2021.
- Galaxy Digital Investment Banking (“GDIB”) continued to make progress for clients across financing, mergers and acquisitions, and other strategic matters, with several active mandates in various stages of execution.
- Key activities as of March 31, 2021 include consulting on a recent cryptocurrency company’s fundraising round.
- GDIB also acted as a Strategic Advisor in connection with a public offering in the FinTech space.
- GDIB increased client coverage to 90%+ of its target universe.
- Galaxy Digital Mining (“GDM”) established its own proprietary bitcoin mining operation, hosting its machines at a third-party data center in the United States, and has begun proprietary mining.
- GDM closed its first two mining financing deals.
- GDM has built a strong pipeline, speaking with over 70+ companies in the space.
- Based on forward purchase commitments, GDM expects to achieve up to 1,995 Petahash per second (PH/s) of mining capacity delivered monthly through the end of 2022.
- Principal Investments: The Company made 12 new investments and now holds approximately 80 investments across approximately 60 portfolio companies.
- The Company recognized a liquidity event of over $125 million from one of its portfolio companies during the quarter.
Corporate Updates
- The Company has appointed Erin Brown as its Chief Operating Officer, effective immediately. Erin is a seasoned executive with significant experience in treasury, risk and trading operations. She most recently served as Chief Risk Officer at Jump Trading, and previously was the Head of Global Treasury and Operations at DRW.
Pending Acquisition of BitGo
- Galaxy Digital announced on May 5, 2021 that it has agreed to acquire BitGo, the leading independent digital assets infrastructure provider. The acquisition will position Galaxy Digital as a leading global full-service platform for institutions seeking access to the crypto economy, offering an unparalleled breadth of industry-leading products and services at scale.
- Under the terms of the merger agreement, the consideration to BitGo shareholders will consist of 33.8 million of newly issued shares of Galaxy Digital common stock and $265 million in cash, subject to certain adjustments and deferred purchase considerations, implying an aggregate transaction value of approximately $1.2 billion based on Galaxy Digital’s closing share price on May 4, 2021.
- Galaxy Digital will use its balance sheet to fund the cash consideration, a significant portion of which will be deferred up to 12 months post-close. Additionally, Galaxy Digital will issue incremental shares of its common stock to BitGo’s shareholders in exchange for BitGo’s net digital assets at close. The BitGo acquisition diversifies the business with greater contribution from reoccurring revenue that is significantly less correlated with digital asset prices.
- The acquisition accelerates product innovation and development capabilities by adding over 50 engineers and key product and security infrastructure personnel.
- Immediate revenue synergy opportunities, paired with BitGo’s strong base business and growth trajectory, support the value of the acquisition.
- The transaction has been approved by the boards of directors of both Galaxy Digital and BitGo. The acquisition is expected to close in the fourth quarter of 2021, subject to approval by Galaxy Digital’s shareholders of the domestication of Galaxy Digital as a Delaware corporation and the internal restructuring, as well as certain related matters and other acquisition-related closing conditions and regulatory approvals.
Earnings Conference Call
An investor conference call will be held today, May 17, 2021 at 8:30 AM Eastern Time. A live webcast with the ability to ask questions will be available at: https://www.galaxydigital.io/investor-relations/ or directly at: http://public.viavid.com/index.php?id=144722. The conference call can also be accessed by investors in the United States or Canada by dialing 1-877-407-0789, or 1-201-689-8562 (outside the U.S. and Canada). A replay of the webcast will be available and can be accessed in the same manner as the live webcast on the Company’s Investor Relations website. Through June 14, 2021, the recording will also be available by dialing 1-844-512-2921, or 1-412-317-6671 (outside the U.S. and Canada) passcode: 13719351.
About Galaxy Digital Holdings Ltd. (TSX: GLXY) (“GDH Ltd.”) and Galaxy Digital Holdings LP (“GDH LP”)
GDH Ltd.’s only significant asset is a minority investment in GDH LP. GDH LP is a diversified, financial services and investment management company in the digital asset, cryptocurrency and blockchain technology sector. GDH LP’s multi-disciplinary team has extensive experience spanning investing, portfolio management, capital markets, operations, and blockchain technology. GDH LP operates in the following businesses: Trading, Asset Management, Principal Investments, Investment Banking and Mining. The CEO of GDH Ltd. and the general partner of GDH LP is Michael Novogratz. GDH LP is headquartered in New York City, with offices in Tokyo, Japan, London, Amsterdam, Hong Kong, Amsterdam, Netherlands, Jersey City, U.S., San Francisco, U.S., Chicago, U.S., and the Cayman Islands (registered office).
Additional information about GDH LP’s businesses and products is available on www.galaxydigital.io.
This press release should be read in conjunction with (i) GDH LP’s Management Discussion and Analysis and Condensed Consolidated Interim Financial Statements for the three months ended March 31, 2021 and (ii) GDH Ltd.’s Management Discussion and Analysis and Condensed Consolidated Interim Financial Statements for the three months ended March 31, 2021 (together, the “Consolidated Financial Statements” and “MD&As”), which have been filed on SEDAR at www.sedar.com.
Disclaimers and Additional Information
The TSX has not approved or disapproved of the information contained herein. The Ontario Securities Commission has not passed upon the merits of the disclosure record of Galaxy Digital.
The Company listed on the TSX via TSX Sandbox, an initiative intended to facilitate listing applications that may not satisfy the original listing requirements of TSX, but due to facts or situations unique to a particular issuer otherwise warrant a listing on TSX. The TSX has exercised its discretion to waive the requirements of subsection 309(c)(i) of its manual (C$10 million in treasury resulting from public raise) which the Company did not meet and has approved the listing of the Company pursuant to TSX Sandbox. Galaxy Digital’s approval pursuant to TSX Sandbox was conditioned upon public filing of an Annual Information Form and prominent quarterly disclosure of digital assets and investments, which the Company has completed and agreed to continue to provide. The Company will remain listed pursuant to TSX Sandbox until such time as it has completed a twelve-month period without significant compliance issues after graduation. In addition, Galaxy Digital is required to disclose the following two risk factors that were also included in the most recent Annual Information Form for the year-ended 2020: (1) The Company has limited operating history and its business lines are nascent and subject to material legal, regulatory, operational and other risks in every jurisdiction; and (2) the market price and trading volume of the Company’s ordinary shares has been volatile and will likely continue to be so in response to, among other factors, market fluctuations in digital assets generally or the digital assets that Galaxy Digital holds or trades.
The performance of the Funds will vary from the performance of their respective indices.
BLOOMBERG is a trademark or service mark of Bloomberg Finance L.P. GALAXY is a trademark of Galaxy Digital Capital Management LP (GDCM). Bloomberg Finance L.P. and its affiliates (collectively, Bloomberg) are not affiliated with GDCM, the Galaxy Funds and their respective affiliates (collectively, Galaxy). Bloomberg’s association with Galaxy is to act as the administrator and calculation agent of the Indices (collectively, the “Index”), which is the property of Bloomberg. Neither Bloomberg nor Galaxy guarantee the timeliness, accurateness, or completeness of any data or information relating to the Index or results to be obtained. Neither Bloomberg nor Galaxy make any warranty, express or implied, as to the Index, any data or values relating thereto or any financial product or instrument linked to, using as a component thereof or based on the Index (Products) or results to be obtained therefrom, and expressly disclaims all warranties of merchantability and fitness for a particular purpose with respect thereto. To the maximum extent allowed by law, Bloomberg, its licensees, Galaxy, and their respective employees, contractors, agents, suppliers, and vendors shall have no liability or responsibility whatsoever for any injury or damages—whether direct, indirect, consequential, incidental, punitive, or otherwise—arising in connection with the Index, any data or values relating thereto or any Products—whether arising from their negligence or otherwise.
No Offer or Solicitation
This report shall not constitute a solicitation of a proxy, consent or authorization with respect to any securities or in respect of any of the proposed transactions. This report is for informational purposes only and shall not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote of approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.
Additional Information
In connection with the proposed reorganization and combination, Galaxy will file a registration statement, including a management circular/prospectus and an information statement/prospectus, with the Securities and Exchange Commission (the “SEC”). GALAXY AND BITGO SHAREHOLDERS ARE ADVISED TO READ THE MANAGEMENT CIRCULAR/PROSPECTUS AND INFORMATION STATEMENT/PROSPECTUS, RESPECTIVELY, WHEN SUCH DOCUMENTS BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Shareholders may obtain a free copy of the registration statement and such other documents (when available) and any other relevant documents filed with the SEC from the SEC’s website at http://www.sec.gov. Copies of the management circular/prospectus and an information statement/prospectus can also be obtained, when available, without charge, from Galaxy’s website at https://investor.galaxydigital.io/.
CAUTION ABOUT FORWARD-LOOKING STATEMENTS
The information in this report may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and “forward-looking information” under Canadian securities laws (collectively, “forward-looking statements”). Our forward-looking statements include, but are not limited to, statements regarding our or our management team’s expectations, hopes, beliefs, intentions or strategies regarding the future. Statements that are not historical facts, including statements about the pending acquisition, domestication and the related transactions (the “transactions”), and the parties, perspectives and expectations, are forward-looking statements. In addition, any statements that refer to estimates, projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in this presentation may include, for example, statements about: our ability to complete the transactions; our expectations around the performance of our and the target’s business; our success in retaining or recruiting, or changes required in, our officers, key employees or directors following the transactions; or our financial performance following the transactions. The forward-looking statements contained in this report are based on our current expectations and beliefs concerning future developments and their potential effects on us taking into account information currently available to us. There can be no assurance that future developments affecting us will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks include, but are not limited to: (1) the occurrence of any event, change or other circumstances that could result in the failure to consummate the transactions; (2) the possibility that the terms and conditions set forth in any definitive agreements with respect to the transactions may differ materially from the terms and conditions set forth herein; (3) the outcome of any legal proceedings that may be instituted following the transactions and any definitive agreements with respect thereto; (4) the inability to complete the transactions due to the failure to satisfy conditions to closing in the definitive agreements with respect to the transactions including in respect of shareholder and stock exchange approvals; (5) changes to the proposed structure of the transactions that may be required or appropriate as a result of applicable laws or regulations or as a condition to obtaining regulatory approval of the transactions; (6) the ability to meet and maintain listing standards following the consummation of the transactions; (7) the risk that the transactions disrupts current plans and operations; (8) costs related to the transactions; (9) changes in applicable laws or regulations; (10) the possibility that the combined company may be adversely affected by other economic, business, and/or competitive factors; (11) changes or events that impact the cryptocurrency industry, including potential regulation, that are out of our control; (12) the risk that our business will not grow in line with our expectations or continue on its current trajectory; (13) the possibility that our addressable market is smaller than we have anticipated and/or that we may not gain share of it; (14) those other risks contained in the Annual Information Form for the year ended December 31, 2020 available on the Company’s profile at www.sedar.com and (15) other risks and uncertainties to be indicated from time to time in filings made with the SEC. Should one or more of these risks or uncertainties materialize, they could cause our actual results to differ materially from the forward-looking statements. We are not undertaking any obligation to update or revise any forward looking statements whether as a result of new information, future events or otherwise. You should not take any statement regarding past trends or activities as a representation that the trends or activities will continue in the future. Accordingly, you should not put undue reliance on these statements.
Galaxy Digital Holdings LP’s Financial Results
|
(in thousands) |
March 31, 2021 |
December 31, 2020 |
||||
|
Assets |
||||||
|
Current assets |
||||||
|
Cash |
$ |
93,163 |
$ |
135,766 |
||
|
Digital assets |
2,006,367 |
850,380 |
||||
|
Investments |
351,643 |
260,383 |
||||
|
Receivable for digital asset trades |
28,845 |
13,204 |
||||
|
Digital asset loans receivable |
293,274 |
96,724 |
||||
|
Digital assets receivables |
149,287 |
12,813 |
||||
|
Assets posted as collateral |
36,840 |
15,768 |
||||
|
Receivables |
34,510 |
2,710 |
||||
|
Due from broker |
16,355 |
4,452 |
||||
|
Derivatives |
37,179 |
15,922 |
||||
|
Prepaid expenses and other assets |
15,317 |
6,494 |
||||
|
Goodwill |
15,515 |
15,515 |
||||
|
Loans receivable |
60,226 |
8,510 |
||||
|
3,138,521 |
1,438,641 |
|||||
|
Digital assets receivables |
28,227 |
6,911 |
||||
|
Right of use asset |
4,421 |
4,573 |
||||
|
Property and equipment |
6,264 |
3,693 |
||||
|
Intangible asset |
1,945 |
2,406 |
||||
|
40,857 |
17,583 |
|||||
|
Total assets |
$ |
3,179,378 |
$ |
1,456,224 |
||
|
Liabilities |
||||||
|
Current liabilities |
||||||
|
Digital assets sold short |
$ |
5,240 |
$ |
5,278 |
||
|
Investments sold short |
14,771 |
4,384 |
||||
|
Warrant liability |
52,708 |
20,781 |
||||
|
Accounts payable and accrued liabilities |
111,093 |
34,154 |
||||
|
Payable for digital asset trades |
18,684 |
31,144 |
||||
|
Digital asset loans payable |
572,936 |
226,399 |
||||
|
Loans Payable |
42,400 |
— |
||||
|
Collateral payable |
188,323 |
44,660 |
||||
|
Lease liability |
726 |
742 |
||||
|
1,006,881 |
367,542 |
|||||
|
Lease liability |
4,447 |
4,515 |
||||
|
Total liabilities |
1,011,328 |
372,057 |
||||
|
Equity |
||||||
|
Partners’ capital |
1,677,959 |
798,211 |
||||
|
Non-controlling interests |
490,091 |
285,956 |
||||
|
Total equity |
2,168,050 |
1,084,167 |
||||
|
Total liabilities and equity |
$ |
3,179,378 |
$ |
1,456,224 |
||
|
(in thousands) |
Three Months Ended |
Three Months Ended |
||||
|
Income |
||||||
|
Advisory and management fees |
$ |
1,913 |
$ |
1,587 |
||
|
Net income from digital asset mining (Note 23) |
923 |
— |
||||
|
Leasing income from mining equipment (Note 23) |
506 |
— |
||||
|
Net realized gain (loss) on digital assets |
666,668 |
(38,152) |
||||
|
Net realized gain on investments |
151,138 |
163 |
||||
|
Interest income |
8,533 |
1,439 |
||||
|
Net derivative gain |
18,859 |
4,435 |
||||
|
Other income |
1,187 |
— |
||||
|
849,727 |
(30,528) |
|||||
|
Operating expenses |
||||||
|
Equity based compensation |
7,099 |
1,621 |
||||
|
Compensation and compensation related |
94,952 |
7,184 |
||||
|
General and administrative |
5,341 |
3,196 |
||||
|
Professional fees |
4,566 |
1,638 |
||||
|
Profit share arrangement expense |
4,134 |
— |
||||
|
Interest |
13,792 |
1,011 |
||||
|
Insurance |
150 |
282 |
||||
|
Director fees |
208 |
50 |
||||
|
(130,242) |
(14,982) |
|||||
|
Net unrealized gain on digital assets |
362,909 |
12,924 |
||||
|
Net unrealized gain on investments |
60,282 |
4,674 |
||||
|
Revaluation of warrant liability |
(36,817) |
— |
||||
|
Unrealized foreign currency gain (loss) |
3,068 |
(174) |
||||
|
Realized foreign currency gain (loss) |
(350) |
332 |
||||
|
389,092 |
17,756 |
|||||
|
Income (loss) for the period |
$ |
1,108,577 |
$ |
(27,754) |
||
|
Income (loss) attributed to: |
||||||
|
Unit holders of the Partnership |
$ |
859,958 |
$ |
(26,941) |
||
|
Non-controlling interests |
248,619 |
(813) |
||||
|
$ |
1,108,577 |
$ |
(27,754) |
|||
|
Other comprehensive income |
||||||
|
Foreign currency translation adjustment |
$ |
284 |
$ |
17 |
||
|
Comprehensive income (loss) for the period |
$ |
1,108,861 |
$ |
(27,737) |
||
|
Comprehensive income (loss) attributed to: |
||||||
|
Unit holders of the Partnership |
$ |
860,242 |
$ |
(26,924) |
||
|
Non-controlling interests |
248,619 |
(813) |
||||
|
$ |
1,108,861 |
$ |
(27,737) |
|||
Income and expenses by each reportable segment of GDH LP for the three months ended March 31, 2021 are as follows (in thousands):
|
Trading |
Principal Investments |
Asset Management |
Investment Banking |
Mining |
Corporate and Other |
Totals |
|||||||||||||||
|
Income (loss) |
|||||||||||||||||||||
|
Advisory and management fees |
$ |
95 |
$ |
— |
$ |
1,818 |
$ |
— |
$ |
— |
$ |
— |
$ |
1,913 |
|||||||
|
Net income from digital asset mining |
— |
— |
— |
— |
923 |
— |
923 |
||||||||||||||
|
Leasing income from mining equipment |
— |
— |
— |
— |
506 |
— |
506 |
||||||||||||||
|
Net realized gain on digital assets |
480,356 |
45,515 |
140,797 |
— |
— |
— |
666,668 |
||||||||||||||
|
Net realized gain on investments |
— |
151,138 |
— |
— |
— |
— |
151,138 |
||||||||||||||
|
Interest income |
8,511 |
22 |
— |
— |
— |
— |
8,533 |
||||||||||||||
|
Net derivative gain |
18,859 |
— |
— |
— |
— |
— |
18,859 |
||||||||||||||
|
Other income |
866 |
321 |
— |
— |
— |
— |
1,187 |
||||||||||||||
|
508,687 |
196,996 |
142,615 |
— |
1,429 |
— |
849,727 |
|||||||||||||||
|
Operating expenses |
73,811 |
10,349 |
4,236 |
864 |
715 |
40,267 |
130,242 |
||||||||||||||
|
Net unrealized gain on digital assets |
158,617 |
94,818 |
109,251 |
— |
223 |
— |
362,909 |
||||||||||||||
|
Net unrealized gain on investments |
— |
60,282 |
— |
— |
— |
— |
60,282 |
||||||||||||||
|
Net unrealized loss on warrant liability |
— |
— |
— |
— |
— |
(36,817) |
(36,817) |
||||||||||||||
|
Unrealized foreign currency loss |
3,068 |
— |
— |
— |
— |
— |
3,068 |
||||||||||||||
|
Realized foreign currency loss |
(2) |
(348) |
— |
— |
— |
— |
(350) |
||||||||||||||
|
161,683 |
154,752 |
109,251 |
— |
223 |
(36,817) |
389,092 |
|||||||||||||||
|
Net income (loss) for the period, including non-controlling interests |
$ |
596,559 |
$ |
341,399 |
$ |
247,630 |
$ |
(864) |
$ |
937 |
$ |
(77,084) |
$ |
1,108,577 |
|||||||
Income and expenses by each reportable segment of GDH LP for the three months ended March 31, 2020 are as follows (in thousands):
|
Trading |
Principal Investments |
Asset Management |
Investment Banking |
Corporate and Other |
Totals |
|||||||||||||
|
Income (loss) |
||||||||||||||||||
|
Advisory and management fees |
$ |
— |
$ |
— |
$ |
1,237 |
$ |
350 |
$ |
— |
$ |
1,587 |
||||||
|
Net realized loss on digital assets |
(37,016) |
(532) |
(604) |
— |
— |
(38,152) |
||||||||||||
|
Net realized gain on investments |
— |
163 |
— |
— |
— |
163 |
||||||||||||
|
Interest income |
1,090 |
337 |
5 |
7 |
— |
1,439 |
||||||||||||
|
Net derivative gain |
4,435 |
— |
— |
— |
— |
4,435 |
||||||||||||
|
(31,491) |
(32) |
638 |
357 |
— |
(30,528) |
|||||||||||||
|
Operating expenses |
3,974 |
1,047 |
3,318 |
1,242 |
5,401 |
14,982 |
||||||||||||
|
Net unrealized gain (loss) on digital assets |
14,565 |
(1,469) |
(172) |
— |
— |
12,924 |
||||||||||||
|
Net unrealized gain on investments |
— |
4,674 |
— |
— |
— |
4,674 |
||||||||||||
|
Unrealized foreign currency loss |
(174) |
— |
— |
— |
— |
(174) |
||||||||||||
|
Realized foreign currency gain |
332 |
— |
— |
— |
— |
332 |
||||||||||||
|
14,723 |
3,205 |
(172) |
— |
— |
17,756 |
|||||||||||||
|
Net loss for the period, including non-controlling interests |
$ |
(20,742) |
$ |
2,126 |
$ |
(2,852) |
$ |
(885) |
$ |
(5,401) |
$ |
(27,754) |
||||||
Assets and liabilities by reportable segment of GDH LP as of March 31, 2021 are as follows (in thousands):
|
Trading |
Principal Investments |
Asset Management |
Investment Banking |
Mining |
Corporate and Other |
Totals |
|||||||||||||||
|
Total assets |
$ |
1,800,692 |
$ |
775,031 |
$ |
504,388 |
$ |
6,244 |
$ |
57,608 |
$ |
35,415 |
$ |
3,179,378 |
|||||||
|
Total liabilities |
$ |
867,495 |
$ |
101 |
$ |
6,276 |
$ |
155 |
$ |
40,504 |
$ |
96,797 |
$ |
1,011,328 |
|||||||
Assets and liabilities by reportable segment of GDH LP as of December 31, 2020 are as follows (in thousands):
|
Trading |
Principal Investments |
Asset Management |
Investment Banking |
Mining |
Corporate and Other |
Totals |
|||||||||||||||
|
Total assets |
$ |
751,138 |
$ |
357,529 |
$ |
307,720 |
$ |
6,190 |
$ |
3,633 |
$ |
30,014 |
$ |
1,456,224 |
|||||||
|
Total liabilities |
$ |
333,321 |
$ |
101 |
$ |
18,170 |
$ |
22 |
$ |
— |
$ |
20,443 |
$ |
372,057 |
|||||||
Select statement of financial position information
The fair value of each asset class by reporting segment of GDH LP as of March 31, 2021 is as follows (in thousands):
|
Trading |
Principal Investments |
Asset Management |
Investment Banking |
Mining |
Corporate and Other |
Totals |
|||||||||||||||
|
Digital assets |
$ |
1,248,656 |
$ |
271,299 |
$ |
484,954 |
$ |
— |
$ |
1,458 |
$ |
— |
$ |
2,006,367 |
|||||||
|
Digital assets receivables |
— |
177,514 |
— |
— |
— |
— |
177,514 |
||||||||||||||
|
Digital assets posted as collateral |
36,622 |
— |
— |
— |
— |
— |
36,622 |
||||||||||||||
|
Investments: |
|||||||||||||||||||||
|
Pre-Launch Network |
— |
950 |
— |
— |
— |
— |
950 |
||||||||||||||
|
Convertible Notes |
— |
4,399 |
— |
— |
— |
— |
4,399 |
||||||||||||||
|
Preferred Stock |
— |
109,671 |
— |
— |
— |
— |
109,671 |
||||||||||||||
|
Common Stock |
— |
56,112 |
— |
— |
— |
— |
56,112 |
||||||||||||||
|
LP/LLC Interests |
— |
155,021 |
— |
— |
— |
— |
155,021 |
||||||||||||||
|
Warrants/Trust Units/Trust Shares |
25,485 |
5 |
— |
— |
— |
— |
25,490 |
||||||||||||||
|
$ |
1,310,763 |
$ |
774,971 |
$ |
484,954 |
$ |
— |
$ |
1,458 |
$ |
— |
$ |
2,572,146 |
||||||||
The fair value of each asset class by reporting segment of GDH LP as of December 31, 2020 is as follows (in thousands):
|
Trading |
Principal Investments |
Asset Management |
Investment Banking |
Corporate and Other |
Totals |
|||||||||||||
|
Digital assets |
$ |
444,216 |
$ |
118,555 |
$ |
287,609 |
$ |
— |
$ |
— |
$ |
850,380 |
||||||
|
Digital assets receivables |
— |
19,724 |
— |
— |
— |
19,724 |
||||||||||||
|
Digital assets posted as collateral |
15,625 |
— |
— |
— |
— |
15,625 |
||||||||||||
|
Investments: |
||||||||||||||||||
|
Pre-Launch Network |
— |
500 |
— |
— |
— |
500 |
||||||||||||
|
Convertible Notes |
— |
4,501 |
— |
— |
— |
4,501 |
||||||||||||
|
Preferred Stock |
— |
86,258 |
— |
— |
— |
86,258 |
||||||||||||
|
Common Stock |
— |
29,970 |
— |
— |
— |
29,970 |
||||||||||||
|
LP/LLC Interests |
— |
84,311 |
— |
— |
— |
84,311 |
||||||||||||
|
Warrants/Trust Units |
51,182 |
3,661 |
— |
— |
— |
54,843 |
||||||||||||
|
$ |
511,023 |
$ |
347,480 |
$ |
287,609 |
$ |
— |
$ |
— |
$ |
1,146,112 |
|||||||
Blockchain
India’s Fintech Market to Reach $990 Billion by 2032 at 30.2% CAGR – Fintech Firms Eye Untapped Indian Digital Payments Market with Secure, Low-Cost Digital Financial Solutions
Blockchain
Blocks & Headlines: Today in Blockchain – May 9, 2025 | Robinhood, Solana, Tether, China, Women in Web3
Today’s blockchain landscape pulses with innovation, expansion and strategic jockeying. From established trading platforms laying the groundwork for international tokenized US asset markets to fresh efforts empowering women in Web3, the industry is evolving at frantic pace. Solana-based tokenization pathways, China’s state-driven blockchain masterplan and Tether’s push onto new Layer-1 rails further underscore diversification. In this daily op-ed, we unpack five major developments—examining what they mean for DeFi growth, NFT marketplaces, regulatory contours and the ongoing quest for greater inclusivity in crypto.
1. Robinhood’s European Blockchain Trading Ambitions
News Summary
Robinhood Markets Inc. is reportedly constructing its own blockchain infrastructure to facilitate trading of U.S. equities and other assets in European markets. Insiders suggest the project seeks to leverage distributed-ledger technology for settlement efficiency, near-real-time clearing and reduced reliance on legacy central counterparties. The move signals Robinhood’s ambition to transcend its domestic brokerage roots and capture European retail and institutional order flow.
Key Details
-
Infrastructure Build: A private, permissioned ledger governed by Robinhood and selected counterparties.
-
Asset Scope: U.S. equities, ETFs and potentially tokenized debt instruments.
-
Regulatory Interface: Engagements with the U.K. Financial Conduct Authority (FCA) and European Securities and Markets Authority (ESMA) to align on custody and market-making rules.
-
Timeline: Internal pilots slated for Q4 2025, with public rollout in mid-2026.
Analysis & Opinion
Robinhood’s pivot underscores a broader industry trend: exchanges and brokerages striving to “own the rails” rather than simply interface with existing clearinghouses. By internalizing settlement on a bespoke blockchain, Robinhood hopes to slash settlement times from T+2 to near-instant, a boon for liquidity providers and high-frequency traders. However, risks include the complexity of cross-border regulatory compliance and the operational challenge of maintaining robust on-chain and off-chain reconciliations.
From a DeFi convergence standpoint, Robinhood’s ledger could bridge traditional and decentralized finance, enabling tokenized margin lending and programmable corporate actions directly on-chain. Should Robinhood open permission to DeFi protocols, we may witness new hybrid liquidity pools that blend CEX order books with AMM liquidity. This would mark a milestone in mainstream DeFi adoption—and potentially pressure incumbents like Nasdaq to innovate their own on-chain settlement layers.
Source: Bloomberg
2. Women in Web3: Cultivating Greater Gender Diversity
News Summary
A recent deep-dive from Cointelegraph spotlights the persistent gender gap in blockchain and crypto. Despite Web3’s ethos of decentralization, women represent less than 20 percent of crypto investors and under 10 percent of core development teams. The article outlines initiatives—from targeted grants and incubation programs to mentorship networks—aimed at lowering barriers and attracting more female talent.
Key Details
-
Current Statistics: Women account for approximately 17 percent of crypto traders globally; in development, the share dips below 8 percent.
-
Notable Initiatives:
-
Women in Blockchain Fund: USD 50 million allocated for early-stage female founders.
-
Global Web3 Sisters Network: Mentorship platform pairing novices with veteran executives.
-
University Partnerships: Scholarships for women studying blockchain engineering and cryptography.
-
Analysis & Opinion
Web3’s promise of equal-opportunity innovation rings hollow if half the population remains sidelined. Heightened grant funding and mentorship can help, but systemic change requires cultural shifts within DAOs, core teams and investor circles. Projects and protocols must adopt policies—like blind code reviews, diversity hiring quotas and inclusive governance frameworks—to ensure sustainable participation.
Moreover, as the industry grapples with regulatory scrutiny, diverse leadership can foster better risk management and community trust. Women leaders have often been at the forefront of compliance, ethics and consumer protection—even in traditional finance—qualities sorely needed in crypto’s maturing phase. Token projects that embed gender-diverse advisory boards may see stronger reputational profiles and wider community buy-in.
Source: Cointelegraph
3. SOL Strategies: Tokenizing Shares on Solana
News Summary
SOL Strategies, a financial-services startup, is exploring a pathway to tokenize private and publicly traded shares on the Solana blockchain. Their recently filed whitepaper proposes a framework where equity is represented as SPL tokens, enabling fractional ownership, 24/7 trading and programmable dividend distributions.
Key Details
-
Token Standard: Extension of Solana Program Library (SPL) with “Equity Token” schema.
-
Custody Model: Licensed custodian holds underlying shares; token holders have legal claim via smart-contract link.
-
Compliance Layer: On-chain KYC/AML middleware to restrict token transfers to approved wallets.
-
Pilot Partners: Early engagements with two mid-cap European tech firms eyeing capital-raising via tokenization.
Analysis & Opinion
Tokenized equity stands to revolutionize capital markets by lowering minimum investment thresholds and unlocking global liquidity. On Solana, with its sub-second finality and low fees, fractional shares could trade seamlessly—outpacing Ethereum’s scalability challenges. Yet the critical hurdle lies in regulatory acceptance: will securities regulators view these tokens as bona fide equity or as unregistered securities?
SOL Strategies’ integrated custody approach could mollify regulators, replicating existing T+2 standards while enabling T+0 settlement on-chain. Should they secure regulatory sandbox approvals in the U.K. or Singapore, other blockchains—like Stellar and Polkadot—may race to develop similar tokenization toolkits. For DeFi protocols, tokenized equities could become collateral in lending pools, further intertwining traditional and decentralized finance.
Source: Newsfile Corp.
4. China’s Blockchain Playbook: Infrastructure, Influence & New Frontiers
News Summary
The Center for Strategic and International Studies (CSIS) published an extensive analysis of China’s state-driven blockchain strategy. Beyond its digital yuan rollout, Beijing is investing in cross-border infrastructure, influencing global standards bodies and forging Belt and Road blockchain corridors across Asia, Africa and Latin America.
Key Details
-
Key Initiatives:
-
BSN 2.0: Blueprint for national and international consortium chains.
-
International Standards: Active lobbying in ISO/TC 307 for governance models favoring state-actors.
-
Tech Diplomacy: Blockchain MOUs with Pakistan, Indonesia and several African union members.
-
-
Strategic Goals: Extend digital yuan acceptance, export Chinese ledger tech, shape global governance.
Analysis & Opinion
China’s multi-pronged approach signals blockchain’s emergence as a theater of geopolitical competition. By undercutting SWIFT dependency and offering turnkey consortium-chain solutions, Beijing enhances its financial influence in Belt and Road countries. Western governments and multinationals must navigate this blockchain bifurcation—between open public rails and permissioned state-backed consortia.
For crypto projects, the CSIS report offers both caution and opportunity. While the digital yuan may corner state-aligned corridors, decentralized networks remain resilient by design. Projects focusing on interoperability—such as Polkadot bridges and Cosmos IBC—can link fragmented chains and preserve open value transfer. Investors should monitor on-chain metrics in emerging markets, as Chinese-backed consortium chains gain traction in cross-border trade finance.
Source: CSIS
5. Tether Expands Stablecoin Reach to 196 Million Users via Kaia
News Summary
Tether has launched USDT on the Kaia blockchain, bringing its flagship stablecoin to Kaia’s user base of approximately 196 million. Kaia, a burgeoning Layer-1 optimized for high-throughput mobile applications, opens new corridors for USDT in gaming, remittances and micro-trading in emerging markets.
Key Details
-
Technical Integration: USDT issued as a native Kaia token, supported by Tether’s reserve-backing audit framework.
-
User Impact: Near-zero fees for micro-transactions; sub-second confirmation times even on mobile networks.
-
Partnership Scope: Integration with Kaia’s wallet SDK and gaming marketplace; joint launch of an educational DApp for fiat-on-ramp literacy.
Analysis & Opinion
By deploying on Kaia, Tether diversifies its blockchain footprint beyond Ethereum, Tron and Solana, underscoring a multi-chain thesis for stablecoin ubiquity. Emerging-market users—often plagued by volatile local currencies—stand to benefit immensely from a mobile-first, low-cost remittance rail. Moreover, Kaia’s developer incentives may spawn DeFi lending dApps collateralized by USDT, fueling localized credit markets.
Yet healthy competition among blockchains for stablecoin volume could concentrate risk: reserve transparency, network stability and regulatory compliance will differentiate winners. Tether’s public attestations and reserve audits are critical, but as US regulators intensify scrutiny on stablecoin giants, projects deploying on smaller chains may face fresh legal complexities around money-transmission licensing.
Source: Bitcoin.com
Conclusion & Key Takeaways
-
Institutional On-ramp Acceleration: Robinhood’s European chain signals major brokerages view blockchain as core infrastructure—not mere gadget.
-
Inclusivity Imperative: Women’s underrepresentation remains a blindspot; targeted grants and cultural reforms are needed for equal Web3 participation.
-
Tokenization Tide: Solana’s high-speed rails may host the next wave of equity tokens, bridging capital markets and DeFi.
-
Geopolitical Battlegrounds: China’s consortium chains and digital-yuan corridors illustrate how blockchain is reshaping global influence.
-
Stablecoin Multichain Strategy: Tether’s Kaia integration reflects the logic of diversifying rails to reach underserved, mobile-first users.
As blockchain advances, the interplay between technological innovation, regulatory frameworks and social inclusion will define whether the next chapter of crypto fulfills its vision of open, equitable finance—or replicates old hierarchies in digital garb. Today’s headlines underscore that the path forward lies in cross-chain interoperability, proactive policy-shaping, and a relentless focus on broadening the community that stewards and benefits from these transformative networks.
The post Blocks & Headlines: Today in Blockchain – May 9, 2025 | Robinhood, Solana, Tether, China, Women in Web3 appeared first on News, Events, Advertising Options.
Blockchain
Blocks & Headlines: Today in Blockchain – May 7, 2025 | Coinbase, Riot Games, Curve DAO, Litecoin, AR.IO
Today’s blockchain and cryptocurrency landscape is as dynamic as ever, with marquee partnerships, industry-wide reckonings, and groundbreaking applications reshaping how we think about digital assets. In this op-ed style daily briefing, we explore five major developments from May 6 – 7, 2025:
-
Coinbase & Riot Games Forge Esports Alliance
-
“Too Many Blockchains?” Industry Introspection
-
Blockchain’s Health-Tech Revolution
-
Valour Adds Curve DAO & Litecoin ETPs in the Nordics
-
AR.IO Enables Credit-Card Onramps for Web3 Identity & Hosting
Through concise yet detailed coverage, we analyze each story’s implications for blockchain, cryptocurrency, Web3, DeFi, and NFTs. Welcome to your Blocks & Headlines daily briefing—where opinion meets analysis.
1. Coinbase & Riot Games Forge Esports Alliance
Source: Coinbase Blog
Date: May 6, 2025
In a landmark partnership that bridges digital finance with digital competition, Coinbase has been named the exclusive cryptocurrency exchange and official blockchain technology partner of Riot Games’ global League of Legends and VALORANT esports events. Starting with the VCT Masters tournament in Toronto on June 7, Coinbase will integrate “live Econ Reports” and “Gold Grind” segments into broadcasts, offering running analyses of in-game currency flows, alongside exclusive digital drops like emotes and icons redeemable by viewers.
Opinion: This move is a masterstroke for mainstream crypto adoption. Esports’ digitally native fanbase aligns perfectly with blockchain’s ethos of transparency and community governance. Coinbase’s embrace of in-game analytics not only educates viewers on micro-economies but also paves the way for future on-chain game mechanics—potentially unlocking true digital ownership of skins and items as NFTs. Expect other exchanges to follow suit or risk missing out on Gen Z’s next frontier of fandom.
2. “Too Many Blockchains?” Industry Introspection
Source: Blockworks
Date: May 6, 2025
As venture capital floods yet another dozen Layer-1 protocols each quarter, seasoned observers are questioning sustainability. Donovan Choy of Blockworks highlights that new chains like Camp Network, Unto, and Miden collectively raised north of $70 million in the past week alone—despite Sui’s market-cap spike lacking any commensurate fee revenue. While some attribute this proliferation to speculative greed chasing the elusive L1 premium, others credit genuine technical divergence—differing visions on execution environments, MEV capture, and data-availability layers.
Opinion: The free market appears to be self-correcting: L1 valuations are compressing, and public markets are already signaling fatigue. Yet, technical fragmentation has its merits—competition drives innovation in consensus, sharding, and gas-fee economics. The looming challenge is application-chain misalignment: developers face choice paralysis and liquidity fragmentation. A pivot toward cross-chain composability—and perhaps the rise of federated execution environments—will determine which chains survive the next cycle. Investors should look for interoperability roadmaps rather than mere tokenomics hype.
3. Blockchain’s Health-Tech Revolution
Source: DataHorizzon Research via OpenPR
Date: May 7, 2025
Blockchain in healthcare is projected to surge from a $4.57 billion market in 2023 to $34.7 billion by 2033 (CAGR 22.9%). Key drivers include:
-
Data Integrity & Security: Immutable ledgers ensure tamper-proof electronic health records, bolstering HIPAA and GDPR compliance.
-
Interoperability: Permissioned smart contracts automate cross-institutional data access, alleviating EHR fragmentation.
-
Supply-Chain Traceability: Real-time drug tracking combats counterfeits and streamlines recalls.
-
Claims Automation: Shared ledgers reduce fraud and billing lags via automated smart-contract adjudication.
-
Research Collaboration: Timestamped trial data and consent forms create verifiable audit trails.
Leading players—IBM Watson Health, Guardtime, Longenesis, Chronicled, BurstIQ, and more—are moving beyond pilots in Estonia and Merck’s vaccine cold-chain projects toward enterprise-scale rollouts.
Opinion: Healthcare’s conservative nature makes blockchain’s strides here particularly noteworthy. The confluence of AI analytics with secure datasets promises predictive diagnostics powered by immutable provenance. Yet, regulatory uncertainty and integration with legacy EHR platforms remain significant hurdles. The winners will be those who offer turnkey compliance frameworks and hybrid on-chain/off-chain models that respect “right to be forgotten” laws while preserving auditability.
4. Valour Adds Curve DAO & Litecoin ETPs in the Nordics
Source: GlobeNewswire (via GlobeNewswire and CoinCentral)
Date: May 7, 2025
DeFi Technologies’ subsidiary Valour has listed single-asset SEK-denominated ETPs for Curve DAO (CRV) and Litecoin (LTC) on Sweden’s Spotlight Stock Market—bringing its Nordic ETP lineup to over 67 products on the path to 100 by year-end. Upcoming listings include Tron (TRX), Stellar (XLM), and leveraged Bitcoin (BTC 2×) and Ethereum (ETH 2×) products.
Opinion: ETPs bridge traditional capital markets with on-chain assets, offering regulated wrappers for institutional and retail investors. Valour’s Nordic expansion underscores Europe’s leadership in crypto security tokenization. However, as ETP count balloons, product fatigue may set in. Success lies not in sheer quantity but in thematic curation and transparent fee structures—particularly for DeFi-native tokens like CRV, where governance risk and protocol upgrades can materially impact value.
5. AR.IO Enables Credit-Card Onramps for Web3 Identity & Hosting
Source: Chainwire (as published by MENAFN)
Date: May 6, 2025
AR.IO—the world’s first permanent cloud network built on Arweave—has launched “Turbo,” an open-source bundler that lets users purchase Arweave credits via credit card for its ArNS domain‐name and web-hosting service. ArNS domains are immutable smart contracts on Arweave, offering permanent websites and on-chain identities without renewal fees, served by 400+ decentralized gateways.
Opinion: Simplifying fiat → crypto onramps remains a critical barrier for mainstream Web3 adoption. By integrating credit-card payments, AR.IO lowers friction for developers and businesses wanting censorship-resistant hosting. The true long-term play is embedding real-world payment rails into decentralized infrastructure—setting a precedent for other ledger-based services (e.g., Filecoin, IPFS pinning). If AR.IO can combine permanency with user-friendly billing, we may witness a tipping point in Web3’s shift from hobbyist experiments to enterprise solutions.
Conclusion
Today’s slate of headlines spans from consumer-facing esports innovations to deep industry self-reflection, from life-saving healthcare applications to sophisticated investment vehicles, and finally, critical infrastructure enabling mainstream onramps. Across every sector—gaming, finance, healthcare, asset management, and infrastructure—the recurring theme is bridging gaps:
-
On-chain & off-chain: through fiat onramps and traditional ETP listings
-
New chains & legacy systems: via interoperability and hybrid architectures
-
Speculation & real-world utility: with tangible ROI in healthcare and esports
For enthusiasts and professionals alike, the imperative is clear: focus on solutions that marry blockchain’s core benefits—transparency, security, decentralization—with seamless user experiences and regulatory alignment. Only then will we see blockchain and crypto transcend niche fervor to become indispensable pillars of tomorrow’s digital economy.
The post Blocks & Headlines: Today in Blockchain – May 7, 2025 | Coinbase, Riot Games, Curve DAO, Litecoin, AR.IO appeared first on News, Events, Advertising Options.
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