what is your take on GLXY's earnings
Thank you.
EPS of $1.219 beat estimates of $0.801 and revenues of $471.136M beat estimates of $213.226M. The parent company, Galaxy Digital LP, reported equity of $1.79B for the quarter, growing 22% quarter-over-quarter, a 21% QoQ increase in liquidity, and a substantial increase in net income. The company benefited from heightened market volatility and increased trading volumes in Q4 2023, and it continues to work on completing its uplisting to the US exchanges. Its trading segments loan book size increased by 9%, while its investment banking division largely remained flat. Its asset management business saw a large increase, with a 79% QoQ increase in management fees, and continued growth in its AUM. The digital assets held on its balance sheet doubled on a year-over-year basis, from $566.7M to $1.1B. It was a profitable quarter for the company, and most of its profits are generated from its global markets division, where it generates management and performance fee income.
These were overall good results for the company, and they only reflect digital asset prices and volatility as of the end of 2023, which do not include the roughly 25% increase in most digital assets that we have seen for Q1 2024 so far. Investors may be disappointed in the lack of clarity on a US uplisting, but overall its global markets division continues to grow and generate profits for the company, and we are not overly concerned by the recent volatility in share price.