Galaxy Digital Company Intelligence

Founded by Michael Novogratz in 2018, Galaxy Digital provides a wide range of digital asset financial services for institutions and direct clients. The company currently has five business lines: asset management, principal investments, trading, investment banking and mining. Galaxy Digital gains direct market exposure by investing in digital assets and companies in the space. The risk of this exposure is mitigated by Galaxy Digital’s operating business lines that provide service-based revenue streams, reducing performance correlation with digital asset prices. Galaxy Digital’s mission is to act as “a bridge between the crypto and institutional worlds,” developing products and services that can satisfy fast-evolving client needs in the crypto space. With the recent crypto bull market, Galaxy Digital experienced growth in all of its business lines. Galaxy Digital ended 2021 with a net comprehensive income of $1.7 billion, which is a +345% YoY growth from the 2020 net comprehensive income of $386 million. Due to the crypto market contraction earlier this year, Galaxy Digital is expected to report a loss of $110 million to $130 million for the first quarter of 2022, but the company’s operating business lines remain profitable and are expected to continue the growth in 2022.

Galaxy Digital Asset Management (GDAM) currently manages various investment products, which include passive exposures, funds of funds, and interactive ventures. The company also works with other institutional partners to launch investment products (i.e. CI Galaxy ETFs and Invesco Galaxy ETFs). Galaxy Digital’s institutional partners include Invesco, CAIS, Bloomberg, CI Investments and Morgan Stanley. Management fees generally earned by GDAM in both GFM and Galaxy Interactive range from 0.4% to 2.0% of assets under management, and performance fees have been structured to be up to 20%.