Galaxy Digital reports Q4 net loss on lower asset prices

Overview

• Digital assets firm reported Q4 net loss of $482 mln due to lower asset prices

• Adjusted EPS for Q4 was $(1.08), reflecting lower digital asset prices

• Company completed reorganization and raised $325 mln equity capital

Outlook

• Company did not provide specific financial guidance for future periods

Result Drivers

• DIGITAL ASSET PRICES - Q4 net loss driven primarily by depreciation of digital asset prices, with total crypto market cap decreasing by 24%

• TRADING VOLUMES - Decline in digital asset trading volumes by 40% due to softer client activity following a record Q3

• ASSET MANAGEMENT DECLINE - Assets under management and stake declined due to lower digital asset prices, despite staking platform expansion

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the investment banking & brokerage services peer group is "buy"

• Wall Street's median 12-month price target for Galaxy Digital Inc is $46.00, about 74% above its February 2 closing price of $26.44

Press Release: ID:nCNWwqJ6la

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