Galaxy Digital : Q4 (GDH LP Financial Statements 12 31 2024 vFINAL)

Published: 2025-04-04 05:50:05 ET GLXY.TO

Galaxy Digital Holdings LP

Consolidated Financial Statements

For the Years Ended December 31, 2024 and 2023

(Expressed in US Dollars)

Table of contents ---------------------------------------------------

Page

Independent Auditors' Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Consolidated Statements of Financial Position . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . .7

Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9

Consolidated Statements of Changes in Equity . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10

Consolidated Statements of Cash Flows . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

Notes to the Consolidated Financial Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1. Nature and Continuance of Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

2. Basis of Presentation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

3. Material Accounting Policies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

4. New Accounting Policies and Recent Accounting Pronouncements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . 27

5. Key Terms of Limited Partnership Agreement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

6. Business Combination . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

7. Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . 31

8. Digital Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . 33

9. Digital Asset Loans Receivable and Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

10. Loans Receivable and Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34

11. Derivatives Assets and Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35

12. Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

13. Receivables . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

14. Other Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

15. Property, Equipment and Intangible Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40

16. Accounts Payable and Accrued Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

17. Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

18. Notes Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

19. Professional Fees . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

20. General and Administrative . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50

21. Related Party Transactions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

22. Segments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . 53

23. Financial Instruments, Digital Assets and Risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57

24. Capital Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63

25. Commitments and Contingencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

26. Income Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . 66

27. Subsequent Events . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67

KPMG LLP

345 Park Avenue

New York, NY 10154-0102

Independent Auditors' Report

The Board of Managers of Galaxy Digital Holdings GP LLC in its capacity as general partner of Galaxy Digital Holdings LP:

Opinion

We have audited the consolidated financial statements of Galaxy Digital Holdings LP and its subsidiaries (collectively, the Partnership), which comprise the consolidated statements of financial position as of December 31, 2024 and 2023, the related consolidated statements of income (loss) and comprehensive income (loss), changes in equity, and cash flows for the years then ended, and the related notes to the consolidated financial statements.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the financial position of the Partnership as of December 31, 2024 and 2023, and its financial performance and its cash flows for the years then ended in accordance with International Financial Reporting Standards (IFRS) Accounting Standards as issued by the International Accounting Standards Board (IASB).

Basis for Opinion

We conducted our audits in accordance with auditing standards generally accepted in the United States of America (GAAS) and in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Partnership and have fulfilled our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audits, which include relevant ethical requirements in the United States of America and the International Ethics Standards Board for Accountants' International Code of Ethics for Professional Accountants. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Key Audit Matters

Key audit matters are those matters that were communicated with those charged with governance and, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Evaluation of audit evidence pertaining to the existence of and rights to digital assets

As discussed in Note 8 to the consolidated financial statements, the Partnership recognizes a variety of digital assets on its consolidated statement of financial position and measures digital financial assets at fair value and measures digital assets that are not financial assets at fair value less costs to sell. As of

December 31, 2024, the carrying amount of the Partnership's digital assets was $2.96 billion.

We identified the evaluation of the existence of and the Partnership's rights to substantially all of the Partnership's digital assets, including the risk that the Partnership's digital assets may not be owned by the

Partnership or may be subject to unauthorized on blockchain transfers to third parties, as a key audit matter. A high degree of auditor judgment was involved in determining the nature and extent of the

KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

procedures performed and audit evidence obtained to assess the existence of and the Partnership's rights to the digital assets.

The following are the primary procedures we performed to address this key audit matter. We evaluated the design of certain internal controls over the existence of and the Partnership's rights to the digital assets, including the risk that the Partnership's digital assets may not be owned by the Partnership or may be subject to unauthorized on blockchain transfers to third parties. We also tested the operating effectiveness for certain of these internal controls. We obtained confirmations of the Partnership's digital assets held with certain third parties as of December 31, 2024 and compared the results of the confirmations to the

Partnership's records. We also compared the Partnership's records of certain digital asset balances and transactions to the records on public blockchains using software audit tools. We obtained evidence that management has control of the private keys required to access digital assets through observing the movement of selected digital assets and validating cryptographic messages signed using selected private keys. We obtained and assessed relevant documentation to support that the digital assets as of December 31, 2024 were owned by the Partnership. For a selection of on blockchain transfers to third parties, we obtained and assessed evidence that the transaction was appropriately authorized and recorded by the Partnership. We evaluated the reliability of audit evidence obtained from public blockchains.

Assessment of fair value of certain Level 3 investments

As discussed in Notes 12 and 23 to the consolidated financial statements, the Partnership held investments recorded at fair value of $1.64 billion as of December 31, 2024, a portion of which represented certain Level 3 investments that use the market approach valuation method with one or more significant unobservable inputs. The fair value of these investments was determined using certain pricing inputs that are unobservable and included situations where there was little, if any, market activity for the investment.

We identified the assessment of the fair value measurement of certain investments classified as Level 3 in the fair value hierarchy as a key audit matter. There was a high degree of audit effort, including specialized skills and knowledge, and subjective and complex auditor judgment involved in the assessment due to significant measurement uncertainty. Specifically, the assessment involved evaluating significant unobservable inputs used in these fair value estimates, such as relevance of prior transactions, valuation adjustments, selection of comparable companies, volatility, and enterprise value-to-revenue multiples.

The following are the primary procedures we performed to address this key audit matter. We evaluated the design of certain internal controls related to the Partnership's measurement of certain Level 3 investments, including controls related to the review of significant unobservable inputs. We involved valuation professionals with specialized skills and knowledge, who assisted in evaluating the reasonableness of the fair value measurement for a selection of Level 3 investments through developing an independent estimate of the fair value of the investment and comparing the results of our estimate of fair value to the

Partnership's fair value measurement. As part of this independent estimate, the valuation professionals developed independent pricing inputs.

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with IFRS Accounting Standards as issued by the IASB, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise significant doubt about the Partnership's ability to continue as a going concern for one year after the date that the consolidated financial statements are

authorized for issuance; to disclose, as applicable, matters related to going concern; and to use the going concern basis of accounting unless management either intends to liquidate the Partnership or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Partnership's financial reporting process.

Auditors' Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and ISAs will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the consolidated financial statements.

In performing an audit in accordance with GAAS and ISAs, we:

● Exercise professional judgment and maintain professional skepticism throughout the audit.

● Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements.

● Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Partnership's internal control. Accordingly, no such opinion is expressed.

● Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the consolidated financial statements.

● Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise significant doubt about the Partnership's ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control related matters that we identified during the audit.

Other Information

Management is responsible for the other information. The other information comprises Management's

Discussion and Analysis for the year ended December 31, 2024 but does not include the consolidated financial statements and our auditors' report thereon. Our opinion on the consolidated financial statements does not cover the other information, and we do not express an opinion or any form of assurance thereon.

In connection with our audit of the consolidated financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the consolidated financial statements, or the other information otherwise appears to be materially misstated. If,

based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report.

The engagement partner on the audit resulting in this independent auditors' report is Robert Sledge.

New York, New York

March 27, 2025

Notes December 31, 2024 December 31, 2023

Assets Current assets

Cash and cash equivalents Digital assets

Receivable for digital asset trades

462,103 2,952,633 20,974

316,610 1,078,587 41,339

Digital asset loans receivable, net of allowance Digital assets receivables

579,530 104,504

53,608 14,686

Investments (includes $84.5 million and $0 of equity method investments, respectively)

834,812

9, 10, 11

277,147 318,195

Assets posted as collateral Receivables

30,314 15,983

Derivative assets

207,653 173,209

Prepaid expenses and other assets Loans receivable, net of allowance Due from related party

26,444 37,910

476,620 377,105

5,263 5,007

Total current assets

5,927,101

2,483,135

Digital assets receivables

7,112 6,174

Investments (includes $433.6 million and $290.4 million of equity method investments, respectively)

8 12

808,694 735,103

Restricted digital assets

11,560 41,356

Loans receivable, net of allowance, non-current Property and equipment

- 10,259

267,648 259,965

Other non-current assets Goodwill

107,300 95,000

58,037 44,257

Total non-current assets

1,260,351 1,192,114

Total assets

7,187,452

$ 3,675,249

Liabilities and Equity Current liabilities

6,524 25,295

Investments sold short Derivative liabilities

163,644 69,212

Accounts payable and accrued liabilities Payables to customers

12 11 16

165,858 160,642

19,520 3,503

Taxes payable

5,315 25,936

Payable for digital asset trades Digital asset loans payable Loans payable

20,970 4,176

1,497,609 398,277

510,718 93,069

9, 10, 11

1,399,655 581,362

3,294 3,860

Collateral payable Due to related party Lease liability Total current liabilities

97,871 67,953

3,890,978

1,433,285

Notes payable

845,186

408,053

16, 25, 26

174,256 44,130

Other non-current liabilities Total non-current liabilities

1,019,442 452,183

Total liabilities

4,910,420 1,885,468

Equity

Partners' capital

2,277,032 1,789,781

Total equity

2,277,032 1,789,781

Total liabilities and equity

7,187,452

$ 3,675,249

Commitments and contingencies

The consolidated financial statements were authorized by the Board of Managers of Galaxy Digital Holdings GP LLC to be issued on March 27, 2025 and were signed on its behalf by:

"Anthony Paquette"

Chief Financial Officer

"Michael Novogratz"

Chief Executive Officer Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) (Expressed in thousands of US Dollars) ---------------------------------------------------

Year ended

Notes December 31, 2024

Income

Fee revenue

December 31, 2023

7 $

103,194 $ 51,342

615,687 311,830

7, 8

274,254 52,216

Net realized gain (loss) on digital assets Net realized gain (loss) on investments Lending and staking revenue

Net derivative gain

7, 12

(171,108) 13,412

7, 11

267,769 151,583

63,305 33,121

Revenue from proprietary mining Other income

1,457

357

1,154,558 613,861

Operating expenses

58,489 72,275

Compensation and compensation related Equity based compensation

191,052 138,401

51,076 37,062

General and administrative Professional fees

17 20 19

377,523 75,637

109,539 24,653

Blockchain reward distributions Interest

Notes interest expense

130,298 1,086

30,804 27,285

(948,781)

(376,399) Other

429,899 84,415

1,317 (493)

Net unrealized gain (loss) on digital assets Net unrealized gain (loss) on investments Net gain (loss) on notes payable - derivative Foreign currency loss

(255,380) 1,950

12 17

(31,727) (9,603)

144,109 76,269

(15,426) 17,833

Income (loss) before income taxes Income taxes expense (benefit)

Net income (loss)

349,886 313,731

365,312 $ 295,898

Other comprehensive income (loss)

Foreign currency translation adjustment Comprehensive income (loss)

$ $

1,190 $ 366,502 $

88 295,986

Consolidated Statements of Changes in Equity (Expressed in thousands of US Dollars, except unit data) ---------------------------------------------------

Class A Unit Capital Notes Number Balance at December 31, 2022

646,813 215,943,369 $

791,979 $ 1,438,792

Equity compensation Distributions

Vesting of Class B Units Exchange of Class B Units

Repurchase and cancellation of Class A Units

104,811,539 $ - - - 30,121

17 17

(4,221,799)

Issuance of Class A Units on exercise of warrants, options, and restricted share units

8,679,471

11,107 - - 11,107

Other

Income for the period Balance at December 31, 2023

- - 109,299,332 $

Balance at December 31, 2023

Equity compensation Distributions

Vesting of Class B Units Exchange of Class B Units

109,299,332 $ - - - 81,357

Repurchase and cancellation of Class A Units

(1,832,402)

(20,516)

Issuance of Class A Units, net of issuance cost

Other

1,273,583 $ 2,277,032

17 17

20,029,493

Income for the period Balance at December 31, 2024

- - 127,577,780 $

Class B Unit Capital

Amount

Number

24,642

(7,301)

141

- - 15,226 (30,121)

(10,668)

4 97,239 761,977

- - 215,928,474 $

761,977 215,928,474 $

21,166

(19,526)

541

137,184

- - 15,226 (81,357)

404 122,219 1,003,449

- - - - 215,862,343 $

Amount

Total

50,435 (15,104)

75,077 (22,405)

- (141)

- -

- (10,668)

1,976 1,980 198,659 295,898 1,027,804 $ 1,789,781

1,027,804 $ 1,789,781

38,096

59,262

(35,732)

(55,258)

(541)

(20,516)

137,184

863

1,267

243,093

365,312

Disclaimer

Galaxy Digital Holdings Ltd. published this content on April 04, 2025, and is solely responsible for the information contained herein. Distributed via , unedited and unaltered, on April 04, 2025 at 09:49 UTC.