Galaxy Digital profit falls, misses estimates on settlement costs

March 28, 2025 11:59 PM AEDT | By Investing

Google News:

Galaxy Digital profit falls, misses estimates on settlement costs

Recent News

EUR/USD poised to rack up more gains as ECB and Fed rate paths set to...

Carney launches ‘One Canadian Economy’ Act to unify trade, approvals

Trump signs orders to enhance drone defenses, support supersonic trave...

US job growth in May tops forecasts, but Macquarie warns cracks are em...

NEW YORK - Galaxy Digital Holdings Ltd (TSX:GLXY) reported a decline in fourth-quarter profit, missing analyst expectations as settlement costs weighed on its bottom line. The digital asset and blockchain company's stock fell 3.5% following the announcement.

Galaxy Digital posted net income of $174.5 million for the fourth quarter, down from $301.5 million in the same period last year and below the $259.3 million analysts had forecast. The company attributed the lower profit to a $166 million accrued legal provision related to a settlement with the New York attorney general.

Revenue surged to $698.1 million, up 96% YoY from $355.5 million, significantly surpassing analyst estimates of $202.7 million.

The company disclosed reaching an agreement with New York's attorney general to resolve claims concerning certain investments, trading, and public statements related to the LUNA digital asset from late 2020 to 2022. The undiscounted settlement amount is $200 million, payable between 2025 and 2028.

"While the settlement impacted our bottom line this quarter, we remain focused on our long-term growth strategy and continuing to build our position in the digital asset space," said Mike Novogratz, CEO of Galaxy Digital.

Galaxy Digital also reported progress on its proposed reorganization and domestication to become a Delaware-incorporated company, with plans for a subsequent Nasdaq listing. The company filed an amendment to its registration statement responding to SEC comments, which is currently under review.

This article first appeared in Investing.com

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (“Kalkine Media, we or us”), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary.
The content published on Kalkine Media also includes feeds sourced from third-party providers. Kalkine does not assert any ownership rights over the content provided by these third-party sources. The inclusion of such feeds on the Website is for informational purposes only. Kalkine does not guarantee the accuracy, completeness, or reliability of the content obtained from third-party feeds. Furthermore, Kalkine Media shall not be held liable for any errors, omissions, or inaccuracies in the content obtained from third-party feeds, nor for any damages or losses arising from the use of such content.
Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyrighted to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have made reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.
This disclaimer is subject to change without notice. Users are advised to review this disclaimer periodically for any updates or modifications.