Mr. Michael Novogratz reports

GALAXY ANNOUNCES FIRST QUARTER 2023 FINANCIAL RESULTS

Galaxy Digital Holdings Ltd. has released financial results for the three months ended March 31, 2023, for both itself and Galaxy Digital Holdings LP (the partnership, or GDH LP). All figures are in United States dollars unless otherwise noted.

"Galaxy's globally diversified platform and longstanding commitment to promoting the responsible adoption of digital assets is resonating with clients more than ever before. Our first quarter 2023 results are a validation of the investments we have made in our business to drive long-term growth and lead the evolution of the digital asset industry," said Michael Novogratz, founder and chief executive officer of Galaxy.

"The power of our business model is most evident in times of uncertainty, and clients are relying on Galaxy for our comprehensive global markets capabilities, leading asset management platform and unique digital infrastructure solutions to help them meet their long-term goals. We enter the second quarter of 2023 extremely well positioned to grow our market share and build deeper relationships with our clients and partners."

Select financial highlights for the first quarter 2023:

• Net income was $134-million for the first quarter, compared with a net loss of $288-million for the quarter ended Dec. 31, 2022:
  • Income before tax and non-cash equity compensation was $163-million in the first quarter.
  • The income was primarily attributable to gains on digital assets and unrealized gains on investments.
  • Gains on derivatives of $55-million in the quarter were driven by the company's quantitative and client-facing derivative trading desks.
• Partners' capital (equity) was $1.6-billion at the end of the quarter, up 11 per cent from $1.4-billion for the quarter ended Dec. 31, 2022. The company maintained a strong liquidity position of $814-million as of March 31, 2023:
  • Liquidity included $400-million in cash and $414-million in net digital assets, including $209-million of non-algorithmic stablecoins.
  • Cash and stablecoin balances were $214-million lower from year-end, primarily due to a larger amount of outstanding fiat loans, the payment for the GK8 acquisition and investments.

Resegmented financial reporting overview

Beginning the first quarter, Galaxy resegmented its financial reporting into three complementary operating businesses: Galaxy global markets (GGM), Galaxy asset management (GAM) and Galaxy digital infrastructure solutions (GDIS). Investments made using balance sheet capital that were managed outside of the company's venture team are now captured in the applicable resegmented vertical. The primary changes made are as follows:

• Galaxy global markets consists of trading and investment banking, which were stand-alone businesses prior to the first quarter.
• Galaxy asset management consists of passive, active and venture investment strategies. The business now includes select venture investments that were historically captured as principal investments.
• Galaxy digital infrastructure solutions consists of proprietary and hosted bitcoin mining services, the newly acquired GK8 technology, and self-custody capabilities and validator services.

For more detail on these changes, please see page 3 of the partnership's first quarter 2023 management's discussion and analysis (MD&A).

Operating highlights for the first quarter 2023

Galaxy global markets (GGM):

• Trading reported $129.9-million of income within the quarter, a 257-per-cent increase quarter-over-quarter (QoQ), driven primarily by net gains on digital assets and derivatives:
  • Cumulative counterparty-facing trading operational net revenue within the quarter was approximately $38-million, up approximately 110 per cent QoQ, driven primarily by derivatives and over-the-counter trading.
  • Trading ended the quarter with more than 280 active counterparties. The business onboarded more than 30 new counterparties in the quarter, bringing the total count to over 960.
  • Counterparty trading volumes increased by approximately 85 per cent QoQ.
  • The value of Galaxy's counterparty loan book size was approximately $500-million, an over 15-per-cent increase QoQ.
  • Cumulative gross counterparty loan originations were approximately $300-million in the quarter.
• Investment banking reported $2.2-million of income within the quarter, a 9-per-cent increase QoQ:
  • Galaxy continues to execute against an active pipeline of mandates representing over $1-billion in potential transaction value.
  • Within the quarter, Galaxy advised Pantera, a leading blockchain asset management firm, on the sale of its stake in European digital assets exchange, Bitstamp, to Ripple Labs.

Galaxy asset management (GAM):

• Asset management reported $4.7-million of income within the quarter, a 49-per-cent decrease QoQ:
  • GAM reported preliminary assets under management (AUM) of approximately $2.4-billion, a 40-per-cent increase QoQ. The increase was primarily driven by the migration of $343-million of venture assets that were historically captured as principal investments into GAM, partially offset by net outflows from the company's passive strategies. AUM consisted of nearly $844-million in passive strategies, approximately $108-million in active strategies and approximately $1.4-billion in venture strategies.
  • Subsequent to quarter-end, GAM entered into a strategic alliance with DWS, one of the world's leading asset managers, with the aim of initially developing a comprehensive suite of exchange-traded products on certain digital assets in Europe.
  • GAM holds investments in more than 220 portfolio companies across its venture platform.

Galaxy digital infrastructure solutions (GDIS):

• Mining reported $10.2-million of income within the quarter, a 7-per-cent increase QoQ:
  • Galaxy ended the quarter with approximately three exahashes per second (EH/s) in hashrate under management (HUM), representing an over 100-per-cent increase QoQ. Approximately 30 per cent of the three EH/s of HUM came from self-mining operations. Galaxy remains on track to surpass four EH/s of HUM by the end of 2023.
  • As Galaxy has increased its mining capacity across its Helios and Diboll sites in Texas, the company increased the size of its power purchase agreement to protect Galaxy from rising power prices.
• Self-custody and validator solutions are focus areas in emerging blockchain infrastructure for Galaxy. Since the completion of the partnership's acquisition of GK8 on Feb. 21, 2023, GK8 has won four new clients to reach 11 total clients. This includes Galaxy, as it integrates the technology into GalaxyOne, as well as a traditional bank and a leading protocol foundation. GK8 has also seen a significant increase in its pipeline of potential enterprise clients since the close of the acquisition.

Corporate updates:

• United States listing: Galaxy continues to work on completing its proposed reorganization and domestication to become a Delaware-incorporated company and subsequently list on the Nasdaq, upon completion of continuing SEC (U.S. Securities and Exchange Commission) review and subject to stock exchange approval of such listing. On Feb. 9, 2023, Galaxy filed an amendment to its registration statement responding to SEC comments, which is under review.
• Share repurchase program: The company has received approval from its board of directors to commence a normal course issuer bid (NCIB), subject to Toronto Stock Exchange approval and other conditions. The bid is to purchase up to approximately 10 million ordinary shares (10 per cent of the company's public float) over a 12-month period. The company may use the program opportunistically at times when it believes that the current market price of its shares does not reflect their intrinsic value and that purchasing its own ordinary shares is consistent with the objective of creating long-term shareholder value.

Galaxy's financial highlights:

• As the only significant asset of Galaxy is its minority interest in GDH LP, its results are driven by the results of GDH LP. Galaxy accounts for its investment in this associate (GDH LP) using the equity method. The investment, initially recorded at cost, is increased or decreased to recognize Galaxy's share of the earnings and losses of GDH LP. As of March 31, 2023, a reversal of a previously recognized impairment assessment was required under International Financial Reporting Standards and Galaxy's minority interest in GDH LP was marked up based on the TSX quarter-end closing share price. An impairment expense reversal of $52.6-million was recognized during the quarter. The net comprehensive income of Galaxy was $91.6-million for the three months ended March 31, 2023.

Earnings conference call

An investor conference call will be held today, May 9, 2023, at 8:30 a.m. ET. A live webcast with the ability to ask questions will be available the company's website. The conference call can also be accessed by investors in the United States or Canada by dialling 1-844-746-0741 or 1-412-317-5107 (outside the U.S. and Canada). A replay of the webcast will be available and can be accessed in the same manner as the live webcast, on the company's investor relations website. Through June 9, 2023, the recording will also be available by dialling 1-844-512-2921 or 1-412-317-6671 (outside the U.S. and Canada) and using the passcode: 10177377.

About Galaxy Digital Holdings Ltd.

Galaxy is a digital asset and blockchain leader providing access to the growing digital economy. It serves a diversified client base, including institutions, start-ups and qualified individuals. Since 2018, Galaxy is building a holistic financial platform spanning three complementary operating businesses: global markets, asset management and digital infrastructure solutions. The company's offerings include, amongst others, trading, lending, strategic advisory services, institutional-grade investment solutions, proprietary bitcoin mining and hosting services, network validator services, and the development of enterprise custodial technology. The company is headquartered in New York, with global offices across North America, Europe and Asia.

This press release should be read in conjunction with (i) GDH LP's management discussion and analysis and consolidated financial statements for the three months ended March 31, 2023, and (ii) Galaxy's management discussion and analysis and consolidated financial statements for the three months ended March 31, 2023, which have been filed on SEDAR.

Reportable segments (unaudited)

Income and expenses by each reportable segment of GDH LP for the three months ended March 31, 2023, are as shown in the associated table.

Income and expenses by each reportable segment of GDH LP for the three months ended March 31, 2022, are as shown in the associated table.

We seek Safe Harbor.