Galaxy Digital Announces Material Realized Gain

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Galaxy Digital Holdings Ltd. (TSXV: GLXY; Frankfurt: 7LX) (“Galaxy Digital” or the “Company”) and Galaxy Digital Holdings LP (the “Partnership”) announce an update to Partnership’s material investment position.  As indicated in its recent filings, on April 18th the Partnership accepted a tender offer in the ordinary shares of Block.one.  On May 20, 2019, the transaction closed and the Partnership received $71.2 million for the tendered shares, representing a majority of the Company’s position and a 123% return on the realized investment. Following the transaction, the Partnership’s remaining ordinary shares in Block.one will no longer represent a material investment position.

“The acceptance of Block.one’s tender offer reflected a decision to rebalance the portfolio to maintain an appropriate level of diversification after the position increased due to its substantial outperformance relative to the remainder of the portfolio. We continue to work closely with Block.one as a key partner across a number of our business lines, including the Galaxy EOS VC Fund, which invests in companies building on the EOS.IO protocol, and remain excited about the EOS.IO protocol.” said Michael Novogratz, CEO and Founder of Galaxy Digital.

As previously disclosed, the Partnership considers a variety of quantitative and qualitative factors in determining if any one investment is considered a material investment position as of each report date. Factors considered include, but are not limited to, the proportion of each investment to total assets; whether any one investment is materially larger than other portfolio investments; the concentration of the portfolio and any associated risks; the liquidity of each investment, or lack thereof; the impact of such an investment on the Partnership’s assets or operations; and the existence or absence of other factors that could cause one to conclude that the investment was significant to the Partnership notwithstanding its absolute size.

 

SOURCE Galaxy Digital Holdings Ltd.