Technology
Galaxy Announces Third Quarter 2024 Financial Results
Published
2 years agoon
By
Subsequent to quarter-end, Galaxy executed a non-binding term sheet with a U.S.-based hyperscaler to host high-performance computing at its Helios campus in West Texas.
NEW YORK, Nov. 7, 2024 /CNW/ – Galaxy Digital Holdings Ltd. (TSX: GLXY) (the “Company” or “GDH Ltd.”) today released financial results for the three months and nine months ended September 30, 2024, for both itself and Galaxy Digital Holdings LP (the “Partnership” or “GDH LP”). In this press release, a reference to “Galaxy”, “we”, “our” and similar words refer to GDH Ltd., its subsidiaries and affiliates including GDH LP, or any one of them, as the context requires.
Corporate and Business Updates
Financial Highlights: In the third quarter, Galaxy reported a net loss of $54 million, representing a significant narrowing of our net loss from the second quarter. We generated operating revenue growth of over 30% quarter-over-quarter (“QoQ”), despite industry spot trading volumes declining 15% and ether declining 24% in the quarter. For the nine months ended September 30, 2024, Galaxy reported net income of $191 million, driven by strong operating performance and positive digital asset markets. Galaxy’s equity capital was $2.1 billion as of September 30, 2024.
Helios: Subsequent to quarter-end, Galaxy executed a non-binding term sheet with a U.S.-based hyperscaler to host high-performance computing at its Helios campus in West Texas. The term sheet includes options to allocate all of Helios’ 800 megawatts of currently approved power capacity to HPC hosting and support. The consummation of the transaction is subject to execution of definitive documents, customary due diligence and approvals of the parties.
US Listing and Reorganization: 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 ongoing SEC review and subject to stock exchange, shareholder and applicable regulatory approvals of such transactions. On July 26, 2024, Galaxy filed an amendment to its registration statement responding to SEC comments, which is under review.
Select GDH LP Financial Metrics
Q3 2024
Q2 2024
Q/Q % Change
Q3 YTD
Equity Capital
$2,081M
$2,129M
(2) %
—
Liquidity
$1,506M
$1,312M
15 %
—
Cash & Net Stablecoins1
$475M
$409M
16 %
—
Net Digital Assets Excluding Stablecoins2
$562M
$485M
16 %
—
Spot Bitcoin and Ethereum ETFs
$469M
$418M
12 %
—
Net Income (loss)
($54M)
($177M)
N.M.3
$191M
Book Value Per Share in CAD4
$8.24 CAD
$8.45 CAD
(2) %
—
Note: Throughout this document, totals may not sum due to rounding. Quarter-over-quarter and year-over-year percentage change calculations are based on unrounded results.
(1)
Includes Cash Equivalents.
(2)
Refer to page 16 of this release for a breakout of our net digital assets position; Excludes non-current net digital assets.
(3)
Abbreviation for “Not Meaningful”.
(4)
Calculated as equity capital divided by outstanding Class A and Class B Units multiplied by the end of period foreign exchange rate.
Galaxy Global Markets
Galaxy Global Markets (“GGM”) offers institutional-grade expertise and access to a broad range of digital asset products, including digital asset spot and derivatives trading, financing, M&A advisory, and equity and debt capital markets services. GGM operates in two discrete business units – Trading and Investment Banking.
Trading reported counterparty trading revenue of $54 million in the third quarter, a 117% increase quarter-over-quarter (“QoQ”), despite a 20% decrease in trading volumes, primarily driven by increased revenue from derivatives and lending activity. Galaxy’s average loan book size expanded to $863 million, a 23% increase QoQ driven by increased demand from both new and existing counterparties, who relied on our lending desk to provide them with margin-based financing. Galaxy continues to onboard new counterparties, including large traditional asset managers and hedge funds, and ended the third quarter with 1,280 total trading counterparties.
Investment Banking successfully closed one deal subsequent to quarter-end, serving as the exclusive financial advisor to an existing client on a small buyside acquisition. Galaxy is executing against a pipeline of mandates representing $2.4 billion in potential deal value.
Key Performance Indicators
Q3 2024
Q2 2024
Q/Q % Change
Q3 YTD
Counterparty Trading Revenue
$54M
$25M
117 %
$146M
Loan Book Size (Average)
$863M
$699M
23 %
$742M
Total Trading Counterparties
1,280
1,212
6 %
—
Active Trading Counterparties
296
294
1 %
—
Investment Banking Deals Closed
0
2
(100) %
3
Pipeline
21
19
11 %
—
Deal Value of Pipeline
$2.4B
$2.1B
14 %
—
____
KEY TERMS
Counterparty Trading Revenue: revenue from counterparty-facing activities from our Derivatives, Credit, Over-the-Counter Trading, and Quantitative Trading businesses, net of associated funding charges.
Loan Book Size (Average): average market value of all open loans, unfunded arrangements to finance delayed trading/settlement (for example over weekends), and uncommitted credit facilities in the period. As of September 30, 2024, unfunded, uncommitted facilities accounted for approximately $156M of total Loan Book Size (Average).
Active Trading Counterparties: counterparties with whom we have traded within the past 12 months and who are still onboarded with Galaxy’s trading business.
Pipeline: the number of open engagements and transactions the Investment Banking team has in market.
Deal Value of Pipeline: the theoretical aggregate deal value associated with the Investment Banking pipeline.
Galaxy Asset Management
Galaxy Asset Management (“GAM”) provides investors access to the digital asset ecosystem via a diverse suite of institutional-grade investment vehicles that span passive, active, and venture strategies.
GAM management and performance fees were $8.1 million in the third quarter, representing a 44% decrease QoQ, primarily driven by the nearing completion of an opportunistic mandate to unwind portfolios on behalf of the FTX estate. GAM reported assets under management (“AUM”) of approximately $4.6 billion, a 2% increase QoQ, driven primarily by net inflows into GAM’s passive and active ETF strategies, which were offset by net market depreciation. In the quarter, GAM, in partnership with State Street Global Advisors, announced the launch of three actively managed digital asset and disruptive technology focused ETFs that offer investors exposure to digital asset and disruptive technology equities, spot cryptocurrencies, derivatives, cash, and cash-like instruments (tickers: DECO, HECO, TEKX).
Key Performance Indicators
Q3 2024
Q2 2024
Q/Q % Change
Q3 YTD
Management and Performance Fees
$8.1M
$14.5M
(44) %
$40.5M
Total AUM1
$4,608M
$4,503M
2 %
—
Passive AUM
$2,466M
$2,392M
3 %
—
Active AUM2
$647M
$629M
3 %
—
Venture AUM
$1,495M
$1,482M
1 %
—
(1) In Galaxy’s monthly AUM disclosures, the “funds” line item consists of AUM held in GAM’s Passive, Active, and Venture funds, excluding opportunistic assets. Total AUM for Q2 2024 was updated from what was previously reported as AUM for quarterly close vehicles are reported as of the most recent information available for the applicable period.
(2) Includes opportunistic AUM. “Opportunistic” AUM are near-term or mid-term engagements to unwind portfolios managed by GAM. Opportunistic AUM was $429M as of September 30, 2024 and $520M as of June 30, 2024.
____
KEY TERMS
Assets Under Management: all figures are unaudited. AUM is inclusive of sub-advised funds, committed capital closed-end vehicles, seed investments by affiliates, affiliated and unaffiliated separately managed accounts, engagements to unwind portfolios, and fund of fund products. Changes in AUM are generally the result of performance, contributions, withdrawals, liquidations and opportunistic mandate wins.
AUM for committed capital closed-end vehicles that have completed their investment period is reported as NAV (Net Asset Value) plus unfunded commitment.AUM for quarterly close vehicles is reported as of the most recent quarter available for the applicable period.AUM for affiliated separately managed accounts is reported as NAV as of the most recently available estimate for the applicable period.
Passive Strategies: single- and multi-asset private funds, as well as a suite of regulated spot digital asset exchange-traded funds offered through partnerships with asset managers globally.
Active Strategies: Galaxy’s Liquid Crypto Fund, the management of certain opportunistic mandates, and a suite of actively managed and regulated digital asset and disruptive technology exchange-traded funds offered through a partnership with State Street Global Advisors.
Venture Strategies: organized around two investment themes: Interactive Ventures and Crypto Ventures. Galaxy Interactive invests at the intersection of content, technology, and social commerce, managing client capital across three funds. GAM’s Crypto Ventures sleeve includes Galaxy’s inaugural crypto venture fund, which is focused on investing in early-stage companies across crypto protocols, software infrastructure, and financialized applications, as well as two global, multi-manager venture funds and a subset of Galaxy’s balance sheet venture investments.
Galaxy Digital Infrastructure Solutions
Galaxy Digital Infrastructure Solutions (“GDIS”) consists of proprietary and hosted bitcoin mining services, GK8 self-custody technology solutions, and blockchain infrastructure.
Subsequent to quarter-end, Galaxy executed a non-binding term sheet with a U.S.-based hyperscaler to host high-performance computing at its Helios campus in West Texas. The term sheet includes options to allocate all of Helios’ 800 megawatts of currently approved power capacity to HPC hosting and support. The consummation of the transaction is subject to execution of definitive documents, customary due diligence and approvals of the parties.
Mining
Mining revenue was $18.5 million for the third quarter, relative to expenses, net of curtailment credits, of $10.0 million, resulting in a 46% direct mining profit margin. Mining revenue and cost to mine were impacted by the Bitcoin halving, elevated mining difficulty and seasonal curtailment. Galaxy initiated fiber construction at Helios and, beyond the current approved capacity of 800MW, expects approval on a portion of the 1.7 gigawatts currently under study in the first half of 2025.
Key Performance Indicators
Q3 2024
Q2 2024
Q/Q % Change
Q3 YTD
Mining Revenue
$18.5M
$24.1M
(23) %
$72.8M
Proprietary Mining Revenue
$11.4M
$16.3M
(30) %
$47.9M
Hosted Revenue
$7.0M
$7.8M
(10) %
$24.9M
Total Hashrate Under Management
6.2 EH/s
5.6 EH/s
11 %
—
Proprietary Mining Hashrate
3.5 EH/s
2.9 EH/s
21 %
—
Hosted Mining Hashrate
2.7 EH/s
2.6 EH/s
4 %
—
Number of Proprietary BTC Mined
176
242
(27) %
790
Average Marginal Cost to Mine
<$38.0K
<$22.5K
N.M.
<$23.0K
Blockchain Infrastructure and GK8
Blockchain Infrastructure and GK8 continue to build and invest in the technology that powers the digital assets ecosystem. Blockchain Infrastructure expanded its Assets Under Stake by 58% QoQ to $3.4 billion as of September 30th, with Galaxy maintaining its position as one of the largest validators globally on the Solana network. Blockchain rewards, net of staking costs, were $10.7 million in the third quarter, up 26% QoQ. GK8 added one new client in the quarter.
Key Performance Indicators
Q3 2024
Q2 2024
Q/Q % Change
Q3 YTD
Assets Under Stake
$3,394M
$2,144M
58 %
$3,394M
GK8 Total Client Count
23
22
5 %
—
____
KEY TERMS
Hashrate Under Management: the total combined hashrate of active proprietary and hosted mining capacity managed by Galaxy.
Proprietary Mining Hashrate: the hashrate attributed to Galaxy owned and operated mining machines.
Hosted Mining Hashrate: the hashrate attributed to third-party machines operated by Galaxy for a client.
Number of Proprietary BTC Mined: the total amount of bitcoin mined from proprietary mining operations.
Average Marginal Cost to Mine: the average marginal cost of production for each bitcoin generated during the period. The calculation excludes depreciation, mark-to-market on power contracts, and corporate overhead.
Assets Under Stake: all figures are unaudited. AUS reflects the total notional value of assets bonded to Galaxy validators, based on prices as of the end of the specified period. This includes certain Galaxy balance sheet assets, Galaxy affiliate assets, and third-party assets.
GK8 Total Client Count: the total number of clients contracted to use GK8’s technology solutions.
Summary of Operating Expenses
Operating expenses
Q3 2024
Q2 2024
Q/Q % Change
Q3 YTD
Compensation and compensation related
$40M
$43M
(7) %
$125M
Equity based compensation
$13M
$12M
8 %
$42M
General and administrative
$48M
$45M
7 %
$143M
Mining costs
$10M
$10M
— %
$36M
Trading, commission and custody expenses
$6M
$6M
— %
$19M
Technology
$8M
$7M
14 %
$21M
Depreciation and amortization
$16M
$14M
14 %
$40M
Other
$8M
$9M
(11) %
$27M
Professional fees
$11M
$14M
(21) %
$38M
Staking costs
$39M
$30M
30 %
$70M
Interest
$29M
$21M
38 %
$70M
Notes interest expense
$7M
$7M
— %
$21M
Note: Quarter-over-quarter percentage change calculations are based on unrounded results.
Overview of Third Quarter Operating Expenses:
Compensation and compensation related expenses of $40 million decreased by approximately $3 million QoQ, primarily driven by adjustments to cash bonus accrual.Equity based compensation of $13 million was roughly flat QoQ.General and administrative expenses increased by approximately $3 million from the second quarter of 2024, driven primarily by $2 million of higher depreciation and amortization costs, reflecting the additional depreciation from new mining machines and electrical infrastructure that were energized during the prior quarter.Professional fees of $11 million decreased by approximately $3 million QoQ, primarily driven by $2 million of lower legal expense.Staking costs increased by approximately $9 million QoQ, reflecting the continued expansion of Galaxy’s validation services including the acquisition of the assets of CryptoManufaktur in July 2024. Despite the increase in staking costs, Galaxy’s blockchain rewards, net of staking costs, increased by 26% QoQ.Interest expense increased approximately $8 million QoQ, reflecting our ability to source non-dilutive wholesale financing to help fund our counterparty trading business, where our revenue increased by approximately $29 million QoQ.
Net Digital Assets Position Summary
Net digital assets includes all digital assets categorized as assets, less all digital assets categorized as liabilities on the statement of financial position and is included in the Company’s liquidity measure. Net digital assets as of September 30, 2024 is as follows:
(1) Includes associated tokens such as wBTC. In addition to digital assets, net, the Partnership also held interests in investment vehicles designed to hold BTC, including bitcoin futures ETFs, Galaxy sponsored BTC funds, Mt. Gox Investment Fund LP, and Xapo Holdings Limited, net of associated investment liabilities.
(2) Includes associated tokens such as wETH and stETH. In addition to digital assets, net, the Partnership also held interests in investment vehicles designed to hold ETH, including spot ETFs and Galaxy sponsored ETH funds.
(3) Includes $8.2 million net SOL and $45.9 million net TIA digital assets, net. In addition to digital assets, net, the Partnership also held interests in investment vehicles designed to hold digital assets, including the Galaxy sponsored Galaxy Digital Crypto Vol Fund LLC (includes $93.0 million SOL and $23.1 million of AVAX) and Ripple Lab Inc.
GDH Ltd.’s Financial Highlights
As the only significant asset of GDH Ltd. is its minority interest in GDH LP, its results are driven by the results of GDH LP. GDH Ltd. 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 GDH Ltd.’s share of the earnings and losses of GDH LP. The net comprehensive income (loss) of GDH Ltd. was $(16.4) million for the three months ended September 30, 2024 and $44.1 million for the nine months ended September 30, 2024.
Earnings Conference Call
An investor conference call will be held today, November 7, 2024, at 8:30 AM Eastern Time. A live webcast with the ability to ask questions will be available at: https://investor.galaxy.com/. The conference call can also be accessed by investors in the United States or Canada by dialing 1-800-715-9871, or 1-646-307-1963 (outside the U.S. and Canada) using the Conference ID: 9649375. 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.
About Galaxy Digital Holdings Ltd. (TSX: GLXY) (“GDH Ltd.”) and Galaxy Digital Holdings LP (“GDH LP”)
Galaxy (TSX: GLXY) is a digital asset and blockchain leader providing access to the growing digital economy. We serve a diversified client base, including institutions, startups, and qualified individuals. Since 2018, Galaxy has been building a holistic financial platform spanning three complementary operating businesses: Global Markets, Asset Management, and Digital Infrastructure Solutions. Our 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 self-custodial technology. The company is headquartered in New York City, with global offices across North America, Europe, and Asia. Additional information about Galaxy’s businesses and products is available on www.galaxy.com.
This press release should be read in conjunction with (i) GDH LP’s Management Discussion and Analysis and Consolidated Financial Statements for the three and nine months ended September 30, 2024 and (ii) GDH Ltd.’s Management Discussion and Analysis and Consolidated Financial Statements for the three and nine months ended September 30, 2024 (together, the “Consolidated Financial Statements” and “MD&As”), which have been filed on SEDAR at www.sedarplus.ca.
Disclaimers and Additional Information
The TSX has not approved or disapproved of the information contained herein. The Ontario Securities Commission has not passed upon the merits of the disclosure record of Galaxy.
This press release is not an offer to buy or sell, nor is it a solicitation of an offer to buy or sell, interests in any Galaxy sponsored fund or any advisory services or any other security or to participate in any advisory services or trading strategy. If any offer and sale of securities in a Galaxy sponsored fund is made, it will be pursuant to the confidential offering memorandum of the fund (the Offering Memorandum or fund prospectus (“Prospectus”)). Any decision to make an investment in any Galaxy sponsored fund should be made after reviewing such Offering Memorandum or Prospectus, conducting such investigations as the investor deems necessary and consulting the investor’s own investment, legal, accounting and tax advisors in order to make an independent determination of the suitability and consequences of an investment.
The finalization of the transactions contemplated by the non-binding term sheet with Helios are contingent upon the successful negotiation and execution of definitive agreements, satisfactory completion of due diligence, and receipt of all necessary consents and approvals. There can be no assurance that a definitive agreement will be entered into or that the proposed transaction will be consummated.
No Offer or Solicitation
As previously announced, the Company intends to complete its proposed reorganization and domestication to become a Delaware-based company, and subsequently list on the Nasdaq, upon completion of the SEC’s ongoing review and subject to stock exchange approval of such listing. The proposed reorganization and domestication is subject to approval by shareholders the Company and applicable regulatory authorities, including the Toronto Stock Exchange. In connection with the proposed reorganization and domestication, the Company has filed a registration statement, including a management information circular/prospectus, with the SEC, which has not yet become effective. SHAREHOLDERS ARE ADVISED TO READ THE FINAL VERSIONS OF SUCH DOCUMENTS, WHEN AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Shareholders may obtain a free copy of the registration statement (including the management information circular/prospectus) and any other relevant documents from the SEC’s website at http://www.sec.gov. Copies of the final versions of such documents can also be obtained, when available, without charge, via Galaxy’s investor relations website: https://investor.galaxy.com/ The Company anticipates holding a shareholder meeting to seek approval following the effectiveness of the registration statement, and further details will be included in the management information circular to be mailed to shareholders and posted on the Company’s SEDAR profile at www.sedarplus.ca.
This document shall not constitute a solicitation of a proxy, consent or authorization with respect to any securities or in respect of the domestication or any of the other proposed reorganization transactions. This document does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote of approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.
CAUTION ABOUT FORWARD-LOOKING STATEMENTS
The information in this document may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), Section 21E of the Securities Exchange Act of 1934, as amended and “forward-looking information” under Canadian securities laws (collectively, “forward-looking statements”). Our forward-looking statements include, but are not limited to, statements regarding our or our management team’s expectations, hopes, beliefs, intentions or strategies regarding the future. Statements that are not historical facts, including statements about Galaxy’s business pipelines for banking, expectations for increased load capacity at the Helios site, mining goals and our ability to capture adjacent opportunities, including in high-performance computing and the Helios transaction, focus on self-custody and validator solutions and our commitment to the future of decentralized networks and the pending domestication and the related transactions (the “transactions”), and the parties, perspectives and expectations, are forward-looking statements. In addition, any statements that refer to estimates, projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. The forward-looking statements contained in this document are based on our current expectations and beliefs concerning future developments and their potential effects on us taking into account information currently available to us. There can be no assurance that future developments affecting us will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks include, but are not limited to: (1) the inability to complete the proposed domestication and reorganization transactions, due to the failure to obtain shareholder and stock exchange approvals, or otherwise; (2) changes to the proposed structure of the transactions that may be required or appropriate as a result of applicable laws or regulations or as a condition to obtaining shareholder or stock exchange approval of the transactions; (3) the ability to meet and maintain listing standards following the consummation of the transactions; (4) the risk that the transactions disrupt current plans and operations; (5) costs related to the transactions, operations and strategy; (6) changes in applicable laws or regulations; (7) the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors; (8) changes or events that impact the cryptocurrency industry, including potential regulation, that are out of our control; (9) the risk that our business will not grow in line with our expectations or continue on its current trajectory; (10) the possibility that our addressable market is smaller than we have anticipated and/or that we may not gain share of it; and (11) the possibility that there is a disruption in mining impacting our ability to achieve expected results or change in power dynamics impacting our results or our ability to increase load capacity, (12) any delay or failure to consummate the business mandates or achieve its pipeline goals in banking and Gk8, (13) liquidity or economic conditions impacting our business, (14) regulatory concerns, technological challenges, cyber incidents or exploits on decentralized networks (15) the failure to enter into definitive agreements or otherwise complete the anticipated transactions with respect to the non-binding term sheet for Helios, (16) those other risks contained in the Annual Information Form for the year ended December 31, 2023 available on the Company’s profile at www.sedarplus.ca and its Management’s Discussion and Analysis, filed on November 7, 2024. Factors that could cause actual results to differ materially from those described in such forward-looking statements include, but are not limited to, a decline in the digital asset market or general economic conditions; the possibility that our addressable market is smaller than we have anticipated and/or that we may not gain share of the stated addressable market; the failure or delay in the adoption of digital assets and the blockchain ecosystem; a delay or failure in developing infrastructure for our business or our businesses achieving our banking and Gk8 mandates; delays or other challenges in the mining business related to hosting, power or our mining infrastructure, or our ability to capture adjacent opportunities; any challenges faced with respect to decentralized networks, considerations with respect to liquidity and capital planning and changes in applicable law or regulation and adverse regulatory developments. Should one or more of these risks or uncertainties materialize, they could cause our actual results to differ materially from the forward-looking statements. We are not undertaking any obligation to update or revise any forward looking statements whether as a result of new information, future events or otherwise. You should not take any statement regarding past trends or activities as a representation that the trends or activities will continue in the future. Accordingly, you should not put undue reliance on these statements.
©Copyright Galaxy Digital 2024. All rights reserved.
Galaxy Digital Holdings LP’s Consolidated Statements of Financial Position (unaudited)
(in thousands)
September 30, 2024
December 31, 2023
Assets
Current assets
Cash and cash equivalent
$ 271,977
$ 316,610
Digital assets
2,490,335
1,078,587
Receivable for digital asset trades
986
41,339
Digital assets loans receivable, net of allowance
305,276
104,504
Digital assets receivables
43,118
14,686
Investments (includes $57.0 million and $0 of equity method
investments, respectively)
594,564
—
Assets posted as collateral
227,050
318,195
Receivables
23,629
15,983
Derivative assets
141,961
173,209
Prepaid expenses and other assets
31,078
37,910
Loans receivable, net of allowance
398,510
377,105
Due from related party
7,420
5,007
Total current assets
4,535,904
2,483,135
Digital assets receivables
7,015
6,174
Investments (includes $393.7 million and $290.4 million of equity method
investments, respectively)
704,542
735,103
Restricted digital assets
26,989
41,356
Digital asset loans receivable, non-current
18,376
—
Loans receivable, non-current
—
10,259
Property and equipment
259,899
259,965
Other non-current assets
115,279
95,000
Goodwill
49,450
44,257
Total non-current assets
1,181,550
1,192,114
Total assets
$ 5,717,454
$ 3,675,249
Liabilities and equity
Current liabilities
Investments sold short
160,146
25,295
Derivative liabilities
112,136
160,642
Accounts payable and accrued liabilities
81,884
69,212
Payable to customers
96,864
3,503
Taxes payable
5,176
25,936
Payable for digital asset trades
23,269
4,176
Digital assets loans payable
1,163,768
398,277
Loans payable
248,818
93,069
Collateral payable
1,154,471
581,362
Due to related party
92,722
67,953
Lease liability
3,772
3,860
Total current liabilities
3,143,026
1,433,285
Notes payable
434,306
408,053
Deferred tax liability
51,841
33,894
Lease liability
7,524
10,236
Total non-current liabilities
493,671
452,183
Total liabilities
3,636,697
1,885,468
Equity
Partners’ capital
2,080,757
1,789,781
Total equity
2,080,757
1,789,781
Total liabilities and equity
$ 5,717,454
$ 3,675,249
Galaxy Digital Holdings LP’s Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) (unaudited)
(in thousands)
Three months ended
Nine months ended
September 30,
2024
September 30,
2023
September 30,
2024
September 30,
2023
Income
Fee revenue
$ 20,693
$ 9,525
$ 75,303
$ 34,207
Net realized gain (loss) on digital assets
(53,623)
(67,617)
55,038
18,681
Net realized gain (loss) on investments
73,819
22,355
(86,189)
68,711
Lending and staking revenue
73,673
14,005
157,984
35,323
Net derivative gain
16,340
15,737
205,302
80,462
Revenue from proprietary mining
11,435
8,848
47,875
20,672
Other income
686
127
1,159
333
143,023
2,980
456,472
258,389
Operating expenses
Compensation and compensation related
39,673
30,995
125,037
96,247
Equity based compensation
12,517
18,769
42,107
57,694
General and administrative
47,678
30,461
142,732
60,108
Mining costs
10,013
3,886
35,734
9,840
Trading and commission expense
5,990
2,811
18,912
6,097
Technology
7,576
4,948
21,424
13,942
Depreciation and amortization
15,552
8,130
40,484
19,895
Impairment reversal
—
—
—
(12,489)
Other
8,547
10,686
26,178
22,823
Professional fees
10,927
7,911
38,247
26,514
Staking costs
39,330
287
69,538
826
Interest
28,935
5,797
69,710
15,670
Notes interest expense
7,105
6,851
21,121
20,372
(186,165)
(101,071)
(508,492)
(277,431)
Other
Net unrealized gain (loss) on digital assets
44,334
26,196
184,047
24,451
Net unrealized gain (loss) on investments
(60,515)
(25,380)
61,023
(8,517)
Net loss on notes payable – derivative
(2,858)
1,082
(15,144)
(1,022)
Foreign currency gain (loss)
95
(768)
1,448
(843)
(18,944)
1,130
231,374
14,069
Income before income taxes
(62,086)
(96,961)
179,354
(4,973)
Income taxes expense (benefit)
(8,446)
(3,240)
(11,661)
586
Net income for the period
$ (53,640)
$ (93,721)
$ 191,015
$ (5,559)
Other comprehensive income
Foreign currency translation adjustment
(118)
$ 419
972
3
Comprehensive income for the period
$ (53,758)
$ (93,302)
$ 191,987
$ (5,556)
Three months ended
Nine months ended
September 30,
2024
September 30,
2023
September 30,
2024
September 30,
2023
GDH LP Net income (loss) per unit:
Basic
$ (0.16)
$ (0.29)
$ 0.57
$ (0.02)
Diluted
(0.16)
(0.29)
0.54
(0.02)
Weighted average units:
Basic
341,208,229
322,656,584
334,883,094
321,154,802
Diluted
341,208,229
322,656,584
352,126,364
323,154,802
Reportable segments (unaudited)
Income and expenses by each reportable segment of GDH LP for the three months ended September 30, 2024 are as follows:
(in thousands)
Global
Markets
Asset
Management
Digital
Infrastructure
Solutions
Corporate
and Other
Totals
Income (loss)
Fee revenue(1)
Mining hosting fees
$ —
$ —
$ 7,024
$ —
$ 7,024
Licensing fees
—
1
801
(121)
681
Management and performance fees
5,526
8,094
—
(708)
12,912
Advisory fees
76
—
—
—
76
Total fee revenue
5,602
8,095
7,825
(829)
20,693
Lending and staking revenue
Lending income
22,429
95
1,111
7
23,642
Blockchain rewards
4,001
1,859
49,432
(5,261)
50,031
Total lending and staking revenue
26,430
1,954
50,543
(5,254)
73,673
Net realized gain on digital assets
(55,660)
2,037
—
—
(53,623)
Net realized gain (loss) on investments
72,503
(1,107)
2,423
—
73,819
Net derivative gain
16,414
—
(74)
—
16,340
Revenue from proprietary mining
—
—
11,435
—
11,435
Other income
654
27
5
—
686
Total revenues and gain (loss) from operations
65,943
11,006
72,157
(6,083)
143,023
Operating expenses
81,269
11,025
82,189
11,682
186,165
Net unrealized gain on digital assets
18,257
25,916
161
—
44,334
Net unrealized gain (loss) on investments
(35,029)
(24,701)
(785)
—
(60,515)
Net loss on notes payable – derivative
—
—
—
(2,858)
(2,858)
Foreign currency loss
95
—
—
—
95
(16,677)
1,215
(624)
(2,858)
(18,944)
Income (loss) before income taxes
$ (32,003)
$ 1,196
$ (10,656)
$ (20,623)
$ (62,086)
Income tax expense
—
—
—
(8,446)
(8,446)
Net income (loss)
$ (32,003)
$ 1,196
$ (10,656)
$ (12,177)
$ (53,640)
Foreign currency translation adjustment
—
—
—
(118)
(118)
Comprehensive income (loss)
$ (32,003)
$ 1,196
$ (10,656)
$ (12,295)
$ (53,758)
(1)Asset Management fee revenue includes management fees generated off the Partnership’s balance sheet venture investments. Licensing fees are attributable to GK8, and include license fees paid by the Partnership for the use of GK8’s technology. All intercompany transactions are eliminated in the Corporate & Other segment.
Income and expenses by each reportable segment of GDH LP for the nine months ended September 30, 2024 are as follows:
(in thousands)
Global
Markets
Asset
Management
Digital
Infrastructure
Solutions
Corporate
and Other(1)
Totals
Income (loss)
Fee revenue (1)
Mining hosting fees
$ —
$ —
$ 24,940
$ —
24,940
Licensing fees
1
1
2,219
(360)
1,861
Management and performance fees
9,220
40,466
—
(2,190)
47,496
Advisory fees
1,006
—
—
—
1,006
Total fee revenue
10,227
40,467
27,159
(2,550)
75,303
Lending and staking revenue
Lending income
55,185
101
1,112
19
56,417
Blockchain rewards
9,663
12,904
93,008
(14,008)
101,567
Total lending and staking revenue
64,848
13,005
94,120
(13,989)
157,984
Net realized gain on digital assets
35,838
18,404
796
—
55,038
Net realized gain (loss) on investments
(100,820)
12,208
2,423
—
(86,189)
Net derivative gain
204,509
—
793
—
205,302
Revenue from proprietary mining
—
—
47,875
—
47,875
Other income
805
60
294
—
1,159
215,407
84,144
173,460
(16,539)
456,472
Operating expenses
214,302
40,610
192,299
61,281
508,492
Net unrealized gain on digital assets
202,839
(15,442)
(3,350)
—
184,047
Net unrealized gain (loss) on investments
63,451
(1,593)
(835)
—
61,023
Net loss on notes payable – derivative
—
—
—
(15,144)
(15,144)
Foreign currency loss
1,448
—
—
—
1,448
267,738
(17,035)
(4,185)
(15,144)
231,374
Income (loss) before income taxes
$ 268,843
$ 26,499
$ (23,024)
$ (92,964)
$ 179,354
Income tax expense
—
—
—
(11,661)
(11,661)
Net income (loss)
$ 268,843
$ 26,499
$ (23,024)
$ (81,303)
$ 191,015
Foreign currency translation adjustment
—
—
—
972
972
Comprehensive income (loss)
$ 268,843
$ 26,499
$ (23,024)
$ (80,331)
$ 191,987
(1)Asset Management fee revenue includes management fees generated off the Partnership’s balance sheet venture investments. Licensing fees are attributable to GK8, and include license fees paid by the Partnership for the use of GK8’s technology. All intercompany transactions are eliminated in the Corporate & Other segment.
Income and expenses by each reportable segment of GDH LP for the three months ended September 30, 2023 are as follows:
(in thousands)
Global
Markets
Asset
Management
Digital
Infrastructure
Solutions
Corporate
and Other
Totals
Income (loss)
Fee revenue (1)
Mining hosting fees
—
—
5,173
—
$ 5,173
Licensing fees
—
—
416
(90)
326
Management and performance fees
—
4,686
—
(711)
3,975
Advisory fees
51
—
—
—
51
Other fee revenues
—
—
—
—
—
Total fee revenue
51
4,686
5,589
(801)
9,525
Lending and staking revenue
Lending income
13,431
7
—
—
13,438
Blockchain rewards
390
177
—
—
567
Total lending and staking revenue
13,821
184
—
—
14,005
Net realized gain on digital assets
(67,232)
(385)
—
—
(67,617)
Net realized gain (loss) on investments
22,001
354
—
—
22,355
Net derivative gain
15,667
—
70
—
15,737
Revenue from proprietary mining
—
—
8,848
—
8,848
Other income (expense)
75
32
199
(179)
127
Total revenues and gain (loss) from operations
(15,617)
4,871
14,706
(980)
2,980
Operating expenses
43,510
12,131
21,933
23,497
101,071
Net unrealized gain (loss) on digital assets
26,919
(723)
—
—
26,196
Net unrealized gain on investments
(4,052)
(20,949)
(379)
—
(25,380)
Net loss on notes payable – derivative
—
—
—
1,082
1,082
Foreign currency loss
(768)
—
—
—
(768)
22,099
(21,672)
(379)
1,082
1,130
Income (loss) before income taxes
$ (37,028)
$ (28,932)
$ (7,606)
$ (23,395)
$ (96,961)
Income tax expense
—
—
—
(3,240)
(3,240)
Net income (loss)
$ (37,028)
$ (28,932)
$ (7,606)
$ (20,155)
$ (93,721)
Foreign currency translation adjustment
—
—
—
419
419
Comprehensive income (loss)
$ (37,028)
$ (28,932)
$ (7,606)
$ (19,736)
$ (93,302)
(1)Asset Management fee revenue includes management fees generated off the Partnership’s balance sheet venture investments, which are eliminated in the Corporate & Other segment.
Income and expenses by each reportable segment of GDH LP for the nine months ended September 30, 2023 are as follows:
(in thousands)
Global
Markets
Asset
Management
Digital
Infrastructure
Solutions
Corporate
and Other
Totals
Income (loss)
Fee revenue (1)
Mining hosting fees
$ —
$ —
$ 17,990
$ —
$ 17,990
Licensing fees
—
—
1,234
(118)
1,116
Management and performance fees
—
13,833
—
(2,093)
11,740
Advisory fees
2,316
—
—
—
2,316
Other fee revenues
(54)
—
1,099
—
1,045
Total fee revenue
2,262
13,833
20,323
(2,211)
34,207
Lending and staking revenue
Lending income
32,509
24
—
—
32,533
Blockchain rewards
1,344
1,446
—
—
2,790
Total lending and staking revenue
33,853
1,470
—
—
35,323
Net realized gain on digital assets
14,261
4,420
—
—
18,681
Net realized gain (loss) on investments
46,100
22,611
—
—
68,711
Net derivative gain
78,985
1,542
(65)
—
80,462
Revenue from proprietary mining
—
—
20,672
—
20,672
Other income (expense)
210
(131)
254
—
333
Total revenues and gain (loss) from operations
175,671
43,745
41,184
(2,211)
258,389
Operating expenses
126,613
42,109
38,995
69,714
277,431
Net unrealized gain (loss) on digital assets
25,476
(1,025)
—
—
24,451
Net unrealized gain on investments
13,079
(27,868)
6,272
—
(8,517)
Net loss on notes payable – derivative
—
—
—
(1,022)
(1,022)
Foreign currency loss
(843)
—
—
—
(843)
37,712
(28,893)
6,272
(1,022)
14,069
Income (loss) before income taxes
$ 86,770
$ (27,257)
$ 8,461
$ (72,947)
$ (4,973)
Income tax expense
—
—
—
586
586
Net income (loss)
$ 86,770
$ (27,257)
$ 8,461
$ (73,533)
$ (5,559)
Foreign currency translation adjustment
—
—
—
3
3
Comprehensive income (loss)
$ 86,770
$ (27,257)
$ 8,461
$ (73,530)
$ (5,556)
(1)Asset Management fee revenue includes management fees generated off the Partnership’s balance sheet venture investments, which are eliminated in the Corporate & Other segment.
Assets and liabilities by reportable segment of GDH LP as of September 30, 2024 are as follows:
(in thousands)
Global
Markets
Asset
Management
Digital
Infrastructure
Solutions
Corporate and
Other
Totals
Total assets
$ 4,610,799
$ 619,779
$ 348,283
$ 138,593
$ 5,717,454
Total liabilities
$ 2,975,526
$ 389
$ 14,577
$ 646,205
$ 3,636,697
Assets and liabilities by reportable segment of GDH LP as of December 31, 2023 are as follows:
(in thousands)
Global
Markets
Asset
Management
Digital
Infrastructure
Solutions
Corporate and
Other
Totals
Total assets
$ 2,726,950
$ 575,056
$ 321,322
$ 51,921
$ 3,675,249
Total liabilities
$ 1,289,792
$ 10,968
$ 9,817
$ 574,891
$ 1,885,468
Select statement of financial position information
Select assets by reporting segment of GDH LP as of September 30, 2024 is as follows:
(in thousands)
Global
Markets
Asset
Management
Digital
Infrastructure
Solutions
Corporate and
Other
Totals
Digital assets
$ 2,454,030
$ 63,294
$ —
$ —
$ 2,517,324
Digital assets receivables
8,240
40,798
1,095
—
50,133
Assets posted as collateral
227,050
—
—
—
227,050
Loans receivable
722,162
—
—
—
722,162
Investments
790,695
497,458
10,953
—
1,299,106
Property and equipment
—
—
254,445
5,454
259,899
$ 4,202,177
$ 601,550
$ 266,493
$ 5,454
$ 5,075,674
Select assets by reporting segment of GDH LP as of December 31, 2023 is as follows:
(in thousands)
Global
Markets
Asset
Management
Digital
Infrastructure
Solutions
Corporate
and Other
Totals
Digital assets
$ 1,052,013
$ 67,930
$ —
$ —
$ 1,119,943
Digital assets receivables
6,506
13,135
1,219
—
20,860
Assets posted as collateral
318,195
—
—
—
318,195
Loans receivable
491,868
—
—
—
491,868
Investments
244,807
476,262
14,034
—
735,103
Property and equipment
109
—
252,552
7,304
259,965
$ 2,113,498
$ 557,327
$ 267,805
$ 7,304
$ 2,945,934
Net Digital Assets Position
Net digital assets includes all digital assets categorized as assets, less all digital assets categorized as liabilities on the statement of financial position and is included in the Company’s liquidity measure. Net digital assets as of September 30, 2024 and December 31, 2023 is as follows:
(in thousands)
BTC (3)
ETH (4)
Stablecoin
Other (5)
As of
September 30,
2024(6)
Assets
Digital assets
$ 1,656,466
$ 369,032
$ 210,864
$ 253,973
$ 2,490,335
Digital asset loans receivable, net of
allowance
634
18,684
280,258
24,076
323,652
Digital assets receivable, current
—
—
—
43,118
43,118
Digital assets receivable, non-current
—
—
—
7,015
7,015
Assets posted as collateral – Digital
assets(1)
189,353
26,814
452
216,619
Restricted digital assets, non-current(2)
—
—
—
26,989
26,989
1,846,453
414,530
491,122
355,623
3,107,728
Liabilities
Digital asset loans payable
657,964
97,039
270,577
138,188
1,163,768
Collateral payable(1)
798,452
164,418
17,967
83,653
1,064,490
Payables to customers
61,785
—
—
—
61,785
1,518,201
261,457
288,544
221,841
2,290,043
Digital assets, net
$ 328,252
$ 153,073
$ 202,578
$ 133,782
817,685
Stablecoins, net
$ —
$ —
$ 202,578
$ —
202,578
Digital assets, net excl. stablecoins
$ 328,252
$ 153,073
$ —
$ 133,782
$ 615,107
Digital asset investment vehicles
included in investments
$ 382,861
$ 24,893
$ —
$ 147,287
555,041
(1) Excludes cash portion of balance on the Partnership’s statement of financial position.
(2) Represents TIA and SOL tokens that are subject to a sale restriction of greater than one year.
(3) Includes associated tokens such as wBTC. In addition to digital assets, net, the Partnership also held interests in investment vehicles designed to hold BTC, including spot ETFs, Galaxy sponsored BTC funds, Mt. Gox Investment Fund LP, and Xapo Holdings Limited, net against associated investment liabilities, reflected in the last row of this table.
(4) Includes associated tokens such as wETH and stETH. In addition to digital assets, net, the Partnership also held interests in investment vehicles designed to hold ETH, including spot ETFs and Galaxy sponsored ETH funds, reflected in the last row of this table.
(5) Includes $8.2 million net SOL and $45.9 million net TIA digital assets, net. In addition to digital assets, net, the Partnership also held interests in investment vehicles designed to hold digital assets, including the Galaxy sponsored Galaxy Digital Crypto Vol Fund LLC (includes $93.0 million SOL and $23.1 million of AVAX) and Ripple Lab Inc., reflected in the last row of this table.
(6) The Partnership also held digital asset derivative positions not reflected in this table.
(in thousands)
BTC (4)
ETH (5)
Stablecoin
Other (5)
As of
December 31,
2023(6)
Assets
Digital assets
$ 589,011
$ 174,978
$ 179,222
$ 135,376
$ 1,078,587
Digital asset loans receivable, net of allowance
3,044
87,252
12,000
2,208
104,504
Digital assets receivable, current
—
—
—
14,686
14,686
Digital assets receivable, non-current
—
—
—
6,174
6,174
Assets posted as collateral – Digital assets(1)
197,092
119,012
—
—
316,104
Restricted digital assets, non-current(2)
—
—
—
41,356
41,356
789,147
381,242
191,222
199,800
1,561,411
Liabilities
Digital asset loans payable
48,202
14,603
297,762
37,710
398,277
Collateral payable(1)
437,889
116,723
9,457
5,926
569,995
486,091
131,326
307,219
43,636
968,272
Digital assets, net
$ 303,056
$ 249,916
$ (115,997)
$ 156,164
593,139
Stablecoins, net(3)
$ —
$ —
$ (115,997)
$ —
(115,997)
Digital assets, net excl. stablecoins
$ 303,056
$ 249,916
$ —
$ 156,164
$ 709,136
Bitcoin spot ETFs included in Investments
$ —
$ —
$ —
$ —
$ —
(1) Excludes cash portion of balance on the Partnership’s statement of financial position.
(2) Represents TIA tokens that are subject to a sale restriction of greater than one year.
(3) As of December 31, 2023, stablecoin liabilities were greater than stablecoin assets.
(4) Includes associated tokens such as wBTC. In addition to digital assets, net, the Partnership also held interests in investment vehicles designed to hold BTC, including bitcoin futures ETFs, Galaxy sponsored BTC funds, Mt. Gox Investment Fund LP, and Xapo Holdings Limited, net of associated investment liabilities, reflected in the last row of this table.
(5) Includes associated tokens such as wETH and stETH. In addition to Digital assets, net, the Partnership also held interests in investment vehicles designed to hold ETH, including Galaxy sponsored ETH funds, reflected in the last row of this table.
(6) Includes $12.0 million net SOL and $68.5 million net TIA. In addition to digital assets, net, the Partnership also held interests in investment vehicles designed to hold digital assets, including Ripple Lab Inc., reflected in the last row of this table.
(7) The Partnership also held digital asset derivative positions not reflected in this table.
All figures are in U.S. Dollars unless otherwise noted.
SOURCE Galaxy Digital Holdings Ltd.
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Come Back to Firefox: Mozilla launches its most ambitious campaign yet to bring people back to the independent alternative to big tech browsers
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As tracking and unwanted AI reshape the web, Firefox reunites the internet’s original viral icons to make the case for a browser that puts people back in control.
SAN FRANCISCO, Oct. 25, 2026 /PRNewswire/ — In its new campaign, Come Back to Firefox, the independent browser by Mozilla reunites personalities behind some of the early internet’s biggest viral videos and memes for one simple message: The internet you loved is still here, and Firefox is the easiest way back.
This multi-market campaign is aimed at people who once used Firefox and left. While it nods to the past, Firefox continues to evolve, giving people more reasons to love and rediscover it today. It arrives after a transformative year for the browser:
Business growth and partnerships: A dedicated Enterprise browser giving organizations expert support and control over their data. Technical partnerships with NVIDIA and Mistral, extending what Firefox can do from gaming to AI.
Increased protection and control: New products and features shipped including a free built-in VPN to help keep browsing private, with no extra download or cost. AI Controls, to let people decide when and whether to use AI, and an Ad Blocker for Firefox on iOS for fewer ads and trackers.
Brand and culture: A new modern design, a first sports partnership with Wrexham AFC and World Cup presence connecting Firefox to one of the year’s biggest cultural moments.
“Firefox was there then, we’re here now, and what we stand for matters more than ever,” said John Solomon, Chief Marketing Officer at Mozilla. “People who left Firefox years ago will find a browser that’s more private and gives them more control, including over AI.”
The Campaign
Come Back to Firefox brings together some of the world’s most memorable internet icons: Numa Numa Guy, Bad Luck Brian, Overly Attached Girlfriend, Kelly of “Shoes” fame, Where the Hell Is Matt?, Annoying Orange, Apparently Kid, Tay Zonday, Chuck Testa, Success Kid, and Evolution of Dance. Each takes on a modern frustration with humor:
Overly Attached Girlfriend may have wanted to know everything about you, but your browser shouldn’t.Dancing Matt boogied all over the world, without any corporations tracking him or selling his personal data.And while Annoying Orange is still incredibly annoying, he’s not as annoying as forced AI features.
The campaign launches in the United States Sunday, October 25th, with two distinct 30-second commercials airing on NBC. Next, it rolls out in Germany, France, and the United Kingdom.
“Being on set was a reminder of why those moments mattered,” said Solomon. “Ordinary people making things on the internet that made it feel so surprising and fun, and that’s the feeling we wanted to bring back.”
The campaign was created by award-winning independent agency We Believers, and brought to life by directing collective Sunny Sixteen and production company nobodys. Together, they meticulously recreated each performance, look, and even the sets from the original videos, taking each internet personality back to where their story began.
“We wanted an idea that truly belongs to Firefox, a challenger browser that helped shape the internet’s golden years and stayed independent as Big Tech took over,” said Gustavo Lauria, Founder and CCO at We Believers.
The campaign is one of Firefox’s most ambitious yet but is rooted in what has always set the browser apart from Big Tech: its commitment to putting people before profits and giving them more control over their online experience. Now, Firefox says it’s never been a better time for people who once used the browser to take another look.
About Firefox
Firefox is a web browser developed by Mozilla, built to give people more choice and control over their online experience. With built-in tracking protection, customization options, and a commitment to an open internet, Firefox offers an alternative to browsers developed by the world’s largest technology companies. Learn more at firefox.com/welcomeback.
View original content to download multimedia:https://www.prnewswire.com/news-releases/come-back-to-firefox-mozilla-launches-its-most-ambitious-campaign-yet-to-bring-people-back-to-the-independent-alternative-to-big-tech-browsers-302918568.html
SOURCE Mozilla
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Seedance 2.0 – an AI video generation model that creates videos from text prompts or imagesSeedream – an AI image generation model that creates high-quality visuals from text prompts
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CapCut provides a range of AI-assisted capabilities that support several stages of content production. These include prompt-based video generation, AI image creation, background removal, image expansion, music generation, and photo animation. For small businesses managing marketing internally, these functions offer options for developing creative assets without relying entirely on manual production processes.
AI Video Generation Supports Promotional Campaigns
Video is an important format for demonstrating products, explaining services, and introducing new offerings. Small businesses can use video across social media, websites, digital advertisements, and online product pages. Producing content regularly, however, can require considerable planning and editing.
CapCut’s Seedance 2.0 AI video generator offers a prompt-based approach to video creation. Users can describe a creative concept and generate video content that serves as a starting point for further editing.
For a small retailer preparing a product promotion, AI-generated video can help explore different visual approaches before a final concept is selected. A service provider could use the same process to develop ideas for an explainer or an introductory campaign.
Prompt-based generation can reduce the effort involved in developing initial concepts. Generated material still requires review to ensure the finished video accurately represents the business, communicates the intended message, and follows relevant brand guidelines.
AI Image Creation Helps Develop Marketing Materials
Visual content plays a central role in how businesses present products and services online. Promotional graphics, campaign imagery, and social media visuals need to communicate a clear message while maintaining a recognizable style.
CapCut’s Seedream AI image generator enables users to generate images from text prompts. The tool can support concept drafts, campaign planning, and experimentation with different visual directions before final assets are prepared.
For example, a small business planning a seasonal campaign could explore different visual themes and compositions during the early planning stage. These drafts can help establish a creative direction before additional time is spent refining the final materials.
CapCut’s GPT Image 2 provides another option for generating images from natural language instructions. The feature can support the development of promotional imagery, marketing graphics, and other visual assets.
AI image generation gives businesses more opportunities to test creative ideas during campaign development. However, generated images should be checked for visual errors, accurate product representation, and consistency with the intended brand identity before publication.
Image Editing Simplifies Content Preparation
Creating new marketing assets is only part of the production process. Existing photographs and graphics often need adjustments before they are suitable for different platforms.
CapCut’s AI background removal tool helps isolate subjects from their original backgrounds. This can simplify the preparation of product photographs, promotional graphics, and other images that require a different visual setting.
For a small retailer, background removal can make it easier to prepare product images for online listings or promotional materials. Separated subjects can be incorporated into new compositions without recreating the entire image.
The AI Image Extender addresses a separate challenge: adapting images to different dimensions. The tool generates additional visual content beyond an image’s original boundaries, helping users adjust compositions without relying entirely on cropping or stretching.
A campaign may require square graphics for social media, vertical visuals for mobile viewing, and horizontal banners for a website. Image expansion provides another option for adapting existing assets to those formats.
These editing capabilities can help reduce repetitive production work while supporting a more consistent presentation across marketing channels.
AI Audio and Photo Animation Expand Creative Options
Marketing content often combines visuals, movement, and sound. Music can establish a mood, support storytelling, and help create a more complete video presentation.
CapCut’s SeedMusic AI audio generator supports AI-assisted music creation based on prompts. The feature can help develop audio for promotional videos, product demonstrations, and social media content.
Generated music offers a starting point for matching audio to a campaign’s intended atmosphere. Before publication, businesses should review the output and confirm that the applicable usage terms cover the intended commercial application.
CapCut also provides a Photo-to-3D tool that transforms still images into more dynamic visual presentations. This capability can help repurpose existing photography for promotional videos, social posts, and digital campaigns.
For small businesses with an existing collection of product images, adding movement can provide another way to present familiar assets. The approach also expands the range of creative formats available without requiring every campaign to begin with new photography.
Connecting AI Tools to Everyday Marketing Workflows
The practical value of AI-powered creative tools depends on how effectively they address specific marketing needs. Small businesses do not necessarily need every available feature for every campaign. Selecting tools according to content requirements can help keep production focused.
A retailer might begin with Seedream to explore campaign concepts, then use GPT Image 2 to generate supporting visuals. Background removal can help prepare product photography, while AI Image Extender can adapt selected assets to different layouts. Seedance 2.0 can support video concept development, with SeedMusic offering an option for accompanying audio.
A service-based business might prioritize short promotional videos, explanatory graphics, and social media content instead. The same collection of tools can support different production requirements depending on the business model and campaign objectives.
Using AI does not remove the need for creative direction or quality control. Content should be checked for factual accuracy, appropriate product representation, brand consistency, and compliance with advertising requirements. Human review also helps ensure that generated assets serve a clear marketing purpose rather than adding unnecessary material to a campaign.
AI-Assisted Marketing for Small Businesses
Interest in the best AI tools for small business marketing reflects the need for practical ways to produce and adapt digital content. Businesses must balance the demand for regular campaign updates with the resources available for creative production.
Expert Consumers’ recognition of CapCut highlights the platform’s range of AI-assisted functions for video generation, image creation, editing, audio production, and photo animation. These capabilities offer small businesses several options for developing marketing materials across digital channels.
As AI becomes more integrated into content production, effective use will depend on matching the right tools to specific tasks. With clear campaign objectives, careful editing, and appropriate review, CapCut’s creative features can help businesses develop marketing assets while reducing some of the repetitive work involved in preparing content for publication.
Visit the Expert Consumers site for the full review.
About CapCut
CapCut is an AI-powered photo and video editing platform designed to make high-quality video creation accessible across devices. The platform supports creators, businesses, and everyday users with tools for video editing, AI video generation, captions, templates, audio, and visual editing. CapCut is available across mobile, web, desktop, and iPad experiences, helping users create, edit, and prepare video content for social media, marketing, education, and personal projects.
About Better Business Advice: Better Business Advice covers the news and strategies driving modern business success. The information provided by Better Business Advice does not, and is not intended to, constitute legal advice; instead, all information, content, and materials are for general informational purposes only. As an affiliate, Better Business Advice may earn commissions from services mentioned in the links provided.
View original content:https://www.prnewswire.com/news-releases/best-ai-tools-for-small-business-marketing-2026-capcut-featured-for-creating-professional-video-and-visual-content-by-expert-consumers-302918043.html
SOURCE ExpertConsumers.org
Technology
Beyond GRC: DigitalXForce Pioneers AI-Powered Risk Operations with Global X-ROC™ Rollout
Published
1 hour agoon
October 25, 2026By
Enterprise TRiSCM™ innovator advances Continuous Control Assurance, cyber risk quantification and real-time Risk Operations across global enterprises, transforming traditional GRC into proactive Digital Trust
DALLAS, Oct. 25, 2026 /PRNewswire/ — DigitalXForce, the AI-native Enterprise Trust, Risk, Security and Compliance Management (TRiSCM™) platform, today announced the continued global rollout of X-ROC™ (XForce Risk Operations Center), its AI-powered approach to continuous enterprise risk operations.
The expansion builds on DigitalXForce’s recognition as a Leader in two IDC MarketScape assessments, its 2026 Cyber Defense Magazine innovation honors, and increasing enterprise demand for automated, continuous approaches to managing cybersecurity, governance, risk and compliance.
Unlike traditional Governance, Risk and Compliance (GRC) platforms that primarily document risks and manage periodic assessments, DigitalXForce’s X-ROC combines Continuous Control Assurance (CCA), Continuous Control Monitoring (CCM), Cyber Risk Quantification (CRQ), AI-powered risk intelligence and remediation orchestration into an integrated risk operations model.
The objective is to help enterprises move beyond knowing whether controls are documented to continuously understand whether controls are operating effectively, which exposures matter most, and what action should be taken next.
New Research Reveals Why Traditional Security Scores Are Not Enough
The company’s DigitalXForce Security Posture Benchmark 2026, analyzing published security control responses from 2,112 companies, reveals a significant disconnect between high-level compliance scores and underlying security exposure.
Key findings include:
98.9% median control implementation: The median company reported 98.9% of applicable security controls in place, yet significant control gaps remained.54.9% reported data protection gaps: More than half of companies reported at least one missing control in the Data Protection and Encryption domain.52.0% reported encryption and key management gaps: Among 2,098 companies responding, 52.0% reported at least one control not in place.42.3% reported configuration and asset management gaps: Demonstrating continued exposure in foundational security practices.26.7% reported full control implementation: More than one-quarter reported all applicable controls in place under the benchmark’s assessment model.
The benchmark evaluated responses against DigitalXForce’s proprietary model of 94 controls across 12 domains, with mappings to NIST SP 800-53, NIST Cybersecurity Framework 2.0 and CIS Controls v8.1.
These findings highlight an important enterprise risk challenge: a high security or compliance score does not necessarily reveal which remaining control failures could create the greatest business impact.
DigitalXForce developed X-ROC to address this challenge by connecting control failures and changing risk conditions with supporting evidence, quantified business impact and accountable remediation workflows.
Read the research: https://digitalxforce.com/research/security-posture-benchmark-2026/
X-ROC: Bringing Operational Intelligence to Enterprise Risk
A Risk Operations Center (ROC) is an operating model designed to continuously identify, assess, prioritize, monitor and reduce enterprise risk.
While a traditional Security Operations Center (SOC) focuses on security threats and incidents, a Risk Operations Center focuses on the organization’s broader exposure, control effectiveness, business impact and risk remediation.
DigitalXForce X-ROC™ brings these capabilities together through an integrated operating model:
1. Continuous Risk Discovery and Monitoring
X-ROC ingests security posture changes, control failures, third-party risk events and other enterprise risk signals, connecting them with the underlying evidence.
2. Continuous Control Assurance and Automation
DigitalXForce CCA continuously validates control effectiveness through evidence collection, automated testing and ongoing monitoring. CCM provides the monitoring capability within CCA, tracking control conditions and associated risk signals.
3. AI-Powered Risk Intelligence
DigitalXForce’s proprietary AI engines, AI JedAI and XForce GPT, analyze risk signals, correlate related findings, support prioritization and generate business-oriented risk narratives and executive reporting, with analyst review.
4. Cyber Risk Quantification
Rather than prioritizing findings solely by technical severity, X-ROC incorporates quantified financial exposure and business impact to help organizations identify which risks deserve attention first.
5. Remediation Orchestration and Validation
X-ROC assigns risk ownership, tracks remediation against defined timelines and supports integration with enterprise workflow platforms such as ServiceNow and Jira.
Findings are validated through control retesting before closure, creating an evidence-based approach to risk reduction.
6. Executive Digital Trust Intelligence
X-ROC connects operational risk findings with broader enterprise trust, security, compliance and resilience reporting, helping CISOs, CROs, compliance leaders and boards understand the organization’s changing risk posture.
CEO Perspective: Redefining Enterprise Risk Operations
“X-ROC is redefining enterprise risk operations. By combining AI, continuous control assurance and risk intelligence, we’re helping global enterprises move from reacting to risk to staying ahead of it.”
— Lalit Ahluwalia, Founder & CEO, DigitalXForce
Global Enterprise Adoption of Continuous Risk Operations
DigitalXForce is advancing the adoption of X-ROC across its international enterprise customer ecosystem, supporting organizations seeking to consolidate fragmented governance, cybersecurity, compliance and risk management operations.
X-ROC supports two operating models:
Enterprise-operated Risk Operations Center: Organizations operate X-ROC directly using DigitalXForce’s platform, workflows, integrations and risk intelligence capabilities.Managed Risk Operations: DigitalXForce operates the risk operations layer as a managed service, providing continuous monitoring, prioritization and reporting while customers retain ownership of remediation actions.
The platform supports cloud and hybrid deployment architectures, enabling organizations to address enterprise security, operational and regional data residency requirements.
This flexibility is particularly relevant to multinational organizations managing complex regulatory requirements, multiple business units, distributed technology environments and third-party ecosystems.
Independent Industry Recognition Reinforces DigitalXForce’s Momentum
DigitalXForce’s X-ROC strategy builds on broader industry recognition of the company’s Enterprise TRiSCM™ platform and AI-powered risk management innovation.
Dual IDC MarketScape Leader Recognition
DigitalXForce was positioned as a Leader in:
IDC MarketScape: Worldwide Governance, Risk, and Compliance Software Vendor Assessment, 2025 (Doc #US53615325, June 2025).IDC MarketScape: Worldwide Third-Party Risk Management Software 2026 Vendor Assessment (Doc #US53007725, September 2026).
These assessments evaluated vendor capabilities and strategies in their respective markets.
DigitalXForce’s recognition across both GRC and Third-Party Risk Management reflects its positioning across interconnected enterprise risk disciplines, supported by a unified platform architecture.
Cyber Defense Magazine Innovation Honors
DigitalXForce has also received recognition through the 2026 Cyber Defense Magazine Global InfoSec Awards, including innovation honors associated with AI TRiSCM, Automated GRC with Continuous Control Assurance, and X-ROC.
These recognitions contribute to DigitalXForce’s growing industry profile as it advances AI-powered governance, risk management and continuous assurance.
From GRC to Enterprise TRiSCM™: One Platform for Digital Trust
DigitalXForce’s Enterprise TRiSCM™ platform integrates 15 modules on a unified data layer, supporting more than 50 compliance frameworks and 250 technology integrations.
The architecture enables security, compliance, audit, risk and third-party risk teams to work from connected controls, shared evidence and continuously updated risk information rather than isolated tools and periodic assessments.
The platform is designed to enable five fundamental shifts:
From Periodic GRC → Continuous Control Assurance
From Fragmented Security Tools → Unified Enterprise Risk Intelligence
From Technical Severity → Quantified Business Risk
From Manual Remediation Tracking → Evidence-Based Risk Operations
From Compliance Reporting → Continuous Digital Trust
X-ROC serves as the operational layer of this strategy, connecting enterprise risk signals with prioritization, accountability and validated remediation.
Building the Future of AI-Powered Risk Operations
As enterprises accelerate adoption of cloud services, AI, autonomous technologies and complex third-party ecosystems, risk exposure is becoming increasingly dynamic.
DigitalXForce believes enterprise risk management must evolve accordingly.
The company’s vision is to make risk management a continuous operational capability rather than a periodic reporting exercise.
Through X-ROC, Continuous Control Assurance, AI-powered analysis and cyber risk quantification, DigitalXForce is working to establish a new operating model in which enterprises can identify emerging exposures, prioritize them based on business impact and verify that corrective actions are effective.
The SOC manages security incidents. X-ROC manages enterprise risk.
The future of GRC is not another dashboard. It is continuous, intelligent Risk Operations
About DigitalXForce — We Stop Risk Before It Strikes.
DigitalXForce, Industry’s first AI-Powered Enterprise TRiSCM (Trust, Risk, Security and Compliance Management) Platform, is pioneering the next generation of Automated GRC with Continuous Trust Assurance by converging AI, cybersecurity, compliance, operational resilience, and posture management into one unified Risk Intelligence platform. Designed with a modular and composable architecture, DigitalXForce delivers an integrated suite of capabilities spanning automated GRC, Enterprise Security Risk Posture Management (ESRPM), Third-Party Risk Management, Cyber Resilience, and Regulatory Compliance.
At the core of DigitalXForce is its AI-powered engine, which leverages intelligent agents, machine learning models, and a dynamic control library to autonomously monitor controls, map evidence, assess risks, and generate real-time insights. Trusted by global enterprises across healthcare, finance, critical infrastructure, and technology sectors, DigitalXForce delivers measurable value by reducing manual effort, accelerating audit readiness, and improving organizational resilience in today’s fast-evolving threat and compliance landscape.
Learn more about DigitalXForce at https://digitalxforce.com
Additional Resources
X-ROC Platform: https://digitalxforce.com/products/ai-powered-xforce-risk-operations-center/2026 Security Posture Benchmark: https://digitalxforce.com/research/security-posture-benchmark-2026/What Is a Risk Operations Center: https://digitalxforce.com/what-is-a-risk-operations-center/
View original content to download multimedia:https://www.prnewswire.com/news-releases/beyond-grc-digitalxforce-pioneers-ai-powered-risk-operations-with-global-x-roc-rollout-302918726.html
SOURCE DigitalXForce Corporation
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