Technology
Galaxy Announces Second Quarter 2024 Financial Results
Published
2 years agoon
By
Equity capital was $2.1 billion as of June 30, 2024
Net loss of $177 million for the second quarter, driven primarily by net losses on digital assets and investments as a result of a decline in digital asset markets
Net income of $245 million for the six months ended June 30, 2024, driven by strong operating performance and positive digital asset markets
Assets Under Stake of $3.3 billion as of July 18, 2024, up from $486 million at the end of March 2024
NEW YORK, Aug. 1, 2024 /CNW/ – Galaxy Digital Holdings Ltd. (TSX: GLXY) (the “Company” or “GDH Ltd.”) today released financial results for the three months and six months ended June 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 Updates
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.
CryptoManufaktur Acquisition: On July 19, 2024, Galaxy announced that it acquired the assets of CryptoManufaktur (“CMF”), a blockchain node operator that provides trusted, secure services to decentralized protocols across the digital asset ecosystem. The addition of CMF brings approximately $1 billion in Ether assets under stake (“AUS”), raising the Company’s total AUS to $3.3 billion as of July 18, 2024. As part of the transaction, CMF’s seasoned three-person engineering team, led by founder Thorsten Behrens, joined Galaxy’s Blockchain Infrastructure team, which provides staking and validator services to investors, protocols, and digital asset platforms.
Select GDH LP Financial Metrics
Q2 2024
Q1 2024
Q/Q % Change
Equity Capital
$2,129M
$2,192M
(3) %
Liquidity
$1,328M
$1,499M
(11) %
Cash & Net Stablecoins1
$409M
$163M
150 %
Net Digital Assets Excluding Stablecoins2
$501M
$821M
(39) %
Spot Bitcoin ETFs
$418M
$515M
(19) %
Net Income (loss)
($177M)
$422M
N.M.3
Book Value Per Share in CAD4
$8.45 CAD
$9.11 CAD
(7) %
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 15 of this release for a breakout of our net digital assets position.
(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, capital markets and M&A advisory services to a diversified client base. GGM operates in two discrete business units – Trading and Investment Banking.
Trading
Trading reported counterparty trading revenue of $24 million in the second quarter. The decrease was primarily driven by lower trading volumes, which decreased by 19% quarter-over-quarter (“QoQ”), and unfavorable asset price movements. Despite the QoQ decrease, our counterparty trading business generated approximately $90 million in revenue year-to-date through June, a nearly 80% increase relative to the first half of 2023. Galaxy’s average loan book size expanded to $699 million, driven by increased borrowing demand from both new and existing counterparties. Galaxy continues to onboard new counterparties, including large traditional institutions, and ended the second quarter with 1,212 total trading counterparties.
Key Performance Indicators
Q2 2024
Q1 2024
Q/Q % Change
Counterparty Trading Revenue
$24M
$66M
(64) %
Loan Book Size (Average)
$699M
$664M
5 %
Total Trading Counterparties
1,212
1,161
4 %
Active Trading Counterparties
294
281
5 %
Investment Banking
Investment Banking successfully closed two deals in the second quarter, serving as the exclusive financial advisor to Toposware in its sale to Polygon and to another client on its strategic financing. In the quarter, Galaxy also served as the exclusive financial advisor to Bitstamp in its pending sale to Robinhood, which is expected to close in the first half of 2025 at which time Galaxy expects to recognize the revenue associated with this deal. Galaxy is executing against a pipeline of mandates representing $2.1 billion in potential deal value.
Key Performance Indicators
Q2 2024
Q1 2024
Q/Q % Change
Deals Closed
2
1
100 %
Pipeline
19
20
(5) %
Deal Value of Pipeline
$2.1B
$2.2B
(5) %
____
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, un-funded arrangements to finance delayed trading/settlement (for example over weekends), and uncommitted credit facilities in the period.
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 reported assets under management (“AUM”) of approximately $4.6 billion and management and performance fees of $14.5 million in the second quarter, down 42% and 19% QoQ respectively, primarily driven by the continued successful liquidation of assets associated with an ongoing opportunistic mandate to unwind portfolios on behalf of the FTX estate and market depreciation. In the quarter, GAM announced a collaboration with State Street Global Advisors to develop a suite of manager-directed digital asset ETFs that will offer investors exposure to companies in the digital asset space, going beyond crypto and bitcoin. Subsequent to quarter-end, GAM, in partnership with Invesco, announced the launch of the Invesco Galaxy Ethereum ETF (ticker: QETH). GAM conducted a $113 million initial close for Galaxy Ventures Fund I LP at the end of June, a venture capital fund focused on investing in early-stage companies across crypto protocols, software infrastructure, and financialized applications.
Key Performance Indicators
Q2 2024
Q1 2024
Q/Q % Change
Management and Performance Fees
$14.5M
$17.8M
(19) %
Total AUM1
$4,563M
$7,818M
(42) %
Passive AUM
$2,392M
$2,730M
(12) %
Active AUM2
$632M
$3,584M
(82) %
Venture AUM
$1,539M
$1,504M
2 %
(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 Q1 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 $520M as of June 30, 2024 and $3,440M as of March 31, 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 and the management of certain opportunistic mandates.
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.
Mining
Mining revenue was $24.0 million for the second quarter, relative to power purchase costs and external hosting expenses, net of curtailment credits, of $10.5 million, resulting in a 56% direct mining profit margin. The QoQ decrease in revenue was primarily driven by the Bitcoin halving in April. Currently, Galaxy has 200 megawatts of energized mining capacity and is bringing on an additional 300 megawatts of high-voltage capacity in the third quarter of 2025. Galaxy has firm capacity approval from both the Electric Reliability Council of Texas and the Wind Energy Transmission of Texas to scale up to 800 megawatts of power from the existing interconnect. In the first quarter, we expanded our campus by purchasing an additional 160 acres adjacent to Helios. We now have a total of 320 acres of contiguous land and have submitted additional load studies and a new interconnection request that are pending approval.
Key Performance Indicators
Q2 2024
Q1 2024
Q/Q % Change
Mining Revenue
$24.0M
$31.5M
(24) %
Proprietary Mining Revenue
$16.3M
$20.1M
(19) %
Hosted and Other Mining Revenue1
$7.7M
$11.4M
(32) %
Total Hashrate Under Management
5.6 EH/s
5.7 EH/s
(3) %
Proprietary Mining Hashrate
2.9 EH/s
3.1 EH/s
(5) %
Hosted Mining Hashrate
2.6 EH/s
2.6 EH/s
(1) %
Number of Proprietary BTC Mined
242
373
(35) %
Average Marginal Cost to Mine
<$22.5K
<$19.5K
N.M.
(1)
Includes revenue from hosting clients and other mining related activities.
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 341% QoQ to $2.1 billion as of June 30th, with Galaxy growing to become one of the largest validators globally on the Solana network. As of July 18, 2024, AUS grew to $3.3 billion with the addition of approximately $1 billion in Ether AUS from the acquisition of CMF. GK8 continues to execute against its pipeline of enterprise clients.
Key Performance Indicators
Q2 2024
Q1 2024
Q/Q % Change
Assets Under Stake
$2,144M
$486M
341 %
GK8 Total Client Count
22
21
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
Q2 2024
Q1 2024
Q/Q % Change
Compensation and compensation related
$43M
$42M
1 %
Equity based compensation
$12M
$18M
(36) %
General and administrative
$45M
$48M
(6) %
Mining costs
$10M
$15M
(31) %
Trading and commission expense
$4M
$6M
(35) %
Technology
$7M
$6M
13 %
Depreciation and amortization
$14M
$11M
18 %
Impairment reversal
$0M
$0M
N.M.
Other
$9M
$8M
13 %
Professional fees
$14M
$13M
2 %
Staking costs
$32M
$1M
N.M.
Interest
$21M
$20M
5 %
Notes interest expense
$7M
$7M
1 %
Note:
Quarter-over-quarter percentage change calculations are based on unrounded results.
Overview of Second Quarter Operating Expenses:
Compensation and compensation related expenses of $43 million were roughly flat QoQ.Equity based compensation decreased by approximately $6 million QoQ, primarily driven by fully vested high-priced equity grants issued in 2021, partially offset by new grants issued in 2022, 2023 and 2024 at lower share prices.General and administrative expenses declined by approximately $3 million from the first quarter of 2024, driven by lower mining costs and trading and commission expenses, partially offset by higher depreciation and amortization costs.Mining costs decreased by approximately $5 million QoQ; reflecting our actively managed power strategy, leading to a reduction in electricity costs.Trading commission expenses decreased by approximately $2 million QoQ, on account of lower trading volumes in the quarter.Depreciation and amortization expenses increased by over $2 million QoQ, reflecting the additional depreciation from new mining machines and electrical infrastructure that were energized during the prior quarter.Professional fees of $14 million were slightly up QoQ.Staking costs was a new line item this quarter, and reflected the staking rewards that Galaxy generates from its AUS, which were paid to the delegators. This amount offsets the staking rewards received, which were included in the Lending and Staking revenue.Interest expense of $21 million was up approximately $1 million QoQ, reflecting our ability to source non-dilutive wholesale financing to help fund our Trading and Lending businesses and consistent with our risk management principles of sound Asset and Liability Management and maintaining substantial liquidity buffers.
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 $(49.4) million for the three months ended June 30, 2024 and $60.6 million for the six months ended June 30, 2024.
Earnings Conference Call
An investor conference call will be held today, August 1, 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 1-800-274-8461, or 1-203-518-9814 (outside the U.S. and Canada) using the Conference ID: GALAXY. 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 September 1, 2024, the recording will also be available by dialing 1-844-512-2921, or 1-412-317-6671 (outside the U.S. and Canada) and using the passcode: 11156334.
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 six months ended June 30, 2024 and (ii) GDH Ltd.’s Management Discussion and Analysis and Consolidated Financial Statements for the three and six months ended June 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 the 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 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 the 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.
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 and Gk8, mining goals, 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, (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) 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 August 1, 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; 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)
June 30, 2024
December 31, 2023
Assets
Current assets
Cash and cash equivalent
$ 314,033
$ 316,610
Digital assets
1,954,398
1,078,587
Receivable for digital asset trades
26,907
41,339
Digital assets loans receivable, net of allowance
177,230
104,504
Digital assets receivables
44,576
14,686
Investments (includes $45.1 million and $0 of equity method investments, respectively)
508,380
—
Assets posted as collateral
203,942
318,195
Receivables
25,840
15,983
Derivative assets
153,470
173,209
Prepaid expenses and other assets
27,780
37,910
Loans receivable, net of allowance
404,991
377,105
Due from related party
31,891
5,007
Total current assets
3,873,438
2,483,135
Digital assets receivables
3,854
6,174
Investments (includes $394.8 million and $290.4 million of equity method investments, respectively)
800,315
735,103
Restricted digital assets
15,863
41,356
Digital asset loans receivable, non-current
12,881
—
Loans receivable, non-current
—
10,259
Property and equipment
267,431
259,965
Other non-current assets
107,284
95,000
Goodwill
44,257
44,257
Total non-current assets
1,251,885
1,192,114
Total assets
$ 5,125,323
$ 3,675,249
Liabilities and equity
Current liabilities
Investments sold short
115,240
25,295
Derivative liabilities
118,770
160,642
Accounts payable and accrued liabilities
73,118
69,212
Payable to customers
94,816
3,503
Taxes payable
12,636
25,936
Payable for digital asset trades
34,751
4,176
Digital assets loans payable
950,178
398,277
Loans payable
211,384
93,069
Collateral payable
811,656
581,362
Due to related party
87,403
67,953
Lease liability
3,960
3,860
Total current liabilities
2,513,912
1,433,285
Notes payable
427,679
408,053
Deferred tax liability
46,734
33,894
Lease liability
8,271
10,236
Total non-current liabilities
482,684
452,183
Total liabilities
2,996,596
1,885,468
Equity
Partners’ capital
2,128,727
1,789,781
Total equity
2,128,727
1,789,781
Total liabilities and equity
$ 5,125,323
$ 3,675,249
Galaxy Digital Holdings LP’s Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) (unaudited)
(in thousands)
Three months ended
Six months ended
June 30, 2024
June 30, 2023
June 30, 2024
June 30, 2023
Income
Fee revenue
$ 26,483
$ 11,097
$ 54,611
$ 25,526
Net realized gain (loss) on digital assets
(161,738)
20,179
108,660
86,298
Net realized gain (loss) on investments
12,826
48,334
(160,008)
46,356
Lending and staking revenue
54,371
10,809
84,309
21,318
Net derivative gain
105,322
9,641
188,962
64,725
Revenue from proprietary mining
16,312
8,563
36,440
10,980
Other income
140
43
475
206
53,716
108,666
313,449
255,409
Operating expenses
Compensation and compensation related
42,921
34,632
85,397
65,252
Equity based compensation
11,601
15,655
29,590
38,925
General and administrative
44,721
14,742
92,777
29,647
Mining costs
10,452
(130)
25,638
5,830
Trading and commission expense
4,112
2,341
10,434
3,285
Technology
7,356
4,599
13,852
8,994
Depreciation and amortization
13,505
7,318
24,932
11,765
Impairment reversal
—
(5,932)
—
(11,914)
Other
9,296
6,546
17,921
11,687
Professional fees
13,704
8,785
27,077
18,603
Staking costs
32,034
308
32,696
539
Interest
20,927
4,334
40,775
9,873
Notes interest expense
7,040
6,790
14,016
13,521
(172,948)
(85,246)
(322,328)
(176,360)
Other
Net unrealized gain (loss) on digital assets
42,900
(4,774)
139,713
(1,745)
Net unrealized gain (loss) on investments
(114,314)
(65,850)
121,538
16,863
Net loss on notes payable – derivative
(2,573)
(799)
(12,286)
(2,104)
Foreign currency gain (loss)
1,474
63
1,353
(75)
(72,513)
(71,360)
250,318
12,939
Income before income taxes
(191,745)
(47,940)
241,439
91,988
Income taxes expense (benefit)
(14,736)
(1,900)
(3,216)
3,826
Net income for the period
$ (177,009)
$ (46,040)
$ 244,655
$ 88,162
Other comprehensive income
Foreign currency translation adjustment
1,724
$ 39
1,089
(416)
Comprehensive income for the period
$ (175,285)
$ (46,001)
$ 245,744
$ 87,746
Three months ended
Six months ended
June 30, 2024
June 30, 2023
June 30, 2024
June 30, 2023
GDH LP Net income (loss) per unit:
Basic
$ (0.52)
$ (0.14)
$ 0.74
$ 0.28
Diluted
(0.52)
(0.14)
0.70
0.27
Weighted average units:
Basic
338,212,221
321,392,562
331,685,773
320,391,466
Diluted
338,212,221
321,392,562
350,414,148
327,417,371
Reportable segments (unaudited)
Income and expenses by each reportable segment of GDH LP for the three months ended June 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
$ —
$ —
$ 7,775
$ —
$ 7,775
Licensing fees
—
—
612
(120)
492
Management and performance fees
3,694
14,535
—
(734)
17,495
Advisory fees
721
—
—
—
721
Total fee revenue
4,415
14,535
8,387
(854)
26,483
Lending and staking revenue
Lending income
16,012
—
—
8
16,020
Blockchain rewards
578
3,808
37,497
(3,532)
38,351
Total lending and staking revenue
16,590
3,808
37,497
(3,524)
54,371
Net realized gain on digital assets
(178,808)
16,274
796
—
(161,738)
Net realized gain (loss) on investments
10,206
2,620
—
—
12,826
Net derivative gain
105,550
—
(228)
—
105,322
Revenue from proprietary mining
—
—
16,312
—
16,312
Other income
(4)
33
111
—
140
Total revenues and gain (loss) from operations
(42,051)
37,270
62,875
(4,378)
53,716
Operating expenses
68,604
13,781
69,230
21,333
172,948
Net unrealized gain on digital assets
136,323
(86,685)
(6,738)
—
42,900
Net unrealized gain (loss) on investments
(81,230)
(34,369)
1,285
—
(114,314)
Net loss on notes payable – derivative
—
—
—
(2,573)
(2,573)
Foreign currency loss
1,474
—
—
—
1,474
56,567
(121,054)
(5,453)
(2,573)
(72,513)
Income (loss) before income taxes
$ (54,088)
$ (97,565)
$ (11,808)
$ (28,284)
$ (191,745)
Income tax expense
—
—
—
(14,736)
(14,736)
Net income (loss)
$ (54,088)
$ (97,565)
$ (11,808)
$ (13,548)
$ (177,009)
Foreign currency translation adjustment
—
—
—
1,724
1,724
Comprehensive income (loss)
$ (54,088)
$ (97,565)
$ (11,808)
$ (11,824)
$ (175,285)
(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 six months ended June 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
$ —
$ —
$ 17,916
$ —
17,916
Licensing fees
1
—
1,419
(240)
1,180
Management and performance fees
3,694
32,372
—
(1,481)
34,585
Advisory fees
930
—
—
—
930
Total fee revenue
4,625
32,372
19,335
(1,721)
54,611
Lending and staking revenue
Lending income
32,756
5
2
12
32,775
Blockchain rewards
5,660
11,046
43,575
(8,747)
51,534
Total lending and staking revenue
38,416
11,051
43,577
(8,735)
84,309
Net realized gain on digital assets
91,497
16,367
796
—
108,660
Net realized gain (loss) on investments
(173,323)
13,315
—
—
(160,008)
Net derivative gain
188,095
—
867
—
188,962
Revenue from proprietary mining
—
—
36,440
—
36,440
Other income
153
33
289
—
475
149,463
73,138
101,304
(10,456)
313,449
Operating expenses
133,033
29,585
110,110
49,600
322,328
Net unrealized gain on digital assets
184,582
(41,358)
(3,511)
—
139,713
Net unrealized gain (loss) on investments
98,480
23,108
(50)
—
121,538
Net loss on notes payable – derivative
—
—
—
(12,286)
(12,286)
Foreign currency loss
1,353
—
—
—
1,353
284,415
(18,250)
(3,561)
(12,286)
250,318
Income (loss) before income taxes
$ 300,845
$ 25,303
$ (12,367)
$ (72,342)
$ 241,439
Income tax expense
—
—
—
(3,216)
(3,216)
Net income (loss)
$ 300,845
$ 25,303
$ (12,367)
$ (69,126)
$ 244,655
Foreign currency translation adjustment
—
—
—
1,089
1,089
Comprehensive income (loss)
$ 300,845
$ 25,303
$ (12,367)
$ (68,037)
$ 245,744
(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 June 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
—
—
6,548
—
$ 6,548
Licensing fees
—
—
610
—
610
Management and performance fees
—
4,216
—
(762)
3,454
Advisory fees
57
—
—
—
57
Other fee revenues
—
—
428
—
428
Total fee revenue
57
4,216
7,586
(762)
11,097
Lending and staking revenue
Lending income
9,990
9
—
—
9,999
Blockchain rewards
(706)
1,516
—
—
810
Total lending and staking revenue
9,284
1,525
—
—
10,809
Net realized gain on digital assets
17,601
2,578
—
—
20,179
Net realized gain (loss) on investments
23,725
24,609
—
—
48,334
Net derivative gain
8,769
1,008
(136)
—
9,641
Revenue from proprietary mining
—
—
8,563
—
8,563
Other income (expense)
96
(96)
11
32
43
Total revenues and gain (loss) from operations
59,532
33,840
16,024
(730)
108,666
Operating expenses
40,894
13,790
7,748
22,814
85,246
Net unrealized gain (loss) on digital assets
(1,067)
(3,707)
—
—
(4,774)
Net unrealized gain on investments
(23,726)
(45,532)
3,408
—
(65,850)
Net loss on notes payable – derivative
—
—
—
(799)
(799)
Foreign currency loss
63
—
—
—
63
(24,730)
(49,239)
3,408
(799)
(71,360)
Income (loss) before income taxes
$ (6,092)
$ (29,189)
$ 11,684
$ (24,343)
$ (47,940)
Income tax expense
—
—
—
(1,900)
(1,900)
Net income (loss)
$ (6,092)
$ (29,189)
$ 11,684
$ (22,443)
$ (46,040)
Foreign currency translation adjustment
—
—
—
39
39
Comprehensive income (loss)
$ (6,092)
$ (29,189)
$ 11,684
$ (22,404)
$ (46,001)
(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 six months ended June 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
$ —
$ —
$ 12,816
$ —
$ 12,816
Licensing fees
—
—
790
—
790
Management and performance fees
—
9,148
—
(1,382)
7,766
Advisory fees
2,265
—
—
—
2,265
Other fee revenues
(54)
—
1,943
—
1,889
Total fee revenue
2,211
9,148
15,549
(1,382)
25,526
Lending and staking revenue
Lending income
19,078
17
—
—
19,095
Blockchain rewards
707
1,516
—
—
2,223
Total lending and staking revenue
19,785
1,533
—
—
21,318
Net realized gain on digital assets
82,633
3,665
—
—
86,298
Net realized gain (loss) on investments
24,099
22,257
—
—
46,356
Net derivative gain
63,319
1,542
(136)
—
64,725
Revenue from proprietary mining
—
—
10,980
—
10,980
Other income (expense)
134
(163)
55
180
206
Total revenues and gain (loss) from operations
192,181
37,982
26,448
(1,202)
255,409
Operating expenses
83,103
29,978
17,062
46,217
176,360
Net unrealized gain (loss) on digital assets
(1,744)
(1)
—
—
(1,745)
Net unrealized gain on investments
16,647
(6,435)
6,651
—
16,863
Net loss on notes payable – derivative
—
—
—
(2,104)
(2,104)
Foreign currency loss
(75)
—
—
—
(75)
14,828
(6,436)
6,651
(2,104)
12,939
Income (loss) before income taxes
$ 123,906
$ 1,568
$ 16,037
$ (49,523)
$ 91,988
Income tax expense
—
—
—
3,826
3,826
Net income (loss)
$ 123,906
$ 1,568
$ 16,037
$ (53,349)
$ 88,162
Foreign currency translation adjustment
—
—
—
(416)
(416)
Comprehensive income (loss)
$ 123,906
$ 1,568
$ 16,037
$ (53,765)
$ 87,746
(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 June 30, 2024 are as follows:
(in thousands)
Global
Markets
Asset
Management
Digital
Infrastructure
Solutions
Corporate
and Other
Totals
Total assets
$ 3,972,284
$ 643,731
$ 351,145
$ 158,163
$ 5,125,323
Total liabilities
$ 2,356,282
$ 1,250
$ 10,055
$ 629,009
$ 2,996,596
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 June 30, 2024 is as follows:
(in thousands)
Global
Markets
Asset
Management
Digital
Infrastructure
Solutions
Corporate
and Other
Totals
Digital assets
$ 1,925,574
$ 44,687
$ —
$ —
$ 1,970,261
Digital assets receivables
12,241
35,253
936
—
48,430
Assets posted as collateral
203,942
—
—
—
203,942
Loans receivable
595,102
—
—
—
595,102
Investments
764,285
532,084
12,326
—
1,308,695
Property and equipment
—
—
260,258
7,173
267,431
$ 3,501,144
$ 612,024
$ 273,520
$ 7,173
$ 4,393,861
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 June 30, 2024 and December 31, 2023 is as follows:
(in thousands)
BTC (3)
ETH (4)
Stablecoin
Other (5)
As of
June 30, 2024
Assets
Digital assets
$ 1,202,920
$ 344,110
$ 236,122
$ 171,246
$ 1,954,398
Digital asset loans receivable, net of allowance
16,656
28,612
118,733
26,110
190,111
Digital assets receivable, current
—
—
—
44,576
44,576
Digital assets receivable, non-current
—
—
—
3,854
3,854
Assets posted as collateral – Digital assets(1)
163,950
28,594
1,429
193,973
Restricted digital assets, non-current(2)
—
—
—
15,863
15,863
1,383,526
401,316
354,855
263,078
2,402,775
Liabilities
Digital asset loans payable
620,602
57,089
242,529
29,958
950,178
Collateral payable(1)
584,957
145,166
17,807
14,621
762,551
Payables to customers
94,586
—
—
—
94,586
1,300,145
202,255
260,336
44,579
1,807,315
Digital assets, net
$ 83,381
$ 199,061
$ 94,519
$ 218,499
595,460
Stablecoins, net
$ —
$ —
$ 94,519
$ —
94,519
Digital assets, net excl. stablecoins
$ 83,381
$ 199,061
$ —
$ 218,499
$ 500,941
Bitcoin spot ETFs included in Investments
418,068
—
—
—
418,068
(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. The Partnership also held interests in investment vehicles designed to hold BTC, including Galaxy sponsored BTC funds and Mt. Gox Investment Fund LP, valued at $129.1 million as of June 30, 2024 reflected in the investments balance in addition to the digital assets noted above. The Partnership also held bitcoin derivative positions not reflected above in addition to the noted bitcoin investment vehicles.
(4)
Includes associated tokens such as wETH and stETH. The Partnership also held interests in investment vehicles designed to hold ETH, including Galaxy sponsored ETH funds, valued at $42.3 million as of June 30, 2024 reflected in the investments balance in addition to the digital assets noted above. The Partnership also held Ether derivative positions not reflected above in addition to the noted Ether investment vehicles.
(5)
Includes $43.6 million net SOL and $45.3 million net TIA. The Partnership also held an interest in investment vehicles designed to hold SOL, the Galaxy sponsored Galaxy Digital Crypto Vol Fund LLC valued at $91.4 million as of June 30, 2024 reflected in the investments balance in addition to the digital assets noted above, and the Partnership held digital asset derivative positions not reflected above in addition to the noted investment vehicle.
(in thousands)
BTC (4)
ETH (5)
Stablecoin
Other (5)
As of December
31, 2023
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. The Partnership also held interests in investment vehicles designed to hold BTC, including ProShares Bitcoin Strategy ETF, Galaxy sponsored BTC funds, and Mt. Gox Investment Fund LP, valued at $123.1 as of December 31, 2023 reflected in the investments balance in addition to the digital assets noted above. The Partnership also held bitcoin derivative positions not reflected above in addition to the noted bitcoin investment vehicles.
(5)
Includes associated tokens such as wETH and stETH. The Partnership also held interests in investment vehicles designed to hold ETH, including Galaxy sponsored ETH funds, valued at $22.1 million as of December 31, 2023 reflected in the investments balance in addition to the digital assets noted above. The Partnership also held Ethereum derivative positions not reflected above in addition to the noted Ethereum investment vehicles.
(6)
Includes $12.0 million net SOL and $68.5 million net TIA. The Partnership also held digital asset derivative positions not reflected above.
All figures are in U.S. Dollars unless otherwise noted.
SOURCE Galaxy Digital Holdings Ltd.
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Huawei Cloud Strengthens Thailand’s Insurance Industry with Next-Generation Digital Technologies
Published
43 minutes agoon
April 19, 2026By
BANGKOK, April 19, 2026 /PRNewswire/ — Huawei Cloud Thailand in collaboration with The Thai Life Assurance Association, hosted an executive forum bringing together more than 30 senior executives and technology leaders from leading insurance companies. The initiative reflects Huawei Cloud’s commitment to strengthening its role as a strategic partner in advancing Thailand’s digital and AI-driven economy, supporting insurance companies in accelerating secure, flexible, and scalable digital transformation through cloud-native infrastructure, advanced database technologies, and industry-specific solutions.
The event served as a platform for industry leaders to exchange insights on the future of the insurance industry in the era of cloud and AI-driven innovation, while exploring how cloud and AI technologies can modernize core insurance systems and enhance operational stability and resilience.
Driving the Future of Digital Insurance
As the insurance industry continues to accelerate its digital transformation, insurers are under increasing pressure to modernize legacy systems in order to support real-time services, rapidly growing data volumes, and evolving customer expectations.
Huawei Insurance Day event aims to position Huawei Cloud as a Strategic Digital Transformation Partner for the insurance industry, helping insurance companies build secure, scalable, and resilient digital infrastructures that can support long-term business growth.
During the event, Huawei Cloud showcased its end-to-end capabilities for the insurance sector, including cloud infrastructure, cloud-native databases, and specialized industry solutions designed to support mission-critical insurance systems.
Key Solutions for Insurance Digital Transformation
Digital Core Insurance Solution
A modernization solution that transform insurance companies migrate from legacy system such as AS/400 systems to cloud-native architectures with A next-generation core insurance architecture that enables insurers to rapidly launch new products, enhance system flexibility, simplifying maintenance and improve overall customer experience.
GaussDB for Mission-Critical Insurance Systems
Huawei’s enterprise-grade database that has been trusted by large financial organization globally, including Thailand. GaussDB designed to support critical workloads with high reliability, security and performance across multiple data centers on Huawei Cloud.
Piyatida Itiravivongs, President of Huawei Cloud Thailand said:
“Digital transformation has become a strategic priority for the insurance industry. Huawei Cloud is committed to supporting insurers in building a strong digital service by combining cloud infrastructure, advanced database technologies, and industry-specific solutions to improve operational efficiency and deliver better customer experiences.”
Meanwhile, Huang Hu, Solution Architect of Sinosoft, said:
“Sinosoft has extensive experience in developing technology platforms for the insurance industry. Through our collaboration with Huawei Cloud, we have successfully modernized insurance systems by adopting cloud-based architectures, helping organizations enhance the performance and stability of their core insurance platforms while supporting long-term business growth.
The success of these projects demonstrates the strong synergy between Sinosoft’s insurance technology expertise and Huawei Cloud’s advanced cloud infrastructure. We hope the experience and case studies shared at this event will provide valuable insights for insurance companies in Thailand as they accelerate their journey toward digital insurance.”
Thailand’s insurance industry is entering a new era in which digital technologies play an increasingly important role in enhancing operational efficiency and improving customer services. Forums such as this provide a valuable platform for industry stakeholders to exchange knowledge and perspectives on emerging technologies and innovations in cloud and digital infrastructure. Such knowledge sharing supports insurance companies in Thailand as they prepare for the ongoing evolution of the digital insurance landscape.
Huawei Cloud will continue to invest in cloud innovation to support the financial services and insurance sectors with secure, reliable, and scalable technologies, enabling sustainable business growth in the digital economy.
About Huawei Cloud Thailand
Huawei Cloud Thailand is a leading cloud service provider committed to accelerating Thailand’s digital transformation under the mission of “In Thailand, For Thailand.” According to the latest report from Gartner, Huawei Cloud is ranked No.2 by revenue in Thailand’s Infrastructure as a Service (IaaS) market, solidifying its position as one of the most trusted and fastest-growing international cloud providers in the country.
As the first international public cloud vendor to establish local data centers in Thailand, Huawei Cloud now operates three Availability Zones, ensuring high reliability and low-latency connectivity for local users. Leveraging Huawei’s 30-plus years of expertise in ICT infrastructure, it integrates cutting-edge Artificial Intelligence (AI), Cloud-Native 2.0, and Big Data technologies to empower over 40 government agencies and thousands of enterprises across the Kingdom. By building a robust digital ecosystem and fostering local talent, Huawei Cloud aims to drive Thailand’s “Digital Economy” forward, bringing cloud and intelligence to every corner of the country for a fully connected, intelligent future.
For more information, please visit Huawei Cloud Thailand online at
https://www.huaweicloud.com/intl/th-th/ or follow us on:
https://www.facebook.com/HuaweiCloudTH
https://www.youtube.com/@HuaweiCloudAPAC
View original content to download multimedia:https://www.prnewswire.com/apac/news-releases/huawei-cloud-strengthens-thailands-insurance-industry-with-next-generation-digital-technologies-302745912.html
SOURCE Huawei Cloud Thailand
Technology
Breakthrough Prize Foundation Announces Winner of the 11th Annual Breakthrough Junior Challenge
Published
3 hours agoon
April 19, 2026By
Matea Cañizarez, Age 18, of Quito, Ecuador, Receives Top Honors and $400,000 in Education Prizes for her Original Video Explaining Quark-Gluon Plasma
SAN FRANCISCO, April 18, 2026 /PRNewswire/ — The Breakthrough Prize Foundation today announced Ecuador-based student Matea Cañizarez as the winner of the 11th annual Breakthrough Junior Challenge, a global competition that empowers young people to creatively communicate complex ideas in the life sciences, physics, and mathematics.
The Breakthrough Junior Challenge will provide $400,000 in educational awards to Matea and her teacher, Roberto Procel. As the student winner, Matea will be granted a $250,000 college scholarship. In recognition of his work as a science teacher, Mr. Procel will receive a $50,000 award. The prize package also includes a cutting-edge science laboratory, designed by Cold Spring Harbor Laboratory and valued at $100,000, to be installed at Colegio Johannes Kepler, Matea’s current school, located in Quito, Ecuador.
Matea was honored alongside the 2026 Breakthrough Prize laureates at The Breakthrough Prize Ceremony in Los Angeles on April 18, 2026.
“It’s exhilarating to meet bright, curious young people like Matea,” said Julia Milner, co-founder of the Breakthrough Junior Challenge, “And to see them pursuing their passion for ideas and communicating it to others makes me truly hopeful for the future,” said Julia Milner, co-founder of the Breakthrough Prize.
Matea’s winning entry explains quark-gluon plasma, an extreme state of matter that existed just after the Big Bang, in which quarks and gluons move freely instead of being bound inside protons and neutrons. Her short video can be seen here. This was Matea’s first entry to the Breakthrough Junior Prize, and she is currently applying for college next fall.
“Coming from a rural town in Ecuador, my passion for science was not a given. I am humbled by the honor of winning the Breakthrough Junior Challenge and hope to work in the service of society and nature by making the most of this opportunity,” said Matea.
“Congratulations on your beautiful video explaining the quark-gluon plasma,” said David Gross, winner of the 2026 Special Breakthrough Prize in Fundamental Physics, whose theories led directly to the discovery of the phenomenon in Matea’s video. Gross continued, “Very exciting, very well done, and I hope you stay in physics and help us understand even better the properties of the quark-gluon plasma in the laboratory, in the early Universe, and perhaps in the core of neutron stars.”
The Breakthrough Junior Challenge is a global program designed to showcase and advance young people’s understanding of science and core scientific principles, spark enthusiasm for STEM fields, encourage pursuit of STEM careers, and engage the broader public in fundamental scientific concepts. Each year, students ages 13 to 18 are invited to produce original videos of up to two minutes that explain a concept or theory in life sciences, physics, or mathematics.
Entries are judged on how effectively participants communicate complex scientific ideas in clear, compelling, and creative ways.
“Seeing students take on complex topics and explain them with enthusiasm and creativity is inspiring,” said Sal Khan, founder and CEO of Khan Academy and Vision Steward of TED. “Their work is a reminder that when young people are given access and opportunity to explore their interests, they can achieve great things.”
This year, the Breakthrough Junior Challenge attracted more than 2,500 applicants from around the world. Submissions were narrowed down to 30 semifinalists, which represented the top submissions after two rounds of judging: first, a mandatory peer review, followed by an evaluation panel of judges. Sixteen finalists were selected in December 2025.
Celebrating its 11th year, the Breakthrough Junior Challenge has reached a global community of more than 100,000 students, parents, and educators, drawing upwards of 30,000 applications from students in over 200 countries, including Canada, Nigeria, Kazakhstan, the Philippines, Singapore, and the United States. Since its launch, the program has distributed more than $2.5 million in college scholarships, invested $1 million in state-of-the-art science laboratories, and awarded $500,000 to exceptional science and mathematics teachers. Winning submissions have explored subjects ranging from Mechanogenetic Cellular Engineering, Einstein’s Theory of Relativity, Circadian Rhythms, Neutrino Astronomy, and more. Challenge alumni have continued their academic journeys at top-tier universities such as MIT, Harvard, Princeton, and Stanford.
This year’s Selection Committee was comprised of: Thea Booysen, MsC, social media director for neurologist Dr. Richard Isaacson and founder of MadeByHuman; Rachel Crane, space and science correspondent, CNN; Pascale Ehrenfreund, PhD, president, Committee on Space Research COSPAR; Dennis Gaitsgory, professor, Max Planck Institute for Mathematics, and Breakthrough Prize in Mathematics Laureate; John Grunsfelt, PhD astronaut, associate administrator for science, chief scientist at NASA Headquarters; Mae Jemison, physician, former astronaut, entrepreneur; Jeffery W. Kelly, professor of chemistry, Scripps Research Institute and Breakthrough Prize in Life Sciences laureate; Scott Kelly, retired NASA astronaut; Salman Khan, founder and CEO, Khan Academy; Ijad Madisch, CEO, co-founder, ResearchGate; Samaya Nissanke, University of Amsterdam, Breakthrough Prize in Fundamental Physics laureate; Nicole Stott, NASA astronaut, and co-founder of the Space for Art Foundation; Andrew Strominger, professor of physics, Harvard University, and Breakthrough Prize in Fundamental Physics laureate; Terence Tao, UCLA professor and Breakthrough Prize in Mathematics laureate; Esther Wojcicki, founder, Palo Alto High Media Arts Center; Richard Youle, National Institutes of Health, and Breakthrough Prize in Life Sciences laureate; and S. Pete Worden, chairman, Breakthrough Prize Foundation.
Partners
The Breakthrough Junior Challenge
The Breakthrough Junior Challenge, co-founded by Julia and Yuri Milner, is a global science video competition, aiming to develop and demonstrate young people’s knowledge of science and scientific principles and communications skills; generate excitement in these fields; support STEM career choices; and engage the imagination and interest of the public-at-large in key concepts of fundamental science.
The Breakthrough Prize
The Breakthrough Prize, renowned as the “Oscars of Science,” recognizes the world’s top scientists. Each prize is $3 million and presented in the fields of Life Sciences, Fundamental Physics (one per year) and Mathematics (one per year). In addition, up to three New Horizons in Physics Prizes, up to three New Horizons in Mathematics Prizes and up to three Maryam Mirzakhani New Frontiers Prizes are given out to early-career researchers each year. Laureates attend a gala award ceremony designed to celebrate their achievements and inspire the next generation of scientists.
The Breakthrough Prizes were founded by Sergey Brin, Priscilla Chan and Mark Zuckerberg, Julia and Yuri Milner, and Anne Wojcicki. The Prizes have been sponsored by the personal foundations established by Sergey Brin, Priscilla Chan and Mark Zuckerberg, Julia and Yuri Milner and Anne Wojcicki. Selection Committees composed of previous Breakthrough Prize laureates in each field choose the winners. Information on the Breakthrough Prize is available at breakthroughprize.org.
About Khan Academy
Khan Academy is a 501(c)(3) nonprofit organization with the mission of providing a free, world-class education for anyone, anywhere. Since 2008, Khan Academy has provided an education safety net, a free platform designed to provide global access to high-quality learning for students and free resources for teachers. Khan Academy partners with more than 600 school districts in the United States and works with school systems in countries around the world, providing tools that personalize education. Khan Academy is at the forefront of using AI in education to support students while ensuring educators remain at the heart of the classroom. Worldwide, more than 200 million registered learners have used Khan Academy in 190 countries and more than 50 languages. For more information, please see research findings about Khan Academy and our press center.
Cold Spring Harbor Laboratory (CSHL)
The Breakthrough Prize Lab for the winning student’s school is designed in partnership with Cold Spring Harbor Laboratory (CSHL). Founded in 1890, CSHL, an independent 501(c)(3) nonprofit, powers transformational discoveries in cancer, neuroscience, artificial intelligence, plant biology, and quantitative biology. Through world-renowned science and education divisions, CSHL nurtures a culture of curiosity, discovery, and innovation to make lives better. CSHL’s DNA Learning Center (DNALC) is the largest provider of hands-on instruction in genetics and biotechnology, reaching nearly 40,000 middle and high school students through field trips, day camps, summer camps, mentored research projects, and teacher training. For more than a century, CSHL has been a powerful and productive environment for developing, connecting, and sharing world-changing ideas. For more information, visit www.cshl.edu<http://www.cshl.edu/>>.
Contact
For more information, including competition rules, video submission guidelines and queries, go to: breakthroughjuniorchallenge.org.
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SOURCE Breakthrough Prize
Technology
Penn Medicine, Children’s Hospital of Philadelphia team awarded Breakthrough Prize for developing gene therapy for inherited blindness
Published
4 hours agoon
April 18, 2026By
LOS ANGELES, April 18, 2026 /PRNewswire/ — Their discovery started with a group of blind dogs living at a vet school. Now, the work has been awarded the prestigious Breakthrough Prize at the “Oscars of Science.”
Today, Jean Bennett, MD, PHD, and Albert Maguire, MD, both emeritus professors of Ophthalmology in the Perelman School of Medicine at the University of Pennsylvania, and Katherine High, MD, an emeritus professor of Pediatrics and the founding director of the Raymond G. Perelman Center for Cellular and Molecular Therapeutics at Children’s Hospital of Philadelphia (CHOP), received the Breakthrough Prize in Life Sciences for their work in developing the first FDA-approved gene therapy for an inherited condition, which dramatically improves sight in people with a form of blindness called Leber Congenital Amaurosis (LCA).
Their work blazed a trail for the more than 140 gene therapy trials for retinal conditions, including macular degeneration and diabetic retinopathy, diseases that collectively impact about 30 million people in the US. Eighty more trials are currently underway.
“Even 20 years ago, treating people with gene therapy was seen by some as an impossibility,” said Jonathan Epstein, MD, dean of the Perelman School of Medicine and executive vice president of the University of Pennsylvania for the Health System. “But this group of incredible physician-scientists persisted and created something that is providing sight to people who would have been completely blind as early as kindergarten. Their belief in the power of life-changing science has led to breathtaking results and richly deserved global recognition.”
The Breakthrough Prizes are called the “Oscars of Science” for their high-profile celebration of research and support from celebrities spanning numerous areas of pop culture. Created in 2012 by Sergey Brin, Priscilla Chan and Mark Zuckerberg, Yuri and Julia Milner, and Anne Wojcicki, the prizes are given out in five categories including Life Sciences, Fundamental Physics, and Math, each with an accompanying $3 million award.
This year’s accolade now means that nine Penn-affiliated researchers have received the Breakthrough Prize, tied for the most with Harvard University. The prior Penn Medicine award winners are Carl June, PhD (2024), Drew Weissman, MD, PhD, and Katalin Karikó, PhD (2022), and Virginia M.Y. Lee, PhD (2019). Additionally, Penn faculty members Charles Kane, PhD, and Eugene Mele, PhD, won the prize for Physics in 2019. Mathew Madhavacheril, PhD, an assistant professor of Physics and Astronomy in Penn’s School of Arts & Sciences, also received recognition at this year’s Breakthrough Prize ceremony when he was honored with the New Horizons in Physics award, given to researchers early in their careers.
“Science is rarely a straight path, and those who make the most profound discoveries are resilient and persistent, overcoming obstacles along the way,” said J. Larry Jameson, MD, PhD, president of the University of Pennsylvania. “That is exactly what I see in this year’s awardees, and it has been true of all our remarkable faculty who have been recognized for scientific breakthroughs. Whether they are discovering what lies beneath Alzheimer’s Disease, curing cancer by engineering a patients’ own immune cells, or reversing blindness—they have persisted with imagination and rigor. Their steadfastness has pushed the boundaries of what medicine can achieve.”
“Developing cell and gene therapies has long been a top priority for our organization,” said Madeline Bell, CHOP’s CEO. “This breakthrough is the result of decades of investment and collaboration, and reflects our commitment to translating scientific discoveries into therapies that will transform patients’ lives. It has paved the way for many more cell and gene therapy innovations and has given hope to families around the world.”
“They can see!”
Bennett and Maguire met and married during medical school in the 1980s. It was then that they both became intrigued by the concept of genetic therapy, the practice of replacing a mutated or faulty gene with a functional copy, and started dreaming of treating inherited forms of blindness with the technique, which at that time remained the stuff of science fiction.
It was “like thinking you wanted to go to the moon in 1950,” Maguire said many years later.
Both Bennett and Maguire joined Penn’s Scheie Eye Institute in the 1990s and began working on their ideas with lab mice. They learned that the University of Pennsylvania School of Veterinary Medicine housed a group of blind dogs who had a condition similar to the human disease: Leber congenital amaurosis (LCA). People born with a mutation on the RPE65 gene have poor vision starting at birth and often progress rapidly to complete blindness, usually by their 20s, but sometimes in early childhood.
The pair developed a therapy that used a virus as a transport, carrying a piece of DNA into cells that would then correct the faulty, blindness-causing proteins formed by the bad gene. The idea: Once the proteins were set right, some sight might return. First, they tested the therapy by injecting it into a single eye in each of three dogs.
It wasn’t long until they knew whether it worked. Bennett recalls receiving an excited phone call from a technician at the lab, who exclaimed, “They can see!”
Sure enough, the dogs were twirling around, using their treated eyes to see. Before treatment, the dogs had bumped and tripped through an obstacle course set up to test their sight. After the full treatment, the course was an easy task for the dogs.
A knock on the door
In parallel with Bennett and Maguire’s dreams of gene therapy, High was also working to bring the field forward. Like Bennett and Maguire, she had achieved long-term reversal of a serious genetic disease in a dog model: In her case, for hemophilia, a life-threatening bleeding disorder. High had advanced these studies from success in dogs to initial clinical trials in humans, delivering the donated gene into skeletal muscle and the liver.
The work was promising, but the human immune response to the gene delivery vessel—which was derived from a virus in the same way Bennett and Maguire’s therapy was—prevented sustained benefits from the therapeutic gene. At the same time, companies and investors, discouraged by high profile negative events, began to turn away from gene therapy. Progress stalled.
But with support from CHOP, High founded the Raymond G. Perelman Center for Cellular and Molecular Therapeutics (CCMT) in 2004. She recruited experts in all aspects of clinical gene therapy, including specialized knowledge in the manufacturing and release of gene therapy vectors, which are the particles that deliver a healthy copy of a defective gene to patients.
After vector production was set up at CHOP, High went to Bennett’s office and knocked on the door with a proposition to start a clinical trial in humans. In 2007, Maguire, who was then a surgeon in Pediatric Ophthalmology at CHOP, administered an injection of the experimental therapy at CHOP into a clinical trial participant – a 26-year-old woman—for the first time. Her twin, with the same condition, received the treatment shortly after.
When the team assessed the treatment of the 37 eligible participants from the original clinical trials, 72 percent reported the maximum possible improvement in a test of low-light conditions, which simulates night vision. Amid these, many reported improved peripheral and central vision, too. One patient, who could only detect changes in light, was suddenly able to navigate walking through Philadelphia at night, unaided, and could make out the clock on City Hall. Another patient was able to see a star for the first time in her life just six days after the procedure.
In 2017, the therapy—by then manufactured by Spark Therapeutics, a spinout from CHOP, and called Luxturna—received approval by the U.S. Food and Drug Administration. It became the first FDA approval of a genetic therapy for an inherited disease. Today, hundreds of people around the world have successfully received the treatment.
A celebration of decades of work
Today’s celebration in Los Angeles marks a celebratory milestone in roughly 40 years of work led by Bennett, Maguire, and High that has inspired others in the now vibrant field of gene therapy. In fact, a treatment stemming from High’s original work with hemophilia received FDA approval in 2024.
“We always just did what we thought you were supposed to do if you were a doctor: Find treatments for diseases,” said Maguire. “Both my father and Jean’s worked in science, and it seemed normal to try to push the envelope.”
“I think the only surprise for us was that things worked out so well,” Bennett said. “For every success, there are usually so many failures. That’s just the nature of science. But our team hit on something that has helped so many people and helped progress the field, and we’re really grateful for our part in that.”
High described the journey between the start of her collaboration with Bennett and Maguire in 2005 and the FDA approval in 2017 as “an arduous one.”
“At times, it seemed that the number of obstacles we needed to overcome to reach regulatory approval was never-ending,” High said. “Working without the benefit of the guidelines and precedents we now have today, we sought to solve each day’s problems so that the program would have a tomorrow. It was a bold and uncertain investment of time, effort, and resources. Few were willing to take on the risks, but it ultimately paid off, and it helped build the foundation of modern gene therapy.”
About Penn Medicine:
Penn Medicine is one of the world’s leading academic medical centers, dedicated to the related missions of medical education, biomedical research, excellence in patient care, and community service.
The organization consists of the University of Pennsylvania Health System and Penn’s Raymond and Ruth Perelman School of Medicine, founded in 1765 as the nation’s first medical school.
The Perelman School of Medicine is consistently among the nation’s top recipients of funding from the National Institutes of Health, with more than $588 million awarded in the 2024 fiscal year. Home to a proud history of “firsts,” Penn Medicine teams have pioneered discoveries that have shaped modern medicine, including CAR T cell therapy for cancer and the Nobel Prize-winning mRNA technology used in COVID-19 vaccines.
The University of Pennsylvania Health System cares for patients in facilities and their homes stretching from the Susquehanna River in Pennsylvania to the New Jersey shore. UPHS facilities include the Hospital of the University of Pennsylvania, Penn Presbyterian Medical Center, Chester County Hospital, Doylestown Health, Lancaster General Health, Princeton Health, and Pennsylvania Hospital—the nation’s first hospital, chartered in 1751. Additional facilities and enterprises include Penn Medicine at Home, GSPP Rehabilitation, Lancaster Behavioral Health Hospital, and Princeton House Behavioral Health, among others.
Penn Medicine is a $13.7 billion enterprise powered by more than 50,000 talented faculty and staff.
About Children’s Hospital of Philadelphia:
A non-profit, charitable organization, Children’s Hospital of Philadelphia was founded in 1855 as the nation’s first pediatric hospital. Through its long-standing commitment to providing exceptional patient care, training new generations of pediatric healthcare professionals, and pioneering major research initiatives, the hospital has fostered many discoveries that have benefited children worldwide. Its pediatric research program is among the largest in the country. The institution has a well-established history of providing advanced pediatric care close to home through its CHOP Care Network, which includes more than 50 primary care practices, specialty care and surgical centers, urgent care centers, and community hospital alliances throughout Pennsylvania and New Jersey. CHOP also operates the Middleman Family Pavilion and its dedicated pediatric emergency department in King of Prussia, the Behavioral Health and Crisis Center (including a 24/7 Crisis Response Center) and the Center for Advanced Behavioral Healthcare, a mental health outpatient facility. Its unique family-centered care and public service programs have brought Children’s Hospital of Philadelphia recognition as a leading advocate for children and adolescents. For more information, visit www.chop.edu.
Media Contacts:
CHOP PR Contact:
Ashley Moore
Moorea1@chop.edu
267-426-6071
Penn Medicine PR Contact:
Frank Otto
Frank.Otto@pennmedicine.upenn.edu
267-693-2999
View original content to download multimedia:https://www.prnewswire.com/news-releases/penn-medicine-childrens-hospital-of-philadelphia-team-awarded-breakthrough-prize-for-developing-gene-therapy-for-inherited-blindness-302746319.html
SOURCE Children’s Hospital of Philadelphia
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