Connect with us

Technology

Galaxy Announces Second Quarter 2024 Financial Results

Published

on

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.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Technology

Huawei Cloud Strengthens Thailand’s Insurance Industry with Next-Generation Digital Technologies

Published

on

By

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

Continue Reading

Technology

Breakthrough Prize Foundation Announces Winner of the 11th Annual Breakthrough Junior Challenge

Published

on

By

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 RelativityCircadian 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.

View original content to download multimedia:https://www.prnewswire.com/news-releases/breakthrough-prize-foundation-announces-winner-of-the-11th-annual-breakthrough-junior-challenge-302746554.html

SOURCE Breakthrough Prize

Continue Reading

Technology

Penn Medicine, Children’s Hospital of Philadelphia team awarded Breakthrough Prize for developing gene therapy for inherited blindness

Published

on

By

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

Continue Reading

Trending