Galaxy Digital Accelerates Diversified Development, Becoming the Behind-the-Scenes Driver of the Encryption Treasury

Recently, the cryptocurrency market remains hot, with various tokens experiencing explosive growth in succession. In this narrative of financial resources, Galaxy Digital is playing the role of a behind-the-scenes operator. The company is accelerating its compliance transformation and diversified strategic layout through various means such as asset management, infrastructure development, and direct investments.

Galaxy provides customized services for encryption vaults

As more and more companies allocate part of their assets to mainstream cryptocurrencies such as Bitcoin and Ethereum, Galaxy Digital is providing comprehensive support for various institutions. It is understood that Galaxy primarily serves two types of enterprise treasury participants: first, self-managed enterprises that can operate independently using Galaxy's institutional-grade technology platform; second, enterprises seeking custodial management that can collaborate with Galaxy Asset Management for comprehensive support.

Recently, Galaxy has become the preferred partner for more than 15 leading companies in the encryption treasury project, providing them with infrastructure, professional services, and end-to-end support. Some partners have committed to invest over $4 billion in encryption asset allocation. In certain cases, Galaxy has also supported these companies' digital asset strategies through direct investments.

The custom services of the encryption treasury are also becoming an important source of revenue for Galaxy. Taking SharpLink Gaming as an example, Galaxy not only invested in the company but is also responsible for managing its Ethereum treasury, which can yield considerable ongoing profits.

In addition, Galaxy is optimizing its staking services to meet institutional needs. The company has partnered with several institutional-grade custodians such as Fireblocks to further expand its staking business. As of the first half of this year, Galaxy's staking assets have reached $3.15 billion.

Accelerating Diversification Strategy Layout After Listing

As a one-stop platform for institutions entering the encryption economy, Galaxy is responding to market fluctuations through a diversified strategy. Currently, Galaxy's business mainly revolves around three major sectors: global markets, asset management, and digital infrastructure. Among them, trading business is the primary source of revenue, accounting for approximately 99% of total revenue in 2024.

However, this single structure exposes risks during market downturns. In the first quarter of this year, Galaxy reported a net loss of $295 million, nearly offsetting the profits for the entire year of 2024. Nevertheless, Galaxy still has ample capital reserves, holding $1.1 billion in cash and stablecoins, as well as $1.9 billion in equity reserves at the end of the first quarter.

To promote revenue diversification, Galaxy is expanding its ecological layout:

1. In terms of asset management business, Galaxy collaborates with multiple global financial institutions to expand its layout in encryption ETFs. Several ETF products have been launched in the Canadian, European, and American markets.

2. Digital infrastructure sector, Galaxy is building the next-generation AI infrastructure Helios. Analysts expect Helios to bring significant returns, far exceeding mining operations.

3. In terms of compliance, Galaxy has completed its restructuring from the Cayman Islands to the United States and is officially listed on NASDAQ under the stock code GLXY. Over the past month, GLXY has risen by 55.87%.

Galaxy also reached a settlement of $200 million with the New York Attorney General's office regarding the LUNA token manipulation case to advance its compliance process.

In general, Galaxy Digital is actively responding to market uncertainties through a diversified layout including encryption treasury services, ETF products, and AI infrastructure, striving to occupy a leading position in the encryption financial sector.