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Galaxy Digital: Diversified Crypto Exposure Through Financial Services


  • Galaxy Digital is a financial services firm focusing on the crypto and blockchain technologies segment with a diversified operation.
  • The company reported its 2020 financials highlighted by record growth and profitability amid the surge in its crypto investments portfolio.
  • We are bullish on the stock which benefits from several positive tailwinds and overall solid fundamentals with exposure to climbing bitcoin prices.
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Galaxy Digital Holdings Ltd. (OTCPK:OTCPK:BRPHF) has emerged as a leading financial services player in the digital assets and crypto space across a core asset management, banking, and trading business. The company also invests directly in cryptocurrency and blockchain technology-related companies with a

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This article was written by

Dan Victor, CFA profile picture

15 years of professional experience in capital markets and investment management at major financial institutions. 

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Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Comments (93)

bazooooka profile picture
How deep will the sale price go?
@bazooooka You’ve had some good thoughts on $VYGVF. It seems you are more excited about the crypto itself or a company like this one. Can you elaborate on your interest in this name? I own some in my basket of crypto-related names, but find these “diversified” entities harder to analyze then ones like Voyager where I (mostly) understand the business model. Thanks.
bazooooka profile picture
@T&ETrade This one is an early stage crypto full service investment bank and vc crytpo fund. It's very tough to value this one and it seems like it trades at a huge premium to the nav of its coin investments. However if/when alt coins moonshot these guys likely will be in on it. I'd size something like this pretty small compared to just owning Bitcoin or Ethereum. Their net income, largely from investments and trading operations, likely will be more modest this quarter compared to last.
@bazooooka why? they make money on the up and the down. Their VC money is making more than ever... whole space trickling to 3T this summer/fall.... Q2 income will be 750+
Is Silvergate Capital Corporation (SI) a competitor to BRPHF in any of Galaxy's space?
@denoverenes7 most dont even know what either do.... i would say no, but the boats are in the same lake
Volatility is the friend of traders. Galaxy's trading arm will make out like bandits from the recent sharp moves
@Sound Investor agree....not sure why investors dont realize that... the fact the chart moves with BTC, tells me 90% just use it as a BTC proxy
Shivas Irons profile picture
Nice little bump up today for BRPHF. Anyone have any thoughts on Monday's earnings announcement? Here's what Schwab has to say: Followed by a single analyst, forecast earnings are $1.77. The mean has trended downward from the last estimate of $1.80.
Check my post from April 15th if you thought I was kidding.
I picked this up on today's drop. Novogratz is a smart cookie so this is a nice way of picking up fairly diversified crypto exposure
bazooooka profile picture
@Sound Investor You might want to keep an eye on BITQ also https://bitqetf.com/
Stock went up 60% AH. Any particular reason or just the delayed response to the recent acquisition?
jachristy profile picture
@HH_expat Unfortunately it’s probably just a Seeking Alpha glitch. I’ve seen it before, and had similar high hopes
@jachristy Not just SA. Etrade reported the same thing.
@MrDondo - after hours on thinly traded names (especially OTC) can see 1-5 share AH trade with a huge spike up (or down) due to somebody accidentally putting in a market order and getting bent over.
Noob question... I hear Galaxy will be listed in the US sometime in 2021. Does it trade under the same ticker, BRPHF? What happens to share purchased OTC? Thanks.
@Rick_00 ticker name will change....it will be seamless for you
Anyone else needs help finding out top in a stock they have just message me. Apparently it's my specialty.
@Jboosted92 I would but I'm busy falling on my Lordstown sword.
Throwing some price targets out for fun. This is not investment advice. Do your own research. All as of 12.31:

2021: $85
2022: $140
2023: $230
2024: $145
2025: $380
2026: $615
2027: $995
2028: $1,610
2029: $2,605
2030: Party like it’s 1999
@gimmetheyo! LOL..i hope, but wouldnt that make it a 32 billion dollar market cap in 2025, and 320 billion in 2030?!?
@Jboosted92 four things: 1. Amazon was just an online bookstore when they started. 2. This is an incubator of value. Many spin-offs with value creation to come. 3. I used to think this would be the Goldman Sachs of crypto. I think now instead this will become the Berkshire Hathaway of crypto. 4. 320 billion 2030 dollars is worth what in today’s dollars?
Shivas Irons profile picture
@gimmetheyo! Sounds good! And is the ETF Novogratz applying for what he meant when he said he was preparing for an IPO, or is there more to come?
bazooooka profile picture
I like this stock. Have made a ton on it. But it for sure will sink hard if BTC does thus one should have a bullish view on BTC. This was a great one to own earlier this year.

"""Whether the price of bitcoin is at $60,000 or $30,000, there is an expectation for ongoing adoption of related digital asset applications, which makes Galaxy Digital well-positioned to benefit from continued growth opportunities."""
Shivas Irons profile picture
@bazooooka Correct. It's all about the blockchain as well
Keep it Country profile picture
Long BRPHF from $7/share. Novogratz is the real deal.
Shivas Irons profile picture
@Jackson Falls NH Yes, Novogratz is the main reason I bought BRPHF but, wow, the stock is a bucking bronco of volatility. Looking forward to the next quarterly report and the IPO.
Jason A Roberts profile picture
Long bbkcf, brphf, and my big daddy vygvf since 3.75 the millionaire maker.
danyates57 profile picture
Where can I buy Galaxy Digital (BRPHF)? I can't find it on eToro or Robinhood and it is a restricted stock in my Wells Trade brokerage.
DRIPsexy profile picture
@danyates57 its OTC which eToro and RH I think don't offer generally offer. I can buy it with eTrade and Vanguard. I assume TD Ameritrade, Schwab, Fidelity do as well. You know, legit brokerages, not some dudes in hoodies.
Keep it Country profile picture

Are those the same dudes in hoodies that pass me in the interstate breakdown lane driving 100 MPH in a dented up rust bucket(that they have a 15% car loan on)?
@danyates57 TDAmeritrade.
Galaxy Digital is on my watch list. Kicking myself for not buying it when it was a penny stock along with Voyager! D'oh!
It’s important to use the 6ish billion dollar “market cap” number. That way there is less confusion. The 1Q2021 earnings were more than all of 2020 per the earnings call. I disagree it will be modest for 21, but appreciate the deep dive and your analysis. I also want to note that they claimed on the call they would be mining BTC at a $10,000 average cost. I also am excited about The new offerings for miners generally.
Dan Victor, CFA profile picture
@Fm11710 I updated the article to reflect market cap of $6.6 billion considering both the common shares and value of Class B units.

You're right that Q1 is set to be a monster quarter for earnings but what I meant is that going forward- unless the increase in BTC continues at the same pace it has over the past 6 months- it just makes sense that earnings growth will moderate on a Q/Q basis. im bullish on bitcoin but taking a more reasonable view for the year ahead compared to some estimates of people calling for BTC at $500k or something like that.. ill be happy if it ends the year at $60k
@BOOX Research based on inflows i think we are looking at 85k-110k at end of year.... after that? who knows....2024-25 i dont think 2x is out of question
ves profile picture
02 Apr. 2021
Anyone have any idea how much ETHEREUM and EOS is in GLXY possession?
@ves My memory could be faulty but think allocation was 70% BTC, something like 20% ETH and the rest others.
16,400 BTC
Percentages shift with each crypto's value change
ves profile picture
14 Apr. 2021
@jtmatrix Thanks, good that I was here on time, and I think I will be here for a long time
Thanks for the write up.

I looked at Galaxy in December, but decided to invest in Voyager instead, because I worried about its long term competitive advantage once more traditional banks entered the crypto space.

Galaxy's partnership with Morgan Stanley is a win, but if you read the language, Galaxy is the first approved fund for MS clients, but likely won't be the last. That exclusivity may last a year--less or more.

Also have some hesitations when a company reports earnings based on unrealized gains. Interesting to see if that's consistent when there are significant unrealized losses in future quarters.

Ultimately, I like the company, but because of the above hesitations, will just be an interested observer for now. May rotate some funds over from my Voyager holdings, should I ever decide to trim.
DRIPsexy profile picture
@KJCC "Also have some hesitations when a company reports earnings based on unrealized gains." You know there are accounting standards for such things right?

Of course, if there are unrealized losses, they’ll say the net losses were unrealized, but the basis is this, so the losses excluding non-unrealized losses is really this.

What I mean to say is when those unrealized gains account for so much of the earnings and that’s the headline, it always gives me pause. It is especially relevant for a company that has three other business lines than just a pure buy n hold company like Microstrategy or a company like Voyager, who is actively converting its BTC holdings from an investment into a COGS when it pays marketing fees ($50 per AAC at FMV).
DRIPsexy profile picture
@KJCC Well good thing we don't invest based on headlines ;)
Interesting perhaps

Bitcoin difficulty was just reported to have increased 5%

and Ethereum miners are fighting with the writers over fees

Care to provide your thoughts ?

Thanks in advance.

Could be good investment.
Not sure about the risk.
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