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Will a Nursing Home Drain Our $500k in Savings and Trust Fund?

07.11.2024 by admin

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Can a nursing home seize your savings? What if your money is in a trust or a Roth IRA? For married and single retirees alike, these are important questions with nuanced answers.

First for the good news: A nursing home cannot simply take your retirement accounts or savings. Short of legal action due to an unpaid bill, you can distribute your assets as you see fit. However, you will have to plan ahead to optimize your end-of-life finances, particularly because in some cases its possible the government could seize assets post-death to pay for nursing home expenses.

Long-term care, especially stays in nursing homes, can be costly. Options for covering these costs include paying out of pocket, private insurance and Medicaid. Your assets, even if they’re in a Roth IRA or certain types of trusts, can potentially impact your eligibility for the latter. If you need help planning for your long-term care needs, consider working with a financial ad visor.

Long-term care, which can include everything from homemaker services and help from a home health aide to nursing home care, is expensive. In fact, the median monthly cost of a private room in an American nursing home is estimated to be $9,584 in 2023, according to GenWorth, an insurance company that offers long-term care coverage. Those costs are expected to increase to nearly $13,000 per month by 2033.

That’s well beyond what most people can afford from their retirement income, and many times what Social Security pays. That’s why it’s important to plan ahead, says Alec F. Root, a chartered financial analyst (CFA) with DBR & Co.

“As with estate planning in general, it is helpful to have these conversations sooner rather than later, especially before one’s health changes and potentially impacts their ability to properly insure themselves,” he told SmartAsset. “Five to 10 years prior to retirement is generally a good time to discuss this subject. A strong estate plan will detail the terms of late-life care, while a good financial plan will account for nursing home care and final expenses.”

Medicare won’t cover the costs of a nursing home or other facilities. Instead, generally, the best way to afford long-term care may be through dedicated long-term care insurance. The earlier you purchase this coverage the less expensive this will be. For a healthy 55-year-old, you can expect to pay between $950 and $1,500 per year for this coverage, according to the American Association of Long-Term Care Planning. At 65, those averages jump to between $1,700 and $2,700 per year. So prepare ahead of time.

Remember, a financial advisor can walk you through your options for paying for long-term care and potentially even help you purchase an insurance policy.

A Medicaid recipient is wheeled through a nursing home.

If you can’t afford long-term care insurance, the next most common option is Medicaid – the government program that provides medical care for low-income households. While its coverage tends to be limited, it does pay for nursing homes, as well. However, it’s important to be aware that through the Medicaid Estate Recovery Program (MERP), it’s possible that someone’s assets may be recoverable by the government to repay nursing home expenses.

Medicaid also has strict income and asset caps, and every state has its own eligibility requirements and scope of coverage. For example, in New York, your income cannot exceed $1,677 per month and your total assets cannot exceed $30,182. However, the state does not count your IRA or Roth IRA toward those total assets.

Note: Medicare, the health care program for all Americans over 65, does not pay for long-term care facilities.

On the other hand, in Massachusetts, your income cannot exceed $1,215 per month and your total assets cannot exceed $2,000. There, the state does include your IRA among those total assets.

Keep in mind that if you have an IRA you’ll have to take required minimum distributions (RMDs) by age 73. These withdrawals will count toward your annual income cap. Roth IRAs, on the other hand, are not subject to RMDs but states may count the portfolio among your total assets, as Massachusetts does. But if you need help calculating your RMDs or managing your Roth assets, consider speaking with a financial advisor.

If your wealth exceeds these caps, you may have to spend almost all of it in order to qualify for coverage. Then again, there are ways to preserve your assets if you need Medicaid to cover your nursing home expenses.

“Traditional investments can be vulnerable to these financial threats, and that’s precisely why we need to explore alternative avenues,” said Dutch Mendenhall, CEO of RAD Diversified and author of Money Shackles.

You can move your money into assets that your state’s Medicaid program does not count against eligibility limits. Beyond a Roth IRA potentially shielding your assets from Medicaid, many households look to put their money in trusts. Doing so can reduce your on-paper wealth, making you potentially eligible for Medicaid coverage.

“Using a trust, such as an irrevocable trust, is a formidable weapon in your arsenal to shield your assets from the voracious appetite of long-term care costs,” said Mendenhall.

“Placing your assets in an irrevocable trust effectively removes them from your ownership, making them less susceptible to being counted as part of your financial assets during eligibility determinations for Medicaid, he added. “This separation can be a game-changer, potentially preserving your wealth.”

But only an irrevocable trust will work for Medicaid qualification. Assets in a revocable trust, meaning one that you can change or revoke while you’re still alive, still count toward your overall household wealth.

The typical vehicle for this is a form of irrevocable trust known as a Medicaid asset protection trust.

Be aware that there’s usually a ‘look-back’ period during which Medicaid considers your financial transactions leading up to your long-term care application. The assets you transfer into a trust may be subject to this scrutiny, so planning in advance is crucial. Most, if not all, states look back five years.

And if you need help establishing a trust or deciding what kind to set up, find a financial advisor with estate planning expertise.

Long-term care insurance is one way to potentially pay for costly stays in nursing homes.

This is a complicated answer to the complicated question of whether a nursing home can take your savings. While nursing homes can’t seize your assets, the costs of this care are high and can quickly drain your savings. Experts recommend preparing for these costs with diversified investments, income-generating assets and long-term care insurance. If that’s not an option, using a trust to qualify for Medicaid can be a potential avenue for getting coverage. But the specifics will range widely based on your personal situation, your assets and the state in which you live.

While we didn’t have time to explore the topic fully here, some other options for protecting your assets from Medicaid can include annuities, life estates and even your own home.
A financial advisor can help you determine whether you could potentially qualify for Medicaid. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Keep an emergency fund on hand in case you run into unexpected expenses. An emergency fund should be liquid — in an account that isn’t at risk of significant fluctuation like the stock market. The tradeoff is that the value of liquid cash can be eroded by inflation. But a high-interest account allows you to earn compound interest. Compare savings accounts from these banks.
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Photo credit: ©iStock.com/katleho Seisa, ©iStock.com/SilviaJansen, ©iStock.com/Hailshadow

The post Can a Nursing Home Take Our Assets? We Have a $500k IRA and a Trust to Protect Us appeared first on SmartReads by SmartAsset.

news

Sealed Air Reports Q3 2024 Results

07.11.2024 by admin

Third Quarter 2024 Highlights and Financial Results

Shifted operating structure into two distinct verticals, Food and Protective, and announced both vertical presidents with strong commercial packaging expertise
Volume growth in Food driven by strong end-market demand and competitive wins
Protective industrial and fulfillment portfolios continue to be weak
Cost take-out on track to generate $90 million of incremental cost savings for full-year 2024
Net leverage ratio reduced to 3.7x with maintained focus on deleveraging the balance sheet
Updating our financial outlook for 2024

CHARLOTTE, N.C., Nov. 7, 2024 /PRNewswire/ — Sealed Air Corporation SEE announced third quarter 2024 financial results and business updates.

“With the shift into two verticals, Food and Protective, and the onboarding of new leadership, we have positioned Sealed Air for long-term success,” said Patrick Kivits, Sealed Air’s CEO. “Over the coming months, we are focused on operationalizing each vertical and finalizing the long-term growth strategy for each business. In parallel, we are stepping up our cost take-out initiatives to right-size each business and improve profitability until our transformation takes hold.”

“While our third quarter results were ahead of expectation, the strength of our Food business continues to be offset by continued softness in our Protective portfolio. As a result, we are maintaining the midpoint of our Sales and Adjusted EBITDA guidance,” said Dustin Semach, Sealed Air’s President and CFO. “We continue to improve underlying cash generation fundamentals, optimize our debt and tax rate, and as a result, we are raising our guidance for Free Cash Flow and Adjusted EPS for the year.”

($ millions, except per share data)
GAAP Results	Third Quarter
	2024	2023	Reported △%	Constant Currency △%
Net Sales	$1,345.1	$1,381.8	(2.7) %	(2.3) %
Net Earnings	$88.7	$57 .6	54.0 %
Diluted EPS	$0.61	$0.40	52.5 %
Cash Flow from Operations (YTD)	$483.8	$192.5	151.3 %

Non-GAAP Results	Third Quarter
	2024	2023	Reported △%
Adjusted EBITDA	$276.0	$284.7	(3.1) %
Adjusted Net Earnings	$115.7	$111.5	3.8 %
Adjusted Diluted EPS	$0.79	$0.77	2.6 %
Free Cash Flow (YTD)	$322.7	$182.5⁽¹⁾	76.8 %

⁽¹⁾ 2023 excludes the impact of a $175 million tax deposit to resolve certain U.S. tax matters.

Unless otherwise stated, all results compare third quarter 2024 results to third quarter 2023 results from continuing operations. Year-over-year financial discussions present operating results from continuing operations as reported.

Third Quarter 2024 Financial Highlights

Net sales of $1.35 billion decreased 3% as reported, with APAC increasing 4% and the Americas and EMEA regions both decreasing 4%. Net sales decreased $32 million, or 2%, on a constant dollar basis. Price had an unfavorable impact of $26 million, or 2%. Volumes decreased by $6 million, or less than 1%.

Income tax expense was $31 million, resulting in an effective tax rate of 25.7% in the quarter. This compares to an income tax expense of $20 million in the prior year, or an effective tax rate of 26.1%. The Adjusted Tax Rate was 24.0% in the quarter, as compared to 25.7% in the prior year.

Net earnings were $89 million, or $0.61 per diluted share, as compared to net earnings of $58 million, or $0.40 per diluted share in the prior year. The current year results were unfavorably impacted by $33 million of Special Items expense, including $16 million of restructuring and other associated costs related to the cost take-out to grow program (“CTO2Grow Program”) and $8 million related to the amortization of Liquibox intangible assets. The prior year results were unfavorably impacted by $72 million of Special Items expense, including $51 million related to business closure activity. Adjusted earnings per diluted share increased to $0.79, from $0.77 in the prior year, primarily due to lower interest and tax expense, partially offset by lower Adjusted EBITDA.

Adjusted EBITDA was $276 million, or 20.5% of net sales, as compared to $285 million, or 20.6% in the prior year. The decrease in Adjusted EBITDA was primarily due to lower volumes and unfavorable net price realization in Protective, partially offset by lower operating costs driven by productivity benefits as a result of the CTO2Grow Program.

Business Segment Highlights

Third quarter net sales in Food were $898 million, an increase of approximately 1% as reported. Currency fluctuations had an unfavorable impact of $5 million, or less than 1%. On a constant dollar basis, net sales increased $9 million, or 1%. Volumes increased $21 million, or 2%, with growth in all regions driven by strength in end-market demand and competitive share gains. Price had an unfavorable impact of $12 million, or 1%. Adjusted EBITDA of $206 million, or 22.9% of net sales, increased 6% from $194 million, or 21.7% of net sales. The increase in Adjusted EBITDA was driven by higher volumes, favorable net price realization and lower operating costs driven by productivity benefits, including our CTO2Grow Program.

Third quarter net sales in Protective were $447 million, a decrease of 8% as reported. Currency fluctuations had an unfavorable impact of less than $1 million. On a constant dollar basis, net sales decreased $41 million, or 8%. Volumes decreased $28 million, or 6%, resulting from continued weakness in our industrial and fulfillment portfolios. Price had an unfavorable impact of $13 million, or 3%. Adjusted EBITDA of $75 million, or 16.9% of net sales, decreased 21% from $95 million, or 19.5% of net sales. The decrease in Adjusted EBITDA was primarily attributable to lower volumes and unfavorable net price realization, partially offset by lower operating costs driven by productivity benefits, including our CTO2Grow Program.

Cash Flow and Net Debt

Cash flow from operating activities during the first nine months of 2024 was a source of $484 million, as compared to a source of $193 million during the prior year period, which included a $175 million tax deposit.

Capital expenditures in the first nine months of 2024 were $161 million, as compared to $185 million during the prior year period. Free Cash Flow, defined as net cash from operating activities less capital expenditures, was a source of $323 million for the first nine months of 2024, as compared to a source of $8 million during the prior year period. Excluding the $175 million tax deposit, Free Cash Flow was a source of $183 million for the first nine months of 2023.

Dividend payments for the first nine months of both 2024 and 2023 were $89 million.

Total debt was $4.5 billion as of September 30, 2024 and $4.7 billion as of December 31, 2023. Net Debt, defined as total debt less cash and cash equivalents, was $4.1 billion as of September 30, 2024 and $4.3 billion as of December 31, 2023. As of September 30, 2024, SEE had approximately $1.4 billion of available liquidity comprised of $386 million of cash and $1.0 billion of available and unused lines of credit under our committed credit facilities. The net leverage ratio, defined as net debt divided by last twelve months Adjusted EBITDA, decreased to 3.7x as of September 30, 2024 as compared to 3.9x as of December 31, 2023.

Updated 2024 Full Year Outlook

Net Sales	$5.375 to $5.425 billion
Adjusted EBITDA	$1.09 to $1.11 billion
Adjusted EPS	$3.00 to $3.10
Free Cash Flow	$350 to $450 million

Adjusted EBITDA, Adjusted EPS and Free Cash Flow are non-GAAP financial measures. We have not provided guidance for the most directly comparable GAAP financial measures, as they are not available without unreasonable effort due to the high variability, complexity and low visibility of certain Special Items.

Conference Call Information

Sealed Air Corporation will host a conference call and webcast on Thursday, November 7, 2024 at 10:00 a.m. (ET) to discuss our Third Quarter 2024 Results. The conference call will be webcast live on the Investors homepage at www.sealedair.com/investors. A replay of the webcast will also be available thereafter. A slide presentation, which includes supplemental information relating to the Company’s third quarter earnings will be made available through the “Presentations & Events” section of the Company’s Investor Relations website at https://ir.sealedair.com/events-and-presentations prior to the call.

About Sealed Air

Sealed Air Corporation SEE, is a leading global provider of packaging solutions that integrate sustainable, high-performance materials, automation, equipment and services. Sealed Air designs, manufactures and delivers packaging solutions that preserve food, protect goods and automate packaging processes. We deliver our packaging solutions to an array of end markets including fresh proteins, foods, fluids and liquids, medical and life science, e-commerce retail, logistics and omnichannel fulfillment operations, and industrials. Our globally recognized solution brands include CRYOVAC^® brand food packaging, LIQUIBOX^® brand liquids systems, SEALED AIR^® brand protective packaging, AUTOBAG^® brand automated packaging systems, and BUBBLE WRAP^® brand packaging. In 2023, Sealed Air generated $5.5 billion in sales and has approximately 17,000 employees who serve customers in 115 countries/territories.

www.sealedair.com

Website Information

We routinely post important information for investors on our website, www.sealedair.com, in the Investors section. We use this website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Accordingly, investors should monitor the Investors section of our website, in addition to following our press releases, SEC filings, public conference calls, presentations and webcasts. The information contained on, or that may be accessed through, our website is not incorporated by reference into, and is not a part of, this document.

Non-GAAP Information

In this press release, we include certain non-GAAP financial measures, including Net Debt, Adjusted Net Earnings and Adjusted EPS, net sales on an “organic” and a “constant dollar” basis, Free Cash Flow, Adjusted EBITDA, Adjusted EBITDA Margin, net leverage ratio and Adjusted Tax Rate. Management uses non-GAAP financial measures to assess operating and financial performance, set budgets, provide guidance and compare with peers’ performance. We believe such non-GAAP financial measures are useful to investors. Non-GAAP financial measures should not be considered in isolation from or as a substitute for GAAP information. See the attached supplementary information for reconciliations of non-GAAP financial measures to their most directly comparable GAAP financial measures. Information reconciling forward-looking non-GAAP financial measures to their most directly comparable GAAP financial measures is not presented because it is not available without unreasonable effort. The reconciling information that is not available includes forward-looking ranges of certain Special Items with high variability, complexity and low visibility. We are unable to address the probable significance of such unavailable information, which could have a potential significant impact on our future GAAP financial results.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by such words as “anticipate,” “believe,” “plan,” “assume,” “could,” “should,” “estimate,” “expect,” “intend,” “potential,” “seek,” “predict,” “may,” “will” or the negative of these terms and similar expressions. All statements contained in this press release, other than statements of historical facts, such as those regarding our growth initiatives, business strategies, operating plans, business outlook, restructuring activities and market conditions, are forward-looking statements. These statements are neither promises nor guarantees, but involve known and unknown risks and uncertainties that may cause our actual results to differ materially from any future results expressed or implied by the forward-looking statements. These risks include important factors discussed in the “Risk Factors” section in Part I of our most recent Annual Report on Form 10-K, as updated by our other filings with the Securities and Exchange Commission.

Any forward-looking statements made by us in this press release are based solely on management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements, we disclaim any obligation to do so even if subsequent events cause our views to change, except as may be required by applicable law.

Company Contacts

Investors
Brian Sullivan
brian.c.sullivan@sealedair.com
704.503.8841

Louise Lagache
louise.lagache@sealedair.com

Media
Amanda Hoggarth
amanda.hoggarth@sealedair.com

Sealed Air Corporation Condensed Consolidated Statements of Operations (Unaudited)
	Three Months Ended September 30,		Nine Months Ended September 30,
*(In USD millions, except per share data)*	2024	2023	2024	2023
Net sales	$ 1,345.1	$ 1,381.8	$ 4,019.8	$ 4,111.4
Cost of sales	943.6	968.5	2,801.5	2,875.0
Gross profit	401.5	413.3	1,218.3	1,236.4
Selling, general and administrative expenses	187.1	181.8	563.8	582.6
Loss on disposal of businesses and property and equipment, net	(5.4)	(48.7)	(5.8)	(55.2)
Amortization expense of intangible assets	15.9	15.4	47.0	46.0
Restructuring charges	6.8	9.8	24.8	9.2
Operating profit	186.3	157.6	576.9	543.4
Interest expense, net	(60.5)	(70.1)	(188.9)	(196.6)
Other expense, net	(6.4)	(9.6)	(14.0)	(33.0)
Earnings before income tax provision	119.4	77.9	374.0	313.8
Income tax provision	30.7	20.3	104.1	99.4
Net earnings from continuing operations	88.7	57.6	269.9	214.4
Gain (Loss) on sale of discontinued operations, net of tax	3.0	(1.0)	2.1	3.2
Net earnings	$ 91.7	$ 56.6	$ 272.0	$ 217.6
Basic:
Continuing operations	$ 0.61	$ 0.40	$ 1.86	$ 1.49
Discontinued operations	0.02	(0.01)	0.01	0.02
Net earnings per common share – basic	$ 0.63	$ 0.39	$ 1.87	$ 1.51
Weighted average common shares outstanding – basic	145.8	144.5	145.5	144.3

Diluted:
Continuing operations	$ 0.61	$ 0.40	$ 1.85	$ 1.48
Discontinued operations	0.02	(0.01)	0.02	0.02
Net earnings per common share – diluted	$ 0.63	$ 0.39	$ 1.87	$ 1.50
Weighted average common shares outstanding – diluted	146.1	144.9	145.8	144.8

Sealed Air Corporation Condensed Consolidated Balance Sheets (Unaudited)
*(In USD millions)*	September 30, 2024	December 31, 2023
Assets
Current assets:
Cash and cash equivalents	$ 386.0	$ 346.1
Trade receivables, net	478.7	442.6
Income tax receivables	19.7	44.9
Other receivables	95.6	94.2
Advances and deposits	67.4	72.8
Inventories, net	807.3	774.3
Prepaid expenses and other current assets	204.8	188.4
Total current assets	2,059.5	1,963.3
Property and equipment, net	1,438.0	1,416.4
Goodwill	2,896.8	2,892.5
Identifiable intangible assets, net	397.6	439.0
Deferred taxes	151.8	130.8
Operating lease right-of-use-assets	97.5	86.5
Other non-current assets	279.9	272.1
Total assets	$ 7,321.1	$ 7,200.6
Liabilities and Stockholders’ Equity
Current liabilities:
Short-term borrowings	$ 139.7	$ 140.7
Current portion of long-term debt	58.1	35.7
Current portion of operating lease liabilities	29.1	29.2
Accounts payable	800.9	764.6
Accrued restructuring costs	17.9	23.1
Income tax payable	47.5	28.7
Other current liabilities	499.7	487.0
Total current liabilities	1,592.9	1,509.0
Long-term debt, less current portion	4,334.0	4,513.9
Long-term operating lease liabilities, less current portion	75.0	66.7
Deferred taxes	36.0	35.8
Other non-current liabilities	512.0	525.7
Total liabilities	6,549.9	6,651.1

Stockholders’ equity:
Preferred stock	—	—
Common stock	15.5	15.4
Additional paid-in capital	1,438.3	1,429.5
Retained earnings	680.1	496.5
Common stock in treasury	(404.2)	(436.4)
Accumulated other comprehensive loss, net of taxes	(958.5)	(955.5)
Total stockholders’ equity	771.2	549.5
Total liabilities and stockholders’ equity	$ 7,321.1	$ 7,200.6

Sealed Air Corporation Condensed Consolidated Statements of Cash Flows (Unaudited)
	Nine Months Ended September 30,
*(In USD millions)*	2024	2023
Net earnings	$ 272.0	$ 217.6
Adjustments to reconcile net earnings to net cash provided by operating activities⁽¹⁾	233.7	279.7
Changes in operating assets and liabilities:
Trade receivables, net	(42.8)	18.1
Inventories, net	(56.2)	60.2
Accounts payable	36.5	(132.7)
Customer advance payments	(5.5)	(9.8)
Income tax receivable/payable	44.7	(9.9)
Tax deposit	—	(175.0)
Other assets and liabilities	1.4	(55.7)
Net cash provided by operating activities	$ 483.8	$ 192.5
Cash flows from investing activities:
Capital expenditures	(161.1)	(185.0)
Proceeds related to sale of business and property and equipment, net	0.7	1.9
Business acquired in purchase transactions, net of cash acquired	4.2	(1,162.9)
(Payments) proceeds associated with debt, equity and equity method investments	(1.1)	3.3
Settlement of foreign currency forward contracts	(11.0)	15.1
Proceeds from cross-currency swaps	3.1	1.6
Net cash used in investing activities	$ (165.2)	$ (1,326.0)
Cash flows from financing activities:
Net (payments) proceeds from short-term borrowings	(1.6)	206.6
Proceeds from long-term debt	413.4	1,411.4
Payments of long-term debt	(582.1)	(433.2)
Payments of debt modification/extinguishment costs and other	(7.3)	(14.1)
Dividends paid on common stock	(88.8)	(88.9)
Impact of tax withholding on share-based compensation	(9.2)	(21.3)
Repurchases of common stock	—	(79.9)
Principal payments related to financing leases	(6.1)	(6.4)
Net cash (used in) provided by financing activities	$ (281.7)	$ 974.2
Effect of foreign currency exchange rate changes on cash and cash equivalents	$ 3.0	$ (15.5)
Cash and cash equivalents	346.1	456.1
Restricted cash and cash equivalents	—	—
Balance, beginning of period	$ 346.1	$ 456.1
Net change during the period	$ 39.9	$ (174.8)
Cash and cash equivalents	386.0	281.3
Restricted cash and cash equivalents	—	—
Balance, end of period	$ 386.0	$ 281.3

Non-GAAP Free Cash Flow:
Cash flow from operating activities	$ 483.8	$ 192.5
Capital expenditures	(161.1)	(185.0)
Non-GAAP Free Cash Flow	$ 322.7	$ 7.5

	Nine Months Ended September 30,
*(In USD millions)*	2024	2023
Supplemental Cash Flow Information:
Interest payments	$ 220.3	$ 201.7
Income tax payments, net of cash refunds⁽²⁾	$ 74.9	$ 310.1
Restructuring payments including associated costs	$ 43.5	$ 12.4
Non-cash items:
Transfers of shares of common stock from treasury for profit-sharing contributions	$ 25.4	$ 23.9

____________
⁽¹⁾	2024 adjustments primarily consist of depreciation and amortization of $183 million, share-based compensation expense of approximately $23 million, profit sharing expense of $20 million, provision for inventory obsolescence of $17 million and loss on debt redemption and refinancing activities of $7 million. 2023 adjustments primarily consist of depreciation and amortization of $175 million, net loss associated with the disposal of businesses of $53 million, share-based compensation expense of $31 million, profit sharing expense of $19 million, provision for inventory obsolescence of $15 million, and loss on debt redemption and refinancing activities of $5 million.
⁽²⁾	2023 includes a $175 million tax deposit related to the resolution of certain U.S. tax matters that was made during the second quarter of 2023. Excluding the $175 million tax deposit, Income tax payments, net of cash refunds were $135 million for the nine months ended September 30, 2023.

Sealed Air Corporation Components of Change in Net Sales by Segment (Unaudited)
	Three Months Ended September 30,
*(In USD millions)*	Food		Protective		Total Company
2023 Net Sales	$ 893.4	64.7 %	$ 488.4	35.3 %	$ 1,381.8	100.0 %

Price	(12.2)	(1.4) %	(13.4)	(2.7) %	(25.6)	(1.8) %
Volume⁽¹⁾	21.3	2.4 %	(27.6)	(5.7) %	(6.3)	(0.5) %
Total constant dollar change (non-GAAP)⁽²⁾	9.1	1.0 %	(41.0)	(8.4) %	(31.9)	(2.3) %
Foreign currency translation	(4.6)	(0.5) %	(0.2)	— %	(4.8)	(0.4) %
Total change (GAAP)	4.5	0.5 %	(41.2)	(8.4) %	(36.7)	(2.7) %

2024 Net Sales	$ 897.9	66.8 %	$ 447.2	33.2 %	$ 1,345.1	100.0 %

	Nine Months Ended September 30,
*(In USD millions)*	Food		Protective		Total Company
2023 Net Sales	$ 2,627.1	63.9 %	$ 1,484.3	36.1 %	$ 4,111.4	100.0 %

Price	(71.1)	(2.7) %	(43.4)	(2.9) %	(114.5)	(2.8) %
Volume⁽¹⁾	93.0	3.5 %	(75.5)	(5.1) %	17.5	0.4 %
Total organic change (non-GAAP)⁽²⁾	21.9	0.8 %	(118.9)	(8.0) %	(97.0)	(2.4) %
Acquisition	23.5	0.9 %	—	— %	23.5	0.6 %
Total constant dollar change (non-GAAP)⁽²⁾	45.4	1.7 %	(118.9)	(8.0) %	(73.5)	(1.8) %
Foreign currency translation	(12.4)	(0.4) %	(5.7)	(0.4) %	(18.1)	(0.4) %
Total change (GAAP)	33.0	1.3 %	(124.6)	(8.4) %	(91.6)	(2.2) %

2024 Net Sales	$ 2,660.1	66.2 %	$ 1,359.7	33.8 %	$ 4,019.8	100.0 %

Components of Change in Net Sales by Region (Unaudited)
	Three Months Ended September 30,
*(In USD millions)*	Americas		EMEA		APAC		Total
2023 Net Sales	$ 908.0	65.7 %	$ 285.4	20.7 %	$ 188.4	13.6 %	$ 1,381.8	100.0 %
Price	(14.0)	(1.6) %	(9.5)	(3.4) %	(2.1)	(1.1) %	(25.6)	(1.8) %
Volume⁽¹⁾	(6.7)	(0.7) %	(7.5)	(2.6) %	7.9	4.2 %	(6.3)	(0.5) %
Total constant dollar change (non-GAAP)⁽²⁾	(20.7)	(2.3) %	(17.0)	(6.0) %	5.8	3.1 %	(31.9)	(2.3) %
Foreign currency translation	(11.3)	(1.2) %	4.7	1.7 %	1.8	0.9 %	(4.8)	(0.4) %
Total change (GAAP)	(32.0)	(3.5) %	(12.3)	(4.3) %	7.6	4.0 %	(36.7)	(2.7) %

2024 Net Sales	$ 876.0	65.1 %	$ 273.1	20.3 %	$ 196.0	14.6 %	$ 1,345.1	100.0 %


	Nine Months Ended September 30,
*(In USD millions)*	Americas		EMEA		APAC		Total
2023 Net Sales	$ 2,695.6	65.6 %	$ 863.9	21.0 %	$ 551.9	13.4 %	$ 4,111.4	100.0 %

Price	(76.2)	(2.8) %	(33.5)	(3.9) %	(4.8)	(0.9) %	(114.5)	(2.8) %
Volume⁽¹⁾	20.6	0.7 %	(15.7)	(1.8) %	12.6	2.3 %	17.5	0.4 %
Total organic change (non-GAAP)⁽²⁾	(55.6)	(2.1) %	(49.2)	(5.7) %	7.8	1.4 %	(97.0)	(2.4) %
Acquisition	17.2	0.7 %	4.0	0.5 %	2.3	0.4 %	23.5	0.6 %
Total constant dollar change (non-GAAP)⁽²⁾	(38.4)	(1.4) %	(45.2)	(5.2) %	10.1	1.8 %	(73.5)	(1.8) %
Foreign currency translation	(6.6)	(0.3) %	1.7	0.2 %	(13.2)	(2.4) %	(18.1)	(0.4) %
Total change (GAAP)	(45.0)	(1.7) %	(43.5)	(5.0) %	(3.1)	(0.6) %	(91.6)	(2.2) %

2024 Net Sales	$ 2,650.6	65.9 %	$ 820.4	20.4 %	$ 548.8	13.7 %	$ 4,019.8	100.0 %

____________
⁽¹⁾	Our volume reported above includes the net impact of changes in unit volume as well as the period-to-period change in the mix of products sold.
⁽²⁾	Total organic change is a non-GAAP financial measure which excludes acquisitions within the first twelve months after acquisition, divestiture activity from the time of the sale, and the impact of foreign currency translation. Total constant dollar change is a non-GAAP financial measure which excludes the impact of foreign currency translation.

Sealed Air Corporation Segment Information Reconciliation of Net Earnings to Non-GAAP Consolidated Adjusted EBITDA (Unaudited)
	Three Months Ended September 30,		Nine Months Ended September 30,
*(In USD millions)*	2024	2023	2024	2023
Adjusted EBITDA from continuing operations:
Food	$ 205.9	$ 194.3	$ 600.1	$ 580.1
Adjusted EBITDA Margin⁽¹⁾	22.9 %	21.7 %	22.6 %	22.1 %
Protective	75.5	95.0	246.8	271.3
Adjusted EBITDA Margin⁽¹⁾	16.9 %	19.5 %	18.2 %	18.3 %
Corporate	(5.4)	(4.6)	(7.1)	(19.1)
Non-GAAP Consolidated Adjusted EBITDA	$ 276.0	$ 284.7	$ 839.8	$ 832.3
Adjusted EBITDA Margin⁽¹⁾	20.5 %	20.6 %	20.9 %	20.2 %
_________
⁽¹⁾Adjusted EBITDA divided by net sales.

	Three Months Ended September 30,		Nine Months Ended September 30,
*(In USD millions)*	2024	2023	2024	2023
GAAP Net earnings from continuing operations	$ 88.7	$ 57.6	$ 269.9	$ 214.4
Interest expense, net	60.5	70.1	188.9	196.6
Income tax provision	30.7	20.3	104.1	99.4
Depreciation and amortization, net of adjustments⁽¹⁾	63.2	64.6	184.2	187.1
Special Items:
Liquibox intangible amortization	7.5	7.4	22.7	19.9
Liquibox inventory step-up expense	—	—	—	10.8
Restructuring charges	6.8	9.8	24.8	9.2
Other restructuring associated costs	9.0	34.6	22.2	34.5
Foreign currency exchange loss due to highly inflationary economies	2.4	4.9	7.9	10.6
Loss on debt redemption and refinancing activities	—	—	6.8	4.9
Contract terminations	—	15.3	(0.1)	15.3
Charges related to acquisition and divestiture activity	4.1	2.8	3.2	24.5
Other Special Items	3.1	(2.7)	5.2	5.1
Pre-tax impact of Special items	32.9	72.1	92.7	134.8
Non-GAAP Consolidated Adjusted EBITDA	$ 276.0	$ 284.7	$ 839.8	$ 832.3
__________
⁽¹⁾Depreciation and amortization by segment are as follows:

	Three Months Ended September 30,		Nine Months Ended September 30,
*(In USD millions)*	2024	2023	2024	2023
Food	$ 47.9	$ 48.1	$ 141.1	$ 135.8
Protective	22.8	23.9	65.8	71.2
Consolidated depreciation and amortization⁽ⁱ⁾	$ 70.7	$ 72.0	$ 206.9	$ 207.0
Liquibox intangible amortization	(7.5)	(7.4)	(22.7)	(19.9)
Depreciation and amortization, net of adjustments	$ 63.2	$ 64.6	$ 184.2	$ 187.1

____________
⁽ⁱ⁾	Includes share-based incentive compensation of $8.5 million and $24.4 million for the three and nine months ended September 30, 2024, respectively, $12.1 million and $32.3 million for the three and nine months ended September 30, 2023, respectively.

The calculation of the non-GAAP Adjusted Tax Rate is as follows:
	Three Months Ended September 30,		Nine Months Ended September 30,
*(In USD millions)*	2024	2023	2024	2023
GAAP Earnings before income tax provision from continuing operations	$ 119.4	$ 77.9	$ 374.0	$ 313.8
Pre-tax impact of Special Items	32.9	72.1	92.7	134.8
Non-GAAP Adjusted Earnings before income tax provision	$ 152.3	$ 150.0	$ 466.7	$ 448.6

GAAP Income tax provision from continuing operations	$ 30.7	$ 20.3	$ 104.1	$ 99.4
Tax Special Items⁽¹⁾	(1.8)	1.4	(8.6)	(10.6)
Tax impact of Special Items	7.7	16.8	22.0	25.9
Non-GAAP Adjusted Income tax provision	$ 36.6	$ 38.5	$ 117.5	$ 114.7

GAAP Effective income tax rate	25.7 %	26.1 %	27.8 %	31.7 %
Non-GAAP Adjusted Tax Rate	24.0 %	25.7 %	25.2 %	25.6 %

____________
⁽¹⁾	For the three and nine months ended September 30, 2024 and September 30, 2023, Tax Special Items primarily reflect accruals for uncertain tax positions.

Sealed Air Corporation

Reconciliation of Net Earnings and Net Earnings Per Common Share to Non-GAAP Adjusted

Net Earnings and Non-GAAP Adjusted Net Earnings Per Common Share

(Unaudited)

Three Months Ended September 30,

Nine Months Ended September 30,

2024

2023

2024

2023

(In USD millions, except per share data)

Net
Earnings

Diluted
EPS

Net
Earnings

Diluted
EPS

Net
Earnings

Diluted
EPS

Net
Earnings

Diluted
EPS

GAAP net earnings and
diluted EPS from
continuing operations

$ 88.7

$ 0.61

$ 57.6

$ 0.40

$ 269.9

$ 1.85

$ 214.4

$ 1.48

Special Items⁽¹⁾

27.0

0.18

53.9

0.37

79.3

0.54

119.5

0.83

Non-GAAP adjusted net
earnings and adjusted
diluted EPS

$ 115.7

$ 0.79

$ 111.5

$ 0.77

$ 349.2

$ 2.39

$ 333.9

$ 2.31

Weighted average number of
common shares
outstanding – Diluted

146.1

144.9

145.8

144.8

___________

⁽¹⁾Special Items include items in the table below.

	Three Months Ended September 30,		Nine Months Ended September 30,
*(In USD millions, except per share data)*	2024	2023	2024	2023
Special Items:
Liquibox intangible amortization	$ 7.5	$ 7.4	$ 22.7	$ 19.9
Liquibox inventory step-up expense	—	—	—	10.8
Restructuring charges	6.8	9.8	24.8	9.2
Other restructuring associated costs⁽ⁱ⁾	9.0	34.6	22.2	34.5
Foreign currency exchange loss due to highly inflationary economies	2.4	4.9	7.9	10.6
Loss on debt redemption and refinancing activities	—	—	6.8	4.9
Contract terminations⁽ⁱⁱ⁾	—	15.3	(0.1)	15.3
Charges related to acquisition and divestiture activity⁽ⁱⁱⁱ⁾	4.1	2.8	3.2	24.5
Other Special Items^(iv)	3.1	(2.7)	5.2	5.1
Pre-tax impact of Special Items	32.9	72.1	92.7	134.8
Tax impact of Special Items and Tax Special Items	(5.9)	(18.2)	(13.4)	(15.3)
Net impact of Special Items	$ 27.0	$ 53.9	$ 79.3	$ 119.5
Weighted average number of common shares outstanding – Diluted	146.1	144.9	145.8	144.8
Loss per share impact from Special Items	$ (0.18)	$ (0.37)	$ (0.54)	$ (0.83)

____________
⁽ⁱ⁾	Other restructuring associated costs for the three and nine months ended September 30, 2024 primarily relate to fees paid to third-party consultants in support of the CTO2Grow business transformation. Other restructuring associated costs for the three and nine months ended September 30, 2023 primarily consists of impairment of property and equipment and inventory obsolescence charges related to business closure activity.
⁽ⁱⁱ⁾	Contract terminations for the three and nine months ended September 30, 2023 primarily relates to charges associated with business closure activity.
⁽ⁱⁱⁱ⁾	Charges related to acquisition and divestiture activity for the three months ended September 30, 2024 primarily consist of Liquibox related charges. Charges related to acquisition and divestiture activity for the nine months ended September 30, 2024 primarily consist of integration expenses and other Liquibox related charges, partially offset by income recognized on the final purchase price settlement related to the Liquibox acquisition.
^(iv)	Other Special Items for the three and nine months ended September 30, 2024 primarily include fees related to professional services directly associated with Special Items or events that are considered one-time or infrequent. Other Special Items for the three months ended September 30, 2023 primarily relate to a gain associated with a legal settlement. Other Special Items for the nine months ended September 30, 2023 primarily relate to a one-time, non-cash cumulative translation adjustment (CTA) loss recognized due to the wind-up of one of our legal entities, partially offset by a gain associated with a legal settlement.

Calculation of Net Debt (Unaudited)
*(In USD millions)*	September 30, 2024	December 31, 2023
Short-term borrowings	$ 139.7	$ 140.7
Current portion of long-term debt	58.1	35.7
Long-term debt, less current portion	4,334.0	4,513.9
Total debt	4,531.8	4,690.3
Less: cash and cash equivalents	(386.0)	(346.1)
Non-GAAP Net Debt	$ 4,145.8	$ 4,344.2

Net Leverage Ratio (Net Debt / Last Twelve Months Adjusted EBITDA)	3.7x	3.9x



	Last Twelve Months Ended
*(In USD millions)*	September 30, 2024	December 31, 2023
GAAP Net earnings from continuing operations	$ 394.8	$ 339.3
Interest expense, net	255.3	263.0
Income tax provision	95.1	90.4
Depreciation and amortization, net of adjustments	236.7	239.6
Special Items:
Liquibox intangible amortization	30.7	27.9
Liquibox inventory step-up expense	(0.6)	10.2
Restructuring charges	31.2	15.6
Other restructuring associated costs	22.2	34.5
Foreign currency exchange loss due to highly inflationary economies	20.4	23.1
Loss on debt redemption and refinancing activities	15.1	13.2
Contract terminations	(0.8)	14.6
Charges related to acquisition and divestiture activity	7.0	28.3
CEO severance	6.1	6.1
Other Special Items	0.9	0.8
Pre-tax impact of Special items	132.2	174.3
Non-GAAP Consolidated Adjusted EBITDA	$ 1,114.1	$ 1,106.6

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Markets News

NBA legend Scottie Pippen's Prophetic 'Satoshi Nakamoto Dream' Misses Bitcoin Numbers On Election Day

07.11.2024 by admin

NBA star Scottie Pippen’s “dream encounter” with Bitcoin BTC/USD creator Satoshi Nakamoto failed to hit the bull’s eye, as the leading cryptocurrency gained but didn’t gain enough on election day.

What happened: Widely regarded as one of the greatest players in NBA history, Pippen is a known celebrity advocate of Bitcoin and actively uses his social media presence to promote the cryptocurrency.

Earlier in September, he described one of his dreams that piqued the interest of the Bitcoin community.

Pippen said that none other than the pseudonymous Satoshi appeared in his dreams and predicted that the dominant cryptocurrency would hit $84,650 on Nov. 5, the day of the elections.

However, he added that this wasn’t any financial advice.

As it turned out, Bitcoin soared on Donald Trump’s victory but missed “Satoshi’s projection”. The apex cryptocurrency’s rally was halted at a high of $76,460.

Details about Pippen’s Bitcoin or cryptocurrency holdings have been sketchy, and the iconic athlete did not immediately respond to Benzinga’s request for more information.

Why It Matters: Price predictions for Bitcoin were in full swing leading up to the election, and they are certain to continue as market expectations have only grown.

A potential Trump win being the bull case, global investment bank Standard Chartered had earlier projected Bitcoin to shoot to $125,000. Brokerage firm Bernstein projected the leading cryptocurrency to hit $80,000 to $90,000 by the end of Q4 should Trump emerge victorious.

Price Action: At the time of writing, Bitcoin was exchanging hands at $74,605.01 down 0.14% in the last 24 hours, according to data from Benzinga Pro.

Photo courtesy: Unsplash

Finance News

5 Things to Know Before the Stock Market Opens

07.11.2024 by admin

News of the day for Nov. 7, 2024

Kent Nishimura / Bloomberg via Getty Images Fed Chair Jerome Powell in Washington, D.C., in October. — Kent Nishimura / Bloomberg via Getty Images

Fed Chair Jerome Powell in Washington, D.C., in October.

Stock futures were marginally higher early Thursday following a strong day for markets after the Donald Trump election win.

Trump Media, Tesla and bitcoin gave back some gains; Fed watchers are anticipating a quarter-point interest rate cut today, with comments from Fed Chair Jerome Powell to follow; Lyft (LYFT) shares surged higher after the ride-hailing app reported strong earnings and lifted its outlook; Qualcomm (QCOM) shares moved higher after posting strong revenue gains while Arm Holdings (ARM) declined on a lower-than-expected sales forecast; Zillow (Z) shares jump edon improved revenue and narrower losses for the real-estate site.

Here’s what investors need to know today.

After surging on the electoral victory of Republican Donald Trump on Wednesday, stock futures built on those gains in early trading on Thursday. The Dow Jones, S&P 500 and Nasdaq were each up around 0.2% in futures trading, coming after each made jumps of 2.5% or more in the prior session.

Futures for the smaller-company focused Russell 2000, which moved higher by 5.8% in trading Wednesday, moved higher in early trading. Shares of Trump Media (DJT) were plunging by nearly 14%, while Tesla (TSLA) shares ticked lower. Treasury yields remained little changed after surging on the election results, while bitcoin (BTCUSD) traded lower by about 1% to trade around $74,800.

Investors will be eyeing today’s interest rate decision from the Federal Open Market Committee (FOMC), which is expected to include lower interest rates by a quarter-percentage point at a 2 p.m. announcement. The move would follow a more aggressive rate cut in September and bring the federal funds rate down to a level of 4.5% to 4.75%. With inflation cooling and the job market showing signs of weakness, officials have projected that the Federal Reserve could enact a series of rate cuts over the coming year. A news conference from Fed Chair Jerome Powell at 2:30 p.m. is likely to provide more insight into the central bank’s plans.

Shares of ride hailing app Lyft (LYFT) jumped more than 20% in premarket trading after it reported better-than-expected quarterly results and raised its outlook. The company posted a third-quarter revenue increase of 32% year-over-year to $1.5 billion, ahead of the analyst consensus from Visible Alpha. Lyft reported a net loss of $12.4 million, or 3 cents per share, narrower than the loss of $17.08 million and 5 cents per share that analysts were expecting. With active riders hitting an all-time high of 24.4 million, Lyft projected fourth-quarter gross bookings of $4.28 billion to $4.35 billion, above the analyst consensus of $4.24 billion.

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Finance News

The Bull Market in US Stocks Is Just Starting, Evercore Says

07.11.2024 by admin

(Bloomberg) — The US stocks rally is nowhere near done, according to Evercore ISI strategists, who see Donald Trump’s plans to slice through red tape propelling the S&P 500 Index (^GSPC) another 11% through the middle of next year.

Galaxy Announces Third Quarter 2024 Financial Results

07.11.2024 by admin

Subsequent to quarter-end, Galaxy executed a non-binding term sheet with a U.S.-based hyperscaler to host high-performance computing at its Helios campus in West Texas.

NEW YORK, Nov. 7, 2024 /CNW/ – Galaxy Digital Holdings Ltd. GLXY (the “Company” or “GDH Ltd.”) today released financial results for the three months and nine months ended September 30, 2024, for both itself and Galaxy Digital Holdings LP (the “Partnership” or “GDH LP”). In this press release, a reference to “Galaxy”, “we”, “our” and similar words refer to GDH Ltd., its subsidiaries and affiliates including GDH LP, or any one of them, as the context requires.

Corporate and Business Updates

Financial Highlights: In the third quarter, Galaxy reported a net loss of $54 million, representing a significant narrowing of our net loss from the second quarter. We generated operating revenue growth of over 30% quarter-over-quarter (“QoQ”), despite industry spot trading volumes declining 15% and ether declining 24% in the quarter. For the nine months ended September 30, 2024, Galaxy reported net income of $191 million, driven by strong operating performance and positive digital asset markets. Galaxy’s equity capital was $2.1 billion as of September 30, 2024.

Helios: Subsequent to quarter-end, Galaxy executed a non-binding term sheet with a U.S.-based hyperscaler to host high-performance computing at its Helios campus in West Texas. The term sheet includes options to allocate all of Helios’ 800 megawatts of currently approved power capacity to HPC hosting and support. The consummation of the transaction is subject to execution of definitive documents, customary due diligence and approvals of the parties.

US Listing and Reorganization: Galaxy continues to work on completing its proposed reorganization and domestication to become a Delaware-incorporated company and subsequently list on the Nasdaq, upon completion of ongoing SEC review and subject to stock exchange, shareholder and applicable regulatory approvals of such transactions. On July 26, 2024, Galaxy filed an amendment to its registration statement responding to SEC comments, which is under review.

Select GDH LP Financial Metrics	Q3 2024	Q2 2024	Q/Q % Change	Q3 YTD
Equity Capital	$2,081M	$2,129M	(2) %	—
Liquidity	$1,506M	$1,312M	15 %	—
Cash & Net Stablecoins¹	$475M	$409M	16 %	—
Net Digital Assets Excluding Stablecoins²	$562M	$485M	16 %	—
Spot Bitcoin and Ethereum ETFs	$469M	$418M	12 %	—
Net Income (loss)	($54M)	($177M)	N.M.³	$191M
Book Value Per Share in CAD⁴	$8.24 CAD	$8.45 CAD	(2) %	—

Note: Throughout this document, totals may not sum due to rounding. Quarter-over-quarter and year-over-year percentage change calculations are based on unrounded results.
(1)	Includes Cash Equivalents.
(2)	Refer to page 16 of this release for a breakout of our net digital assets position; Excludes non-current net digital assets.
(3)	Abbreviation for “Not Meaningful”.
(4)	Calculated as equity capital divided by outstanding Class A and Class B Units multiplied by the end of period foreign exchange rate.

Galaxy Global Markets

Galaxy Global Markets (“GGM”) offers institutional-grade expertise and access to a broad range of digital asset products, including digital asset spot and derivatives trading, financing, M&A advisory, and equity and debt capital markets services. GGM operates in two discrete business units – Trading and Investment Banking.

Trading reported counterparty trading revenue of $54 million in the third quarter, a 117% increase quarter-over-quarter (“QoQ”), despite a 20% decrease in trading volumes, primarily driven by increased revenue from derivatives and lending activity. Galaxy’s average loan book size expanded to $863 million, a 23% increase QoQ driven by increased demand from both new and existing counterparties, who relied on our lending desk to provide them with margin-based financing. Galaxy continues to onboard new counterparties, including large traditional asset managers and hedge funds, and ended the third quarter with 1,280 total trading counterparties.

Investment Banking successfully closed one deal subsequent to quarter-end, serving as the exclusive financial advisor to an existing client on a small buyside acquisition. Galaxy is executing against a pipeline of mandates representing $2.4 billion in potential deal value.

Key Performance Indicators	Q3 2024	Q2 2024	Q/Q % Change	Q3 YTD
Counterparty Trading Revenue	$54M	$25M	117 %	$146M
Loan Book Size (Average)	$863M	$699M	23 %	$742M
Total Trading Counterparties	1,280	1,212	6 %	—
Active Trading Counterparties	296	294	1 %	—
Investment Banking Deals Closed	0	2	(100) %	3
Pipeline	21	19	11 %	—
Deal Value of Pipeline	$2.4B	$2.1B	14 %	—

____

KEY TERMS

Counterparty Trading Revenue: revenue from counterparty-facing activities from our Derivatives, Credit, Over-the-Counter Trading, and Quantitative Trading businesses, net of associated funding charges.

Loan Book Size (Average): average market value of all open loans, unfunded arrangements to finance delayed trading/settlement (for example over weekends), and uncommitted credit facilities in the period. As of September 30, 2024, unfunded, uncommitted facilities accounted for approximately $156M of total Loan Book Size (Average).

Active Trading Counterparties: counterparties with whom we have traded within the past 12 months and who are still onboarded with Galaxy’s trading business.

Pipeline: the number of open engagements and transactions the Investment Banking team has in market.

Deal Value of Pipeline: the theoretical aggregate deal value associated with the Investment Banking pipeline.

Galaxy Asset Management

Galaxy Asset Management (“GAM”) provides investors access to the digital asset ecosystem via a diverse suite of institutional-grade investment vehicles that span passive, active, and venture strategies.

GAM management and performance fees were $8.1 million in the third quarter, representing a 44% decrease QoQ, primarily driven by the nearing completion of an opportunistic mandate to unwind portfolios on behalf of the FTX estate. GAM reported assets under management (“AUM”) of approximately $4.6 billion, a 2% increase QoQ, driven primarily by net inflows into GAM’s passive and active ETF strategies, which were offset by net market depreciation. In the quarter, GAM, in partnership with State Street Global Advisors, announced the launch of three actively managed digital asset and disruptive technology focused ETFs that offer investors exposure to digital asset and disruptive technology equities, spot cryptocurrencies, derivatives, cash, and cash-like instruments DECO HECO, TEKX).

Key Performance Indicators	Q3 2024	Q2 2024	Q/Q % Change	Q3 YTD
Management and Performance Fees	$8.1M	$14.5M	(44) %	$40.5M
Total AUM¹	$4,608M	$4,503M	2 %	—
Passive AUM	$2,466M	$2,392M	3 %	—
Active AUM²	$647M	$629M	3 %	—
Venture AUM	$1,495M	$1,482M	1 %	—

(1) In Galaxy’s monthly AUM disclosures, the “funds” line item consists of AUM held in GAM’s Passive, Active, and Venture funds, excluding opportunistic assets. Total AUM for Q2 2024 was updated from what was previously reported as AUM for quarterly close vehicles are reported as of the most recent information available for the applicable period.

(2) Includes opportunistic AUM. “Opportunistic” AUM are near-term or mid-term engagements to unwind portfolios managed by GAM. Opportunistic AUM was $429M as of September 30, 2024 and $520M as of June 30, 2024.

____

KEY TERMS

Assets Under Management: all figures are unaudited. AUM is inclusive of sub-advised funds, committed capital closed-end vehicles, seed investments by affiliates, affiliated and unaffiliated separately managed accounts, engagements to unwind portfolios, and fund of fund products. Changes in AUM are generally the result of performance, contributions, withdrawals, liquidations and opportunistic mandate wins.

AUM for committed capital closed-end vehicles that have completed their investment period is reported as NAV (Net Asset Value) plus unfunded commitment.
AUM for quarterly close vehicles is reported as of the most recent quarter available for the applicable period.
AUM for affiliated separately managed accounts is reported as NAV as of the most recently available estimate for the applicable period.

Passive Strategies: single- and multi-asset private funds, as well as a suite of regulated spot digital asset exchange-traded funds offered through partnerships with asset managers globally.

Active Strategies: Galaxy’s Liquid Crypto Fund, the management of certain opportunistic mandates, and a suite of actively managed and regulated digital asset and disruptive technology exchange-traded funds offered through a partnership with State Street Global Advisors.

Venture Strategies: organized around two investment themes: Interactive Ventures and Crypto Ventures. Galaxy Interactive invests at the intersection of content, technology, and social commerce, managing client capital across three funds. GAM’s Crypto Ventures sleeve includes Galaxy’s inaugural crypto venture fund, which is focused on investing in early-stage companies across crypto protocols, software infrastructure, and financialized applications, as well as two global, multi-manager venture funds and a subset of Galaxy’s balance sheet venture investments.

Galaxy Digital Infrastructure Solutions

Galaxy Digital Infrastructure Solutions (“GDIS“) consists of proprietary and hosted bitcoin mining services, GK8 self-custody technology solutions, and blockchain infrastructure.

Subsequent to quarter-end, Galaxy executed a non-binding term sheet with a U.S.-based hyperscaler to host high-performance computing at its Helios campus in West Texas. The term sheet includes options to allocate all of Helios’ 800 megawatts of currently approved power capacity to HPC hosting and support. The consummation of the transaction is subject to execution of definitive documents, customary due diligence and approvals of the parties.

Mining

Mining revenue was $18.5 million for the third quarter, relative to expenses, net of curtailment credits, of $10.0 million, resulting in a 46% direct mining profit margin. Mining revenue and cost to mine were impacted by the Bitcoin halving, elevated mining difficulty and seasonal curtailment. Galaxy initiated fiber construction at Helios and, beyond the current approved capacity of 800MW, expects approval on a portion of the 1.7 gigawatts currently under study in the first half of 2025.

Key Performance Indicators	Q3 2024	Q2 2024	Q/Q % Change	Q3 YTD
Mining Revenue	$18.5M	$24.1M	(23) %	$72.8M
Proprietary Mining Revenue	$11.4M	$16.3M	(30) %	$47.9M
Hosted Revenue	$7.0M	$7.8M	(10) %	$24.9M
Total Hashrate Under Management	6.2 EH/s	5.6 EH/s	11 %	—
Proprietary Mining Hashrate	3.5 EH/s	2.9 EH/s	21 %	—
Hosted Mining Hashrate	2.7 EH/s	2.6 EH/s	4 %	—
Number of Proprietary BTC Mined	176	242	(27) %	790
Average Marginal Cost to Mine	<$38.0K	<$22.5K	N.M.	<$23.0K

Blockchain Infrastructure and GK8

Blockchain Infrastructure and GK8 continue to build and invest in the technology that powers the digital assets ecosystem. Blockchain Infrastructure expanded its Assets Under Stake by 58% QoQ to $3.4 billion as of September 30^th, with Galaxy maintaining its position as one of the largest validators globally on the Solana network. Blockchain rewards, net of staking costs, were $10.7 million in the third quarter, up 26% QoQ. GK8 added one new client in the quarter.

Key Performance Indicators	Q3 2024	Q2 2024	Q/Q % Change	Q3 YTD
Assets Under Stake	$3,394M	$2,144M	58 %	$3,394M
GK8 Total Client Count	23	22	5 %	—

____

KEY TERMS

Hashrate Under Management: the total combined hashrate of active proprietary and hosted mining capacity managed by Galaxy.

Proprietary Mining Hashrate: the hashrate attributed to Galaxy owned and operated mining machines.

Hosted Mining Hashrate: the hashrate attributed to third-party machines operated by Galaxy for a client.

Number of Proprietary BTC Mined: the total amount of bitcoin mined from proprietary mining operations.

Average Marginal Cost to Mine: the average marginal cost of production for each bitcoin generated during the period. The calculation excludes depreciation, mark-to-market on power contracts, and corporate overhead.

Assets Under Stake: all figures are unaudited. AUS reflects the total notional value of assets bonded to Galaxy validators, based on prices as of the end of the specified period. This includes certain Galaxy balance sheet assets, Galaxy affiliate assets, and third-party assets.

GK8 Total Client Count: the total number of clients contracted to use GK8’s technology solutions.

Summary of Operating Expenses

Operating expenses	Q3 2024	Q2 2024	Q/Q % Change	Q3 YTD
Compensation and compensation related	$40M	$43M	(7) %	$125M
Equity based compensation	$13M	$12M	8 %	$42M
General and administrative	$48M	$45M	7 %	$143M
Mining costs	$10M	$10M	— %	$36M
Trading, commission and custody expenses	$6M	$6M	— %	$19M
Technology	$8M	$7M	14 %	$21M
Depreciation and amortization	$16M	$14M	14 %	$40M
Other	$8M	$9M	(11) %	$27M
Professional fees	$11M	$14M	(21) %	$38M
Staking costs	$39M	$30M	30 %	$70M
Interest	$29M	$21M	38 %	$70M
Notes interest expense	$7M	$7M	— %	$21M

Note: Quarter-over-quarter percentage change calculations are based on unrounded results.

Overview of Third Quarter Operating Expenses:

Compensation and compensation related expenses of $40 million decreased by approximately $3 million QoQ, primarily driven by adjustments to cash bonus accrual.
Equity based compensation of $13 million was roughly flat QoQ.
General and administrative expenses increased by approximately $3 million from the second quarter of 2024, driven primarily by $2 million of higher depreciation and amortization costs, reflecting the additional depreciation from new mining machines and electrical infrastructure that were energized during the prior quarter.
Professional fees of $11 million decreased by approximately $3 million QoQ, primarily driven by $2 million of lower legal expense.
Staking costs increased by approximately $9 million QoQ, reflecting the continued expansion of Galaxy’s validation services including the acquisition of the assets of CryptoManufaktur in July 2024. Despite the increase in staking costs, Galaxy’s blockchain rewards, net of staking costs, increased by 26% QoQ.
Interest expense increased approximately $8 million QoQ, reflecting our ability to source non-dilutive wholesale financing to help fund our counterparty trading business, where our revenue increased by approximately $29 million QoQ.

Net Digital Assets Position Summary

Net digital assets includes all digital assets categorized as assets, less all digital assets categorized as liabilities on the statement of financial position and is included in the Company’s liquidity measure. Net digital assets as of September 30, 2024 is as follows:

(1) Includes associated tokens such as wBTC. In addition to digital assets, net, the Partnership also held interests in investment vehicles designed to hold BTC, including bitcoin futures ETFs, Galaxy sponsored BTC funds, Mt. Gox Investment Fund LP, and Xapo Holdings Limited, net of associated investment liabilities.

(2) Includes associated tokens such as wETH and stETH. In addition to digital assets, net, the Partnership also held interests in investment vehicles designed to hold ETH, including spot ETFs and Galaxy sponsored ETH funds.

(3) Includes $8.2 million net SOL and $45.9 million net TIA digital assets, net. In addition to digital assets, net, the Partnership also held interests in investment vehicles designed to hold digital assets, including the Galaxy sponsored Galaxy Digital Crypto Vol Fund LLC (includes $93.0 million SOL and $23.1 million of AVAX) and Ripple Lab Inc.

GDH Ltd.’s Financial Highlights

As the only significant asset of GDH Ltd. is its minority interest in GDH LP, its results are driven by the results of GDH LP. GDH Ltd. accounts for its investment in this associate (GDH LP) using the equity method. The investment, initially recorded at cost, is increased or decreased to recognize GDH Ltd.’s share of the earnings and losses of GDH LP. The net comprehensive income (loss) of GDH Ltd. was $(16.4) million for the three months ended September 30, 2024 and $44.1 million for the nine months ended September 30, 2024.

Earnings Conference Call

An investor conference call will be held today, November 7, 2024, at 8:30 AM Eastern Time. A live webcast with the ability to ask questions will be available at: https://investor.galaxy.com/. The conference call can also be accessed by investors in the United States or Canada by dialing 1-800-715-9871, or 1-646-307-1963 (outside the U.S. and Canada) using the Conference ID: 9649375. A replay of the webcast will be available and can be accessed in the same manner as the live webcast on the Company’s Investor Relations website.

About Galaxy Digital Holdings Ltd. GLXY (“GDH Ltd.”) and Galaxy Digital Holdings LP (“GDH LP”)

Galaxy GLXY is a digital asset and blockchain leader providing access to the growing digital economy. We serve a diversified client base, including institutions, startups, and qualified individuals. Since 2018, Galaxy has been building a holistic financial platform spanning three complementary operating businesses: Global Markets, Asset Management, and Digital Infrastructure Solutions. Our offerings include, amongst others, trading, lending, strategic advisory services, institutional-grade investment solutions, proprietary bitcoin mining and hosting services, network validator services, and the development of enterprise self-custodial technology. The company is headquartered in New York City, with global offices across North America, Europe, and Asia. Additional information about Galaxy’s businesses and products is available on www.galaxy.com.

This press release should be read in conjunction with (i) GDH LP’s Management Discussion and Analysis and Consolidated Financial Statements for the three and nine months ended September 30, 2024 and (ii) GDH Ltd.’s Management Discussion and Analysis and Consolidated Financial Statements for the three and nine months ended September 30, 2024 (together, the “Consolidated Financial Statements” and “MD&As”), which have been filed on SEDAR at www.sedarplus.ca.

Disclaimers and Additional Information

The TSX has not approved or disapproved of the information contained herein. The Ontario Securities Commission has not passed upon the merits of the disclosure record of Galaxy.

This press release is not an offer to buy or sell, nor is it a solicitation of an offer to buy or sell, interests in any Galaxy sponsored fund or any advisory services or any other security or to participate in any advisory services or trading strategy. If any offer and sale of securities in a Galaxy sponsored fund is made, it will be pursuant to the confidential offering memorandum of the fund (the Offering Memorandum or fund prospectus (“Prospectus”)). Any decision to make an investment in any Galaxy sponsored fund should be made after reviewing such Offering Memorandum or Prospectus, conducting such investigations as the investor deems necessary and consulting the investor’s own investment, legal, accounting and tax advisors in order to make an independent determination of the suitability and consequences of an investment.

The finalization of the transactions contemplated by the non-binding term sheet with Helios are contingent upon the successful negotiation and execution of definitive agreements, satisfactory completion of due diligence, and receipt of all necessary consents and approvals. There can be no assurance that a definitive agreement will be entered into or that the proposed transaction will be consummated.

No Offer or Solicitation

As previously announced, the Company intends to complete its proposed reorganization and domestication to become a Delaware-based company, and subsequently list on the Nasdaq, upon completion of the SEC’s ongoing review and subject to stock exchange approval of such listing. The proposed reorganization and domestication is subject to approval by shareholders the Company and applicable regulatory authorities, including the Toronto Stock Exchange. In connection with the proposed reorganization and domestication, the Company has filed a registration statement, including a management information circular/prospectus, with the SEC, which has not yet become effective. SHAREHOLDERS ARE ADVISED TO READ THE FINAL VERSIONS OF SUCH DOCUMENTS, WHEN AVAILABLE, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Shareholders may obtain a free copy of the registration statement (including the management information circular/prospectus) and any other relevant documents from the SEC’s website at http://www.sec.gov. Copies of the final versions of such documents can also be obtained, when available, without charge, via Galaxy’s investor relations website: https://investor.galaxy.com/ The Company anticipates holding a shareholder meeting to seek approval following the effectiveness of the registration statement, and further details will be included in the management information circular to be mailed to shareholders and posted on the Company’s SEDAR profile at www.sedarplus.ca.

This document shall not constitute a solicitation of a proxy, consent or authorization with respect to any securities or in respect of the domestication or any of the other proposed reorganization transactions. This document does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote of approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

CAUTION ABOUT FORWARD-LOOKING STATEMENTS

The information in this document may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), Section 21E of the Securities Exchange Act of 1934, as amended and “forward-looking information” under Canadian securities laws (collectively, “forward-looking statements”). Our forward-looking statements include, but are not limited to, statements regarding our or our management team’s expectations, hopes, beliefs, intentions or strategies regarding the future. Statements that are not historical facts, including statements about Galaxy’s business pipelines for banking, expectations for increased load capacity at the Helios site, mining goals and our ability to capture adjacent opportunities, including in high-performance computing and the Helios transaction, focus on self-custody and validator solutions and our commitment to the future of decentralized networks and the pending domestication and the related transactions (the “transactions”), and the parties, perspectives and expectations, are forward-looking statements. In addition, any statements that refer to estimates, projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. The forward-looking statements contained in this document are based on our current expectations and beliefs concerning future developments and their potential effects on us taking into account information currently available to us. There can be no assurance that future developments affecting us will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks include, but are not limited to: (1) the inability to complete the proposed domestication and reorganization transactions, due to the failure to obtain shareholder and stock exchange approvals, or otherwise; (2) changes to the proposed structure of the transactions that may be required or appropriate as a result of applicable laws or regulations or as a condition to obtaining shareholder or stock exchange approval of the transactions; (3) the ability to meet and maintain listing standards following the consummation of the transactions; (4) the risk that the transactions disrupt current plans and operations; (5) costs related to the transactions, operations and strategy; (6) changes in applicable laws or regulations; (7) the possibility that the Company may be adversely affected by other economic, business, and/or competitive factors; (8) changes or events that impact the cryptocurrency industry, including potential regulation, that are out of our control; (9) the risk that our business will not grow in line with our expectations or continue on its current trajectory; (10) the possibility that our addressable market is smaller than we have anticipated and/or that we may not gain share of it; and (11) the possibility that there is a disruption in mining impacting our ability to achieve expected results or change in power dynamics impacting our results or our ability to increase load capacity, (12) any delay or failure to consummate the business mandates or achieve its pipeline goals in banking and Gk8, (13) liquidity or economic conditions impacting our business, (14) regulatory concerns, technological challenges, cyber incidents or exploits on decentralized networks (15) the failure to enter into definitive agreements or otherwise complete the anticipated transactions with respect to the non-binding term sheet for Helios, (16) those other risks contained in the Annual Information Form for the year ended December 31, 2023 available on the Company’s profile at www.sedarplus.ca and its Management’s Discussion and Analysis, filed on November 7, 2024. Factors that could cause actual results to differ materially from those described in such forward-looking statements include, but are not limited to, a decline in the digital asset market or general economic conditions; the possibility that our addressable market is smaller than we have anticipated and/or that we may not gain share of the stated addressable market; the failure or delay in the adoption of digital assets and the blockchain ecosystem; a delay or failure in developing infrastructure for our business or our businesses achieving our banking and Gk8 mandates; delays or other challenges in the mining business related to hosting, power or our mining infrastructure, or our ability to capture adjacent opportunities; any challenges faced with respect to decentralized networks, considerations with respect to liquidity and capital planning and changes in applicable law or regulation and adverse regulatory developments. Should one or more of these risks or uncertainties materialize, they could cause our actual results to differ materially from the forward-looking statements. We are not undertaking any obligation to update or revise any forward looking statements whether as a result of new information, future events or otherwise. You should not take any statement regarding past trends or activities as a representation that the trends or activities will continue in the future. Accordingly, you should not put undue reliance on these statements.

Galaxy Digital Holdings LP’s Consolidated Statements of Financial Position (unaudited)

(in thousands)	September 30, 2024	December 31, 2023
Assets
Current assets
Cash and cash equivalent	$ 271,977	$ 316,610
Digital assets	2,490,335	1,078,587
Receivable for digital asset trades	986	41,339
Digital assets loans receivable, net of allowance	305,276	104,504
Digital assets receivables	43,118	14,686
Investments (includes $57.0 million and $0 of equity method investments, respectively)	594,564	—
Assets posted as collateral	227,050	318,195
Receivables	23,629	15,983
Derivative assets	141,961	173,209
Prepaid expenses and other assets	31,078	37,910
Loans receivable, net of allowance	398,510	377,105
Due from related party	7,420	5,007
Total current assets	4,535,904	2,483,135

Digital assets receivables	7,015	6,174
Investments (includes $393.7 million and $290.4 million of equity method investments, respectively)	704,542	735,103
Restricted digital assets	26,989	41,356
Digital asset loans receivable, non-current	18,376	—
Loans receivable, non-current	—	10,259
Property and equipment	259,899	259,965
Other non-current assets	115,279	95,000
Goodwill	49,450	44,257
Total non-current assets	1,181,550	1,192,114
Total assets	$ 5,717,454	$ 3,675,249

Liabilities and equity
Current liabilities
Investments sold short	160,146	25,295
Derivative liabilities	112,136	160,642
Accounts payable and accrued liabilities	81,884	69,212
Payable to customers	96,864	3,503
Taxes payable	5,176	25,936
Payable for digital asset trades	23,269	4,176
Digital assets loans payable	1,163,768	398,277
Loans payable	248,818	93,069
Collateral payable	1,154,471	581,362
Due to related party	92,722	67,953
Lease liability	3,772	3,860
Total current liabilities	3,143,026	1,433,285

Notes payable	434,306	408,053
Deferred tax liability	51,841	33,894
Lease liability	7,524	10,236
Total non-current liabilities	493,671	452,183
Total liabilities	3,636,697	1,885,468

Equity
Partners’ capital	2,080,757	1,789,781
Total equity	2,080,757	1,789,781

Total liabilities and equity	$ 5,717,454	$ 3,675,249

Galaxy Digital Holdings LP’s Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) (unaudited)

(in thousands)	Three months ended		Nine months ended
	September 30, 2024	September 30, 2023	September 30, 2024	September 30, 2023
Income
Fee revenue	$ 20,693	$ 9,525	$ 75,303	$ 34,207
Net realized gain (loss) on digital assets	(53,623)	(67,617)	55,038	18,681
Net realized gain (loss) on investments	73,819	22,355	(86,189)	68,711
Lending and staking revenue	73,673	14,005	157,984	35,323
Net derivative gain	16,340	15,737	205,302	80,462
Revenue from proprietary mining	11,435	8,848	47,875	20,672
Other income	686	127	1,159	333
	143,023	2,980	456,472	258,389

Operating expenses
Compensation and compensation related	39,673	30,995	125,037	96,247
Equity based compensation	12,517	18,769	42,107	57,694
General and administrative	47,678	30,461	142,732	60,108
Mining costs	10,013	3,886	35,734	9,840
Trading and commission expense	5,990	2,811	18,912	6,097
Technology	7,576	4,948	21,424	13,942
Depreciation and amortization	15,552	8,130	40,484	19,895
Impairment reversal	—	—	—	(12,489)
Other	8,547	10,686	26,178	22,823
Professional fees	10,927	7,911	38,247	26,514
Staking costs	39,330	287	69,538	826
Interest	28,935	5,797	69,710	15,670
Notes interest expense	7,105	6,851	21,121	20,372
	(186,165)	(101,071)	(508,492)	(277,431)

Other
Net unrealized gain (loss) on digital assets	44,334	26,196	184,047	24,451
Net unrealized gain (loss) on investments	(60,515)	(25,380)	61,023	(8,517)
Net loss on notes payable – derivative	(2,858)	1,082	(15,144)	(1,022)
Foreign currency gain (loss)	95	(768)	1,448	(843)
	(18,944)	1,130	231,374	14,069

Income before income taxes	(62,086)	(96,961)	179,354	(4,973)
Income taxes expense (benefit)	(8,446)	(3,240)	(11,661)	586
Net income for the period	$ (53,640)	$ (93,721)	$ 191,015	$ (5,559)

Other comprehensive income
Foreign currency translation adjustment	(118)	$ 419	972	3

Comprehensive income for the period	$ (53,758)	$ (93,302)	$ 191,987	$ (5,556)

	Three months ended		Nine months ended
	September 30, 2024	September 30, 2023	September 30, 2024	September 30, 2023
GDH LP Net income (loss) per unit:
Basic	$ (0.16)	$ (0.29)	$ 0.57	$ (0.02)
Diluted	(0.16)	(0.29)	0.54	(0.02)
Weighted average units:
Basic	341,208,229	322,656,584	334,883,094	321,154,802
Diluted	341,208,229	322,656,584	352,126,364	323,154,802

Reportable segments (unaudited)

Income and expenses by each reportable segment of GDH LP for the three months ended September 30, 2024 are as follows:

(in thousands)	Global Markets	Asset Management	Digital Infrastructure Solutions	Corporate and Other	Totals
Income (loss)
Fee revenue⁽¹⁾
Mining hosting fees	$ —	$ —	$ 7,024	$ —	$ 7,024
Licensing fees	—	1	801	(121)	681
Management and performance fees	5,526	8,094	—	(708)	12,912
Advisory fees	76	—	—	—	76
Total fee revenue	5,602	8,095	7,825	(829)	20,693
Lending and staking revenue
Lending income	22,429	95	1,111	7	23,642
Blockchain rewards	4,001	1,859	49,432	(5,261)	50,031
Total lending and staking revenue	26,430	1,954	50,543	(5,254)	73,673

Net realized gain on digital assets	(55,660)	2,037	—	—	(53,623)
Net realized gain (loss) on investments	72,503	(1,107)	2,423	—	73,819
Net derivative gain	16,414	—	(74)	—	16,340
Revenue from proprietary mining	—	—	11,435	—	11,435
Other income	654	27	5	—	686
Total revenues and gain (loss) from operations	65,943	11,006	72,157	(6,083)	143,023

Operating expenses	81,269	11,025	82,189	11,682	186,165

Net unrealized gain on digital assets	18,257	25,916	161	—	44,334
Net unrealized gain (loss) on investments	(35,029)	(24,701)	(785)	—	(60,515)
Net loss on notes payable – derivative	—	—	—	(2,858)	(2,858)
Foreign currency loss	95	—	—	—	95
	(16,677)	1,215	(624)	(2,858)	(18,944)

Income (loss) before income taxes	$ (32,003)	$ 1,196	$ (10,656)	$ (20,623)	$ (62,086)
Income tax expense	—	—	—	(8,446)	(8,446)
Net income (loss)	$ (32,003)	$ 1,196	$ (10,656)	$ (12,177)	$ (53,640)
Foreign currency translation adjustment	—	—	—	(118)	(118)
Comprehensive income (loss)	$ (32,003)	$ 1,196	$ (10,656)	$ (12,295)	$ (53,758)

⁽¹⁾Asset Management fee revenue includes management fees generated off the Partnership’s balance sheet venture investments. Licensing fees are attributable to GK8, and include license fees paid by the Partnership for the use of GK8’s technology. All intercompany transactions are eliminated in the Corporate & Other segment.

Income and expenses by each reportable segment of GDH LP for the nine months ended September 30, 2024 are as follows:

(in thousands)	Global Markets	Asset Management	Digital Infrastructure Solutions	Corporate and Other⁽¹⁾	Totals
Income (loss)
Fee revenue ⁽¹⁾
Mining hosting fees	$ —	$ —	$ 24,940	$ —	24,940
Licensing fees	1	1	2,219	(360)	1,861
Management and performance fees	9,220	40,466	—	(2,190)	47,496
Advisory fees	1,006	—	—	—	1,006
Total fee revenue	10,227	40,467	27,159	(2,550)	75,303
Lending and staking revenue
Lending income	55,185	101	1,112	19	56,417
Blockchain rewards	9,663	12,904	93,008	(14,008)	101,567
Total lending and staking revenue	64,848	13,005	94,120	(13,989)	157,984

Net realized gain on digital assets	35,838	18,404	796	—	55,038
Net realized gain (loss) on investments	(100,820)	12,208	2,423	—	(86,189)
Net derivative gain	204,509	—	793	—	205,302
Revenue from proprietary mining	—	—	47,875	—	47,875
Other income	805	60	294	—	1,159
	215,407	84,144	173,460	(16,539)	456,472

Operating expenses	214,302	40,610	192,299	61,281	508,492

Net unrealized gain on digital assets	202,839	(15,442)	(3,350)	—	184,047
Net unrealized gain (loss) on investments	63,451	(1,593)	(835)	—	61,023
Net loss on notes payable – derivative	—	—	—	(15,144)	(15,144)
Foreign currency loss	1,448	—	—	—	1,448
	267,738	(17,035)	(4,185)	(15,144)	231,374

Income (loss) before income taxes	$ 268,843	$ 26,499	$ (23,024)	$ (92,964)	$ 179,354
Income tax expense	—	—	—	(11,661)	(11,661)
Net income (loss)	$ 268,843	$ 26,499	$ (23,024)	$ (81,303)	$ 191,015
Foreign currency translation adjustment	—	—	—	972	972
Comprehensive income (loss)	$ 268,843	$ 26,499	$ (23,024)	$ (80,331)	$ 191,987

Income and expenses by each reportable segment of GDH LP for the three months ended September 30, 2023 are as follows:

(in thousands)	Global Markets	Asset Management	Digital Infrastructure Solutions	Corporate and Other	Totals
Income (loss)
Fee revenue ⁽¹⁾
Mining hosting fees	—	—	5,173	—	$ 5,173
Licensing fees	—	—	416	(90)	326
Management and performance fees	—	4,686	—	(711)	3,975
Advisory fees	51	—	—	—	51
Other fee revenues	—	—	—	—	—
Total fee revenue	51	4,686	5,589	(801)	9,525
Lending and staking revenue
Lending income	13,431	7	—	—	13,438
Blockchain rewards	390	177	—	—	567
Total lending and staking revenue	13,821	184	—	—	14,005

Net realized gain on digital assets	(67,232)	(385)	—	—	(67,617)
Net realized gain (loss) on investments	22,001	354	—	—	22,355
Net derivative gain	15,667	—	70	—	15,737
Revenue from proprietary mining	—	—	8,848	—	8,848
Other income (expense)	75	32	199	(179)	127
Total revenues and gain (loss) from operations	(15,617)	4,871	14,706	(980)	2,980

Operating expenses	43,510	12,131	21,933	23,497	101,071

Net unrealized gain (loss) on digital assets	26,919	(723)	—	—	26,196
Net unrealized gain on investments	(4,052)	(20,949)	(379)	—	(25,380)
Net loss on notes payable – derivative	—	—	—	1,082	1,082
Foreign currency loss	(768)	—	—	—	(768)
	22,099	(21,672)	(379)	1,082	1,130

Income (loss) before income taxes	$ (37,028)	$ (28,932)	$ (7,606)	$ (23,395)	$ (96,961)
Income tax expense	—	—	—	(3,240)	(3,240)
Net income (loss)	$ (37,028)	$ (28,932)	$ (7,606)	$ (20,155)	$ (93,721)
Foreign currency translation adjustment	—	—	—	419	419
Comprehensive income (loss)	$ (37,028)	$ (28,932)	$ (7,606)	$ (19,736)	$ (93,302)

⁽¹⁾Asset Management fee revenue includes management fees generated off the Partnership’s balance sheet venture investments, which are eliminated in the Corporate & Other segment.

Income and expenses by each reportable segment of GDH LP for the nine months ended September 30, 2023 are as follows:

(in thousands)	Global Markets	Asset Management	Digital Infrastructure Solutions	Corporate and Other	Totals
Income (loss)
Fee revenue ⁽¹⁾
Mining hosting fees	$ —	$ —	$ 17,990	$ —	$ 17,990
Licensing fees	—	—	1,234	(118)	1,116
Management and performance fees	—	13,833	—	(2,093)	11,740
Advisory fees	2,316	—	—	—	2,316
Other fee revenues	(54)	—	1,099	—	1,045
Total fee revenue	2,262	13,833	20,323	(2,211)	34,207
Lending and staking revenue
Lending income	32,509	24	—	—	32,533
Blockchain rewards	1,344	1,446	—	—	2,790
Total lending and staking revenue	33,853	1,470	—	—	35,323

Net realized gain on digital assets	14,261	4,420	—	—	18,681
Net realized gain (loss) on investments	46,100	22,611	—	—	68,711
Net derivative gain	78,985	1,542	(65)	—	80,462
Revenue from proprietary mining	—	—	20,672	—	20,672
Other income (expense)	210	(131)	254	—	333
Total revenues and gain (loss) from operations	175,671	43,745	41,184	(2,211)	258,389

Operating expenses	126,613	42,109	38,995	69,714	277,431

Net unrealized gain (loss) on digital assets	25,476	(1,025)	—	—	24,451
Net unrealized gain on investments	13,079	(27,868)	6,272	—	(8,517)
Net loss on notes payable – derivative	—	—	—	(1,022)	(1,022)
Foreign currency loss	(843)	—	—	—	(843)
	37,712	(28,893)	6,272	(1,022)	14,069

Income (loss) before income taxes	$ 86,770	$ (27,257)	$ 8,461	$ (72,947)	$ (4,973)
Income tax expense	—	—	—	586	586
Net income (loss)	$ 86,770	$ (27,257)	$ 8,461	$ (73,533)	$ (5,559)
Foreign currency translation adjustment	—	—	—	3	3
Comprehensive income (loss)	$ 86,770	$ (27,257)	$ 8,461	$ (73,530)	$ (5,556)

⁽¹⁾Asset Management fee revenue includes management fees generated off the Partnership’s balance sheet venture investments, which are eliminated in the Corporate & Other segment.

Assets and liabilities by reportable segment of GDH LP as of September 30, 2024 are as follows:

(in thousands)	Global Markets	Asset Management	Digital Infrastructure Solutions	Corporate and Other	Totals
Total assets	$ 4,610,799	$ 619,779	$ 348,283	$ 138,593	$ 5,717,454

Total liabilities	$ 2,975,526	$ 389	$ 14,577	$ 646,205	$ 3,636,697

Assets and liabilities by reportable segment of GDH LP as of December 31, 2023 are as follows:

(in thousands)	Global Markets	Asset Management	Digital Infrastructure Solutions	Corporate and Other	Totals
Total assets	$ 2,726,950	$ 575,056	$ 321,322	$ 51,921	$ 3,675,249

Total liabilities	$ 1,289,792	$ 10,968	$ 9,817	$ 574,891	$ 1,885,468

Select statement of financial position information

Select assets by reporting segment of GDH LP as of September 30, 2024 is as follows:

(in thousands)	Global Markets	Asset Management	Digital Infrastructure Solutions	Corporate and Other	Totals
Digital assets	$ 2,454,030	$ 63,294	$ —	$ —	$ 2,517,324
Digital assets receivables	8,240	40,798	1,095	—	50,133
Assets posted as collateral	227,050	—	—	—	227,050
Loans receivable	722,162	—	—	—	722,162
Investments	790,695	497,458	10,953	—	1,299,106
Property and equipment	—	—	254,445	5,454	259,899
	$ 4,202,177	$ 601,550	$ 266,493	$ 5,454	$ 5,075,674

Select assets by reporting segment of GDH LP as of December 31, 2023 is as follows:

(in thousands)	Global Markets	Asset Management	Digital Infrastructure Solutions	Corporate and Other	Totals
Digital assets	$ 1,052,013	$ 67,930	$ —	$ —	$ 1,119,943
Digital assets receivables	6,506	13,135	1,219	—	20,860
Assets posted as collateral	318,195	—	—	—	318,195
Loans receivable	491,868	—	—	—	491,868
Investments	244,807	476,262	14,034	—	735,103
Property and equipment	109	—	252,552	7,304	259,965
	$ 2,113,498	$ 557,327	$ 267,805	$ 7,304	$ 2,945,934

Net Digital Assets Position

*(in thousands)*	BTC ⁽³⁾	ETH ⁽⁴⁾	Stablecoin	Other ⁽⁵⁾	As of September 30, 2024⁽⁶⁾
Assets
Digital assets	$ 1,656,466	$ 369,032	$ 210,864	$ 253,973	$ 2,490,335
Digital asset loans receivable, net of allowance	634	18,684	280,258	24,076	323,652
Digital assets receivable, current	—	—	—	43,118	43,118
Digital assets receivable, non-current	—	—	—	7,015	7,015
Assets posted as collateral – Digital assets⁽¹⁾	189,353	26,814		452	216,619
Restricted digital assets, non-current⁽²⁾	—	—	—	26,989	26,989
	1,846,453	414,530	491,122	355,623	3,107,728
Liabilities
Digital asset loans payable	657,964	97,039	270,577	138,188	1,163,768
Collateral payable⁽¹⁾	798,452	164,418	17,967	83,653	1,064,490
Payables to customers	61,785	—	—	—	61,785
	1,518,201	261,457	288,544	221,841	2,290,043
Digital assets, net	$ 328,252	$ 153,073	$ 202,578	$ 133,782	817,685
Stablecoins, net	$ —	$ —	$ 202,578	$ —	202,578
Digital assets, net excl. stablecoins	$ 328,252	$ 153,073	$ —	$ 133,782	$ 615,107

Digital asset investment vehicles included in investments	$ 382,861	$ 24,893	$ —	$ 147,287	555,041

⁽¹⁾Excludes cash portion of balance on the Partnership’s statement of financial position.

⁽²⁾Represents TIA and SOL tokens that are subject to a sale restriction of greater than one year.

⁽³⁾ Includes associated tokens such as wBTC. In addition to digital assets, net, the Partnership also held interests in investment vehicles designed to hold BTC, including spot ETFs, Galaxy sponsored BTC funds, Mt. Gox Investment Fund LP, and Xapo Holdings Limited, net against associated investment liabilities, reflected in the last row of this table.

⁽⁴⁾Includes associated tokens such as wETH and stETH. In addition to digital assets, net, the Partnership also held interests in investment vehicles designed to hold ETH, including spot ETFs and Galaxy sponsored ETH funds, reflected in the last row of this table.

⁽⁵⁾Includes $8.2 million net SOL and $45.9 million net TIA digital assets, net. In addition to digital assets, net, the Partnership also held interests in investment vehicles designed to hold digital assets, including the Galaxy sponsored Galaxy Digital Crypto Vol Fund LLC (includes $93.0 million SOL and $23.1 million of AVAX) and Ripple Lab Inc., reflected in the last row of this table.

⁽⁶⁾The Partnership also held digital asset derivative positions not reflected in this table.

(in thousands)	BTC ⁽⁴⁾	ETH ⁽⁵⁾	Stablecoin	Other ⁽⁵⁾	As of December 31, 2023⁽⁶⁾
Assets
Digital assets	$ 589,011	$ 174,978	$ 179,222	$ 135,376	$ 1,078,587
Digital asset loans receivable, net of allowance	3,044	87,252	12,000	2,208	104,504
Digital assets receivable, current	—	—	—	14,686	14,686
Digital assets receivable, non-current	—	—	—	6,174	6,174
Assets posted as collateral – Digital assets⁽¹⁾	197,092	119,012	—	—	316,104
Restricted digital assets, non-current⁽²⁾	—	—	—	41,356	41,356
	789,147	381,242	191,222	199,800	1,561,411
Liabilities
Digital asset loans payable	48,202	14,603	297,762	37,710	398,277
Collateral payable⁽¹⁾	437,889	116,723	9,457	5,926	569,995
	486,091	131,326	307,219	43,636	968,272
Digital assets, net	$ 303,056	$ 249,916	$ (115,997)	$ 156,164	593,139
Stablecoins, net⁽³⁾	$ —	$ —	$ (115,997)	$ —	(115,997)
Digital assets, net excl. stablecoins	$ 303,056	$ 249,916	$ —	$ 156,164	$ 709,136

Bitcoin spot ETFs included in Investments	$ —	$ —	$ —	$ —	$ —

⁽¹⁾Excludes cash portion of balance on the Partnership’s statement of financial position.

⁽²⁾Represents TIA tokens that are subject to a sale restriction of greater than one year.

⁽³⁾As of December 31, 2023, stablecoin liabilities were greater than stablecoin assets.

⁽⁴⁾Includes associated tokens such as wBTC. In addition to digital assets, net, the Partnership also held interests in investment vehicles designed to hold BTC, including bitcoin futures ETFs, Galaxy sponsored BTC funds, Mt. Gox Investment Fund LP, and Xapo Holdings Limited, net of associated investment liabilities, reflected in the last row of this table.

⁽⁵⁾Includes associated tokens such as wETH and stETH. In addition to Digital assets, net, the Partnership also held interests in investment vehicles designed to hold ETH, including Galaxy sponsored ETH funds, reflected in the last row of this table.

⁽⁶⁾Includes $12.0 million net SOL and $68.5 million net TIA. In addition to digital assets, net, the Partnership also held interests in investment vehicles designed to hold digital assets, including Ripple Lab Inc., reflected in the last row of this table.

⁽⁷⁾The Partnership also held digital asset derivative positions not reflected in this table.

All figures are in U.S. Dollars unless otherwise noted.

SOURCE Galaxy Digital Holdings Ltd.

View original content to download multimedia: http://www.newswire.ca/en/releases/archive/November2024/07/c7306.html

Markets News

How Mystery 'Trump Whale' Reaps $50M Profit By Betting Against Polling Data

07.11.2024 by admin

A mysterious trader, dubbed the “Trump whale,” is set to gain nearly $50 million after making bold bets related to the U.S. presidential election. The trader, identified as “Théo,” accurately forecasted Donald Trump‘s victory, including his win in the popular vote, despite widespread skepticism from analysts.

Théo placed his bets on Polymarket, a crypto-based betting platform, using four anonymous accounts. He communicated with a Wall Street Journal reporter, explaining that his strategy stemmed from a distrust of polling data. Théo, a wealthy Frenchman with a banking background, used his mathematical expertise to scrutinize U.S. polls, concluding they exaggerated support for Vice President Kamala Harris, The Wall Street Journal reported on Wednesday.

Théo’s wagers, exceeding $30 million, were essentially a challenge to conventional polling methods. As election results began to unfold, Théo remained confident, especially after Trump’s strong showing in Florida. The Wall Street Journal confirmed Théo’s identity as the trader behind four anonymous Polymarket accounts, with Polymarket verifying his French nationality and trading experience.

The “Fredi tracker” monitoring the accounts linked to Théo shows his total gains reaching nearly $49.5 million, with his current portfolio valued at $100.7 million on Polymarket.

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Finance News

Donald Trump's $4 Billion DJT Stake Takes A Double-Digit Hit

07.11.2024 by admin

Shares of Truth Social-parent Trump Media & Technology (DJT) sank early Thursday, giving back a double-digit slice of the gains that followed former President Donald Trump’s defeat of Vice President Kamala Harris in the presidential election. Meanwhile, Republicans also retook the Senate and may have the edge in the House of Representatives.

DJT shares ballooned early Wednesday, hitting an intraday high of 45.77, before paring those gains adding 6% to 35.95. Shares tumbled almost 15% early during Thursday’s market session.

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The Trump stock often behaves as a sentiment indicator toward the former president. On Tuesday, the Trump stock declined 1.2% to 33.94, with the Nasdaq halting trade three times due to volatile intraday moves.

What Trump Victory Means For S&P 500, Fed Rate Cuts

Along with the election result, Trump Media also reported third-quarter earnings and revenue late Tuesday. The social-media platform saw a Q3 loss of 10 cents per diluted share, narrowing from a loss of 30 cents a year ago. Meanwhile, net sales declined to $1 million, down from $1.1 million last year. Trump Media added that it ended the third quarter without debt and with $673 million in cash and investments.

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The company also reported that as of Oct. 15, there were approximately 650,000 shareholders with about 2,100 investors owning more than 5,000 shares and fewer than 1,000 investors owning more than 10,000 shares.

DJT reported in August a quarter of sub-$1 million revenue.

Donald Trump Stock Surges In October

DJT is among those stocks tracked by the subreddit investor group r/WallStreetBets. Website ApeWisdom showed DJT stock as the the top-trending issue on r/WallStreetBets on the weekend and through Tuesday. It continued to hold the top position early Thursday.

The Donald Trump brand and the value of DJT stock are closely related, as Truth Social launched after X, then called Twitter, shut down Trump’s account following the Jan. 6, 2021, riot at the U.S. Capitol.

The Trump-backed DJT stock skyrocketed 119% in October. Last week, the Nasdaq also halted trading on the shares more than once.

DJT shares hit a short-term high of 46.27 on July 15 following the assassination attempt against the former president. Trump’s lead in the polls peaked soon after, following President Joe Biden’s exit from the 2024 race.

In September, after the presidential debate between Trump and Harris, DJT sank, signaling investor sentiment held that Trump underperformed expectations. Shares hit a low of 11.75 on Sept. 24 but have roared back since then.

Stock Market Election Reaction: Futures, Bitcoin And More

The former president holds a 65% stake in Trump Media, worth around $4 billion based on the current stock price.

The New York Post reported on Friday that “people inside the Trump camp have been speculating for weeks now that Truth Social will at some point, maybe sooner rather than later, get subsumed” by Musk and X.

Trump Media jumped more than 16% on March 26, its first day trading under the DJT ticker, hitting a high of 79.38 intraday. This followed Digital World Acquisition becoming Trump Media & Technology Group after successfully merging with Trump’s tech and social-media platform on March 22. The special purpose acquisition company stock had rallied 35% on the day before the change to “DJT.”

DWAC took Trump Media and Technology Group, or TMTG, public in a reverse merger. After a prolonged battle, DWAC stockholders voted in favor of the special purpose acquisition company’s merger with TMTG. Trump Media is the parent of the conservative social-media platform Truth Social.

DJT shares have advanced about 100% in 2024, but remain about 26% below their price at the time of conversion.

Please follow Kit Norton on X @KitNorton for more coverage.

Donald Trump Stock Surges In October

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