- Net comprehensive income grew to $860 million (from $325 million)
- Assets Under Management (“AUM”) increased 58%
- Counterparty loan originations grew over 510%
- Erin Brown joins Executive Team as Chief Operating Officer
- Galaxy Digital has agreed to acquire BitGo in a $1.2 Billion acquisition.
Released May 17, 2021
See lined headline for complete release.
By Tom Linzmeier, editor LivingoffTheMarket.com May 18,2021
LOTM: eTrade shows a trailing P/E ratio of 5.7 for Galaxy… for a company growing in the hundreds of percent per quarter? Pretty cheap.
This statement is a bit miss leading, however. Galaxy reports differently than a traditional operating company. They report asset value growth as comprehensive income. So, if Bitcoin up – the price is reported as income – Bitcoin down – is reported as income down. Second quarter 2021, has not been as kind to Bitcoin as Q1 was. Let’s see how Q2 ends. Galaxy is much more than a link to Bitcoin price change. Our attitude towards Galaxy will not change with a bad quarter. The current price likely has priced in current crypto
The Venture Capital department saw Investments at $351.6 million as of March 31, 2021, an increase of $91.2 million from December 31, 2020.
The Trading department saw Income from trading increased to $508.7 million, from a loss of $31.5 million in the first quarter of last year.
- Please review the company PR (linked above) for a complete description of Galaxy’s activity.
Galaxy stock is very volatile. Currently at $23, the high price has been $38 and the twelve-month low, $0.90 per share. Not a misprint.
Our approach to Galaxy is to accumulate on weakness ($19 to $22 seems a support level) and sell a portion (20% to 40%) on spike rallies. The goal is to keep the lowest cost shares long-term, trade out of the higher cost shares to minimize tax and build the position over two to four years. Blockchain is in its adolescence with years of growth ahead. Volatile as the shares are, we believe Galaxy is one of the best, if not the best way to participate in Blockchain and crypto over the next decade.
We repeat (in previous emails) what is little practiced. Position (stock position) management is the most important and misunderstood factor in making money in the stock market. It does not matter if you are day-trading or a multi-year position builder. Position management makes or breaks your performance. Decide your goals and objectives and act accordingly. Contact LOTM if you want assistance.
We consider Galaxy Digital a buy at the current price and below from an accumulation perspective. We are not trading this position, so traders should note this in our conversation and adjust accordingly. Galaxy Digital is a great trading stock. It is not our goal now. In time, we believe Galaxy Digital will be the Goldman Sachs of the Blockchain world.
Have a great day! Tom
LOTM Research & Consulting Service
Where Value meets Buy Signals!
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* An account related to LOTM holds a position in this security.
Neither LOTM nor Tom Linzmeier is a Registered Investment Advisor.
Please refer to our web site for full disclosure at www.LivingOffTheMarket.com ZTA Capital Group, Inc.
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