In a notable development within the digital asset financial sector, Galaxy Digital (GLXY), led by Mike Novogratz, has agreed to a $200 million settlement with the New York Attorney General’s (NYAG) office. This agreement pertains to issues arising from the significant collapse of the Terra-Luna ecosystem in 2022.
The settlement, which was formally announced on Friday, addresses Galaxy’s investment strategies, trading practices, and public communications regarding LUNA. The abrupt failure of the Luna project in May 2022 resulted in an astonishing loss of approximately $60 billion in market value, affecting countless investors and shaking the foundations of the cryptocurrency market.
In its recent earnings statement, Galaxy disclosed the financial particulars of the settlement alongside reporting profits of $174 million for the fourth quarter and an impressive $365 million for the entirety of 2024, after accounting for the legal provisions related to this settlement.
Additionally, Galaxy Digital has embarked on a new partnership with CoreWeave, a cloud-computing firm, by entering into a 15-year lease agreement. This partnership includes the provision of 133 megawatts (MW) of electricity aimed at powering artificial intelligence and high-performance computing at Galaxy’s Helios data center located in West Texas. Through this strategic investment, the company anticipates generating around $4.5 billion in revenue during the lease term.
The latest figures reveal that Galaxy’s earnings amount to $1.02 per diluted share, reflecting robust performance despite the challenges posed by regulatory scrutiny. However, it is worth noting that shares of GLXY closed 3.54% lower on Thursday, indicating market response to the settlement news.
This significant settlement marks a pivotal moment for Galaxy Digital as it navigates the turbulent waters of regulatory compliance in the evolving landscape of digital assets. The company’s proactive measures and partnerships, especially in the realm of technology infrastructure, suggest a forward-thinking approach as it looks to fortify its position in the market.
