Galaxy Digital Holdings, a prominent player in the digital asset and blockchain sphere, has decided to increase the size of its proposed equity raising, aiming to raise approximately $125 million. The offering comes at a discount to the last closing price for the stock, marking a strategic move for the company’s growth trajectory.
The company revealed on Tuesday its intention to sell 2.35 million shares at 14 Canadian dollars ($10.31) each to underwriter Canaccord Genuity. This decision follows an initial plan to offer 9.75 million shares through a bought deal financing, which would have garnered around $100 million in gross proceeds. Galaxy Digital Holdings aims to allocate the proceeds from this public offering towards bolstering its working capital and supporting general corporate purposes.
Galaxy’s shares had a solid performance, closing at C$16.05 in Toronto, marking a 55% increase year-to-date. Additionally, the underwriter’s option to purchase additional shares from certain shareholders has been increased, now allowing for as many as 1.82 million shares to be acquired, up from 1.5 million previously. Among the selling shareholders are entities like Galaxy Group Investments, reflecting continued investor interest in the company’s growth prospects.
The offering is slated to conclude on or about Friday, as confirmed by Galaxy. This move aligns with the company’s strategic vision and comes amidst a period of notable financial performance.
Galaxy Digital Holdings recently reported a significant turnaround, shifting from a year-earlier loss to a fourth-quarter net income of $301.5 million. This positive momentum was attributed to substantial growth in fee revenue, as well as a notable increase in lending and staking revenue, both of which more than doubled. The decision to raise additional equity capital underscores the company’s confidence in its growth trajectory and its commitment to capitalizing on emerging opportunities in the digital asset space.
At the time of this publishing, Galaxy Digital Holdings’ stock stands at $9.77, reflecting a 5-day decline of 4.00%. Despite short-term fluctuations, the stock has demonstrated strong performance over longer periods, with impressive gains recorded over the past year.
Galaxy Digital Holdings’ decision to enhance its equity raising underscores its proactive approach to fueling growth and capitalizing on evolving market dynamics within the digital asset and blockchain sectors. As the company continues to execute its strategic initiatives, investors remain optimistic about its future prospects and potential for sustained value creation.
