NEW YORK - Galaxy Digital Holdings Ltd (TSX:GLXY) reported a decline in fourth-quarter profit, missing analyst expectations as settlement costs weighed on its bottom line. The digital asset and blockchain company's stock fell 3.5% following the announcement.
Galaxy Digital posted net income of $174.5 million for the fourth quarter, down from $301.5 million in the same period last year and below the $259.3 million analysts had forecast. The company attributed the lower profit to a $166 million accrued legal provision related to a settlement with the New York attorney general.
Revenue surged to $698.1 million, up 96% YoY from $355.5 million, significantly surpassing analyst estimates of $202.7 million.
The company disclosed reaching an agreement with New York's attorney general to resolve claims concerning certain investments, trading, and public statements related to the LUNA digital asset from late 2020 to 2022. The undiscounted settlement amount is $200 million, payable between 2025 and 2028.
"While the settlement impacted our bottom line this quarter, we remain focused on our long-term growth strategy and continuing to build our position in the digital asset space," said Mike Novogratz, CEO of Galaxy Digital.
Galaxy Digital also reported progress on its proposed reorganization and domestication to become a Delaware-incorporated company, with plans for a subsequent Nasdaq listing. The company filed an amendment to its registration statement responding to SEC comments, which is currently under review.
This content was originally published on Investing.com
