智通财经7月21日电，美股加密货币概念股盘初集体冲高，GLXY涨超12%，BTOG、BTCS涨超9%；特 朗普媒体科技集团涨超7%，创4月23日以来最大涨幅。 ...

Core Viewpoint - K Wave Media (KWM) has formed a strategic partnership with Galaxy Digital, which will act as an Asset Manager and Strategic Advisor, while also investing in KWM to support its Bitcoin treasury strategy and access to institutional capital [1][2]. Group 1: Partnership and Investment - Galaxy Digital's investment highlights the strength of KWM's business model, which integrates Korea's cultural influence with a commitment to Bitcoin as a corporate treasury asset [2]. - KWM has secured nearly $1 billion in institutional capital to bolster its strategic initiatives, indicating strong market confidence in its approach [2][3]. Group 2: Bitcoin Strategy - KWM has acquired 88 Bitcoin, symbolizing prosperity in Asian markets, and is actively scaling its reserves, positioning itself as a leader in Bitcoin strategies among public companies [3]. - The partnership with Galaxy will provide KWM with guidance on structuring Bitcoin treasury purchases, risk management, and aligning with institutional-grade financial infrastructure [6]. Group 3: Market Strategy - KWM's cross-border strategy targets Korean retail, U.S. institutions, and global crypto markets, creating a multi-market flywheel effect [4]. - The company is exploring additional partnerships and acquisitions to enhance its treasury position and cultural influence, marking a new phase in its evolution as a public company in the Bitcoin era [4].

Crypto stocks just absolutely sending 📈Wall St is insatiable for crypto assets right nowAnsem (@blknoiz06):the four horseman of crypto equities$CRCL$HOOD$COIN$GLXY https://t.co/Ab5gz0Tq8H ...

Core Points - Galaxy Digital Inc. will report its second quarter 2025 financial results on August 5th, 2025, before the opening of Nasdaq and the Toronto Stock Exchange [1] - A conference call will be hosted by CEO Michael Novogratz and management at 8:30 AM Eastern Time on the same day to update investors and analysts [1] Company Overview - Galaxy Digital Inc. is a global leader in digital assets and data center infrastructure, providing solutions that enhance progress in finance and artificial intelligence [3] - The company's digital assets platform offers institutional access to various services including trading, advisory, asset management, staking, self-custody, and tokenization technology [3] - Galaxy also invests in and operates advanced data center infrastructure to support AI and high-performance computing, addressing the increasing demand for scalable energy and compute solutions in the U.S. [3] - The company is headquartered in New York City, with offices across North America, Europe, the Middle East, and Asia [3]

Core Insights - YZi Labs supports 10X Capital in establishing the BNB Treasury Company, aimed at digital asset treasury management on BNB Chain [1][2] - The BNB Treasury Company plans to pursue a public listing on a major U.S. stock exchange, providing U.S. investors exposure to BNB, the 4th largest digital asset by market cap [2] - The initiative is led by a seasoned management team with extensive experience in digital assets and institutional investment [3] Company Overview - YZi Labs manages over $10 billion in assets globally, focusing on impact investments in Web3, AI, and biotech, with a portfolio of over 300 projects across six continents [6] - 10X Capital is a next-generation investment firm concentrating on digital transformation, bringing institutional capital to opportunities in digital assets and infrastructure [7][8] Strategic Goals - The BNB Treasury Company aims to enhance institutional access to the BNB ecosystem, which is one of the largest and highest-performing digital asset ecosystems globally [5] - The company emphasizes transparency, verification of holdings, and strong engagement with the BNB community, with financing expected to close soon [5]

Core Insights - Galaxy Ventures has successfully closed its inaugural venture fund, Galaxy Ventures Fund I, LP, with over $175 million in capital commitments, surpassing its initial target of $150 million, indicating strong investor interest in the digital asset venture ecosystem [1][3][4] Investment Focus - The Fund aims to invest in early-stage companies that are developing essential infrastructure and applications for the onchain economy, focusing on areas such as stablecoins, payments, and tokenization, along with the necessary supporting infrastructure [2][5] Historical Context - This marks a significant milestone for Galaxy Ventures, which had previously operated by investing from Galaxy's balance sheet since 2018, and has now backed over 120 companies in the digital asset space [3][4] Team and Support Structure - The Galaxy Ventures team, led by Will Nuelle and Mike Giampapa, is supported by a dedicated Ventures Platform that provides portfolio companies with resources and connectivity to Galaxy's broader business lines, enhancing their growth opportunities [4][5] Market Outlook - The blockchain infrastructure is anticipated to transform global financial markets, with increasing adoption from both institutional and retail users, particularly in payments and financial services [5]

[Financial Performance](index=3&type=section&id=Financial%20Performance) [Consolidated Statements of Operations](index=3&type=section&id=Consolidated%20Statements%20of%20Operations%20(Unaudited)) Galaxy Digital reported a Q1 2025 net loss of $295.4 million, a sharp reversal from prior period net incomes, driven by reduced revenues and elevated expenses Consolidated Statements of Operations | Financial Metric ($ in thousands) | Q1 2025 | Q4 2024 | Q1 2024 | | :--- | :--- | :--- | :--- | | **Revenues and gains / (losses) from operations** | $12,855,875 | $16,352,386 | $9,828,423 | | **Total operating expenses** | $13,247,697 | $16,222,765 | $9,421,489 | | **Net income / (loss) before taxes** | ($301,544) | $113,184 | $397,454 | | **Net Income / (loss)** | **($295,432)** | **$117,521** | **$388,127** | [Segment Performance Analysis](index=5&type=section&id=Statements%20of%20Operations%20by%20Segment%20(Unaudited)) In Q1 2025, the Digital Assets segment generated a small operating income, while Data Centers and Treasury & Corporate segments recorded significant operating losses Operating Income / (Loss) by Segment | Operating Income / (Loss) by Segment ($ in thousands) | Q1 2025 | Q4 2024 | | :--- | :--- | :--- | | Digital Assets | $3,529 | $29,407 | | Data Centers | ($2,899) | ($2,148) | | Treasury and Corporate | ($392,452) | $102,342 | | **Total Operating Income / (Loss)** | **($391,822)** | **$129,601** | [Digital Assets Segment](index=5&type=section&id=Digital%20Assets) The Digital Assets segment reported an operating income of $3.5 million in Q1 2025, a notable decrease from Q4 2024, despite high revenues from digital asset sales - The segment's revenue is predominantly from **Digital asset sales ($12.85 billion)** and **Blockchain rewards ($80.7 million)**[11](index=11&type=chunk) Digital Assets Segment | Digital Assets Segment ($ in thousands) | Q1 2025 | Q4 2024 | | :--- | :--- | :--- | | Revenues and gains / (losses) from operations | $13,063,899 | $15,888,009 | | Total operating expenses | $13,060,370 | $15,858,602 | | **Operating Income** | **$3,529** | **$29,407** | [Data Centers Segment](index=5&type=section&id=Data%20Centers) The Data Centers segment consistently reported an operating loss of $2.9 million in Q1 2025, with no revenues recorded for the period - The segment reported an **operating loss of $2.9 million** in Q1 2025, with **no revenues recorded** [7](index=7&type=chunk) [Treasury and Corporate Segment](index=7&type=section&id=Treasury%20and%20Corporate) The Treasury and Corporate segment incurred a substantial operating loss of $392.5 million in Q1 2025, a sharp reversal from prior quarter's income, driven by significant losses on digital assets and investments Treasury and Corporate Segment | Treasury and Corporate Segment ($ in thousands) | Q1 2025 | Q4 2024 | | :--- | :--- | :--- | | Revenues and gains / (losses) from operations | ($208,024) | $464,357 | | Total operating expenses | $184,428 | $362,015 | | **Operating Income / (Loss)** | **($392,452)** | **$102,342** | - Key drivers of the negative performance in Q1 2025 were a **net loss on digital assets of $70.4 million** and a **net loss on investments of $112.8 million**[7](index=7&type=chunk) [Financial Position](index=21&type=section&id=Financial%20Position) [Consolidated Statements of Financial Position](index=21&type=section&id=Consolidated%20Statements%20of%20Financial%20Position%20(Unaudited)) As of March 31, 2025, total assets decreased to $6.34 billion, primarily due to reduced digital intangible assets, leading to a decline in total equity to $1.90 billion Balance Sheet Highlights | Balance Sheet Highlights ($ in thousands) | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$6,336,192** | **$7,119,855** | | Cash and cash equivalents | $509,438 | $462,103 | | Digital intangible assets | $2,123,860 | $2,547,581 | | **Total Liabilities** | **$4,434,548** | **$4,925,503** | | Digital assets borrowed | $1,760,455 | $1,497,609 | | Collateral payable | $943,513 | $1,399,655 | | **Total Equity** | **$1,901,644** | **$2,194,352** | [Segment Financial Position](index=23&type=section&id=Statements%20of%20Financial%20Position%20by%20Segment%20(Unaudited)) As of March 31, 2025, the Digital Assets segment held the largest share of assets and liabilities, with both major segments experiencing a decrease in total assets from year-end 2024 Segment Assets & Liabilities | Segment Assets & Liabilities ($ in thousands) | March 31, 2025 | Dec 31, 2024 | | :--- | :--- | :--- | | **Digital Assets** | | | | Total assets | $3,169,254 | $3,723,814 | | Total liabilities | $2,691,823 | $3,163,499 | | **Data Centers** | | | | Total assets | $264,600 | $199,694 | | Total liabilities | - | - | | **Treasury and Corporate** | | | | Total assets | $2,902,338 | $3,196,347 | | Total liabilities | $1,742,725 | $1,762,004 | [Non-GAAP Financial Measures](index=19&type=section&id=Non-GAAP%20Financial%20Measures) [Reconciliation of Non-GAAP Adjusted Gross Profit](index=19&type=section&id=Reconciliation%20of%20Non-GAAP%20Adjusted%20Gross%20Profit%20(Unaudited)) In Q1 2025, total adjusted gross profit was a loss of $203.6 million, a sharp reversal from Q4 2024, primarily driven by a significant adjusted gross loss in the Treasury and Corporate segment Adjusted Gross Profit by Segment | Adjusted Gross Profit by Segment ($ in thousands) | Q1 2025 | Q4 2024 | | :--- | :--- | :--- | | Digital Assets | $64,731 | $100,954 | | Treasury and Corporate | ($268,295) | $359,636 | | **Total Adjusted Gross Profit** | **($203,564)** | **$460,590** |

[Part I - Financial Information](index=8&type=section&id=Part%20I%20-%20Financial%20Information) [Financial Statements](index=8&type=section&id=Item%201.%20Financial%20Statements) The report details condensed interim financial statements for GDI and GDH LP, highlighting GDH LP's Q1 2025 net loss of **$295.4 million** driven by investment losses and asset impairments [Galaxy Digital Holdings LP - Financial Performance](index=15&type=section&id=Galaxy%20Digital%20Holdings%20LP%20-%20Financial%20Performance) GDH LP reported a Q1 2025 net loss of **$295.4 million**, a reversal from prior year's income, with total assets decreasing to **$6.3 billion** and equity to **$1.9 billion** Financial Performance (in thousands) | Financial Metric | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Revenues and gains / (losses) from operations** | **$12,855,875** | **$9,828,423** | | Total operating expenses | $13,247,697 | $9,421,469 | | **Net income / (loss)** | **$(295,432)** | **$388,127** | Balance Sheet Summary (in thousands) | Balance Sheet Item | As of March 31, 2025 | As of December 31, 2024 | | :--- | :--- | :--- | | Total current assets | $5,093,001 | $5,880,890 | | **Total assets** | **$6,336,192** | **$7,119,855** | | Total current liabilities | $3,502,033 | $3,887,925 | | **Total liabilities** | **$4,434,548** | **$4,925,503** | | **Total equity** | **$1,901,644** | **$2,194,352** | Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net cash provided by / (used in) operating activities | $159,413 | $75,059 | | Net cash provided by / (used in) investing activities | $64,100 | $(366,742) | | Net cash provided by / (used in) financing activities | $(176,178) | $222,305 | | **Net increase / (decrease) in cash** | **$47,335** | **$(69,378)** | [Notes to Financial Statements (Selected)](index=24&type=section&id=Notes%20to%20Financial%20Statements%20(Selected)) Key notes detail acquisitions, **$2.65 billion** in digital assets (Bitcoin largest), a **$186 million** LUNA settlement provision, and a **$713.1 million** Helios data center commitment - The company acquired Fierce Technology, Inc. for approximately **$12.5 million** and the assets of CryptoManufaktur LLC for approximately **$12.4 million**, contributing to goodwill and intangible assets[77](index=77&type=chunk)[81](index=81&type=chunk) - Total digital assets were **$2.65 billion** as of March 31, 2025, down from **$2.93 billion** at year-end 2024; Bitcoin remains the most significant holding at **$1.06 billion**[97](index=97&type=chunk)[114](index=114&type=chunk) - The company has an outstanding commitment of **$713.1 million** for the construction of improvements at its Helios facility[179](index=179&type=chunk) - A legal provision of **$186 million** was accrued related to a settlement with the New York State Attorney General concerning the LUNA digital asset; the undiscounted settlement amount is **$200 million**, payable between 2025 and 2028[186](index=186&type=chunk) [Management's Discussion and Analysis (MD&A)](index=74&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) MD&A discusses the strategic pivot to AI/HPC data centers, analyzes the Q1 2025 net loss of **$295.4 million** due to investment losses and impairment, and reviews new business segments [Overview and Strategic Highlights](index=74&type=section&id=Overview%20and%20Strategic%20Highlights) Galaxy strategically focuses on digital assets and AI/HPC data centers, highlighted by a 15-year CoreWeave agreement for **393 MW** at Helios, and completed U.S. domestication - The company is strategically focused on bridging traditional finance with the digital economy and developing High-Performance Computing (HPC) data center infrastructure to meet rising AI demand[293](index=293&type=chunk) - Galaxy entered into a 15-year lease agreement with CoreWeave to deliver **133 MW** of critical IT load at its Helios data center; CoreWeave has also committed to an additional **260 MW**, expected to bring total capacity to **393 MW** by 2027[295](index=295&type=chunk)[296](index=296&type=chunk)[300](index=300&type=chunk) - In May 2025, the company completed a corporate reorganization, resulting in Galaxy Digital Inc. (GDI) becoming the U.S. public successor company to enhance shareholder value and access to U.S. capital markets[296](index=296&type=chunk)[304](index=304&type=chunk) [Business Segments Review](index=75&type=section&id=Business%20Segments%20Review) The company reports three segments: Digital Assets (with **$7.0 billion** on platform, **$2.3 billion** AUS), Data Centers (developing Helios for HPC, no current revenue), and Treasury & Corporate (proprietary investments, mining) - **Digital Assets:** This segment provides trading, lending, advisory, and asset management services; as of March 31, 2025, it had over **1,300** trading counterparties, approximately **$7.0 billion** in assets on its platform, **$4.7 billion** in Assets Under Management (AUM) (a **40%** decrease YoY), and approximately **$2.3 billion** in Assets Under Stake (AUS) (down from **$4.2 billion** at YE 2024)[302](index=302&type=chunk)[303](index=303&type=chunk)[306](index=306&type=chunk) - **Data Centers:** This segment is developing the Helios campus for HPC infrastructure; it does not currently earn revenue but expects to become a significant source of long-term, predictable revenue starting in 2026 with the CoreWeave lease[306](index=306&type=chunk)[312](index=312&type=chunk) - **Treasury and Corporate:** This segment includes the company's proprietary trading, bitcoin mining operations, and its diversified portfolio of digital assets and venture investments held on its balance sheet[308](index=308&type=chunk)[313](index=313&type=chunk) [Results of Operations (Q1 2025 vs Q1 2024)](index=81&type=section&id=Results%20of%20Operations%20(Q1%202025%20vs%20Q1%202024)) The company reported a Q1 2025 net loss of **$295.4 million** (vs. **$388.1 million** income in Q1 2024), driven by **$133.2 million** investment losses and **$57.0 million** mining equipment impairment, despite **39%** revenue growth Financial Performance Comparison (in thousands) | (in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | % Change | | :--- | :--- | :--- | :--- | | Total revenues | $12,976,206 | $9,335,372 | 39% | | Net gain / (loss) on investments | $(133,167) | $63,018 | (311)% | | Total operating expenses | $13,247,697 | $9,421,469 | 41% | | **Net income / (loss)** | **$(295,432)** | **$388,127** | **(176)%** | - The net loss was primarily driven by a **$133.2 million** net loss on investments (mainly from bitcoin ETFs and a sponsored fund) and a **$57.0 million** impairment and loss on disposal of mining equipment[348](index=348&type=chunk)[361](index=361&type=chunk) - Digital assets sales increased by **$3.6 billion**, but this was almost entirely offset by a corresponding **$3.6 billion** increase in digital assets sales costs, reflecting high-volume, low-margin trading activity[337](index=337&type=chunk)[353](index=353&type=chunk) - Blockchain rewards revenue surged to **$71.1 million** from **$10.3 million** YoY, driven by the growth of validator operation services launched in late 2023[341](index=341&type=chunk) [Liquidity and Capital Resources](index=89&type=section&id=Liquidity%20and%20Capital%20Resources) As of March 31, 2025, the company held **$509.4 million** cash and **$1.6 billion** working capital, but requires additional financing for its **$713.1 million** Helios data center commitment and AI/HPC conversion - Held **$509.4 million** in cash and cash equivalents as of March 31, 2025, an increase of **10.2%** from December 31, 2024[374](index=374&type=chunk) - Working capital was **$1.6 billion** and Unit holders' capital was **$1.9 billion** as of March 31, 2025[374](index=374&type=chunk) Contractual Obligations (in thousands) | Contractual Obligation | Total (in thousands) | Less than 1 year (in thousands) | | :--- | :--- | :--- | | Loans and collateral payable | $3,055,820 | $3,049,217 | | Notes payable | $854,923 | $7,423 | | **Data Center** | **$713,073** | **$711,343** | | Legal settlement | $160,000 | $40,000 | - Additional debt, equity, or equity-linked financing will be needed to meet the capital expenditure requirements for the conversion of the Helios campus to AI/HPC data center infrastructure[382](index=382&type=chunk) [Market Risk Disclosures](index=91&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Primary market risks include digital asset price risk (affecting **+/- $181.6 million**), equity price risk (affecting **+/- $242.5 million**), and significant counterparty exposure (**$739.7 million** on platforms), alongside DeFi protocol risks - **Digital Asset Price Risk:** A hypothetical **+/- 20%** change in the market prices of digital assets would have an estimated effect of **+/- $181.6 million** on the company's financials as of March 31, 2025[390](index=390&type=chunk) - **Equity Price Risk:** A hypothetical **+/- 20%** change in the market prices of the company's investments would have an estimated effect of **+/- $242.5 million** as of March 31, 2025[392](index=392&type=chunk) - **Counterparty Risk:** The company has significant credit risk exposure to digital asset trading platforms; as of March 31, 2025, it held a total of **$739.7 million** on major platforms, including **$402.6 million** at Coinbase and **$196.3 million** at Binance[397](index=397&type=chunk) - **DeFi Risk:** The company's participation in DeFi protocols exposes it to smart contract and counterparty risks; as of March 31, 2025, five protocols (Coinbase wrapped bitcoin, Aave, Pendle, Kamino, and Lombard) represented **70%** of the company's digital assets associated with DeFi[278](index=278&type=chunk) [Controls and Procedures](index=93&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2025, with no material changes to internal control over financial reporting during the quarter - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of March 31, 2025[403](index=403&type=chunk) - No material changes to the company's internal control over financial reporting were identified during the most recent fiscal quarter[405](index=405&type=chunk) [Part II - Other Information](index=95&type=section&id=Part%20II%20-%20Other%20Information) [Legal Proceedings](index=95&type=section&id=Item%201.%20Legal%20Proceedings) The company settled LUNA claims with the NY AG for **$200 million** (**$186 million** provision), faces an ongoing LUNA class action in Ontario, and had SEC investigations concluded without charges - **Luna Settlement:** The company reached an agreement with the New York State Attorney General to resolve civil claims related to the LUNA digital asset; it has accrued a legal provision of **$186 million** for an undiscounted settlement of **$200 million**, which is payable between 2025 and 2028[409](index=409&type=chunk) - **Luna Class Action:** A proposed class action was filed in Ontario in December 2022 regarding public disclosures on LUNA investments; the proceedings are in early stages, and the company cannot estimate the potential impact[410](index=410&type=chunk) - **SEC Matters Concluded:** In February 2025, the company received termination letters from the SEC's Division of Enforcement, concluding investigations into whether certain traded digital assets were securities and whether off-channel communications were properly captured, without any charges being filed[408](index=408&type=chunk) [Risk Factors](index=95&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from digital asset volatility, unproven business lines, regulatory uncertainty (especially security classification), key personnel dependence, capital-intensive AI/HPC expansion, cybersecurity threats, and complex data privacy laws [Risks Related to Operations](index=97&type=section&id=Risks%20Related%20to%20Our%20Operations) Operational risks include limited operating history, cryptocurrency volatility, high dependence on its Founder, intense competition, and the capital-intensive, uncertain expansion into the AI/HPC data center business - The company has a limited operating history, and its business lines are nascent, unproven, and not guaranteed to be profitable[414](index=414&type=chunk) - The business is highly dependent on key personnel, particularly its Founder, Michael Novogratz, exposing it to material 'key man' risk[454](index=454&type=chunk)[455](index=455&type=chunk) - The strategic expansion into the AI/HPC data center business is a capital-intensive project with no guarantee of success and may divert resources from existing businesses[531](index=531&type=chunk)[532](index=532&type=chunk) - The company faces intense competition from unregulated or less-regulated companies and those with greater financial and other resources, which may adversely affect business and operating results[467](index=467&type=chunk) [Risks Related to Cryptocurrencies and Digital Assets](index=127&type=section&id=Risks%20Related%20to%20Cryptocurrencies%20and%20Digital%20Assets) Risks include extreme digital asset price volatility, uncertain mainstream adoption, technical issues like blockchain forks and 51% attacks, smart contract vulnerabilities, and evolving DeFi risks including impermanent loss and regulatory scrutiny - The prices of digital assets are extraordinarily volatile, and this volatility can significantly and adversely affect the company's operating results and financial condition[574](index=574&type=chunk) - A temporary or permanent 'fork' in a blockchain network could disrupt operations, create new security concerns, and adversely affect the value of the related digital asset[619](index=619&type=chunk)[620](index=620&type=chunk) - DeFi activities subject the company to evolving risks, including insecure smart contracts, default risk in lending pools, and heightened, uncertain regulatory concerns[627](index=627&type=chunk)[628](index=628&type=chunk)[630](index=630&type=chunk) - The loss, theft, or destruction of private keys required to access cryptocurrency holdings could result in the complete and irretrievable loss of those assets[660](index=660&type=chunk) [Risks Related to Regulation, Information Systems, and Privacy](index=146&type=section&id=Risks%20Related%20to%20Regulation,%20Information%20Systems,%20and%20Privacy) Regulatory risks include digital asset security classification, extensive compliance requirements, new AI regulations, constant cybersecurity threats, and complex global data privacy laws like GDPR and CCPA - A determination by regulators that a digital asset is a 'security' could adversely affect its value and subject the company to severe regulatory consequences, including liability for acting as an unregistered broker-dealer or exchange[428](index=428&type=chunk)[438](index=438&type=chunk) - The company is subject to extensive and changing regulation by the SEC, CFTC, FINRA, and various state agencies; failure to comply could result in fines, sanctions, or the revocation of licenses[662](index=662&type=chunk)[667](index=667&type=chunk)[671](index=671&type=chunk) - Cybersecurity incidents and cyberattacks are a major threat; a breach of the company's or its third-party providers' systems could lead to significant financial loss, reputational harm, and regulatory action[713](index=713&type=chunk)[714](index=714&type=chunk) - The company is subject to complex and evolving data privacy laws, such as the GDPR in Europe and the CCPA in California; non-compliance carries the risk of substantial penalties and reputational damage[726](index=726&type=chunk)[733](index=733&type=chunk) [Risks Related to Organizational Structure and Ownership](index=167&type=section&id=Risks%20Related%20to%20Our%20Organizational%20Structure%20and%20Ownership) Organizational risks include GDI's dependence on GDH LP distributions, Founder's controlling interest (**~59.9%**) creating 'controlled company' status, substantial Tax Receivable Agreement payments, and potential stock price dilution from future sales or exchanges - GDI is a holding company whose principal asset is its ownership in GDH LP, making it dependent on distributions from GDH LP to pay taxes, dividends, and other expenses[774](index=774&type=chunk) - The Founder controls approximately **59.9%** of the total voting power, making Galaxy a 'controlled company'; this concentration of ownership may lead to conflicts of interest and prevent new investors from influencing significant corporate decisions[776](index=776&type=chunk) - The company is party to a Tax Receivable Agreement that requires potentially material payments to certain pre-reorganization partners for realized tax benefits[806](index=806&type=chunk) - The market price of Class A common stock may be subject to downward pressure due to future sales by insiders or the potential dilution from the redemption or exchange of LP Units and Exchangeable Notes[788](index=788&type=chunk)[791](index=791&type=chunk) [Other Information](index=182&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered equity sales or defaults on senior securities, confirmed mine safety disclosures are not applicable, and listed filed exhibits - There were no unregistered sales of equity securities or use of proceeds to report[854](index=854&type=chunk) - There were no defaults upon senior securities[855](index=855&type=chunk) - Mine safety disclosures are not applicable to the company[856](index=856&type=chunk)