Galaxy Digital, a digital asset management firm, rebounded in 2023, reporting a net income of $296 million after facing a staggering $1 billion net loss in 2022. This turnaround coincided with a shift in crypto market trends from bearish to bullish.

The firm's assets under management (AUM) surged from $1.7 billion to $5.1 billion in 2023 and nearly doubled in the first two months of 2024, reaching $10.1 billion by February's end. Founder and CEO Mike Novogratz announced a $302 million net income for Q4 of 2023, marking a 421% increase from the previous quarter. Additionally, the firm reported $18.7 million in mining revenue for Q4, a 31% rise from the previous quarter.

Galaxy Digital explained that its mining costs slightly rose in Q4 due to fewer opportunities to scale back operations economically and a higher network hash rate. In 2023, the company mined 1,077 Bitcoin at an average marginal cost of less than $8,000.

The firm credited the turnaround to the soaring prices of major cryptocurrencies like Bitcoin. Its quarterly earnings report highlighted earning "approximately $300 million" in before-tax income, mainly driven by digital asset price appreciation and operational growth.

Despite challenging market conditions, Galaxy Digital closed five deals in 2023 in investment banking, including a restructuring mandate with Prime Trust. It also realized revenue from advising online gaming platform Gamercraft on its seed financing round and serving as the exclusive financial adviser to Securitize on its acquisition of Onramp Invest. The firm disclosed mandates representing $2.2 billion in potential deal value.