Galaxy Digital Reaches $200M Settlement With NYAG Over LUNA Exposure, Posts $365M Profit in 2024
Galaxy Digital (GLXY), the digital asset firm led by Mike Novogratz, has agreed to pay $200 million to the New York Attorney General’s office in connection with its involvement in the failed Terra-LUNA ecosystem, the company announced Friday.
The settlement addresses Galaxy’s trading activity, investment exposure, and public commentary surrounding LUNA, which collapsed in May 2022, erasing roughly $60 billion in market value.
The disclosure came as part of Galaxy’s fourth-quarter and full-year 2024 earnings report. The firm posted a profit of $174 million for Q4 and $365 million for the full year, inclusive of legal provisions related to the settlement. Earnings equated to $1.02 per diluted share.
In addition to the legal resolution, Galaxy revealed a significant infrastructure partnership, entering a 15-year lease with cloud computing provider CoreWeave. The agreement will deliver 133 megawatts of power to Galaxy’s Helios data center in West Texas to support AI and high-performance computing operations. The firm anticipates approximately $4.5 billion in revenue over the duration of the lease.
Despite the solid earnings, Galaxy shares closed down 3.54% on Thursday.
