Galaxy Digital CEO asserts that the explosive growth period for encryption asset reserve companies is over, and future winners will depend on strategic positioning.

Galaxy Digital CEO Mike Novogratz stated during the Q2 earnings call that the surge in public companies focused on holding encryption assets (encryption asset reserve companies) may have peaked, and future success will depend on strategic positioning rather than simple Coin Hoarding. Galaxy itself performed strongly: in Q2, it added 4,272 BTC (total Holdings reached 17,102), executed over $9 billion in historical Block Trading of Bitcoin, and plans to issue Tokenized Stock. The scale of encryption assets managed in collaboration increased by approximately $2 billion, generating ongoing management fee income.

1. The explosive growth phase of cryptocurrency asset reserve companies has ended, and strategic positioning has become the key to victory. Mike Novogratz, CEO of Galaxy Digital, made an important industry judgment during Tuesday's Q2 earnings call: the explosive growth phase of publicly listed companies focused on holding crypto assets as reserves (Crypto Treasury Companies) may have come to an end. He clearly stated, "We may have passed the peak issuance period for these types of companies (Peak Treasury Company Issuance), and the question now is which of the existing companies can grow into industry giants (Monsters)."

Novogratz pointed out that the Ethereum ecosystem already has two major reserve holders - Tom Lee's BitMine and Joe Lubin's SharpLink, and they are expected to continue growing. He warned that new entrants might find it "harder time getting oxygen" in the future, as the industry shifts from scale expansion to deep competition (Strategic Positioning).

2. The cooperation model contributes 2 billion AUM, and regulatory improvements spur an influx of institutions entering the market Galaxy Digital is currently collaborating with over 20 cryptocurrency reserve companies, earning management fees by managing their digital asset holdings. Novogratz revealed that these partnerships have brought approximately $2 billion in incremental assets under management (AUM) to the Galaxy platform, creating a "continuous stream of recurring income."

The rise of American crypto asset reserve companies is attributed to improved regulatory conditions. Early adopters often mimic MicroStrategy's Bitcoin-heavy approach, while new entrants begin to diversify their investments into other tokens such as Ethereum and Solana.

3. Record Trading and Impressive Financial Report: $9 Billion BTC Block Trading Executed in Q2 Galaxy demonstrated strong institutional-grade trading capabilities in the second quarter. Novogratz revealed that the company recently executed a "9-Plus-Billion-Dollar Trade" and believes this could be "one of the largest or closest to the largest Bitcoin trades in history." The successful execution of this trade underscores the strong market confidence in the Galaxy brand and services. The entire month of July became the best month on record for all of Galaxy's business lines.

4. Tokenization of Stock Plan Progress, Q2 Holdings and Financial Data Disclosure Galaxy Digital has submitted documents to plan the issuance of tokenized versions of its Class A Common Stock (GLXY Class A Common Stock) through a Prospectus Supplement. This document pertains to a resale cap of 245 million shares for existing shareholders. Galaxy stock is traded under the code "GLXY" on both the Nasdaq and the Toronto Stock Exchange.

Core Q2 Financial and Holdings Data:

• Bitcoin Holdings: An additional 4,272 BTC were added this quarter, bringing the total holdings to 17,102 as of June 30.
• Financial Performance: Net profit of $30.7 million, shareholder equity of $2.6 billion, cash and stablecoin reserves of $1.2 billion.
• Customer Transactions: Completed sales agency for over 80,000 Bitcoins.
• XRP Holdings: Holding XRP tokens worth $15 million.

Conclusion: Mike Novogratz's assertion about the entry of crypto asset reserve companies into the Post-Peak Phase of stock competition serves as a wake-up call for the institutional crypto asset management market. Galaxy Digital, with its strong Q2 performance—including a record $9 billion in BTC Block Trading, increasing its holdings of BTC by 4,272 to 17,102, adding $2 billion in managed cooperative assets, and advancing its Tokenized Stock plan—has demonstrated its leading position in the wave of institutionalization. The future competition in the crypto asset management field will focus on strategic depth and sustainable revenue generation capabilities, as relying solely on asset scale expansion may prove unsustainable.