Mr. Chris Ferraro reports

GALAXY ANNOUNCES INITIAL CLOSING OF DEBUT TOKENIZED CLO AT $75 MILLION

Galaxy Digital Inc. has successfully closed Galaxy CLO 2025-1, a new-issue collateralized loan obligation (CLO) that is tokenized on the Avalanche blockchain. The CLO will be used to support Galaxy's lending activities and represents Galaxy's first CLO issuance.

The transaction closed with an approximately $50-million anchor allocation from Grove, an institutional-grade credit infrastructure protocol within the Sky ecosystem (formerly MakerDAO). Grove was incubated by Grove Labs, a subsidiary of Steakhouse Financial, which brings deep experience in credit structuring, risk management and capital formation across both traditional finance and decentralized markets.

"We are pleased to have leveraged Galaxy's diversified business model to execute this first-of-its-kind transaction," said Chris Ferraro, president and chief investment officer at Galaxy. "By uniting our strengths in debt capital markets, blockchain technology and asset management, we're opening a new avenue for institutional engagement in credit markets -- one that benefits from greater efficiency, transparency and expanded collateral flexibility through on-chain execution."

The CLO is financing an uncommitted credit facility provided to Arch Lending, a leading crypto lending platform backed by Galaxy Ventures that offers consumer loans overcollateralized with bitcoin, ethereum and other digital assets. Proceeds from the CLO are being used to progressively purchase outstanding loans under the Arch credit facility, with approximately $75-million financed to date. As additional loans are originated under the credit facility, the CLO may scale accordingly up to a $200-million limit.

The CLO reflects Galaxy's strategy to evolve its lending and asset management capabilities through the debt capital markets by scaling loan originations through a familiar, institutional framework. By leveraging Galaxy's core strengths as a lender and fiduciary, this transaction offers as a blueprint for capital-efficient lending and provides investors access to Galaxy's ability to structure and issue innovative credit products.

"This transaction marks another meaningful step forward for on-chain credit, demonstrating how familiar securitization structures can be brought on chain without compromising institutional standards," said Sam Paderewski, co-founder of Grove Labs. "Anchoring Galaxy's debut tokenized CLO underscores Grove's role in enabling institutional-grade credit to be issued and allocated on chain, and we're excited to partner with Galaxy and Avalanche to help advance the convergence of traditional credit markets and blockchain-based infrastructure."

The CLO's debt tranches were issued and tokenized on the Avalanche blockchain by INX, enabling low-cost, efficient trading. The tokens are expected to be listed on INX's ATS platform, a wholly owned subsidiary of Republic, offering quality market access for qualified investors. The CLO's terms include a senior coupon of SOFR (secured overnight financing rate) plus 570 basis points, subject to the terms of the governing transaction documents. The stated initial maturity is December, 2026, with distributions to be paid out monthly.

By tokenizing the CLO, Galaxy has taken a major step in bringing private credit on chain, unlocking the potential for instant settlement, enhanced structural transparency, the potential for improved secondary-market liquidity and greater collateral efficiency.

Galaxy's lending and digital infrastructure teams structured and tokenized the CLO offering, respectively, while Galaxy Asset Management is issuing and managing the CLO. Anchorage Digital Bank serves as the bond trustee and qualified custodian. Leveraging its Atlas settlement network, Anchorage Digital acts as the collateral agent and administrative agent, providing the critical infrastructure for real-time collateral monitoring and secure on-chain settlement throughout the life cycle of the transaction. NAV Consulting Inc. will be providing fund administration services for the product.

In addition, Galaxy partnered with Accountable, a real-time data verification platform for both on-chain and off-chain assets, providing continuous transparency into the performance and collateralization of underlying loans through an interactive, verifiable dashboard. This level of real-time visibility offers investors a clearer understanding of credit risk, helping address the information gaps that have historically contributed to dislocations in credit markets.

About Galaxy Digital Inc.

Galaxy Digital is a global leader in digital assets and data centre infrastructure, delivering solutions that accelerate progress in finance and artificial intelligence. The company's digital assets platform offers institutional access to trading, advisory, asset management, staking, self-custody and tokenization technology. In addition, Galaxy develops and operates cutting-edge data centre infrastructure to power AI (artificial intelligence) and high-performance computing workloads. Galaxy's 800-megawatt Helios campus in Texas, which has an additional 2.7 gigawatts of power under study, positions Galaxy among the largest and fastest-growing data centre developments in North America. The company is headquartered in New York, with offices across North America, Europe, the Middle East and Asia.

We seek Safe Harbor.