Galaxy Digital Inc. (GLXY) reports a balance sheet as of March 31, 2026 with total assets of $10.0B against total liabilities of $7.2B, producing book equity of $2.8B (including $967M noncontrolling interest). Under a liquidation lens, the recovery posture is deeply negative. MFFAIS CLV/LLV is reported at approximately negative $3.1B, consistent with the analytical result here. The dominant asset class is digital assets: $3.67B at fair value (ASU 2023-08 mark-to-market) against a cost basis of $3.80B, implying an unrealized loss of ~$127M at period end. Digital assets are the most liquid asset class on the balance sheet and would receive the highest recovery rate, but realized liquidation in size would be subject to market impact, particularly given $713M in DeFi protocol exposure (disclosed in MD&A narrative but not separately tagged in XBRL) that carries smart-contract, counterparty, and liquidity lock-up risks not reflected in fair value. Cash of $911M recovers at par. Loans/notes receivable ($635M net) and short-term investments ($624M) carry moderate haircut risk given concentration in digital asset-secured structures. PP&E at $1.78B net ($1.90B gross, $33M accumulated depreciation) is heavily underdepreciated and likely relates to data center and AI/HPC infrastructure; at a 50-60% liquidation haircut, the recovery shortfall on this line alone is $700M-$900M. Goodwill ($67M) and finite-lived intangibles ($26M net) receive zero recovery. On the liability side, notes payable (long-term) stands at $2.63B, consisting primarily of the three Exchangeable Note tranches totaling $2.15B face ($2026, $2029, $2031 series) plus other debt; collateralized financings of $563M; and current notes payable of $433M plus loans payable of $85M. Collateral payable (a company-specific tag visible in the prior 10-K filing at $1.98B as of December 31, 2025 per the PRIOR_FILING_BODY) is not separately tagged in this 10-Q XBRL, but the $284M asset impairment charge in Q1 2026 reflects crypto price deterioration. The litigation reserve of $113M represents a contingent liability that survives liquidation at face. The Tax Receivable Agreement (TRA) obligation is discussed extensively in MD&A as a potential acceleration risk on change of control but is not separately tagged in XBRL. Operating lease obligations ($12M total undiscounted) are modest. The $167M sequential increase in LongTermNotesPayable (from $845M at year-end 2024 per prior filing to $2.63B at Q1 2026) reflects the October 2025 issuance of $1.30B of 2031 Exchangeable Notes, materially worsening the liability stack. Noncontrolling interest of $967M represents LP Unit holders in GDH LP and would not be available to satisfy GDI-level creditors. Equity recovery to GDI Class A stockholders in liquidation is negative after applying standard haircuts to assets and maintaining liabilities at face.
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