GALAXY DIGITAL HOLDINGS LTD. ANNUAL INFORMATION FORM FOR THE FISCAL YEAR ENDED DECEMBER 31, 2020 March 29, 2021 TABLE OF CONTENTS Page TERMS OF REFERENCE ......................................................................................................................................... 1 CURRENCY AND EXCHANGE RATE INFORMATION .................................................................................... 1 CAUTION REGARDING FORWARD-LOOKING STATEMENTS AND RISK FACTORS............................ 1 CORPORATE STRUCTURE .................................................................................................................................... 4 Intercorporate Relationships ..................................................................................................................................... 5 GENERAL DEVELOPMENT OF THE BUSINESS ............................................................................................... 7 Three Year History ................................................................................................................................................... 7 The Arrangement ...................................................................................................................................................... 7 DESCRIPTION OF THE BUSINESS ..................................................................................................................... 11 General.................................................................................................................................................................... 11 Industry Origins ...................................................................................................................................................... 11 Emergence of Blockchain ....................................................................................................................................... 12 Market Size, Scope, and Competition ..................................................................................................................... 17 Employees, Specialized Skill and Knowledge ........................................................................................................ 18 Intangible Properties ............................................................................................................................................... 19 UNDERSTANDING THE COMPANY’S FINANCIAL INFORMATION AND THE ITEMS THAT IMPACT SUCH INFORMATION .......................................................................................................................... 19 Separate Financial Disclosure ................................................................................................................................. 19 Significance of Investments and Digital Assets ...................................................................................................... 20 DIVIDEND POLICY ................................................................................................................................................ 21 CAPITAL STRUCTURE .......................................................................................................................................... 21 Overview ................................................................................................................................................................ 21 Ordinary Shares ...................................................................................................................................................... 21 Stock Options ......................................................................................................................................................... 24 Warrants .................................................................................................................................................................. 24 GDH B Units .......................................................................................................................................................... 24 GDH A Units .......................................................................................................................................................... 25 MARKET FOR SECURITIES ................................................................................................................................. 26 PRIOR SALES ........................................................................................................................................................... 27 ESCROW SECURITIES .......................................................................................................................................... 28 EXECUTIVE OFFICERS AND DIRECTORS ...................................................................................................... 28 Identifying Information and Holdings .................................................................................................................... 28 Share Ownership by Directors and Executive Officers .......................................................................................... 32 CORPORATE CEASE TRADE ORDERS, BANKRUPTCIES, PENALTIES AND SANCTIONS ................. 32 CONFLICTS OF INTEREST .................................................................................................................................. 33 LEGAL PROCEEDINGS AND REGULATORY ACTIONS ............................................................................... 33 INTEREST OF MANAGEMENT AND OTHERS IN MATERIAL TRANSACTIONS.................................... 34 AUDITOR, TRANSFER AGENT AND REGISTRAR .......................................................................................... 34 MATERIAL CONTRACTS ..................................................................................................................................... 34 INTEREST OF EXPERTS ....................................................................................................................................... 35 AUDIT COMMITTEE .............................................................................................................................................. 35 Audit Committee Charter........................................................................................................................................ 35 Composition of the Audit Committee ..................................................................................................................... 35 Relevant Education and Experience ....................................................................................................................... 35 Reliance on Certain Exemptions ............................................................................................................................. 36 Audit Committee Oversight .................................................................................................................................... 36 Pre-Approval Policies and Procedures .................................................................................................................... 36 External Auditor Service Fees by Category ............................................................................................................ 36 MARKET CONTROLS AND REGULATION ...................................................................................................... 36 United States ........................................................................................................................................................... 37 Canada .................................................................................................................................................................... 38 Other Jurisdictions .................................................................................................................................................. 39 RISK FACTORS ....................................................................................................................................................... 41 Risks Related to the Company and the Ordinary Shares ........................................................................................ 42 Risks Related to GDH LP ....................................................................................................................................... 45 Risks Related to GDH LP’s Lines of Business ....................................................................................................... 52 Risks Related to Digital Assets ............................................................................................................................... 55 Risks Related to Taxation ....................................................................................................................................... 68 ADDITIONAL INFORMATION ............................................................................................................................. 69 APPENDIX “A” AUDIT COMMITTEE CHARTER ........................................................................................ A-1 TERMS OF REFERENCE In this annual information form, a reference to the “Company”, “Galaxy”, “we”, “us”, “our” and similar words refer to Galaxy Digital Holdings Ltd., its subsidiaries and affiliates, or any one of them, as the context requires. All references to trade