Key Takeaways
- • Galaxy Digital reported Q3 2026 net income of $323 million on October 27, 2026, driven by a $419 million gross profit swing in its treasury and corporate segment as bitcoin holdings appreciated.
- • Helios Phase 1 generated approximately $80 million in quarterly leasing revenue, and the company expects to exit 2027 at an annualized leasing revenue run rate of $800 million to $850 million.
- • Anchor tenant CoreWeave has leased 526 MW across three Helios phases, with more than $1 billion in combined annual base revenue and a potential contract value above $30 billion over 25 years.
- • Total AUM rose more than 30% to $5.9 billion and assets under stake climbed more than 60% to about $4.6 billion, per the company's presentation.
- • Galaxy faces $445 million of exchangeable notes due December 2026, which CFO Tony Guida said can be repaid without refinancing, alongside ongoing Texas regulatory questions on ERCOT classification and permitting.
Summary
Galaxy Digital Holdings Inc. presented its third-quarter 2026 results on October 27, reporting net income of $323 million and adjusted EBITDA of $455 million. Adjusted gross profit reached $569 million. The treasury and corporate segment posted $419 million of adjusted gross profit, compared with a $42 million loss in the prior quarter, driven largely by appreciation of bitcoin and other digital asset holdings. Shares traded at $16.14, up 2.93% from the prior close of $15.68, though well below a 52-week high of $38.55.
The company's operating businesses generated combined adjusted gross profit of about $150 million, up more than 75% from $86 million in the second quarter, and combined adjusted EBITDA of about $60 million versus roughly $1 million previously. The digital assets segment contributed $71 million in adjusted gross profit, global markets $53 million, and asset management and infrastructure solutions $19 million. Firm-wide operating expenses rose to $161 million from $147 million, mainly due to higher depreciation and amortization as Helios Phase 1 entered full operation. Trading volumes increased 12% quarter over quarter even as industry spot volumes declined, and the average loan book grew more than 25% to about $1.8 billion. Galaxy now serves 1,763 trading counterparties and supports more than 100 crypto assets.
On asset management, total AUM rose more than 30% to $5.9 billion, and assets under stake grew more than 60% to about $4.6 billion, for a combined $10 billion. The treasury portfolio held $538 million in bitcoin, the largest single position, and $841 million in venture and fund investments.
The data center business is central to the strategy. The Helios campus spans more than 2,200 acres in Dickens County, West Texas, with 1,630 MW of approved grid capacity and a path to 3,600 MW. Galaxy has secured 800 MW of gross leased capacity. CoreWeave's lease covers 526 MW in three phases, with a 15-year base term and two five-year extensions. Phase 1 (133 MW, delivered in Q2 2026) generates $315 million in annual base revenue, and Phase 2 (260 MW, rent commencement scheduled for Q2 2027) is expected to generate $675 million. Management expects over 90% average lease-level adjusted EBITDA margins over the base term. Galaxy's presentation also outlined a pipeline of more than 5,700 MW across eight named Texas projects.
CEO Mike Novogratz said the company is being disciplined on additional Helios leasing: "We are not going to compromise on terms just to meet an announcement date." President Chris Ferraro described the goal of becoming a long-term strategic partner to institutions. Phase 2 is fully funded and under construction, and Phase 3 is fully equity funded, with debt financing expected in the first half of 2027. Galaxy also plans a broader retail rollout through its GalaxyOne platform in the first quarter of 2027. Risks include the December 2026 exchangeable notes and pending Texas regulatory matters, which the company continues to address.
The company's operating businesses generated combined adjusted gross profit of about $150 million, up more than 75% from $86 million in the second quarter, and combined adjusted EBITDA of about $60 million versus roughly $1 million previously. The digital assets segment contributed $71 million in adjusted gross profit, global markets $53 million, and asset management and infrastructure solutions $19 million. Firm-wide operating expenses rose to $161 million from $147 million, mainly due to higher depreciation and amortization as Helios Phase 1 entered full operation. Trading volumes increased 12% quarter over quarter even as industry spot volumes declined, and the average loan book grew more than 25% to about $1.8 billion. Galaxy now serves 1,763 trading counterparties and supports more than 100 crypto assets.
On asset management, total AUM rose more than 30% to $5.9 billion, and assets under stake grew more than 60% to about $4.6 billion, for a combined $10 billion. The treasury portfolio held $538 million in bitcoin, the largest single position, and $841 million in venture and fund investments.
The data center business is central to the strategy. The Helios campus spans more than 2,200 acres in Dickens County, West Texas, with 1,630 MW of approved grid capacity and a path to 3,600 MW. Galaxy has secured 800 MW of gross leased capacity. CoreWeave's lease covers 526 MW in three phases, with a 15-year base term and two five-year extensions. Phase 1 (133 MW, delivered in Q2 2026) generates $315 million in annual base revenue, and Phase 2 (260 MW, rent commencement scheduled for Q2 2027) is expected to generate $675 million. Management expects over 90% average lease-level adjusted EBITDA margins over the base term. Galaxy's presentation also outlined a pipeline of more than 5,700 MW across eight named Texas projects.
CEO Mike Novogratz said the company is being disciplined on additional Helios leasing: "We are not going to compromise on terms just to meet an announcement date." President Chris Ferraro described the goal of becoming a long-term strategic partner to institutions. Phase 2 is fully funded and under construction, and Phase 3 is fully equity funded, with debt financing expected in the first half of 2027. Galaxy also plans a broader retail rollout through its GalaxyOne platform in the first quarter of 2027. Risks include the December 2026 exchangeable notes and pending Texas regulatory matters, which the company continues to address.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.