Key Takeaways
- • Galaxy Digital reported third-quarter net income of US$323 million, reversing a US$85 million loss in the second quarter, though below the US$505 million reported for Q3 2025.
- • The data centres segment lifted adjusted EBITDA to US$69 million from US$11 million as Helios I, Phase I began its first full quarter of revenue-generating operations.
- • Treasury and corporate activities delivered US$395 million of adjusted EBITDA, supplying most of the US$455 million consolidated adjusted EBITDA and reflecting appreciation across the investment portfolio.
- • Galaxy ended September with US$4.9 billion in cash, stablecoins and U.S. Treasuries, and completed a US$3.5 billion secured note offering to fund Helios I, Phase II construction.
- • The digital assets business posted a US$9 million adjusted EBITDA loss despite US$71 million in adjusted gross profit, versus US$250 million of adjusted EBITDA a year earlier.
Summary
Galaxy Digital Inc. (NASDAQ: GLXY), which operates digital asset trading, investment management and data centre businesses, reported third-quarter net income of US$323 million, according to the company's release. The result reversed a US$85 million loss in the second quarter but remained below the US$505 million posted in the third quarter of 2025. Gross revenues and gains from operations were US$8.7 billion, compared with US$29.2 billion a year earlier. Shares rose 6.81 per cent to US$15.68 at Monday's Nasdaq close, ahead of the Tuesday earnings release.
Investment gains were a key driver of the rebound. The treasury and corporate segment generated US$395 million of adjusted EBITDA, compared with a US$78 million loss in the prior quarter, and accounted for most of the company's US$455 million consolidated adjusted EBITDA. Galaxy attributed part of the improvement to appreciation across its investment portfolio. The digital assets business recorded a US$9 million adjusted EBITDA loss, though it produced US$71 million in adjusted gross profit. Global markets adjusted gross profit rose to US$53 million from US$49 million, the average loan book expanded to US$1.8 billion from US$1.4 billion, and trading volumes increased sequentially. Asset management and infrastructure solutions generated US$19 million in adjusted gross profit and more than US$160 million in net asset management inflows.
The data centres segment was the clearest operational milestone. Adjusted gross profit reached US$79 million, up from US$20 million, and adjusted EBITDA rose to US$69 million from US$11 million. Galaxy linked these results to the first full quarter of revenue-generating operations under the Helios I, Phase I lease, after all 133 megawatts of critical IT load were delivered by the end of the second quarter. The company said Phase II is fully financed and under construction, with data hall deliveries scheduled to begin in the second quarter of 2027. Its gross power pipeline exceeds 5.7 gigawatts, a development measure distinct from delivered capacity.
Liquidity improved over the period. Galaxy held US$1.325 billion in cash and cash equivalents, US$812 million in stablecoins and US$2.756 billion in U.S. Treasury bills and notes at the end of September, a combined total up from US$2.5 billion at the end of June. Total assets rose to US$16.4 billion from US$10.8 billion, while equity increased to US$3 billion from US$2.7 billion. The company reported 9.8 million shares repurchased in 2026, which it said more than offset equity-compensation dilution, and its board approved an additional US$200 million repurchase authorization.
Chief executive Mike Novogratz framed the strategy around two opportunities: "the modernization of financial markets through digital assets and the expansion of AI infrastructure." The Helios financing also reflects a broader sector pattern of securing debt for equipment before operations begin, including an US$424 million bridge facility announced by Atlas Energy Solutions (NYSE: AESI) on Oct. 22, of which US$171 million had been drawn at closing.
Investment gains were a key driver of the rebound. The treasury and corporate segment generated US$395 million of adjusted EBITDA, compared with a US$78 million loss in the prior quarter, and accounted for most of the company's US$455 million consolidated adjusted EBITDA. Galaxy attributed part of the improvement to appreciation across its investment portfolio. The digital assets business recorded a US$9 million adjusted EBITDA loss, though it produced US$71 million in adjusted gross profit. Global markets adjusted gross profit rose to US$53 million from US$49 million, the average loan book expanded to US$1.8 billion from US$1.4 billion, and trading volumes increased sequentially. Asset management and infrastructure solutions generated US$19 million in adjusted gross profit and more than US$160 million in net asset management inflows.
The data centres segment was the clearest operational milestone. Adjusted gross profit reached US$79 million, up from US$20 million, and adjusted EBITDA rose to US$69 million from US$11 million. Galaxy linked these results to the first full quarter of revenue-generating operations under the Helios I, Phase I lease, after all 133 megawatts of critical IT load were delivered by the end of the second quarter. The company said Phase II is fully financed and under construction, with data hall deliveries scheduled to begin in the second quarter of 2027. Its gross power pipeline exceeds 5.7 gigawatts, a development measure distinct from delivered capacity.
Liquidity improved over the period. Galaxy held US$1.325 billion in cash and cash equivalents, US$812 million in stablecoins and US$2.756 billion in U.S. Treasury bills and notes at the end of September, a combined total up from US$2.5 billion at the end of June. Total assets rose to US$16.4 billion from US$10.8 billion, while equity increased to US$3 billion from US$2.7 billion. The company reported 9.8 million shares repurchased in 2026, which it said more than offset equity-compensation dilution, and its board approved an additional US$200 million repurchase authorization.
Chief executive Mike Novogratz framed the strategy around two opportunities: "the modernization of financial markets through digital assets and the expansion of AI infrastructure." The Helios financing also reflects a broader sector pattern of securing debt for equipment before operations begin, including an US$424 million bridge facility announced by Atlas Energy Solutions (NYSE: AESI) on Oct. 22, of which US$171 million had been drawn at closing.
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