Key Takeaways
- • Galaxy Digital (GLXY) swung to a third-quarter net income of $323 million, reversing an $85 million loss in the second quarter, with revenue and gains from operations of $8.69 billion versus analyst expectations of $8.68 billion, according to Koyfin.
- • Adjusted EPS of $0.83 beat the $0.20 analyst estimate by roughly 315%, per Koyfin data.
- • Data center adjusted EBITDA jumped 498% to $69 million from $11 million in the prior quarter, as Helios I Phase I delivered 133 megawatts of critical IT load to CoreWeave (CRWV).
- • The board approved a new $200 million share buyback with no fixed end date, following completion of the prior program that repurchased about 9.8 million shares.
- • Digital assets AUM and staked assets rose 46% to over $10 billion, and the firm signed a multi-year staking deal with BNY Mellon.
Summary
Galaxy Digital Inc. (GLXY) reported a swing to profitability in its third-quarter earnings, with net income of $323 million reversing an $85 million loss in the second quarter, according to the company's report as cited by TradingView. Revenue and gains from operations totaled $8.69 billion, slightly ahead of the $8.68 billion analysts had predicted per Koyfin. Total adjusted EBITDA reached $455 million. Adjusted earnings of $0.83 per share were about 315% above the $0.20 consensus estimate, according to Koyfin data. Shares rose in morning trade on Tuesday.
The data center unit was a key driver. Adjusted EBITDA climbed 498% to $69 million from $11 million in the second quarter, and the business generated $79 million in adjusted gross profit. The company described this as the first full quarter of revenue-generating operations under the Helios I, Phase I lease, with all 133 megawatts of critical IT load delivered to CoreWeave by the end of the second quarter. Galaxy said Helios I, Phase II is fully funded through a $3.5 billion bond sale, with deliveries expected to begin in the second quarter of 2027. The firm is still in talks with potential tenants for 830 megawatts of approved capacity at Helios II, and its gross power pipeline now exceeds 5.7 gigawatts.
Founder and CEO Mike Novogratz credited the quarter to "the strength of our established Digital Assets franchise, significant appreciation across our investments portfolio, and the growing contribution from our Data Centers business." In digital assets, trading volumes grew 12% quarter over quarter, even as volumes across the broader spot crypto market fell, and the average loan book rose 27% to $1.8 billion. Assets under management and assets staked rose 46% to over $10 billion. The treasury and corporate unit, which holds the company's crypto and investment positions, generated $395 million of adjusted EBITDA. Galaxy also signed a multi-year agreement with BNY Mellon to support staking on the bank's digital asset custody platform.
Capital returns remain a focus. Galaxy completed its earlier $200 million buyback earlier in the month, repurchasing about 9.8 million shares, and its board approved a new $200 million program on Monday with no fixed end date. Retail sentiment on Stocktwits moved to 'extremely bullish' from neutral, with GLXY trading up more than 3% in early trading after earlier gains of 6%.
The data center unit was a key driver. Adjusted EBITDA climbed 498% to $69 million from $11 million in the second quarter, and the business generated $79 million in adjusted gross profit. The company described this as the first full quarter of revenue-generating operations under the Helios I, Phase I lease, with all 133 megawatts of critical IT load delivered to CoreWeave by the end of the second quarter. Galaxy said Helios I, Phase II is fully funded through a $3.5 billion bond sale, with deliveries expected to begin in the second quarter of 2027. The firm is still in talks with potential tenants for 830 megawatts of approved capacity at Helios II, and its gross power pipeline now exceeds 5.7 gigawatts.
Founder and CEO Mike Novogratz credited the quarter to "the strength of our established Digital Assets franchise, significant appreciation across our investments portfolio, and the growing contribution from our Data Centers business." In digital assets, trading volumes grew 12% quarter over quarter, even as volumes across the broader spot crypto market fell, and the average loan book rose 27% to $1.8 billion. Assets under management and assets staked rose 46% to over $10 billion. The treasury and corporate unit, which holds the company's crypto and investment positions, generated $395 million of adjusted EBITDA. Galaxy also signed a multi-year agreement with BNY Mellon to support staking on the bank's digital asset custody platform.
Capital returns remain a focus. Galaxy completed its earlier $200 million buyback earlier in the month, repurchasing about 9.8 million shares, and its board approved a new $200 million program on Monday with no fixed end date. Retail sentiment on Stocktwits moved to 'extremely bullish' from neutral, with GLXY trading up more than 3% in early trading after earlier gains of 6%.
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