Key Takeaways
- • Galaxy Digital (GLXY) returned to profit in Q3 2026 with $323M net income, reversing an $85M loss in Q2, driven largely by investment valuation gains rather than recurring operations.
- • The board authorized a new $200M share buyback on Oct. 26, following a prior $200M program completed Oct. 15 in which the company repurchased about 9.8M shares.
- • Helios data-center unit posted $79M adjusted gross profit, nearly four times Q2's $20M, as the first full quarter of Helios I Phase I lease revenue from CoreWeave took effect.
- • Galaxy completed a $3.5B senior secured notes offering to fund Helios I Phase II, with first data-hall deliveries slated for Q2 2027 and a targeted 2027 exit leasing run rate of $800M to $850M.
- • Adjusted EPS of $0.83 beat the 11-cent consensus, but revenue of $8.688B missed the $11.437B estimate; the digital-assets division remained marginally negative on adjusted EBITDA.
Summary
Galaxy Digital reported third-quarter 2026 net income of $323 million, according to the company's results as reported by BigGo Finance, reversing an $85 million loss in the prior quarter. Adjusted EBITDA swung to $455 million from a $77 million loss, and adjusted gross profit reached $569 million versus $43 million in Q2. Adjusted EPS of $0.83 far exceeded the 11 cents analysts expected, per Benzinga, though revenue of $8.688 billion fell short of the $11.437 billion consensus. Shares rose 6.63% to $16.72. Founder and CEO Mike Novogratz credited the strength of the Digital Assets franchise, portfolio appreciation and the growing Data Centers business.
The bulk of the improvement came from investment valuations. The Treasury and Corporate segment generated $419 million in adjusted gross profit, reversing a $42 million loss, aided by gains on digital-asset holdings and private investments including AI chip startup Etched and Solana treasury firm Forward Industries (FWDI). The headline profit still trailed the $505 million earned in the same quarter a year earlier, and the results remain sensitive to crypto and private-market prices. Digital-asset adjusted gross profit edged up to $71 million from $66 million, though the division posted a $9 million adjusted EBITDA loss, which management said would have been positive absent a one-time accounting adjustment. Trading volumes rose 12% quarter over quarter, and the average loan book grew 27% to $1.8 billion, aided by the Galaxy Onchain Financing Rate product launched in July.
The Data Centers unit delivered $79 million in adjusted gross profit and $69 million in adjusted EBITDA, marking the first full quarter of revenue from the Helios I Phase I lease in Texas after Galaxy handed over all 133 megawatts of critical IT capacity to CoreWeave by the end of June. Construction of Helios I Phase II is underway, with first data-hall deliveries expected in Q2 2027, funded in part by a completed $3.5 billion senior secured notes offering. Novogratz said Galaxy expects to exit 2027 with an annualized leasing revenue run rate of $800 million to $850 million, and disclosed that the company passed on a potential Helios II leasing deal this summer after revisiting terms amid tighter power supplies and rising AI demand. The gross power pipeline now exceeds 5.7 gigawatts.
The balance sheet expanded sharply. Total assets rose 51% quarter over quarter to $16.4 billion, while total equity increased 10% to $3.0 billion. Cash, stablecoins and U.S. Treasuries nearly doubled to $4.9 billion. Combined assets under management and assets under stake reached $10.4 billion, up 46% from June. The buyback has no fixed expiration and no obligation to repurchase the full amount, and the earlier program offset dilution from equity-based compensation this year.
The results reflect a broader trend of crypto-linked firms pitching data-center capacity to AI customers to offset token price volatility. Analysts and investors will watch delivery of Phase II capacity, progress toward the 2027 leasing target, and whether trading and lending hold up through the next crypto market swing, given that the profit remains heavily reliant on mark-to-market gains.
The bulk of the improvement came from investment valuations. The Treasury and Corporate segment generated $419 million in adjusted gross profit, reversing a $42 million loss, aided by gains on digital-asset holdings and private investments including AI chip startup Etched and Solana treasury firm Forward Industries (FWDI). The headline profit still trailed the $505 million earned in the same quarter a year earlier, and the results remain sensitive to crypto and private-market prices. Digital-asset adjusted gross profit edged up to $71 million from $66 million, though the division posted a $9 million adjusted EBITDA loss, which management said would have been positive absent a one-time accounting adjustment. Trading volumes rose 12% quarter over quarter, and the average loan book grew 27% to $1.8 billion, aided by the Galaxy Onchain Financing Rate product launched in July.
The Data Centers unit delivered $79 million in adjusted gross profit and $69 million in adjusted EBITDA, marking the first full quarter of revenue from the Helios I Phase I lease in Texas after Galaxy handed over all 133 megawatts of critical IT capacity to CoreWeave by the end of June. Construction of Helios I Phase II is underway, with first data-hall deliveries expected in Q2 2027, funded in part by a completed $3.5 billion senior secured notes offering. Novogratz said Galaxy expects to exit 2027 with an annualized leasing revenue run rate of $800 million to $850 million, and disclosed that the company passed on a potential Helios II leasing deal this summer after revisiting terms amid tighter power supplies and rising AI demand. The gross power pipeline now exceeds 5.7 gigawatts.
The balance sheet expanded sharply. Total assets rose 51% quarter over quarter to $16.4 billion, while total equity increased 10% to $3.0 billion. Cash, stablecoins and U.S. Treasuries nearly doubled to $4.9 billion. Combined assets under management and assets under stake reached $10.4 billion, up 46% from June. The buyback has no fixed expiration and no obligation to repurchase the full amount, and the earlier program offset dilution from equity-based compensation this year.
The results reflect a broader trend of crypto-linked firms pitching data-center capacity to AI customers to offset token price volatility. Analysts and investors will watch delivery of Phase II capacity, progress toward the 2027 leasing target, and whether trading and lending hold up through the next crypto market swing, given that the profit remains heavily reliant on mark-to-market gains.
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