Key Takeaways
- • Galaxy Digital reported third-quarter 2026 net income of $323 million, swinging from a loss in Q2, driven by a crypto market rebound, portfolio appreciation and the first full quarter of leasing revenue from its Helios data center.
- • Helios Phase 1 generated $79 million of adjusted gross profit and $69 million of adjusted EBITDA, producing about $80 million in quarterly leasing revenue.
- • Galaxy expects to exit 2027 at an annualized leasing run rate of $800 million to $850 million from Phases 1 and 2, based on current delivery schedules.
- • Management walked away from advanced lease negotiations for Helios 2, an 800-plus-megawatt secured power asset, rather than accept terms it viewed as unfavorable, and is now pursuing investment-grade hyperscaler tenants.
- • Galaxy announced an additional $200 million buyback and held $4.9 billion in cash, stablecoins and T-bills at quarter-end.
Summary
Galaxy Digital reported third-quarter 2026 net income of $323 million, according to its earnings call, a sharp reversal from a loss in the prior quarter. The result reflected a crypto market rebound, appreciation across its investment portfolio and the first full quarter of leasing revenue from its Helios data center. Adjusted gross profit reached $569 million and adjusted EBITDA $455 million. Operating businesses, comprising digital assets and data centers, contributed about $150 million in adjusted gross profit, up more than 75% from $86 million in Q2, and $60 million in adjusted EBITDA versus roughly $1 million in the prior quarter.
The data center segment generated $79 million of adjusted gross profit and $69 million of adjusted EBITDA from Helios Phase 1, which is now producing approximately $80 million in quarterly leasing revenue. Galaxy expects to exit 2027 at an annualized leasing run rate of $800 million to $850 million as Phase 2, which will add 260 megawatts of critical IT capacity, comes online. Phase 2 is fully funded and under construction, with data hall deliveries slated to begin in the second quarter of 2027. Capital expenditures were about $757 million in the quarter, up from $448 million in Q2, and are expected to rise further. Galaxy completed a $3.5 billion financing during the quarter to fund Phase 2 construction, which contributed to cash, stablecoins and T-bills reaching $4.9 billion, up from $2.5 billion.
Management said it deliberately paused advanced lease negotiations for Helios 2, an 800-plus-megawatt secured power asset, despite earlier discussions of a summer agreement. CEO Mike Novogratz said market dynamics shifted materially in late summer and the company would not compromise on terms to meet an announcement date. Chris S., the executive overseeing data center and infrastructure businesses, cited delayed competing projects, tighter regulatory constraints on forward power availability and more complex financing structures, and said investment-grade wraps on non-investment-grade counterparties did not provide adequate protection. Galaxy is now in active discussions with investment-grade hyperscalers and counterparties backed by investment-grade credit enhancements.
In digital assets, the segment generated $71 million of adjusted gross profit, up from $66 million. Global markets gross profit rose to $53 million from $49 million as trading volumes grew 12% quarter over quarter while industry volumes were roughly flat. The average loan book expanded more than 25% to about $1.8 billion. Asset management and infrastructure solutions contributed $19 million, with assets under management rising more than 30% to $5.9 billion and assets under stake up 64% to $4.6 billion. The treasury and corporate segment posted $419 million of adjusted gross profit, compared with a $42 million loss in Q2, driven mainly by appreciation in digital asset holdings and private investments.
Galaxy repurchased about $79 million of shares in the quarter, completed its prior $200 million authorization in October and approved an additional $200 million. Management said more than 80% of capital is now allocated to operating businesses. Galaxy has the resources to repay $445 million of exchangeable notes maturing in December 2026 without refinancing. On the call, management said Phase 3 financing is planned for the first half of 2027, and that Galaxy Digital Ventures Fund 2 targets a first close at the end of Q4 2026 with a $250 million to $300 million fund size.
The data center segment generated $79 million of adjusted gross profit and $69 million of adjusted EBITDA from Helios Phase 1, which is now producing approximately $80 million in quarterly leasing revenue. Galaxy expects to exit 2027 at an annualized leasing run rate of $800 million to $850 million as Phase 2, which will add 260 megawatts of critical IT capacity, comes online. Phase 2 is fully funded and under construction, with data hall deliveries slated to begin in the second quarter of 2027. Capital expenditures were about $757 million in the quarter, up from $448 million in Q2, and are expected to rise further. Galaxy completed a $3.5 billion financing during the quarter to fund Phase 2 construction, which contributed to cash, stablecoins and T-bills reaching $4.9 billion, up from $2.5 billion.
Management said it deliberately paused advanced lease negotiations for Helios 2, an 800-plus-megawatt secured power asset, despite earlier discussions of a summer agreement. CEO Mike Novogratz said market dynamics shifted materially in late summer and the company would not compromise on terms to meet an announcement date. Chris S., the executive overseeing data center and infrastructure businesses, cited delayed competing projects, tighter regulatory constraints on forward power availability and more complex financing structures, and said investment-grade wraps on non-investment-grade counterparties did not provide adequate protection. Galaxy is now in active discussions with investment-grade hyperscalers and counterparties backed by investment-grade credit enhancements.
In digital assets, the segment generated $71 million of adjusted gross profit, up from $66 million. Global markets gross profit rose to $53 million from $49 million as trading volumes grew 12% quarter over quarter while industry volumes were roughly flat. The average loan book expanded more than 25% to about $1.8 billion. Asset management and infrastructure solutions contributed $19 million, with assets under management rising more than 30% to $5.9 billion and assets under stake up 64% to $4.6 billion. The treasury and corporate segment posted $419 million of adjusted gross profit, compared with a $42 million loss in Q2, driven mainly by appreciation in digital asset holdings and private investments.
Galaxy repurchased about $79 million of shares in the quarter, completed its prior $200 million authorization in October and approved an additional $200 million. Management said more than 80% of capital is now allocated to operating businesses. Galaxy has the resources to repay $445 million of exchangeable notes maturing in December 2026 without refinancing. On the call, management said Phase 3 financing is planned for the first half of 2027, and that Galaxy Digital Ventures Fund 2 targets a first close at the end of Q4 2026 with a $250 million to $300 million fund size.
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