Key Takeaways
- • Galaxy Digital reported Q3 net income of $323 million, or 66 cents per share, down roughly 36% from the prior-year quarter, according to Briefs Finance.
- • Q3 revenue reached $8.06 billion, beating the $7.8 billion Bloomberg analyst consensus but trailing the year-ago level.
- • Galaxy's data-center segment generated $79 million in adjusted gross profit and $69 million in adjusted EBITDA, tied to its multi-billion dollar agreement with CoreWeave Inc.
- • Shares rose about 8% in pre-market trading after the update, though the stock remains down roughly 30% year to date amid a broader crypto slump.
- • BTIG maintains a buy rating while flagging risks including slower-than-expected energization, counterparty exposure to high performance computing, and crypto price declines affecting collateral values.
Summary
Galaxy Digital, the crypto finance group founded and led by billionaire Michael Novogratz, reported third-quarter results that exceeded expectations on revenue and earnings, according to Briefs Finance. Net income was $323 million, equal to 66 cents per share, down about 36% from the prior-year quarter. Revenue came in at $8.06 billion, ahead of the $7.8 billion consensus from Bloomberg's analyst survey but below the year-ago period. Shares rose roughly 8% in pre-market trading following the announcement.
The company attributed part of its results to its expansion into artificial intelligence infrastructure. Galaxy is bringing additional data-center capacity online to meet its agreement with CoreWeave Inc., under which it plans to repurpose its Bitcoin mining footprint into data centers supporting AI applications. According to a Tuesday statement cited by Briefs Finance, those facilities generated $79 million in adjusted gross profit and $69 million in adjusted EBITDA.
The expansion also exposes Galaxy to both crypto and data-center market cycles. The stock is down about 30% year to date as a crypto slump has hit publicly traded crypto firms, and Galaxy's mix of trading, asset management and brokerage has not been spared. Analysts also point to risks tied to AI infrastructure spending and CoreWeave, which faces growing skepticism amid waning demand for its debt. BTIG flagged company-specific risks including slower-than-expected energization of operations, counterparty exposure tied to high performance computing, and declines in crypto prices that could reduce the carrying values of collateral and digital assets. BTIG maintains a buy rating on the shares.
The company attributed part of its results to its expansion into artificial intelligence infrastructure. Galaxy is bringing additional data-center capacity online to meet its agreement with CoreWeave Inc., under which it plans to repurpose its Bitcoin mining footprint into data centers supporting AI applications. According to a Tuesday statement cited by Briefs Finance, those facilities generated $79 million in adjusted gross profit and $69 million in adjusted EBITDA.
The expansion also exposes Galaxy to both crypto and data-center market cycles. The stock is down about 30% year to date as a crypto slump has hit publicly traded crypto firms, and Galaxy's mix of trading, asset management and brokerage has not been spared. Analysts also point to risks tied to AI infrastructure spending and CoreWeave, which faces growing skepticism amid waning demand for its debt. BTIG flagged company-specific risks including slower-than-expected energization of operations, counterparty exposure tied to high performance computing, and declines in crypto prices that could reduce the carrying values of collateral and digital assets. BTIG maintains a buy rating on the shares.
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