Key Takeaways
- • Galaxy Digital (NASDAQ: GLXY) swung to net income of $323 million in Q3 2026 for the three months ended September 30, reversing an $85 million loss in the prior quarter, with diluted EPS of $0.66 and adjusted EPS of $0.83.
- • Adjusted gross profit reached $569 million and adjusted EBITDA reached $455 million, versus $43 million and negative $77 million in Q2 2026.
- • The board authorized a new repurchase program of up to $200 million of Class A common stock, with no fixed expiration, following completion of its prior $200 million authorization on October 15.
- • Combined assets under management and assets under stake reached $10.4 billion, up 46% from the end of June, while the average loan book grew 27% to $1.8 billion.
- • Galaxy's research head Alex Thorn argues the Bitcoin bear market ended in June 2026 and the asset has entered an accumulation phase, a view the firm presents as constructive but conditional on key technical support.
Summary
Galaxy Digital (NASDAQ: GLXY) shares advanced after the digital asset and infrastructure firm reported a sharp return to profitability in the third quarter of 2026 and authorized a fresh share repurchase program. Net income for the three months ended September 30 was $323 million, reversing an $85 million loss in the prior quarter. Diluted earnings per share were $0.66 and adjusted EPS was $0.83. Adjusted gross profit totaled $569 million and adjusted EBITDA stood at $455 million, compared with $43 million and negative $77 million in the second quarter.
The improvement reflected gains across core activities. In digital assets, trading volumes rose 12% quarter-over-quarter, outperforming a decline in broader spot-market activity. The average loan book expanded 27% to $1.8 billion, supported by demand for financing products including the Galaxy Onchain Financing Rate. Combined assets under management and assets under stake reached $10.4 billion, up 46% from the end of June, aided by net inflows into asset-management products and staking growth. The Treasury and Corporate segment, which holds the firm's digital asset and investment exposures, drove a large portion of the earnings recovery through higher valuations of those holdings.
Data-center operations also contributed meaningfully. The segment generated $79 million in adjusted gross profit and $69 million in adjusted EBITDA, up from $20 million and $11 million in the prior quarter. These results coincided with the first full quarter of revenue under the Helios I Phase I lease, after all 133 megawatts of critical IT load were delivered to CoreWeave by the end of the second quarter. Helios I Phase II is fully financed through a $3.5 billion senior secured notes offering, with data-hall deliveries expected to begin in the second quarter of 2027. The company's data-center power pipeline now exceeds 5.7 gigawatts. Total assets rose 51% quarter-over-quarter to $16.4 billion, equity capital stood at $3.0 billion, and cash, stablecoins and U.S. Treasuries totaled $4.9 billion.
Galaxy's board authorized an additional repurchase of up to $200 million of Class A common stock. The firm completed its prior $200 million authorization on October 15, repurchasing approximately 9.8 million shares year-to-date, which more than offset dilution from equity-based compensation. The new program has no fixed expiration and is intended for opportunistic capital returns when the stock trades below the company's assessment of intrinsic value.
Separately, Galaxy's research team expressed a constructive view on the digital asset market. Head of firmwide research Alex Thorn argues the Bitcoin bear market ended in June 2026 and the asset has entered an accumulation phase. The analysis cites multiple weekly closes above the 50-week moving average after an extended period below it, reduced selling from long-term holders and large institutional participants, and the strengthening case for Bitcoin as a hedge amid elevated U.S. fiscal deficits. The research concludes current levels are an attractive buy-and-hold opportunity, while noting that a sustained break below key technical support would challenge the outlook.
The improvement reflected gains across core activities. In digital assets, trading volumes rose 12% quarter-over-quarter, outperforming a decline in broader spot-market activity. The average loan book expanded 27% to $1.8 billion, supported by demand for financing products including the Galaxy Onchain Financing Rate. Combined assets under management and assets under stake reached $10.4 billion, up 46% from the end of June, aided by net inflows into asset-management products and staking growth. The Treasury and Corporate segment, which holds the firm's digital asset and investment exposures, drove a large portion of the earnings recovery through higher valuations of those holdings.
Data-center operations also contributed meaningfully. The segment generated $79 million in adjusted gross profit and $69 million in adjusted EBITDA, up from $20 million and $11 million in the prior quarter. These results coincided with the first full quarter of revenue under the Helios I Phase I lease, after all 133 megawatts of critical IT load were delivered to CoreWeave by the end of the second quarter. Helios I Phase II is fully financed through a $3.5 billion senior secured notes offering, with data-hall deliveries expected to begin in the second quarter of 2027. The company's data-center power pipeline now exceeds 5.7 gigawatts. Total assets rose 51% quarter-over-quarter to $16.4 billion, equity capital stood at $3.0 billion, and cash, stablecoins and U.S. Treasuries totaled $4.9 billion.
Galaxy's board authorized an additional repurchase of up to $200 million of Class A common stock. The firm completed its prior $200 million authorization on October 15, repurchasing approximately 9.8 million shares year-to-date, which more than offset dilution from equity-based compensation. The new program has no fixed expiration and is intended for opportunistic capital returns when the stock trades below the company's assessment of intrinsic value.
Separately, Galaxy's research team expressed a constructive view on the digital asset market. Head of firmwide research Alex Thorn argues the Bitcoin bear market ended in June 2026 and the asset has entered an accumulation phase. The analysis cites multiple weekly closes above the 50-week moving average after an extended period below it, reduced selling from long-term holders and large institutional participants, and the strengthening case for Bitcoin as a hedge amid elevated U.S. fiscal deficits. The research concludes current levels are an attractive buy-and-hold opportunity, while noting that a sustained break below key technical support would challenge the outlook.
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