Galaxy Digital (TSE:GLXY) reported third-quarter net income of $323 million, adjusted gross profit of $569 million and adjusted EBITDA of $455 million, as stronger digital-asset activity, data-center leasing revenue and investment portfolio gains lifted results.
Founder and Chief Executive Officer Mike Novogratz said the company’s strategy is centered on finance moving on-chain and the expansion of artificial-intelligence infrastructure. He said Bitcoin rose more than 40% during the quarter, supporting improved sentiment and client activity across Galaxy’s global markets business.
“We had an awesome quarter,” Novogratz said, pointing to growth in trading, financing, asset management and the Helios data-center operation. He also announced that Galaxy had repurchased $200 million of stock year to date and that its board authorized an additional $200 million share repurchase program.
Digital Assets Business Posts Growth
Galaxy’s digital assets segment generated $71 million of adjusted gross profit in the third quarter, compared with $66 million in the prior quarter. Global markets adjusted gross profit increased to $53 million from $49 million, while digital-asset trading volumes rose 12% quarter over quarter, outperforming a broader spot market in which volumes declined, according to Chief Financial Officer Tony Paquette.
The company’s average loan book expanded more than 25% to about $1.8 billion. Paquette said asset management and infrastructure solutions generated $19 million of adjusted gross profit, up from $17 million in the second quarter. Assets under management rose more than 30% to $5.9 billion, aided by growth in exchange-traded funds and alternative strategies.
President and Chief Investment Officer Chris Ferraro said Galaxy is pursuing more sophisticated trading and financing products as traditional financial institutions seek access to decentralized markets. During the quarter, Galaxy completed its first Compute Link derivatives transaction and launched the Galaxy Sharplink Onchain Yield Fund, an actively managed decentralized-finance yield strategy for a public company through a separately managed account.
Ferraro also said SWEEP, an on-chain money-market fund developed with State Street Global Advisors, was approaching $300 million in assets under management. Galaxy Digital Ventures expects a first close for its second fund near the end of the fourth quarter, targeting $250 million to $300 million. The company said its first venture fund was marked at a gross multiple of invested capital of 2.25x.
Assets under stake increased 64% during the quarter to $4.6 billion, driven mainly by appreciation in underlying assets as well as more than $400 million of gross new inflows from ETF providers delegating Ethereum and Solana staking to Galaxy’s infrastructure.
Helios Leasing Revenue and Expansion Plans
The data-center segment generated approximately $79 million of adjusted gross profit and $69 million of adjusted EBITDA, reflecting the first full quarter of revenue from Helios Phase I. Novogratz said Phase I is generating about $80 million of leasing revenue per quarter.
Galaxy said Helios Phase II, which is fully funded and under construction, will add 260 megawatts of critical IT capacity. The company expects data-hall deliveries to begin in the second quarter of 2027. Based on current delivery schedules, Novogratz said Galaxy expects to exit 2027 with annualized leasing revenue of between $800 million and $850 million.
Management said it decided not to proceed with a potential Helios II lease transaction discussed during the summer after market conditions changed. Ferraro said prospective projects faced delays, regulatory uncertainty increased and forward power availability became more constrained. He also cited concerns over the details of potential investment-grade credit protections tied to non-investment-grade counterparties.
Galaxy is now holding discussions with prospective tenants, including investment-grade hyperscalers or parties supported by investment-grade credit enhancements. Ferraro said Helios II’s expected mid-2028 energization timetable provides time to negotiate an agreement and plan construction, while demand for capacity starting in 2028 has increased.
The company said it has more than 800 megawatts of secured power and supporting infrastructure at Helios. It also received conditional ERCOT Batch Zero classifications for five Texas projects representing about 4.2 gigawatts of capacity. Three expansion projects—Caspian, Selene and Helios III—received studied-load classifications representing an additional 2.6 gigawatts of potential capacity. Galaxy expects additional clarity on allocation and energization timing in April 2027.
Capital Spending, Liquidity and Investment Gains
Capital expenditures reached approximately $757 million in the quarter, up from $448 million in the second quarter, as Helios Phase II construction advanced. Galaxy expects spending to increase, with a significant share of remaining construction expenditures expected in the first half of 2027.
At quarter-end, the data-center segment had approximately $6.8 billion in total assets and $5.3 billion in liabilities. Galaxy completed $3.5 billion of financing during the quarter for Helios Phase II, helping increase firm-wide cash, stablecoins and Treasury bills to about $4.9 billion from $2.5 billion at the end of June.
The treasury and corporate segment generated $419 million of adjusted gross profit, compared with a $42 million loss in the second quarter, primarily due to appreciation in digital assets and private investments. Galaxy held approximately $1.7 billion in net digital assets and investments at quarter-end, nearly 50% higher than at the end of the prior quarter.
Galaxy said it plans to pursue Phase III financing in the first half of 2027. It also has $445 million of exchangeable notes due in December 2026. Paquette said the company has sufficient resources to repay those notes without refinancing, though management continues to assess financing alternatives.
Focus on On-Chain Finance and AI
Novogratz said Galaxy expects digital-asset infrastructure to increasingly support traditional finance through stablecoins, tokenized assets, custody, staking and on-chain credit. The company is working with financial institutions, including through its previously announced relationship with BNY, to help build digital-asset capabilities.
Galaxy has also invested more than $80 million across 11 AI-related portfolio companies through 17 investments, Ferraro said. The company reported an unrealized mark-to-market value of 3.4x on that investment pool.
Management said it expects its digital assets business to benefit as activity improves, while continuing to invest in technology, personnel and regulatory capabilities intended to support the migration of traditional financial assets onto blockchain-based infrastructure.
About Galaxy Digital (TSE:GLXY)
Galaxy Digital is a is a diversified financial services and investment management company dedicated to the digital assets and blockchain technology industry. The company operates through five business lines: Trading, Principal investing, Asset management, mining and Investment Banking.
