Galaxy Swings to $323 Million Third-Quarter Profit on Investment Gains and Data Center Growth
Galaxy Digital (NASDAQ: $GLXY) reported third-quarter net income of $323 million on Tuesday, a swing from an $85 million loss in the second quarter, driven by gains on its investments and a growing data center business.
The company earned $0.66 per diluted share, or $0.83 on an adjusted basis. Adjusted EBITDA was $455 million, against a loss of $77 million in the prior quarter. Net income was below the $505 million Galaxy reported in the third quarter of 2025. Adjusted figures are non-GAAP measures.
Most of the improvement came from the treasury and corporate segment, where adjusted gross profit reached $419 million after a $42 million loss in the second quarter. CEO Mike Novogratz pointed to significant appreciation across the company’s investments portfolio, along with the strength of its digital assets franchise and the growing contribution from data centers.
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The data center segment posted adjusted gross profit of $79 million, up from $20 million, in its first full quarter of revenue under the Helios I, Phase I lease. All 133 megawatts of critical IT capacity have been delivered to CoreWeave (NASDAQ: $CRWV). Phase II is fully financed, after Galaxy completed a $3.5 billion senior secured notes offering, and data hall deliveries are due to begin in the second quarter of 2027. Galaxy said its total gross power pipeline now exceeds 5.7 gigawatts, and that it is in talks with prospective tenants for 830 megawatts of approved capacity at Helios II that is not yet under lease.
The digital assets business was steadier. Trading volumes rose 12% from the second quarter, outpacing a decline in the broader spot market, and the average loan book grew 27% to $1.8 billion. Combined assets under management and under stake climbed 46% to $10.4 billion, and the asset management arm took in more than $160 million in net inflows, helped by the launch of the Galaxy Sharplink Onchain Yield Fund. The segment’s adjusted EBITDA was a loss of $9 million. Galaxy also signed a multi-year agreement with BNY (NYSE: $BK) on digital asset infrastructure, including staking.
Galaxy ended the quarter with $4.9 billion in cash, stablecoins and U.S. Treasuries, up from $2.5 billion, and $3.0 billion in equity. Its board approved a new $200 million share repurchase authorization on Oct. 26. The previous $200 million program, announced in February, was completed on Oct. 15 with about 9.8 million shares repurchased.
Shares of Galaxy Digital (NASDAQ: GLXY) are currently trading at $16.70, down from a 52 week high of $41.25.
