Key Highlights

  • Net income was USD 323 million, or USD 0.66 per diluted share, against a net loss of USD 85 million.
  • Adjusted EBITDA was USD 455 million, with Treasury and Corporate adjusted gross profit of USD 419 million.
  • Data Centers adjusted gross profit rose 293% to USD 79 million in the first full quarter of leasing revenue.
  • Cash, stablecoins and U.S. Treasuries totaled USD 4.9 billion, and the board approved another USD 200 million buyback authorization.

Investment Gains Lead a Swing to Profit

Galaxy Digital (NASDAQ:GLXY) reported third-quarter net income of USD 323 million on Tuesday, a swing from a net loss of USD 85 million in the second quarter. Diluted earnings per share were USD 0.66 and adjusted EPS USD 0.83. Adjusted gross profit was USD 569 million against USD 43 million, and adjusted EBITDA was USD 455 million against a loss of USD 77 million.

The Treasury and Corporate segment produced USD 419 million of adjusted gross profit on appreciation across its digital asset and investment portfolio, against a loss of USD 42 million in the prior quarter. Founder and Chief Executive Mike Novogratz described the quarter as reflecting the digital assets franchise, investment appreciation and the growing contribution from data centers.

Total assets rose 51% to USD 16.4 billion and total equity rose 10% to USD 3.0 billion. Cash, stablecoins and U.S. Treasuries doubled to USD 4.9 billion, supported by a USD 3.5 billion senior secured notes offering to fund construction of Helios I, Phase II.

Segment Results

Digital Assets adjusted gross profit was USD 71 million against USD 66 million, with adjusted EBITDA of negative USD 9 million. Trading volumes grew 12% while industry spot volumes declined, and the average loan book rose 27% to USD 1.8 billion. Combined assets under management and assets under stake rose 46% to USD 10.4 billion, with assets under stake up 64% to USD 4.6 billion. Asset management drew more than USD 160 million of net inflows, aided by the launch of an onchain yield fund, and the company signed a multi-year agreement with BNY covering staking support on its digital asset custody platform.

Data Centers adjusted gross profit was USD 79 million and adjusted EBITDA USD 69 million, the first full quarter of revenue from the Helios I, Phase I lease, with all 133 megawatts of critical IT load delivered to CoreWeave. Capital expenditure was USD 757 million against USD 448 million. Helios I, Phase II is fully financed and under construction, with data hall deliveries beginning in the second quarter of 2027.

Data Center Pipeline and Capital

About 830 megawatts of approved capacity at Helios II remains unleased, and management is widening the search to investment-grade hyperscale tenants for deliveries beginning in 2028. The company's gross power pipeline exceeds 5.7 gigawatts, and five Texas projects received conditional ERCOT Batch Zero classifications representing 4.2 gigawatts. Management said it declined terms considered during Helios II leasing talks after market dynamics shifted in late summer, and flagged that Texas regulatory developments add uncertainty to future data center development.

The company repurchased 9.8 million shares year to date for about USD 200 million, more than offsetting equity compensation dilution. AI and technology investments of USD 80 million across 11 portfolio companies carry an unrealized mark of 3.4 times, and a second venture fund is targeting USD 250 million to USD 300 million with a first close by the end of 2026. USD 445 million of exchangeable notes mature in December, which management said existing balance sheet resources can cover.

Digital Infrastructure Markers to Follow

Tracking points include Helios II tenant agreements against the 830 megawatts of unleased capacity, data center capital spending relative to USD 757 million, and Digital Assets adjusted EBITDA against negative USD 9 million.

Further items are the December maturity of USD 445 million of exchangeable notes, digital asset price effects on Treasury and Corporate results, and assets under stake against USD 4.6 billion.