Galaxy Digital Posts $323 Million Net Income in Third Quarter After Quarterly Loss
Key Facts
Galaxy Digital posted net income of $323 million in the third quarter of 2026, compared with a net loss of $85 million in the second quarter, according to the company’s results. Diluted earnings per share were $0.66, while adjusted earnings per share reached $0.83, a non-GAAP measure, the company said in its filing. Adjusted gross profit rose to $569 million from $43 million in the previous quarter. Adjusted earnings before interest, taxes, depreciation and amortization turned positive at $455 million, compared with a loss of $77 million in the second quarter. Results reflected a mix of digital asset businesses, investments and data centers, as the company expanded its computing infrastructure.
Founder and Chief Executive Mike Novogratz said the company’s strategy focuses on two opportunities in the global economy: "modernizing financial markets through digital assets and expanding artificial intelligence infrastructure." The quarter’s contribution was spread across treasury, investment and digital asset-related activities, alongside data center operations. Company data showed the data center segment generated $79 million in adjusted gross profit and $69 million in adjusted earnings before interest, taxes, depreciation and amortization. Galaxy attributed the contribution to the first full quarter of revenue-generating operations under the Helios I contract, Phase I. The figures reflect the growing operational role of data centers in the company’s quarterly results.
In digital assets, Galaxy’s trading volumes rose 12% from the previous quarter, despite a decline in broader spot market trading volumes, according to The Block. The performance showed increased activity at the company during a period marked by lower spot trading across the market. Alongside trading, Novogratz cited strength in the digital asset business among the factors that contributed to quarterly results. Combined assets under management and assets staked on the network totaled $10.4 billion at the end of September, up 46% from the end of June. This figure measures assets under management and assets staked on the network combined, and is separate from the company’s total balance sheet assets.
Galaxy had total assets of $16.4 billion at the end of the third quarter, compared with $10.8 billion at the end of the second quarter, a 51% quarterly increase. Cash, stablecoins and U.S. Treasury securities combined rose to $4.9 billion from $2.5 billion over the same period. These figures show the expansion of the balance sheet and liquidity alongside the company’s return to positive net income. Galaxy also said it completed a $3.5 billion offering of senior secured notes to fund construction of Helios I Phase II. The financing is tied to the company’s planned expansion of data center infrastructure.
The board approved an additional $200 million Class A share repurchase program on October 26. The previous program, announced in February, was completed on October 15 after about 9.8 million shares were repurchased, according to The Block. The company is not obligated to use the full amount allocated to the new program, which has no set expiration date. The repurchase decision came alongside an increase in the total data center power pipeline to more than 5.7 gigawatts. The company is continuing to expand Helios I, with delivery of data halls in Phase II scheduled to begin in the second quarter of 2027.
Novogratz said Galaxy expects to end 2027 with an annualized leasing revenue run rate of between $800 million and $850 million as Helios I Phase II comes online, according to The Block. Deliveries of data halls in Phase II are scheduled to begin in the second quarter of 2027. At Helios II, the company is in talks with potential tenants about an additional 830 megawatts of approved capacity that has not yet been leased. The investor relations website listed the third-quarter 2026 earnings call for October 27, 2026, at 8:30 a.m. Eastern Time.