Galaxy Digital posts $323 million third-quarter profit after quarterly loss
Key Facts
Galaxy Digital reported net income of $323 million for the three months ended September 30, 2026, on October 27, with diluted earnings per share of $0.66 and adjusted earnings per share of $0.83. The company recorded a net loss of $85 million in the second quarter. Adjusted gross profit also rose to $569 million from $43 million, while adjusted EBITDA swung to a profit of $455 million after a loss of $77 million. Chief Executive Mike Novogratz said the results reflected "a significant increase in the value of our investment portfolio, and the growing contribution from our data center business." The figures showed varying contributions from the company's segments to the turnaround, with a notable contribution from treasury and corporate alongside improvement in data centers and digital assets activity.
The digital assets segment posted adjusted gross profit of $71 million in the third quarter, compared with $66 million in the second quarter. Treasury and corporate generated $419 million, after recording a loss of $42 million in the prior period. Data centers' adjusted gross profit was $79 million, up from $20 million, while the segment's adjusted EBITDA rose to $69 million from $11 million. These adjusted segment measures are not in accordance with generally accepted accounting principles. The comparison shows that the improvement did not come from one segment alone: growth in digital assets and data centers coincided with treasury and corporate swinging from a loss to a profit.
Data center performance was tied to the first full quarter of operating revenue under the Helios I Phase I contract. Galaxy had delivered the full 133 megawatts of critical IT load to CoreWeave by the end of the second quarter. The company said Helios I Phase II is fully funded and under construction, with data hall delivery expected to begin in the second quarter of 2027. It was also in discussions with prospective tenants for 830 megawatts of approved, unleased power at Helios II. The expansion path thus extends from Phase I revenue to execution of Phase II and efforts to lease approved capacity at the other project.
In financial activity, Galaxy's digital asset trading volumes rose 12% quarter over quarter, while broader spot market volumes declined. The average loan book was $1.8 billion, up 27% from the prior quarter, amid demand for Galaxy Onchain yield and improving market conditions. Asset management attracted net inflows of more than $160 million during the quarter, driven by the launch of the Galaxy Sharplink Onchain Yield Fund near quarter-end. These indicators offer a picture of growth in trading, lending and asset management alongside the shift in quarterly results. The company also entered a multiyear agreement with BNY to develop institutional digital asset infrastructure, including support for staking on the bank's digital asset custody platform, which Galaxy said oversees more than $60 trillion in assets.
Galaxy's total assets rose 51% quarter over quarter to $16.4 billion at the end of the third quarter. Net digital assets and investments increased 48% to $1.7 billion, while liquidity comprising cash, stablecoins and U.S. Treasury securities stood at $4.9 billion. On shareholder returns, the board authorized on October 26 the repurchase of up to $200 million of Class A shares. The company said its previous program, announced in February 2026, was completed on October 15 after approximately 9.8 million shares were repurchased. The new authorization has a cap of up to $200 million, while the shares closed at $15.68 in the October 26 session, a day before the results were announced.