Galaxy Digital reports US$323M profit as Helios contribution grows
Profit fell from US$505 million a year earlier, while cash, stablecoins and Treasuries reached US$4.9 billion.
Julian Okafor
Data centres generated US$69 million in quarterly adjusted EBITDA as investment gains helped a digital asset operator return to profit. Galaxy Digital Inc. NASDAQGLXY, which operates digital asset trading, investment management and data centre businesses, reported third-quarter net income of US$323 million on Tuesday.
That reversed a US$85 million loss in the second quarter, although profit remained below the US$505 million reported for the third quarter of 2025. Gross revenues and gains from operations were US$8.7 billion, compared with US$29.2 billion a year earlier.
Galaxy ended September with US$4.9 billion in cash, stablecoins and U.S. Treasuries. It also reported completing a US$3.5 billion secured note offering to fund Helios I, Phase II construction, with data hall deliveries scheduled to begin in the second quarter of 2027.
Shares rose 6.81 per cent to US$15.68 at Monday's 4:00 p.m. EDT Nasdaq close, according to NASDAQGLXY. That trading preceded Tuesday's earnings release.
Investment Gains Lead The Rebound
Treasury and corporate activities generated US$395 million of adjusted EBITDA in the third quarter, compared with a US$78 million loss in the preceding quarter. Galaxy attributed the broader earnings improvement partly to appreciation across its investment portfolio.
The segment supplied most of Galaxy's US$455 million consolidated adjusted EBITDA. The distinction separates the contribution from investments and treasury positions from the earnings generated by its trading, lending and data centre operations.
The digital assets business recorded a US$9 million adjusted EBITDA loss for the September quarter, despite producing US$71 million in adjusted gross profit. A year earlier, the segment generated US$250 million of adjusted EBITDA, when Galaxy reported record trading activity.
Within that business, global markets adjusted gross profit reached US$53 million in the latest quarter, up from US$49 million in the preceding period. The average loan book expanded to US$1.8 billion from US$1.4 billion, while Galaxy reported a sequential increase in trading volumes.
Asset management and infrastructure solutions generated US$19 million in adjusted gross profit during the quarter. Galaxy reported more than US$160 million of net asset management inflows, distinguishing new client capital from changes in the market value of assets already managed.
"Our strategy is centered on two significant opportunities in the global economy: the modernization of financial markets through digital assets and the expansion of AI infrastructure," Galaxy founder and chief executive Mike Novogratz said in the release.
Liquidity Includes Treasuries And Stablecoins
The September liquidity total included US$1.325 billion of cash and cash equivalents. Another US$812 million was held in stablecoins, while U.S. Treasury bills and notes accounted for US$2.756 billion.
Galaxy's combined cash, stablecoin and Treasury holdings increased from US$2.5 billion at the end of June. The September figure is broader than the cash and cash equivalents line because it also includes stablecoins and Treasury holdings.
Total assets rose to US$16.4 billion from US$10.8 billion over the same period. Equity increased to US$3 billion from US$2.7 billion, so the expansion in assets was substantially larger than the increase in shareholder capital.
Galaxy's Oct. 27 release reported 9.8 million shares repurchased in 2026, which it said more than offset dilution from equity-based compensation. Its board approved an additional US$200 million repurchase authorization, a permission to buy shares rather than a completed purchase.
Helios Has Entered Revenue Operations
The data centres segment generated US$79 million in adjusted gross profit during the third quarter, compared with US$20 million in the preceding period. Adjusted EBITDA rose to US$69 million from US$11 million.
Galaxy attributed those results to the first full quarter of revenue-generating operations under the Helios I, Phase I lease. It said all 133 megawatts of critical IT load had been delivered by the end of the second quarter.
The company described Phase II as fully financed and under construction in its October release. It also reported a gross power pipeline exceeding 5.7 gigawatts; that development pipeline is a different measure from the critical IT load already delivered at Helios.
The financing follows the sector's use of debt to secure equipment before operations begin, including Mugglehead's coverage of a data centre equipment bridge facility. Atlas Energy Solutions Inc. NYSEAESI, a private power systems, frac sand and logistics supplier, announced its US$424 million facility on Oct. 22.
Atlas had drawn US$171 million at closing and expects first power for the two associated developments in late 2027. Its release says final customer agreements are still being pursued, distinguishing that equipment financing from Galaxy's already revenue-generating first Helios phase.
Read more: Atlas Energy Solutions closes US$424M bridge loan for data centre equipment
Galaxy's next stated delivery milestone is the second quarter of 2027. Its October release says Phase II buildings and the supporting substation are progressing on schedule and within budget, with construction activity expected to increase before those deliveries begin.
