Galaxy Digital Posts $323M Q3 Profit and $200M Buyback

Galaxy Digital Rebounds with a $323 Million Q3 Profit

Galaxy Digital has officially returned to profitability in the third quarter of 2026. The crypto investment firm led by Mike Novogratz reported $323 million in net income, marking a sharp turnaround from an $85 million loss in the second quarter.

This impressive rally was fueled by gains across its investment portfolio and explosive growth in its Artificial Intelligence (AI) data center business. These positive drivers helped offset ongoing losses in its core digital asset segment.

Following the news on Tuesday, Galaxy Digital shares saw a sharp price jump. However, financial markets remain naturally volatile, and past corporate earnings or asset returns never guarantee future results.

Key Financial Highlights from the Third Quarter

The company's financial results showed significant momentum across several key earnings metrics compared to the previous quarter.

• Net Income: Reached $323 million, reversing the $85 million loss reported in Q2 2026.
• Adjusted EBITDA: Rose to $455 million, compared to a $77 million loss in the previous quarter.
• Adjusted Gross Profit: Climbed sharply to $569 million from just $43 million in Q2.
• Earnings Per Share: Reached $0.66 on a diluted basis, with adjusted earnings per share coming in at $0.83.

Chief Executive Officer Mike Novogratz emphasized that the strong third quarter reflects the durability of their digital assets franchise, substantial portfolio gains, and a growing contribution from high-performance computing data centers.

AI Data Centers Become a Major Growth Driver

One of the standout stories of the quarter was Galaxy's rapid expansion into AI infrastructure. The firm has actively pivoted former BitcoinBTC+1.07% mining facilities toward high-performance AI computing to meet skyrocketing technological demand.

Galaxy's data center division saw its adjusted gross profit nearly quadruple to $79 million, up from $20 million in the second quarter. Adjusted EBITDA for the division also surged from $11 million to $69 million.

This financial leap follows the first full quarter of revenue-generating operations under Galaxy's lease agreement with AI infrastructure firm CoreWeave at the Helios campus in Texas.

By the end of June, Galaxy successfully delivered all 133 megawatts (MW) of critical IT load required for the first phase of the Helios facility.

Expanding Power Capacity for Future Demand

Galaxy is aggressively expanding its infrastructure footprint to secure long-term computing capacity.

The firm recently completed a $3.5 billion senior secured debt offering to fund Phase 2 construction at Helios I. Delivery of the next set of data halls is scheduled to start in the second quarter of 2027.

In addition, Galaxy is actively negotiating with potential tenants for another 830 MW of approved capacity at Helios II that remains unleased.

The firm's overall gross power development pipeline has now expanded past 5.7 gigawatts (GW). This follows a July acquisition of roughly 500 acres in McGregor, Texas, intended for another AI campus with an initial 74 MW target capacity.

Digital Assets Division Shows Resilient Operational Growth

While AI computing grabbed headlines, Galaxy's corporate treasury and institutional crypto operations also recorded key milestones.

The treasury and corporate segment generated $419 million in adjusted gross profit, recovering from a $42 million loss in Q2 thanks to appreciation across portfolio holdings.

The core digital assets division generated $71 million in adjusted gross profit, up 9% quarter-over-quarter, though it still posted a minor adjusted EBITDA loss of $9 million.

• Trading Volumes: Cryptocurrency trading volume jumped 12% quarter-over-quarter, outperforming the broader spot market.
• Loan Book Expansion: The average loan book grew 27% to reach $1.8 billion.
• Assets Under Management: Combined AUM and assets under stake jumped 46% to $10.4 billion.
• Institutional Partnerships: In August, Galaxy partnered with BNY to bring staking services to BNY's institutional custody platform.

Balance Sheet Growth and New $200M Stock Buyback

With revenues rebounding, Galaxy's board approved a brand-new $200 million stock buyback program on Oct. 26.

This announcement follows the completion of an earlier $200 million repurchase initiative on Oct. 15, which saw Galaxy buy back approximately 9.8 million common shares. That initial program was introduced in February following a tough fourth quarter.

Galaxy closed the third quarter with $16.4 billion in total assets—a massive 51% increase from the prior quarter—and $3 billion in total equity.

Liquid asset holdings, including cash, stablecoins, and U.S. Treasury securities, nearly doubled from $2.5 billion to $4.9 billion during the period.

Stock Performance and Operational Outlook

The earnings report provided a major boost to Galaxy Digital shares listed on Nasdaq (GLXY). The stock finished the trading session up over 9.5% at $17.18.

The strong quarterly results represent a complete reversal from early 2026, when Galaxy reported a $216 million loss in Q1 as asset prices pulled back.

Despite Tuesday's stock rally, shares remain down approximately 23% year-to-date. Investors should remember that stock prices and digital asset valuations experience short-term fluctuations.

Past performance of digital assets or corporate financial performance is not an indicator of future results. Market participants should evaluate digital assets and equities with awareness of market volatility.