Key Takeaways
- • Galaxy Digital reported third-quarter 2026 net income of $323 million, with adjusted gross profit of $569 million and adjusted EBITDA of $455 million, according to the company's Q3 2026 presentation as reported by Investing.com.
- • The treasury and corporate segment swung to $419 million adjusted gross profit from a $42 million loss in Q2, driven largely by appreciation of bitcoin and other digital asset holdings.
- • Helios Phase 1 in West Texas generated approximately $80 million in quarterly leasing revenue, and Galaxy expects to exit 2027 at an annualized leasing run rate of $800 million to $850 million.
- • Total AUM rose more than 30% to $5.9 billion and assets under stake climbed more than 60% to about $4.6 billion, while the average loan book grew more than 25% to about $1.8 billion.
- • Galaxy faces $445 million of exchangeable notes due December 2026, which CFO Tony Guida said can be repaid without refinancing.
Summary
Galaxy Digital Holdings Inc. presented its third-quarter 2026 results on October 27, reporting net income of $323 million and highlighting a dual-engine strategy spanning digital assets and AI data center infrastructure. The stock traded at $16.14, up 2.93% from the prior close of $15.68, though well below its 52-week high of $38.55. The company reported adjusted gross profit of $569 million and adjusted EBITDA of $455 million for the quarter, with combined adjusted gross profit from its operating businesses of approximately $150 million, up more than 75% from $86 million in the second quarter.
The digital assets business showed broad-based growth. Digital assets adjusted gross profit rose to $71 million from $66 million, global markets contributed $53 million versus $49 million, and asset management and infrastructure solutions added $19 million. Trading volumes increased 12% quarter over quarter even as broader spot volumes declined industry-wide. Galaxy now serves 1,763 trading counterparties and supports more than 100 crypto assets. Total AUM reached $5.9 billion and assets under stake approximately $4.6 billion, for a combined $10 billion.
The Helios campus in Dickens County, West Texas, began generating revenue from its first phase, with Phase 1 producing approximately $80 million in quarterly leasing revenue. Anchor tenant CoreWeave has leased 526 megawatts of critical IT capacity under a three-phase, 15-year base term agreement. According to the presentation, Phase 1 (133 MW) generates $315 million in annual base revenue, Phase 2 (260 MW, rent commencement expected Q2 2027) is expected to generate $675 million annually, and Phase 3 (133 MW, 2028 delivery) will bring total annual base revenue above $1 billion. Management expects over 90% average lease-level adjusted EBITDA margins over the base term, and total potential contract value exceeds $30 billion over 25 years including extensions.
Galaxy's presentation outlined a pipeline of more than 5,700 MW across eight named Texas projects. CEO Mike Novogratz said the company is being disciplined on additional leasing, stating, "We are not going to compromise on terms just to meet an announcement date." Galaxy said Phase 2 is fully funded and under construction, Phase 3 is fully equity funded through completion, and debt financing is expected in the first half of 2027. Near-term risks include $445 million of exchangeable notes due December 2026 and ongoing regulatory questions in Texas regarding ERCOT classifications and permitting timelines. Galaxy also plans a broader retail rollout through its GalaxyOne platform in Q1 2027.
The digital assets business showed broad-based growth. Digital assets adjusted gross profit rose to $71 million from $66 million, global markets contributed $53 million versus $49 million, and asset management and infrastructure solutions added $19 million. Trading volumes increased 12% quarter over quarter even as broader spot volumes declined industry-wide. Galaxy now serves 1,763 trading counterparties and supports more than 100 crypto assets. Total AUM reached $5.9 billion and assets under stake approximately $4.6 billion, for a combined $10 billion.
The Helios campus in Dickens County, West Texas, began generating revenue from its first phase, with Phase 1 producing approximately $80 million in quarterly leasing revenue. Anchor tenant CoreWeave has leased 526 megawatts of critical IT capacity under a three-phase, 15-year base term agreement. According to the presentation, Phase 1 (133 MW) generates $315 million in annual base revenue, Phase 2 (260 MW, rent commencement expected Q2 2027) is expected to generate $675 million annually, and Phase 3 (133 MW, 2028 delivery) will bring total annual base revenue above $1 billion. Management expects over 90% average lease-level adjusted EBITDA margins over the base term, and total potential contract value exceeds $30 billion over 25 years including extensions.
Galaxy's presentation outlined a pipeline of more than 5,700 MW across eight named Texas projects. CEO Mike Novogratz said the company is being disciplined on additional leasing, stating, "We are not going to compromise on terms just to meet an announcement date." Galaxy said Phase 2 is fully funded and under construction, Phase 3 is fully equity funded through completion, and debt financing is expected in the first half of 2027. Near-term risks include $445 million of exchangeable notes due December 2026 and ongoing regulatory questions in Texas regarding ERCOT classifications and permitting timelines. Galaxy also plans a broader retail rollout through its GalaxyOne platform in Q1 2027.
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