Key Takeaways
- • Galaxy Digital (GLXY) reported third-quarter net income of $323 million, a swing from an $85 million loss in the second quarter, with adjusted EPS of $0.83 against a market expectation of $0.11.
- • Revenue of $8.69 billion fell well short of the $11.44 billion analysts had estimated, creating an "earnings beat, revenue miss" result.
- • The data center business contributed its first full quarter as lease revenue from phase one of the Helios campus in Texas began to be recognized; the board approved an additional $200 million share buyback.
- • Analyst price targets diverged: H.C. Wainwright (Buy) cut to $36 from $40, StoneX held at $57, and Goldman Sachs (Neutral) cut to $20.50 from $24.
- • Galaxy declined to sign a lease for Helios phase two, which StoneX read as evidence of pricing power; management raised its 2027 data center rental revenue target to $800 million–$850 million from about $316 million.
Summary
Galaxy Digital reported third-quarter results with net income of $323 million, according to the company's reported figures, reversing a $85 million loss in the second quarter. Adjusted earnings per share of $0.83 far exceeded the $0.11 the market expected, while revenue of $8.69 billion came in below the $11.44 billion analysts had estimated. The report's most notable development was the data center segment, which contributed a full quarter of revenue for the first time as lease revenue from the first phase of the Helios campus in Texas began to be recognized. The board also approved an additional $200 million share buyback program.
Shares of Galaxy Digital (GLXY) extended gains on Wednesday after the results, having surged nearly 10% on Tuesday in their biggest one-day gain in a month. Core crypto trading remained supportive: improved digital asset sentiment drove a 12% quarter-over-quarter increase in trading volume, while average loan balances grew 27%. Management raised its target for annual data center rental revenue by the end of 2027 to $800 million–$850 million from about $316 million, and Colonnese, the H.C. Wainwright analyst, said the data center segment now holds more than $1 billion in annual contracted revenue.
Wall Street views diverged after the report. H.C. Wainwright analyst Mike Colonnese kept a Buy rating but lowered his price target to $36 from $40, still implying roughly a doubling from Tuesday's close. He argued that Helios construction progress and a recovering crypto market mood matter more than near-term policy and lending risks, and estimated that roughly seven of the eight second-phase buildings would be operational by 2027. StoneX analyst Mark Palmer kept a $57 target and focused on a lease Galaxy chose not to sign. Chief Executive Michael Novogratz said the company negotiated through the summer with potential tenants for Helios phase two before walking away, and President Chris Ferraro said Galaxy had an option to sign but held off as power market conditions shifted. Palmer argued this "negotiate but don't sign" approach shows that filling the 830 megawatts of permitted second-phase capacity will not be difficult. Goldman Sachs cut its target to $20.50 from $24 with a Neutral rating, describing the profit as a broad beat with encouraging operating trends but data center performance as mixed.
Risks remain. The second phase of Helios is not expected to enter commercial operation until mid-2028, and uncertainty over Texas regulations persists. Galaxy shares had also fallen about 30% earlier in the month on concerns about its sole customer, CoreWeave (CRWV). According to market tracking data, 15 of 16 analysts rate the stock Buy or Strong Buy, with one at Hold. Overall, the company is shifting from a pure crypto trader toward an operator with data center assets, and the pace of Helios leasing and subsequent financing will determine whether the share rebound can continue.
Shares of Galaxy Digital (GLXY) extended gains on Wednesday after the results, having surged nearly 10% on Tuesday in their biggest one-day gain in a month. Core crypto trading remained supportive: improved digital asset sentiment drove a 12% quarter-over-quarter increase in trading volume, while average loan balances grew 27%. Management raised its target for annual data center rental revenue by the end of 2027 to $800 million–$850 million from about $316 million, and Colonnese, the H.C. Wainwright analyst, said the data center segment now holds more than $1 billion in annual contracted revenue.
Wall Street views diverged after the report. H.C. Wainwright analyst Mike Colonnese kept a Buy rating but lowered his price target to $36 from $40, still implying roughly a doubling from Tuesday's close. He argued that Helios construction progress and a recovering crypto market mood matter more than near-term policy and lending risks, and estimated that roughly seven of the eight second-phase buildings would be operational by 2027. StoneX analyst Mark Palmer kept a $57 target and focused on a lease Galaxy chose not to sign. Chief Executive Michael Novogratz said the company negotiated through the summer with potential tenants for Helios phase two before walking away, and President Chris Ferraro said Galaxy had an option to sign but held off as power market conditions shifted. Palmer argued this "negotiate but don't sign" approach shows that filling the 830 megawatts of permitted second-phase capacity will not be difficult. Goldman Sachs cut its target to $20.50 from $24 with a Neutral rating, describing the profit as a broad beat with encouraging operating trends but data center performance as mixed.
Risks remain. The second phase of Helios is not expected to enter commercial operation until mid-2028, and uncertainty over Texas regulations persists. Galaxy shares had also fallen about 30% earlier in the month on concerns about its sole customer, CoreWeave (CRWV). According to market tracking data, 15 of 16 analysts rate the stock Buy or Strong Buy, with one at Hold. Overall, the company is shifting from a pure crypto trader toward an operator with data center assets, and the pace of Helios leasing and subsequent financing will determine whether the share rebound can continue.
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