Galaxy Digital has officially returned to profitability in the third quarter of 2026, posting a robust $323 million in net income. The impressive rebound was largely propelled by significant gains from its investment portfolio and the rapid, surging expansion of its artificial intelligence data center business, which effectively helped offset continued losses within its core digital assets division. Following the announcement, the company’s shares experienced a notable surge during Tuesday’s trading session, reflecting renewed investor confidence in the firm’s evolving operational strategy.
The cryptocurrency investment firm, led by founder and CEO Mike Novogratz, reported Tuesday that it earned $323 million during the three-month period ended September 30. This performance marks a dramatic and welcome reversal from the $85 million net loss the firm recorded in the second quarter of the year. Beyond net income, the company’s financial metrics showed substantial improvement across the board. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) reached an impressive $455 million, rebounding sharply from a $77 million loss in the previous quarter.
Furthermore, Galaxy reported an adjusted gross profit of $569 million, representing a massive leap from the $43 million posted in the second quarter. Diluted earnings per share climbed to $0.66, while adjusted earnings per share came in at a solid $0.83.
Reflecting on the strong financial results, Novogratz highlighted the multifaceted nature of the company’s recent success. "Galaxy delivered a strong third quarter, reflecting the strength of our established digital assets franchise, significant appreciation across our investments portfolio, and the growing contribution from our data centers business," Novogratz stated in the official earnings announcement.
A closer examination of the firm’s segmental performance reveals that the treasury and corporate division accounted for the lion’s share of the financial improvement. This segment generated an adjusted gross profit of $419 million, a stark contrast to the $42 million loss it recorded in the previous quarter. The division’s success was heavily underpinned by broad-based appreciation across Galaxy’s diverse investment portfolio.
Meanwhile, the company’s core digital assets business generated $71 million in adjusted gross profit, representing a 9% increase compared to the previous quarter. Despite this quarter-over-quarter top-line growth, the division still recorded a $9 million adjusted EBITDA loss, highlighting the ongoing cost pressures and competitive landscape within traditional crypto markets.
Despite those challenges, operational metrics within the digital assets space showed encouraging resilience. Cryptocurrency trading volumes increased by 12% quarter-over-quarter, allowing Galaxy to outperform a broader spot market that generally experienced declining activity. Additionally, the firm’s average loan book grew by 27% to reach $1.8 billion, while combined assets under management and assets under stake climbed an impressive 46% to touch $10.4 billion.
Galaxy’s expanding institutional cryptocurrency operations were further bolstered earlier in the year, notably through an August partnership with banking giant BNY. The strategic arrangement was designed to bring advanced staking services to BNY’s digital asset custody platform, enabling eligible institutional clients to earn staking rewards while securely maintaining their underlying assets within BNY’s existing custody infrastructure.
AI Data Center Expansion Accelerates
While the digital assets franchise maintained steady operational metrics, Galaxy’s data center division officially emerged as a powerhouse growth driver during the third quarter. The segment generated $79 million in adjusted gross profit, nearly quadrupling the $20 million recorded in the second quarter. Concurrently, adjusted EBITDA for the data center business rose sharply to $69 million, up from $11 million in the preceding period.
This exponential growth was primarily driven by the first full quarter of revenue-generating operations stemming from the company’s lease with AI infrastructure provider CoreWeave at its flagship Helios campus in Texas. By the end of June, Galaxy successfully delivered all 133 megawatts of critical IT load associated with the initial phase of the project.
To support its aggressive expansion in the artificial intelligence sector, Galaxy recently completed a massive $3.5 billion senior secured debt offering. The capital is earmarked to finance the second phase of Helios I, which is currently under active construction. Management anticipates beginning the delivery of additional data halls in the second quarter of 2027.
Looking further ahead, Galaxy noted that it is actively pursuing potential tenants for another 830 megawatts of approved capacity at Helios II that remains currently unleased. With these developments, the company’s total gross power development pipeline has expanded significantly, now standing at more than 5.7 gigawatts.
This rapid infrastructure scaling follows Galaxy’s strategic acquisition in July of approximately 500 acres of land in McGregor, Texas, intended for an additional state-of-the-art AI and high-performance computing campus. That specific project initially targets 74 megawatts of capacity, with a design built to accommodate the potential for vastly larger development in subsequent years as market demand scales.
Overall, Galaxy has increasingly redirected its extensive capital and infrastructure investments toward the booming AI computing sector. This strategic pivot has notably included converting portions of its former bitcoin mining operations at the Helios campus to effectively serve the intense computational demands of major technology companies.
Galaxy Authorizes Another $200 Million Stock Buyback
Alongside its strong earnings report, Galaxy disclosed that its board of directors approved an additional $200 million share repurchase program on October 26. This fresh authorization closely follows the successful completion of an earlier $200 million buyback program on October 15, during which the firm repurchased approximately 9.8 million of its own shares.
The company’s robust balance sheet provided ample support for the capital return initiative. Galaxy closed out the month of September with $16.4 billion in total assets, marking a 51% increase from the previous quarter, alongside $3 billion in total equity. Furthermore, its liquid reserves—comprising cash, stablecoins, and U.S. Treasury securities—nearly doubled, surging to $4.9 billion from $2.5 billion.
These financial results underscore a dramatic corporate turnaround following a notably difficult start to 2026. Earlier in the year, Galaxy had reported a steep $216 million first-quarter loss against a backdrop of declining cryptocurrency prices. The powerful third-quarter rebound highlights the company’s successful diversification and growing reliance on two distinct, complementary business pillars: cryptocurrency financial services and high-performance AI computing infrastructure.
Following the release of the earnings statement and the announcement of the expanded stock buyback program, Galaxy shares trading on the Nasdaq under the ticker GLXY rallied significantly. The stock finished the trading day up more than 9.5%, closing at a price of $17.18. Despite the strong single-day rally, shares in the firm remain down approximately 23% since the beginning of the year.
Bitcoin & Major Altcoins
Bitcoin & Major Altcoins
Bitcoin & Major Altcoins
