Galaxy Digital returned to profitability in the third quarter of 2026, reporting $323 million in net income after an $85 million loss in the previous quarter, while its board approved a fresh $200 million share-repurchase program. The turnaround was powered mainly by higher valuations of the company’s digital-asset and private-investment holdings, alongside rapidly expanding revenue from its Texas data center lease with AI cloud provider CoreWeave.
The company reported $569 million in adjusted gross profit and $455 million in adjusted EBITDA for the three months ended Sept. 30. That compares with $43 million in adjusted gross profit and negative $77 million in adjusted EBITDA in the second quarter, according to Galaxy’s Tuesday earnings release.
Net income remained below the $505 million Galaxy recorded in the third quarter of 2025. The year-on-year decline shows how heavily quarterly earnings can move with changes in the valuations of the firm’s asset holdings, even as its operating businesses gained momentum.
Treasury gains supplied most of the quarterly profit
Galaxy’s Treasury & Corporate segment produced $419 million in adjusted gross profit, reversing a $42 million loss in the previous quarter. Management attributed the move primarily to increased valuations for digital assets and private investments held by the company.
Those investments include stakes in AI chip startup Etched and Solana-focused treasury company Forward Industries. The segment accounted for nearly three quarters of Galaxy’s adjusted gross profit in the quarter, placing portfolio valuations at the center of the earnings recovery.
That composition sets Galaxy apart from a pure-play trading or asset-management business. Its quarterly profitability depends partly on operating revenue from trading, lending and infrastructure, but also on changes in the value of balance-sheet positions that can rise or fall sharply between reporting periods.
Digital-assets operations contributed $71 million in adjusted gross profit, up from $66 million in the second quarter. The division nevertheless recorded a $9 million adjusted EBITDA loss. On Tuesday’s earnings call, Galaxy management said the business would have been profitable without a one-time accounting adjustment, though it did not provide the size of that adjustment.
Trading and lending activity increased
Digital-asset trading volumes rose 12% from the second quarter, Galaxy said, providing support for its market-facing business during a period of higher activity. Its average loan book reached $1.8 billion, a 27% quarterly increase.
Galaxy said some lending demand came from its Galaxy Onchain Financing Rate product, launched in July. The product uses decentralized lending venues including Aave and Morpho, connecting Galaxy’s institutional lending operation with onchain markets.
The loan-book increase gives the company a larger base of interest-generating activity, although lending remains sensitive to demand for leverage, collateral values and market volatility. Galaxy’s results did not break out revenue or profitability specifically attributable to the Onchain Financing Rate product.
The company also said combined assets under management and assets under stake reached $10.4 billion at the end of September, up 46% from the end of June. The measure covers assets managed for clients as well as tokens delegated through staking arrangements, and its growth adds fee potential without requiring Galaxy to place all of the capital on its own balance sheet.
CoreWeave lease lifts data center earnings
Galaxy’s data center unit generated $79 million in adjusted gross profit, almost four times the $20 million reported in the second quarter. Adjusted EBITDA in the business reached $69 million.
The quarter included the first full period of revenue from the Helios I Phase I lease at Galaxy’s Texas site. Galaxy said it had delivered 133 megawatts of critical IT load to CoreWeave by the end of June. Critical IT load refers to the electricity available for computing equipment, rather than the full power requirements of supporting cooling and facility systems.
The data center operation is becoming a material contributor to Galaxy’s earnings mix. Its $79 million in adjusted gross profit exceeded the $71 million generated by the company’s digital-assets division, even before considering the latter’s adjusted EBITDA loss.
Galaxy said its gross data-center power pipeline had risen above 5.7 gigawatts. Construction at Helios I Phase II is continuing, with the first data-hall deliveries scheduled for the second quarter of 2027.
Michael Novogratz, Galaxy Digital’s founder and chief executive officer, told the earnings call that the company expects to exit 2027 with annualized leasing revenue of $800 million to $850 million as Helios I Phase II becomes operational. That forecast depends on construction delivery and the successful conversion of available power capacity into leases.
Novogratz also said Galaxy passed on a proposed Helios II leasing agreement during the summer. Tightening power supply and stronger demand from large AI companies led the firm to reassess the proposed commercial terms, he said. The decision indicates that Galaxy sees its power capacity as a scarce asset and may seek higher-value agreements rather than commit capacity quickly.
New repurchase authorization follows completed program
Galaxy’s board authorized an additional $200 million in repurchases of Class A common stock on Oct. 26. The company’s earlier $200 million authorization, announced in February, was completed on Oct. 15, after Galaxy bought about 9.8 million shares.
The new authorization does not have a fixed expiration date, and Galaxy is not required to use the full amount. Share repurchases can reduce the number of shares outstanding, though the effect on per-share results will depend on purchase timing, the market price of Galaxy shares and future share issuance.
The results show a company increasingly split between market-sensitive balance-sheet gains and recurring infrastructure revenue. Treasury revaluations delivered the largest share of third-quarter profit, while the CoreWeave lease gave Galaxy a substantial new source of operating earnings. Trading and lending activity improved, but the data center business now has a scale that can reshape how Galaxy’s results are assessed as Helios expansion advances through 2027.
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