Galaxy Swings to a $323 Million Quarter and Buys Back Again

Galaxy Digital reported net income of $323 million for the three months to 30 September, released on Tuesday morning in New York, against an $85 million loss in the previous quarter. The same quarter a year earlier produced $505 million, so the swing is quarter on quarter and not a record. Most of the money came from one segment. Treasury and corporate, which holds the firm's own digital assets and private stakes, turned adjusted EBITDA of $395 million after losing $78 million three months before. The board cleared another $200 million of share buybacks the day before the figures went out.

Where the profit came from

The Block, publishing at 14:38 UTC, attributed the treasury reversal mainly to higher valuations on digital asset holdings and private investments, naming Etched and Forward Industries among them. That is a mark-up, not a sale. Company-wide adjusted gross profit was $569 million against $43 million in the second quarter, and adjusted EBITDA $455 million against a $77 million loss. Revenues and gains from operations came in at $8.7 billion, flat on the quarter, with gross transaction expenses of $8.0 billion set against them. Diluted earnings were $0.66 a share, and the adjusted figure the company prefers was $0.83. Cash, stablecoins and US Treasuries stood at $4.9 billion against total equity of $3.0 billion.

The trading arm still ran at a loss

Digital assets, the trading, lending and brokerage business, posted adjusted gross profit of $71 million and an adjusted EBITDA loss of $9 million. Trading volumes rose 12% on the quarter while the broader spot market shrank. The average loan book reached $1.8 billion, up 27%, helped by an onchain financing-rate product the firm launched in July. Management said the division would have been profitable without a one-time accounting adjustment, and did not say how large that adjustment was. One number does not line up either. The release puts the segment's gross profit up 9% on the quarter; The Block gives the prior quarter as $66 million, which works out nearer 8%. The two do not reconcile, and neither account explains the gap.

"Galaxy delivered a strong third quarter, reflecting the strength of our established Digital Assets franchise," Mike Novogratz, founder and chief executive, said in the release.

Power, capex and 830 unleased megawatts

The data centre arm, built around the Helios campus in Texas, produced adjusted gross profit of $79 million and adjusted EBITDA of $69 million, roughly four times the prior quarter on both lines. It also spent $757 million of capital in three months. All 133 MW of critical IT load under the first phase lease has been delivered to CoreWeave, and a second phase financed with $3.5 billion of senior secured notes is under construction, with first data hall deliveries scheduled for the second quarter of 2027. The gross power pipeline runs above 5.7 GW. About 830 MW of approved capacity in the second Helios project has no tenant, and lease talks are described as ongoing. The Block alone reports that Galaxy walked away from one such lease over the summer after reconsidering terms, and expects to leave 2027 at an annualised leasing run rate of $800 million to $850 million.

What the next quarter has to show

Combined assets under management and assets under stake stood at $10.4 billion, up 46% on the quarter, with net inflows above $160 million. The release discloses that $1.2 billion of that total is counted twice, sitting in both the management and the staking line. Neither secondhand account read here carries the caveat with the headline number. Galaxy's shares closed Tuesday up more than 9.5% at $17.18 and were still down about 23% for the year, by a single outlet's reckoning, the only price reading found. The firm spends much of its working day counting other people's coins, as when it put 11.1 million bitcoin in addresses it cannot name. This quarter the valuation of its own book did the work, and bitcoin was under $80,000 earlier this week. Tenants for the unleased megawatts are the part of the story Galaxy controls.