Galaxy Digital, the New York crypto firm run by Mike Novogratz, reported net income of $323m for the third quarter of 2026, after a loss of $85m in the second quarter. The figures are in its results release of 27 October and a Form 8-K filed with the US Securities and Exchange Commission the same morning.
Diluted earnings per share were $0.66. On Galaxy’s adjusted basis, which is a non-GAAP measure that strips out items such as share-based pay, earnings per share were $0.83. The board also approved a new share buyback of up to $200m.
Where the money came from
Galaxy reports three business segments. All the segment figures below are adjusted gross profit and adjusted EBITDA, which are non-GAAP measures defined by the company.
- Treasury & Corporate, which holds Galaxy’s own investments: adjusted gross profit of $419m, against a loss of $42m in the second quarter.
- Data Centers: adjusted gross profit of $79m, up from $20m, and adjusted EBITDA of $69m.
- Digital Assets, the trading, lending and asset management business: adjusted gross profit of $71m, up from $66m, with an adjusted EBITDA loss of $9m.
Across the group, adjusted gross profit was $569m and adjusted EBITDA was $455m.
Novogratz said: “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.”
Helios and the CoreWeave lease
The data centre jump comes from Helios, Galaxy’s campus in Texas. The quarter was the “first full quarter of revenue-generating operations under the Helios I, Phase I lease, with all 133 MW of critical IT load delivered to CoreWeave”. CoreWeave rents out computing power for AI, and is still expanding, as its new Copenhagen site shows.
Galaxy says Phase II is fully financed and under construction, with “data hall deliveries scheduled to begin in the second quarter of 2027”. It completed a $3.5bn offering of senior secured notes to pay for it, and spent $757m on data centre construction in the quarter. It is still in talks with possible tenants for “830 MW of approved capacity at Helios II not yet under lease”, and puts its total power pipeline at “over 5.7 GW”.
Trading, lending and the balance sheet
Galaxy says trading volumes grew 12% from the second quarter, “outperforming the broader spot market”. Its average loan book rose 27% to $1.8bn. Assets under management plus assets staked with its validators reached $10.4bn, up 46%, with more than $160m of net inflows. It also signed a multi-year agreement with BNY that includes staking support on the bank’s digital asset custody platform.
Total assets rose to $16.4bn from $10.8bn, and cash, stablecoins and US Treasuries reached $4.9bn, up from $2.5bn.
Why the headline profit needs care
The $323m profit is real, but most of it came from one place. Treasury & Corporate produced $395m of the $455m adjusted EBITDA, and Galaxy credits “significant appreciation across our investments portfolio”. That means gains on assets Galaxy owns, which can reverse when prices fall. The second quarter, with its $85m loss, shows how quickly that line can swing.
The steadier story is the data centre business. Rent from a signed lease is far more predictable than investment gains, and data centre adjusted EBITDA rose from $11m to $69m in one quarter. This is the same move many crypto miners are making, as our explainer on miners turning into AI companies sets out. The test for Galaxy is whether it can sign tenants for the 830 MW still without a lease, and deliver Phase II on time in 2027.
The trading business, which is what most people think of as Galaxy, made an adjusted EBITDA loss for a second quarter in a row, even with higher volumes. Galaxy also holds and moves large amounts of bitcoin for clients, as seen when MARA sent coins to a Galaxy-labelled address this month.
The new buyback
The board approved the new $200m buyback on 26 October. Galaxy finished a previous $200m programme on 15 October, buying back about 9.8m shares, which it says more than offset dilution from share-based pay. The new programme “does not have a fixed expiration date, may be suspended or discontinued at any time”, the company said. Buybacks are common among crypto-linked listed firms; Strategy recently raised its own buyback cap. This is not investment advice.
Sources
- Galaxy via PR Newswire: “Galaxy Announces Third Quarter 2026 Financial Results” (27 October 2026)
- Galaxy Digital Inc.: Form 8-K, SEC filing, with quarterly update and financial supplement (27 October 2026)
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