Galaxy Digital reports $323 million Q3 profit, launches new $200 million buyback
Galaxy Digital flips back into profit
Galaxy Digital posted $323 million in net income for the third quarter of 2026, reversing an $85 million loss in the second quarter. The micro-cap crypto firm said growth came from its crypto trading, lending, and AI data center operations.
Galaxy also announced on Tuesday that its board authorized a new $200 million repurchase program for its Class A common stock. The firm said the program has no fixed end date and is not obligated to spend the full amount.
Key numbers behind the result
- Third-quarter net income: $323 million, compared with an $85 million loss in the second quarter.
- Adjusted gross profit: $569 million, up sharply from $43 million in the second quarter.
- Adjusted EBITDA: $455 million, versus negative $77 million in the second quarter.
- Digital asset trading volume rose 12% from the second quarter, even as spot market volume fell across the broader market.
- Average loan book reached $1.8 billion, a 27% increase from the prior quarter.
- Data center adjusted gross profit was $79 million, nearly four times the $20 million from the previous quarter.
- Assets under management and under stake reached $10.4 billion at the end of September, up 46% from June.
What drove the profit
The company said its trading and lending businesses both grew in the quarter. Galaxy said the growth in its loan book was partly supported by its Galaxy Onchain Financing Rate product, launched in July. The product pulls rates from decentralized lending markets such as Aave and Morpho.
The firm's Treasury & Corporate division contributed $419 million in adjusted gross profit, compared with a $42 million loss in the second quarter. Management attributed the gain largely to higher valuations of its digital asset holdings and private investments, including stakes in AI chip startup Etched and Solana treasury firm Forward Industries.
Digital asset trading activity itself still lost $9 million on an adjusted EBITDA basis. Management said the division would have been profitable without a one-time accounting adjustment during the quarter, but did not disclose the size of the adjustment.
AI data centers are now a real revenue stream
Galaxy said its data center business made $69 million in adjusted EBITDA for the third quarter. The results include the first full quarter of revenue from its Helios I Phase I lease in Texas, after the firm delivered all 133 MW of critical IT load to CoreWeave by the end of June.
The company said it also raised its total gross data center power pipeline to more than 5.7 GW. Construction at Helios I Phase II is ongoing, with the first scheduled data hall deliveries in the second quarter of 2027.
On the earnings call, founder and CEO Mike Novogratz said the firm expects to exit 2027 with an annualized leasing revenue run rate of $800 million to $850 million as Helios I Phase II comes online. He also said Galaxy turned down a potential Helios II leasing deal this summer, as tighter power supplies and stronger demand from large AI companies led the firm to reconsider the terms on offer.
The buyback program
The new $200 million share repurchase authorization was approved on Oct. 26. It follows a previous program that Galaxy completed on Oct. 15, during which it bought back about 9.8 million shares under a $200 million authorization announced in February. The company said it has no obligation to buy back the entire $200 million and that the new program has no set end date.
Galaxy said it would have been useful for a reader to compare the latest quarter with last year. Net income of $323 million was lower than the $505 million the firm reported a year earlier.
What is still unclear
The earnings release and earnings call did not say how large the one-time accounting adjustment was that reduced Galaxy's digital asset division to a loss. Galaxy also gave no timeline or amount commitment for the new buyback beyond the $200 million authorization.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.
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