Galaxy Digital posts $323 million profit and announces $200 million share buyback

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Galaxy posts profit and buyback

Crypto trading and lending show growth

Digital asset trading volumes on Galaxy's platform increased 12% quarter over quarter, despite a decline in activity across the broader spot market.

The average loan portfolio grew 27% to $1.8 billion. Additional demand came from the Galaxy Onchain Financing Rate product, launched in July, which uses lending rates from DeFi protocols, including Aave and Morpho.

The crypto division's adjusted gross profit reached $71 million, compared with $66 million in the previous quarter. However, its EBITDA remained negative at $9 million. Management attributed the result to a one-time accounting adjustment but did not disclose its size.

The Treasury & Corporate division made a significant contribution, generating $419 million in adjusted gross profit. Growth was driven by the revaluation of digital assets and private investments, including stakes in AI chip developer Etched and Forward Industries, a company building a Solana treasury reserve.

By the end of September, total assets under management and staking had reached $10.4 billion, an increase of 46% during the quarter.

Data centers boost Galaxy's earnings

Adjusted gross profit from the data center business nearly quadrupled, rising from $20 million to $79 million. The division reported EBITDA of $69 million.

The results include the first full quarter of revenue from leasing capacity at Helios I in Texas. By the end of June, Galaxy had delivered all 133 MW of computing capacity under the first phase of its agreement with CoreWeave.

Galaxy continues to develop the second phase of Helios I, with capacity deliveries scheduled for the second quarter of 2027. The company's total energy project pipeline exceeds 5.7 GW.

Galaxy founder Mike Novogratz expects annual revenue from capacity leasing to reach $800 million to $850 million by the end of 2027.

Amid improving financial performance, Citi analysts upgraded their investment rating on Galaxy Digital shares. The bank cited the recovery of the cryptocurrency market, a more favorable regulatory environment in the U.S. and opportunities in tokenization infrastructure.

Citi also identified the expansion of Galaxy's AI data center business as an additional growth driver. Analysts believe the combination of cryptocurrency services and computing infrastructure could create new revenue streams for the company.

Earlier, we reported that Galaxy Digital advised investors to accumulate Bitcoin in anticipation of the next market rally. The company viewed the leading cryptocurrency as a promising asset for building investment positions.

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