Galaxy Digital reported Q3 2026 net income of $323 million on October 27, reversing a loss in the prior quarter. Adjusted EBITDA reached $455 million, compared with negative $77 million in Q2. The swing was driven by $419 million in treasury and corporate gains, a $79 million gross profit contrib...
"I have a tremendous amount of conviction that the financial architecture developed by the crypto industry will underpin much of how the financial system operates in the future." — Mike Novogratz, CEO, Galaxy Digital
Galaxy Digital reported Q3 2026 net income of $323 million on October 27, reversing a loss in the prior quarter. Adjusted EBITDA reached $455 million, compared with negative $77 million in Q2. The swing was driven by $419 million in treasury and corporate gains, a $79 million gross profit contribution from the Helios data center campus, and steady growth across digital asset trading and asset management lines.
The results mark a structural shift for Galaxy. Data centers now generate more adjusted gross profit than the company's legacy digital asset trading business. With 133 MW delivered to CoreWeave under a 15-year lease, 260 MW of Phase II construction underway, and 830 MW of additional approved capacity at a proposed Helios II site, the company's center of gravity is moving from crypto trading desks to GPU racks in West Texas.
GLXY shares rose approximately 8% in pre-market trading on October 27, closing the session up 4.4% at approximately $16.37. The board authorized an additional $200 million share buyback after completing a prior $200 million program that retired 9.8 million shares year-to-date.
Galaxy reported the following consolidated figures for the quarter ended September 30, 2026:
| Metric | Q3 2026 | Q2 2026 | |---|---|---| | Net income | $323M | Loss | | Adjusted EBITDA | $455M | ($77M) | | Adjusted gross profit | $569M | — | | Diluted EPS | $0.66 | — | | Adjusted EPS | $0.83 | — | | Total assets | $16.4B | — | | Total equity | $3.0B | — | | Cash, stablecoins, U.S. Treasuries | $4.9B | — |
The $323 million net income figure exceeded the Wall Street consensus estimate of $0.29 EPS by a wide margin, with Galaxy delivering $0.83 adjusted. Revenue of $8.69 billion fell short of the $14.26 billion consensus, a 42.9% miss, though that headline figure reflects the company's principal trading activity, which can produce large gross revenue figures with thin margins. The adjusted gross profit of $569 million is the more relevant operating metric.
The quarter's outperformance was concentrated in the Treasury and Corporate segment, which recorded $419 million in adjusted gross profit versus a $42 million loss in Q2. This line captures mark-to-market gains on Galaxy's proprietary investment portfolio. It is volatile by nature and may not recur at this level.
Galaxy's Helios campus in West Texas generated $79 million in adjusted gross profit and $69 million in adjusted EBITDA during Q3 — the first full quarter of leasing revenue from Phase I. Total data center assets stood at $6.8 billion, or 41% of Galaxy's $16.4 billion balance sheet. Capital expenditure for the segment was $757 million in the quarter alone.
Key infrastructure metrics:
CEO Novogratz stated on the earnings call: "Helios has come a long way in the past year. We are now generating approximately $80 million of leasing revenue per quarter from Phase I."
Galaxy expects to exit 2027 at an annualized leasing revenue run rate of $800 million to $850 million as Phase II enters service, according to guidance provided during the call. That would make data centers the dominant revenue contributor by a significant margin.
The Helios transformation represents a complete pivot from the site's original purpose. In November 2024, Galaxy ended its arrangement to host Argo Blockchain's mining rigs at Helios and cleared the facility of all Bitcoin mining infrastructure. The site now hosts third-party GPUs for AI model training and inference, leased to CoreWeave under 15-year contracts spanning 526 MW of critical IT load across three phases.
Galaxy holds an 800 MW approved power contract with ERCOT, the Texas grid operator, with approval secured to double capacity to over 1.6 GW. The 5.7 GW gross power pipeline signals further expansion, though execution beyond the committed CoreWeave phases remains contingent on tenant commitments and capital availability.
Galaxy's digital asset businesses — encompassing Global Markets (trading, lending, derivatives) and the broader Digital Assets segment — generated combined adjusted gross profit of roughly $124 million in Q3. That compares with $79 million from data centers alone.
Breaking down the Digital Assets segment:
CFO Christopher Ferraro noted that "our global markets business capitalized on that momentum, growing trading volumes and expanding client engagement." Galaxy's digital asset trading volumes grew 12% in the quarter, outperforming the broader spot market where volumes declined.
The digital asset business remains healthy. But it is no longer the company's primary profit center. Data Centers ($79M adjusted gross profit) exceeded Global Markets ($53M) and approached the broader Digital Assets segment ($71M) in a single quarter. If Helios Phase II delivers on schedule, the balance shifts further in 2027.
Galaxy ended Q3 with $10.4 billion in combined assets under management and assets under stake, up 46% quarter-over-quarter.
The Galaxy Sharplink Onchain Yield Fund launched in August 2026 with $125 million in commitments. Sharplink contributed $100 million from its staked Ethereum treasury; Galaxy committed $25 million. The fund deploys capital across DeFi liquidity protocols and other on-chain yield strategies.
Additional fund developments:
The staking growth is notable. A 64% quarter-over-quarter increase in assets under stake, reaching $4.6 billion, suggests Galaxy is capturing institutional staking demand — particularly from ETF issuers who need regulated infrastructure to delegate validator duties. Gross new staking inflows exceeded $400 million in Q3 and the period immediately following quarter-end.
Galaxy completed its initial $200 million share repurchase program in October 2026, having retired 9.8 million shares year-to-date. The board authorized an additional $200 million buyback, bringing total repurchase capacity to $400 million since the program's inception.
At the same time, Galaxy carries substantial debt. The $3.5 billion senior secured notes offering in July 2026 financed Helios Phase II construction. Total data center assets of $6.8 billion and $757 million in quarterly capex reflect the capital intensity of the AI infrastructure buildout. Total equity stands at $3.0 billion against $16.4 billion in total assets, implying a leverage ratio of approximately 5.5x.
Cash, stablecoins, and U.S. Treasuries totaled $4.9 billion, providing a liquidity buffer. But the company's balance sheet is now structurally leveraged to data center economics and the creditworthiness of its primary tenant, CoreWeave.
Galaxy reports ahead of two larger crypto-native public companies. Coinbase (COIN) is scheduled to report Q3 2026 results on October 29. The Zacks consensus estimate for Coinbase's Q3 revenue is $1.2 billion, down 37.4% year-over-year, with an expected loss of $0.15 per share. Robinhood Markets, which acquired Bitstamp and WonderFi to expand its crypto business, also reports next week.
Strategy (formerly MicroStrategy) has already disclosed a $20.91 billion Bitcoin gain for the period, though its reporting framework differs materially from operating companies.
Galaxy's results set a marker. Among publicly traded digital asset companies, the pivot from pure crypto operations to hybrid crypto-plus-AI-infrastructure models is becoming a defining strategic question. Galaxy's data center segment now generates more gross profit than any single digital asset business line. Whether this model proves durable depends on AI compute demand sustaining current pricing levels through the multi-year lease terms Galaxy has committed to.
Galaxy Digital's Q3 results confirm that the company is no longer primarily a crypto trading firm. Data centers now constitute 41% of total assets and are on track to become the majority revenue contributor by end-2027. The digital asset franchise — trading, lending, asset management, staking — remains profitable and growing, but is structurally secondary to the Helios buildout.
The embedded risk is concentration. Galaxy's data center economics depend on CoreWeave honoring 15-year lease commitments and AI compute demand sustaining current pricing through those terms. The $3.5 billion debt raise and 5.5x leverage ratio are manageable if lease revenue scales as projected, but leave limited margin for error if AI infrastructure demand softens or tenant economics deteriorate.
For the broader digital asset industry, Galaxy's transformation raises a question the market has not fully priced: whether the highest-value use of crypto-native balance sheets and energy contracts is not crypto itself, but the adjacent AI infrastructure buildout those assets enable.