Key Highlights:
- Galaxy rebounded to an adjusted EBITDA of $455 million, driven primarily by a $419 million mark-to-market gross profit swing in its Treasury & Corporate portfolio.
- The Data Centers unit emerged as an infrastructure powerhouse, generating $79 million in adjusted gross profit as capital allocation to the segment climbed to 48% of total equity capital.
- While institutional adoption and counterparty volumes expanded in the Digital Assets division, the core crypto operating segment posted negative adjusted EBITDA for the second consecutive quarter.
Galaxy Returns to Profitability on Treasury Marks and Infrastructure Growth
Galaxy delivered a dramatic financial turnaround as its aggregated adjusted EBITDA surged to $455 million, reversing sharply from negative $77 million reported in the prior quarter. The primary engine behind this bottom-line recovery was the Treasury & Corporate division. The unit’s gross profit swung from negative $42 million to positive $419 million over the course of ninety days. Rather than recurring operational fees, this rebound reflects substantial mark-to-market appreciation spanning Galaxy’s holdings in spot cryptocurrencies, derivatives, exchange-traded funds (ETFs), and venture investments, bringing total quarterly net income to $323 million alongside $569 million in adjusted gross profit.
Supported by a strengthened liquidity position, Galaxy’s cash, stablecoins, and U.S. Treasuries totaled $4.9 billion at the close of the quarter, representing a 99% increase from $2.5 billion. This liquid cushion comprises $1,325 million in cash and cash equivalents, $812 million in stablecoins, and $2,756 million in U.S. Treasury bills and notes. On October 26, 2026, the company’s board of directors authorized a fresh share repurchase program of up to $200 million for its Class A common stock, enabling the Company to opportunistically return value to shareholders,
according to the release. This follows the completion of an earlier $200 million buyback on October 15, 2026, which retired roughly 9.8 million shares at an implied average price of approximately $20.41 per share—roughly 5% of the 193.3 million weighted-average Class A shares outstanding. Management noted that the new authorization has no set expiration and does not obligate the Company to acquire any amount of common stock,
giving the firm flexible capital deployment capacity to counter dilution from equity-based compensation.
Digital Assets Division Expands Counterparties but Remains Operating at a Loss
Despite headline momentum, Galaxy’s core Digital Assets operating business exhibited an underlying operational divergence. Trading volumes climbed 12% quarter-over-quarter despite broader spot crypto market contractions, the average loan book expanded 27% to $1.8 billion, and trading counterparties rose to 1,763. Concurrently, combined assets under management (AUM) and assets under stake jumped 46% to reach $10.4 billion. Yet, despite these metrics, the unit remained unprofitable on an adjusted EBITDA basis for the second consecutive period, registering a loss of negative $9 million compared to negative $11 million in the preceding quarter.
As industry observers point out, The data says the business is expanding; the economics say it is not paying for itself,
illustrating the gap between user growth and unhedged operational cash flow. Nonetheless, the unit notched strategic institutional wins. Asset management generated more than $160 million in net inflows, propelled by the launch of the Galaxy Sharplink Onchain Yield Fund, an investment vehicle targeting decentralized finance (DeFi) liquidity protocols. In addition, Galaxy entered into a multi-year partnership with BNY—which oversees more than $60 trillion in assets under custody—to provide staking capabilities for BNY’s Digital Asset Custody platform. These partnerships build upon Galaxy’s regulatory posture following its approval for a New York BitLicense in May.
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Data Center Pivot: Helios Campus Drives Long-Term Infrastructure Shift
The clearest commercial transformation is underway within Galaxy’s Data Centers segment, centered at the Helios campus in Texas. The unit recorded $79 million in adjusted gross profit—a 293% surge from $20 million in the previous period—alongside an increase in adjusted EBITDA to $69 million from $11 million. These financial gains reflect the initial full operational quarter under the Helios I, Phase I lease contract, following the complete delivery of 133 megawatts of critical IT capacity to high-performance computing provider CoreWeave by the end of the second quarter.
Capital spending signals that Galaxy is increasingly operating like an industrial compute provider rather than a traditional trading desk. Data Centers quarterly capital expenditure climbed 69% from $448 million to $757 million. Of Galaxy’s $3.0 billion total equity capital, approximately 48% is allocated to Data Centers, compared to 33% for Digital Assets and 19% for Treasury & Corporate. Expansion efforts are proceeding rapidly; Helios I, Phase II is fully financed following a $3.5 billion offering of senior secured notes, targeting initial data hall deliveries in the second quarter of 2027. Across its portfolio, Galaxy commands a gross power pipeline exceeding 5.7 gigawatts and is actively negotiating with prospective data clients for 830 megawatts of already-approved capacity at the Helios II site.
Why This Matters
Galaxy’s latest performance highlights a major transition occurring across the digital asset industry: the strategic reallocation of balance sheets toward artificial intelligence and high-performance computing (HPC) physical infrastructure. While Galaxy’s historical core—digital asset trading and brokerage—continues to navigate volatile fee environments and post adjusted EBITDA deficits, its computing infrastructure holdings at Helios are generating predictable, contract-backed operational earnings.
However, the reliance on Treasury & Corporate mark-to-market swings underscores persistent volatility. The gross profit swing to positive $419 million directly tracks asset prices as of September 30, a dynamic that previously yielded a $216 million net loss in the first quarter and negative $42 million in gross profit in the second quarter. Transitioning non-leased capacity—such as the 830 megawatts under negotiation at Helios II—into executed, long-term contracted agreements remains critical for insulating overall corporate profitability from cyclical digital asset downturns.
Frequently Asked Questions
What drove Galaxy’s return to profitability this quarter?
The primary catalyst was the Treasury & Corporate segment, which swung from a gross profit loss of $42 million to a positive $419 million. This improvement stemmed from mark-to-market valuation increases across Galaxy’s spot digital assets, crypto derivatives, ETFs, and venture portfolio rather than transactional broker fees.
Is Galaxy’s Digital Assets trading business profitable?
No. Although the Digital Assets unit increased loan book sizes, grew counterparty numbers, and expanded trading volume by 12%, it remained unprofitable under non-GAAP standards, recording an adjusted EBITDA loss of negative $9 million following a negative $11 million print in the prior quarter.
How large is Galaxy’s data center infrastructure commitment?
Data center infrastructure now represents Galaxy’s largest equity allocation at approximately 48% of its $3.0 billion total equity capital. The company deployed $757 million in quarterly capex toward the division, completed 133 megawatts for CoreWeave under Helios I Phase I, raised $3.5 billion in senior secured notes for Phase II, and maintains a total power pipeline exceeding 5.7 gigawatts.
