Galaxy Digital reported a net profit of $323 million in the third quarter, buoyed by gains in the value of its investment portfolio and data center revenue, and approved up to $200 million in new share buybacks.
The company, led by Mike Novogratz, recorded a loss of $85 million in the second quarter of 2026. According to financial results reported by The Block, adjusted gross profit reached $569 million in the third quarter, which ended September 30, while adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) reached $455 million. In the previous quarter, those figures were $43 million and negative $77 million, respectively.
Despite the quarterly rebound, net profit remained below the $505 million reported in the same period last year. The largest contribution to the results came not from direct trading activity, but from the appreciation of the company’s investments.
Where did most of the profit come from?
The Treasury and Corporate segment reported adjusted gross profit of $419 million, following an adjusted gross loss of $42 million in the second quarter. Management attributed the increase primarily to gains in the value of digital assets and private company investments. These included AI chip startup Etched and Forward Industries, which holds a Solana treasury.
Adjusted gross profit in the data center business rose from $20 million to $79 million, while adjusted EBITDA was $69 million. The 133 megawatts of capacity at the first phase of the Helios I facility in Texas, delivered to CoreWeave by the end of June, generated revenue for the first time for a full quarter.
Crypto trading volume grew against the market trend
Galaxy’s digital asset trading volume increased 12% from the previous quarter, despite a decline in the broader spot market. Its average loan portfolio also grew 27% to $1.8 billion. The Galaxy Onchain Financing Rate product, launched in July and drawing on decentralized lending markets such as Aave and Morpho, met some of this demand.
By contrast, the digital assets segment recorded an $9 million loss on an adjusted EBITDA basis, despite generating $71 million in adjusted gross profit. Management said the segment would have been profitable without a one-time accounting adjustment, the amount of which it did not disclose. The total value of assets managed by the company and for which it provides staking services increased 46% from the end of June to $10.4 billion.
New buyback and data center plans
On October 26, the board authorized up to $200 million in Class A share buybacks. The previous $200 million program, announced in February, was completed on October 15, with approximately 9.8 million shares repurchased. The new program has no end date; the amount used will be at the company’s discretion.
The total data center power capacity in Galaxy’s development plans has surpassed 5.7 gigawatts. The first data halls in the second phase of Helios I are scheduled for delivery in the second quarter of 2027. Novogratz expects annualized rental revenue to reach $800-850 million by the end of 2027 as this phase comes online.
The company also walked away from the Helios II lease agreement that had been under discussion over the summer, after reassessing its terms amid tight energy supply and growing demand from major AI companies.
Not investment advice.