Galaxy Digital Profit Soars 1,546% as AI, Trading Units Surge
Record Quarter Driven by Trading and Treasury Gains
Galaxy Digital reported the strongest quarter in its history, with profit up 1,546% to $505 million, lifted by record trading volumes, treasury inflows, and ahead returns from its artificial-intelligence infrastructure business. Core earnings rose to $629 million from $211 million in the prior quarter, while total assets increased 27% to $11.5 billion, according to the company’s report on Tuesday.
Galaxy added $4.5 billion in new digital-asset-treasury mandates, pushing platform assets to $17 billion. The surge in inflows and activity assisted the firm capitalize on renewed institutional appetite for crypto exposure amid a wider rebound in digital markets.
Founder and CEO Mike Novogratz said the results reflect eight years of building across both digital-asset markets and physical infrastructure. “We’re half a data-center company and half a digital-assets company,” he told investors. “Helios is the cornerstone of our future.”
Investor Takeaway
Helios Pivot Pays Off
The company’s 800-megawatt Helios campus in Texas, once among North America’s largest BTC mines, is being converted into an AI-compute facility under a long-term lease with CoreWeave. Galaxy has closed $1.4 billion in project financing for the first phase and raised another $460 million this month to accelerate the conversion. Revenue from Helios is expected to begin contributing in the first half of 2026.
Novogratz’s bet on AI infrastructure has gained traction following BlackRock and Nvidia’s $40 billion acquisition of Aligned Data Centers last week, which valued power capacity roughly 160% higher than comparable BTC miners. The deal validated Galaxy’s pivot away from mining toward higher-margin AI infrastructure.
“Helios is now fully financed and leased,” Novogratz said, calling it a long-term engine for cash flow. The company’s shift aligns with a broader market trend that views data-center power and compute capacity as strategic assets in the AI economy.
Breakout in Trading and Asset Management
Galaxy’s digital-assets division generated $318 million in adjusted gross profit, assisted by a 140% surge in and a single $9 billion BTC transaction executed for a client. The asset-management business also expanded rapidly, with inflows concentrated in institutional treasury programs. CFO Chris Ferraro described the period as “a breakout quarter for Galaxy,” citing record results across trading, investments, and infrastructure.
The company ended the quarter with $1.9 billion in cash and stablecoins and $3.2 billion in total equity, positioning it to scale both its trading and infrastructure units. Galaxy’s diversification across with real-world compute investments — gives it a footprint few crypto-native firms have achieved.
Investor Takeaway
Stock Reaction and Market Outlook
Shares of Galaxy climbed to a record high of $44.30 following the results before easing to around $42, data from The Block showed. The stock remains up more than 330% since April, when it $10. Analysts say investors are responding to the firm’s dual exposure and AI-driven infrastructure, two sectors that continue to attract institutional allocations.
Galaxy’s next test will be translating its AI buildout into steady income as Helios comes online in 2026. For now, the company’s performance cements its status as one of the few hybrid players linking blockchain finance with real-world compute demand — a mix Wall Street appears eager to back.
