Galaxy Digital Holdings (GLXY) revealed $323 million in net income for the third quarter of 2026, returning to profitability following an $85 million loss in the prior quarter, driven by expansion in its digital asset trading, lending, and artificial intelligence data center operations.
The organization headed by Mike Novogratz registered $569 million in adjusted gross profit along with $455 million in adjusted EBITDA for the three-month period concluding on September 30, according to the financial report published on Tuesday. Both figures showed substantial gains compared to the second quarter, where adjusted gross profit was $43 million and adjusted EBITDA sat at a negative $77 million. Nevertheless, net income remained lower than the same period last year, when Galaxy generated $505 million.
Galaxy noted a 12% rise in cryptocurrency trading activity from the preceding quarter, despite a contraction in transaction volumes across the broader spot market. Credit operations also expanded, with the company’s average loan portfolio reaching $1.8 billion, marking a 27% increase. Part of that demand was channeled through its Galaxy Onchain Financing Rate offering, introduced in July, which leverages decentralized lending markets like Aave and Morpho, the business explained.
Adjusted gross profit generated from digital assets climbed to $71 million from $66 million, although the segment still posted a $9 million loss on an adjusted EBITDA basis. During the earnings call on Tuesday, executives stated that the division would have been in the black absent a one-time accounting adjustment during the quarter, though they did not disclose the magnitude of the modification.
Galaxy’s Treasury & Corporate division made a substantially larger impact, securing $419 million in adjusted gross profit in contrast to a $42 million loss during the second quarter. Leadership explained that these profits originated principally from higher valuations across its cryptocurrency reserves and private holdings, which include stakes in AI chip startup Etched and Solana treasury firm Forward Industries.
Galaxy stated that it held $10.4 billion in combined assets under management and assets under stake as of late September, reflecting a 46% growth since the end of June.
Additionally, Galaxy reported on Tuesday that its board approved an extra $200 million for Class A common stock repurchases on October 26. The firm finalized its previous buyback initiative on October 15, acquiring approximately 9.8 million shares under the $200 million authorization first disclosed in February. The fresh program carries no fixed termination date, and Galaxy holds no requirement to expend the full $200 million, according to the announcement.
Data center earnings climb as Helios expansion continues
Galaxy accumulated $79 million in adjusted gross profit from its data center operations in the third quarter, which is nearly four times the $20 million reported in the previous quarter. Adjusted EBITDA attributable to this sector reached $69 million.
These metrics incorporate the first complete quarter of revenue originating from the Helios I Phase I lease in Texas, following Galaxy’s delivery of all 133 MW of critical IT load to CoreWeave prior to the end of June.
Furthermore, Galaxy has expanded its overall gross data center power pipeline to surpass 5.7 GW. Work at Helios I Phase II continues ahead of the initial scheduled data hall handovers slated for the second quarter of 2027, the enterprise noted in the statement.
During the Tuesday earnings call, Novogratz mentioned that Galaxy anticipates exiting 2027 with an annualized leasing revenue run rate between $800 million and $850 million once Helios I Phase II becomes fully operational. He also disclosed that Galaxy declined a potential Helios II leasing opportunity over the summer after tighter power availability and mounting interest from prominent AI corporations led the company to re-evaluate the proposed terms.
“Galaxy delivered a strong third quarter, reflecting the strength of our established Digital Assets franchise, significant appreciation across our investments portfolio, and the growing contribution from our Data Centers business,” Novogratz remarked in the release.
Originally published at https://www.theblock.co/news/business/2026-10-27-galaxy-digital-323-million-quarterly-profit-new-200-million-share-buyback-431860.
