Galaxy Digital Shares Rise Following $323M Q3 Profit, New $200M Buyback Plan

Galaxy Digital swung to a $323 million net profit in the third quarter of 2026, reversing an $85 million loss in the prior quarter and signaling a broad recovery across the crypto investment firm's diversified business lines. Shares of the Nasdaq-listed company climbed more than 9.5 percent to $17.18 on Tuesday following the earnings release, though the stock remains down roughly 23 percent year-to-date.

The firm posted adjusted gross profit of $569 million and adjusted EBITDA of $455 million for the quarter, with diluted earnings per share of $0.66 and adjusted EPS of $0.83. Total assets rose 51 percent quarter-over-quarter to $16.4 billion, while cash, stablecoins, and treasuries nearly doubled to $4.9 billion from $2.5 billion in the prior period.

The Treasury and Corporate segment was the standout performer, generating $419 million in adjusted gross profit compared with a $42 million loss in the second quarter. The turnaround was driven primarily by appreciation across the firm's investment portfolio, which benefited from a broader crypto market recovery during the period.

Galaxy's AI data center division posted adjusted gross profit of $79 million, nearly four times the $20 million recorded in the second quarter, with adjusted EBITDA climbing to $69 million from $11 million. The company's Helios I facility in Texas delivered 133 megawatts of capacity by the end of June, and Galaxy's total power pipeline now stands at more than 5.7 gigawatts. The Helios II project carries 830 megawatts of unleased capacity, pointing to significant potential upside.

The Digital Assets division, which houses the firm's trading, lending, and asset management operations, contributed $71 million in adjusted gross profit, up 9 percent quarter-over-quarter, though it posted an adjusted EBITDA loss of $9 million. Cryptocurrency trading volumes rose 12 percent despite a broader decline in industry-wide spot market activity, and the firm's loan book grew 27 percent to $1.8 billion. Assets under management and administration reached $10.4 billion, a 46 percent increase from the prior quarter.

Alongside the earnings release, Galaxy's board authorized a new $200 million share repurchase program on October 26, one day after the company announced the completion of a prior $200 million buyback under which it purchased approximately 9.8 million shares. The back-to-back programs reflect management's view that the stock remains undervalued relative to the firm's underlying assets and growth trajectory.

Chief executive Mike Novogratz said the results reflected established digital assets operations, investment portfolio gains, and growing data center contributions. The comment underscored Galaxy's ongoing effort to diversify beyond pure cryptocurrency exposure and position itself at the intersection of digital finance and high-performance computing infrastructure.

In August, Galaxy announced a partnership with BNY Mellon to offer institutional crypto staking services, a deal that analysts have cited as a meaningful signal of deepening ties between traditional finance and the digital asset sector. Total equity stood at $3 billion at the end of the quarter.

Looking ahead, the firm's rapidly expanding data center pipeline will be a key variable for investors. With Helios II's 830 megawatts still to be leased, management's ability to secure long-term contracts with hyperscale and enterprise customers will determine how quickly that segment can build on its third-quarter momentum.

The Q3 results come as broader crypto markets have found firmer footing following volatility earlier in 2026, a backdrop that has generally benefited diversified digital asset firms with large proprietary balance sheets. Whether Galaxy can sustain profitability into the fourth quarter may hinge as much on market conditions as on the operational progress of its data center ambitions.