Galaxy Digital posts $323M Q3 profit and adds $200M buyback

What happened

Galaxy Digital reported $323 million in net income for the third quarter ended Sept. 30, 2026, reversing an $85 million loss in the prior quarter. The Mike Novogratz-led firm said adjusted EBITDA reached $455 million, compared with a $77 million loss in the second quarter, while adjusted gross profit rose to $569 million from $43 million. Diluted earnings per share were $0.66, and adjusted earnings per share were $0.83.

Alongside the results, Galaxy said its board approved an additional $200 million share repurchase program on Oct. 26. The new authorization came after the company completed an earlier $200 million buyback on Oct. 15; under that program, it repurchased about 9.8 million shares. Blockonomi reported that the repurchases were larger than dilution from equity-based compensation during the first nine months of 2026.

The market reaction was described differently by the two outlets. Blockonomi said GLXY jumped 6.63% to $16.72, a gain of $1.04. Bitcoin.com News said the Nasdaq-listed shares finished the trading day up more than 9.5% at $17.18 and noted they were still down about 23% since the start of the year. Both reports linked the move to the earnings release and buyback announcement.

Why it matters

Galaxy's quarter shows how much its results now depend on two businesses: cryptocurrency financial services and AI computing infrastructure. The treasury and corporate division generated $419 million in adjusted gross profit, compared with a $42 million loss in the previous quarter, helped by appreciation in its investment portfolio. The digital assets business produced $71 million in adjusted gross profit, up 9% quarter over quarter, but still recorded a $9 million adjusted EBITDA loss. The data-center division generated $79 million in adjusted gross profit, nearly four times the $20 million in the second quarter, and adjusted EBITDA of $69 million versus $11 million. That segment benefited from the first full quarter of revenue under Galaxy's lease with AI infrastructure provider CoreWeave at its Helios campus in Texas. The new buyback adds another capital-return decision for a company that is also investing heavily in infrastructure.

What the data shows

Galaxy ended September with $16.4 billion in total assets, up 51% from the previous quarter, and $3 billion in total equity. Its cash, stablecoin and U.S. Treasury holdings nearly doubled to $4.9 billion from $2.5 billion. Blockonomi reported the total included $1.325 billion in cash, $812 million in stablecoins and $2.756 billion in Treasury securities, and said net digital assets and investments rose 48% to $1.7 billion. Assets under management plus assets under stake increased 46% to $10.4 billion, while the average loan book grew 27% to $1.8 billion and crypto trading volumes rose 12% quarter over quarter. In data centers, Galaxy delivered all 133 megawatts of critical IT load for the first phase of Helios by the end of June. It completed a $3.5 billion senior secured debt offering for the second phase of Helios I, expects more data halls in the second quarter of 2027, and is seeking tenants for 830 megawatts of approved but unleased capacity at Helios II. Its total gross power development pipeline exceeds 5.7 gigawatts.

Background

Galaxy is a crypto investment firm led by Mike Novogratz and listed on Nasdaq. It completed a corporate reorganization in May 2025. The company had a difficult start to 2026, posting a $216 million first-quarter loss amid declining cryptocurrency prices, and it lost $85 million in the second quarter. It introduced the original $200 million buyback in February after a fourth-quarter loss, according to Bitcoin.com News. In August, Galaxy partnered with BNY to offer staking services through the bank's digital-asset custody platform. It has also shifted infrastructure spending toward AI computing, including converting former bitcoin mining operations at Helios. In July, it acquired about 500 acres in McGregor, Texas, for another AI and high-performance computing campus, initially targeting 74 megawatts.

What is still unclear

Reports disagreed on the size of the stock's move. Blockonomi cited a 6.63% gain to $16.72, while Bitcoin.com News reported a close above $17.18, up more than 9.5%. Neither report explained the difference in closing figures.

What to watch

Investors will watch whether Galaxy leases the 830 megawatts of approved Helios II capacity and whether it delivers the next Helios I data halls on schedule in the second quarter of 2027. The performance of the digital assets unit, which remained at an adjusted EBITDA loss, and the pace of the new buyback are also likely to draw attention.

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