TLDR
- Galaxy Digital (GLXY) stock closed up more than 9.5% at $17.18 on Tuesday after a $323 million Q3 profit.
- The result reverses an $85 million Q2 loss. Adjusted EBITDA was $455 million.
- Data center adjusted gross profit hit $79 million, nearly four times the prior quarter.
- The board approved a new $200 million buyback on Oct. 26, after the last one ended Oct. 15.
- Trading volumes rose 12%, and the average loan book grew 27% to $1.8 billion.
Galaxy Digital (GLXY) stock closed up more than 9.5% at $17.18 on Tuesday after the company swung to a third-quarter profit. The stock is still down about 23% since the start of the year.
Net income came in at $323 million for the three months ended Sept. 30. That reverses an $85 million loss in the second quarter.
Adjusted gross profit was $569 million, up from $43 million in Q2. Adjusted EBITDA hit $455 million, against a loss of $77 million.
Diluted earnings per share were $0.66. Adjusted EPS came in at $0.83.
It was not a record quarter, though. Galaxy earned $505 million in the same period a year ago.
Where the profit came from
The Treasury & Corporate unit did the heavy lifting with $419 million in adjusted gross profit. It lost $42 million in the second quarter.
Management credited higher values on digital asset holdings and private investments, including Etched and Forward Industries.
The digital assets unit made $71 million in adjusted gross profit, up from $66 million. It still lost $9 million on an adjusted EBITDA basis.
Management said the unit would have been profitable without a one-time accounting adjustment. It did not say how big that adjustment was.
Trading volumes rose 12% from the second quarter, even as the broader spot market slowed. The average loan book grew 27% to $1.8 billion.
Assets under management and assets under stake reached $10.4 billion, up 46% from June. Total assets rose 51% to $16.4 billion.
Data centers and the buyback
Data centers produced $79 million in adjusted gross profit, nearly four times the $20 million from Q2. It was the first full quarter of revenue from the CoreWeave lease at Helios I Phase I in Texas.
Galaxy also closed a $3.5 billion senior secured debt offering for Helios I Phase II. The first data halls there are due in the second quarter of 2027.
The firm is looking for tenants for another 830 MW at Helios II. Novogratz said it passed on one leasing deal over the summer as power supply tightened and AI demand grew.
He expects Galaxy to exit 2027 with an annualized leasing revenue run rate of $800 million to $850 million. That depends on Helios I Phase II coming online.
The board approved another $200 million in Class A stock repurchases on Oct. 26. The last program ended Oct. 15, with about 9.8 million Class A stock repurchased.
The new buyback has no end date, and Galaxy does not have to spend the full amount. The stock ended Tuesday at $17.18.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
