Galaxy Digital Stock Surges After Quarterly Earnings Crush Estimates

• Galaxy Digital swung to a third-quarter profit of $323 million, as data center adjusted EBITDA jumped 498%.
• Adjusted earnings of $0.83 per share beat the $0.20 estimate from analysts, according to Koyfin.
• Galaxy approved a new $200 million buyback after completing its earlier program.

Galaxy Digital Inc. (GLXY) shares rose in morning trade on Tuesday as the firm announced that it swung back to a profit in its third-quarter earnings report, with its data center earnings rising nearly.

According to the firm, its data center unit's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) climbed 498% to $69 million, up from $11 million in the second quarter, which is nearly sixfold. 

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The company said that during the quarter, Galaxy's data center business made $79 million in adjusted gross profit which was the first full quarter of revenue-generating operations under the Helios I, Phase I lease, as all 133 megawatts of critical IT load were delivered to CoreWeave (CRWV) by the end of the second quarter.

Profit Tops Estimates

Galaxy reported net income of $323 million, reversing a loss of $85 million in the second quarter, while revenue and gains from operations were $8.69 billion, slightly ahead of the $8.68 billion analysts had predicted, according to Koyfin. Total adjusted EBITDA reached $455 million.

Founder and CEO Mike Novogratz said the quarter reflected “the strength of our established Digital Assets franchise, significant appreciation across our investments portfolio, and the growing contribution from our Data Centers business.”

In Galaxy's digital assets business, trading volumes grew 12% from the prior quarter, even as volumes across the broader spot crypto market fell. The average loan book rose 27% to $1.8 billion. 

The company said that assets under management (AUM) and assets staked with Galaxy rose 46% to over $10 billion. The company also signed a multi-year deal with BNY Mellon (BNY) to support staking on the bank's digital asset custody platform.

Revenue Edges Past Estimates

Adjusted earnings came to $0.83 per share, about 315% above the $0.20 expected by analysts, according to Koyfin data. 

Galaxy's treasury and corporate unit, which holds its crypto and investment positions, generated $395 million of adjusted EBITDA.

On Stocktwits, Galaxy was one of the top trending tickers at the time of writing. GLXY stock was up by over 3% during early morning trading hours, trimming gains from 6%. 

On Stocktwits, the retail sentiment around GLXY moved to 'extremely bullish' from the 'neutral' zone, while chatter around it improved to ‘extremely high’ from 'high' levels over the past day.

More Data Center Capacity Coming

Additionally, the company also said Helios I, Phase II was fully funded through a $3.5 billion bond sale, and it expects to begin delivering it in the second quarter of 2027. The company said it is still in talks with possible tenants for 830 megawatts of approved capacity at Helios II.

Galaxy said its gross power pipeline now exceeds 5.7 gigawatts. Galaxy also completed its earlier $200 million buyback earlier this month, having repurchased about 9.8 million shares. Its board approved a new $200 million program on Monday, with no fixed end date.

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