Galaxy Digital reports strong Q3, with net income up 1,500 % on record crypto volumes

Galaxy Digital reported on Tuesday in New York that its Q3 net income surged by 1,500 % to $505 million, showing how big the crypto market’s rebound has become.

The company said diluted EPS was $1.01 and adjusted EPS was $1.12. It also reported adjusted EBITDA of $629 million, driven by gains from its crypto trading desk and investment positions.

According to the earnings report, total equity is at $3.2 billion with $1.9 billion in cash and stablecoins by September 30.

Galaxy’s trading volumes jumped 140 % compared with Q2, boosted by demand for spot and derivatives. The company also executed a $9 billion bitcoin sale totaling more than 80,000 BTC. Galaxy credited its performance to record trading activity and rising institutional participation.

Galaxy expands Helios data center and secures major financing

Construction of Helios, Galaxy’s massive data center in Texas, stayed on schedule through September, and phase I of the build was funded after Galaxy secured a $1.4 billion project financing facility, fully covering the $1.7 billion cost.

The Helios project got another boost when CoreWeave signed a Phase II lease agreement and exercised its final option for 133 megawatts of additional power, bringing its total commitment to the full 800 MW capacity approved for artificial intelligence and high-performance computing.

Galaxy said it received a $460 million equity investment from one of the world’s largest asset managers, generating $325 million in net proceeds to help fund Helios and general operations, earlier this month, but didn’t say who the asset manager is.

The company also expanded the Helios property through a strategic land acquisition, increasing the site to over 1,500 acres with 2.7 gigawatts of potential future power capacity, which is currently being reviewed by ERCOT.

Trading, lending, and asset management push quarterly records

Galaxy’s Global Markets division posted a record adjusted gross profit of $295 million, lifted by strong crypto trading and a robust investment banking quarter.

The average loan book expanded to $1.8 billion, reflecting higher demand from clients across its lending suite.

In investment banking, Galaxy said it acted as co-placement agent and financial advisor on Forward Industries’ $1.65 billion private placement, and also advised Coin Metrics on its sale to Talos.

The Asset Management and Infrastructure Solutions arm brought in $23 million in adjusted gross profit, supported by $2 billion in net inflows into its alternative investment products and ETFs.

The company ended the quarter with $9 billion in assets under management and $7 billion in assets under stake, boosted by $4.5 billion in new digital treasury mandates that generate $40 million in annual recurring fees, said the earnings report.

After the quarter closed, Galaxy’s staking division completed integration with a global digital asset custodian, allowing clients to stake directly through Galaxy validator nodes, opening a new distribution channel for staking services.

Galaxy closed the quarter with $17 billion in total platform assets, its highest ever.