Sum the EBITDA column and you get $455 million against a prior-quarter total of negative $77 million. The single largest driver is Treasury & Corporate, a segment whose gross profit swung from negative $42 million to positive $419 million in ninety days. That is mark-to-market appreciation across the company’s spot, derivative, ETF, and venture positions, not recurring fee revenue.
Digital Assets Is Still Burning Cash
Here is the tension in the numbers. Galaxy said its digital asset trading volumes grew 12% quarter-over-quarter, while the broader spot market declined. Its average loan book rose 27% to $1.8 billion. It ended the quarter with 1,763 trading counterparties and $10.4 billion in combined assets under management and assets under stake, up 46%.
And yet the segment lost money on an adjusted EBITDA basis for the second straight quarter. The franchise is growing — it is just not yet profitable under the company’s own non-GAAP yardstick. “The data says the business is expanding; the economics say it is not paying for itself,” is the honest read of the release.
Galaxy did land two institutional wins worth naming. Asset management pulled in more than $160 million of net inflows, helped by the quarter-end launch of the Galaxy Sharplink Onchain Yield Fund, a vehicle that deploys capital across DeFi liquidity protocols. And the company signed a multi-year agreement with BNY, which oversees more than $60 trillion in assets under custody, to support staking on BNY’s Digital Asset Custody platform. These are durable arrangements. They are not yet the source of the quarter’s profit. The institutional push predates this quarter: Galaxy secured a New York BitLicense in May to broaden its U.S. institutional services.
The Data Center Bet Is Finally Paying
The Helios campus in Texas is where the growth narrative is actually landing. Data Centers generated $79 million of adjusted gross profit, up 293% from $20 million, and $69 million of adjusted EBITDA, up from $11 million. The release attributes the step-up to the first full quarter of revenue-generating operations under the Helios I, Phase I lease, with all 133 megawatts of critical IT load delivered to CoreWeave by the end of the second quarter.
Galaxy is pressing the same bet further. Helios I, Phase II is fully financed and under construction, funded in part by a completed $3.5 billion offering of senior secured notes, with data hall deliveries scheduled to begin in the second quarter of 2027. The company’s total gross power pipeline now exceeds 5.7 gigawatts, and it is in discussions with prospective tenants for 830 megawatts of already-approved capacity at Helios II that is not yet under lease.
The capex tells the same story. Data Centers quarterly capital expenditure was $757 million, up 69% from $448 million. This is a company spending like an infrastructure operator, not a crypto broker. The balance sheet reflects the shift: of Galaxy’s $3.0 billion in equity capital, roughly 48% is now allocated to Data Centers, versus about 33% to Digital Assets and 19% to Treasury & Corporate. One segment that once read as a side bet is now the largest line on the equity statement.
The Buyback and the $4.9 Billion Cushion
On October 26, 2026, the board authorized a fresh repurchase of up to $200 million of Class A common stock, “enabling the Company to opportunistically return value to shareholders,” as the release puts it. The prior $200 million program, announced in February 2026, was completed on October 15, 2026, retiring approximately 9.8 million shares.
That gives an arithmetic anchor the release does not state. Nine-point-eight million shares against a $200 million authorization implies an average repurchase price of roughly $20.41 per share if the full amount was spent — about 5% of the 193.3 million weighted-average Class A shares outstanding. A second $200 million program at a similar level would retire roughly the same share count again, which is why Galaxy frames the move as more than offsetting equity-based compensation dilution.
The balance sheet can afford it. Cash, stablecoins, and U.S. Treasuries totaled $4.9 billion at quarter-end, up 99% from $2.5 billion — $1,325 million in cash and equivalents, $812 million in stablecoins, and $2,756 million of U.S. Treasury bills and notes. The new program has no fixed expiration and “does not obligate the Company to acquire any amount of common stock,” so the authorization is optional firepower, not a committed spend.
What the Numbers Don’t Tell You
The countercase writes itself from the same table. An earnings swing driven by Treasury & Corporate mark-to-market gains is reversible. Those gains reflect crypto prices and portfolio valuations on September 30; a down quarter in digital assets would compress them the way the second quarter did, when the same segment posted negative $42 million of gross profit and negative $78 million of adjusted EBITDA. The pattern is already visible across Galaxy’s recent quarters, including the $216 million net loss it reported for the first quarter. The release’s own risk language warns that declines in digital asset prices could materially affect results.
The adjusted figures are non-GAAP, and the quarter is unaudited. Adjusted gross profit and adjusted EBITDA strip out items the company defines on pages 11 through 13 of the release, including equity-based compensation, note interest, taxes, and depreciation. A reader should treat “$569 million adjusted gross profit” and “$323 million net income” as related but not interchangeable measures.
What remains unsettled is whether Digital Assets can reach sustained profitability on its own. Trading volumes, the loan book, and assets under stake are all up — but the segment’s adjusted EBITDA is still negative, at negative $9 million against negative $11 million a quarter earlier. Improvement, yes. Profitability, no.
What to Watch Next
Three signals matter more than the next earnings print. First, whether the 830 megawatts at Helios II finds a tenant; a lease converts pipeline into contracted, recurring target=”_blank” rel=”nofollow noopener”>investor relations page.
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