Galaxy Digital (NASDAQ: GLXY) has delivered its most impressive quarter to date, with profits soaring 1,546% to $505 million. The surge was fueled by unprecedented trading volumes, significant treasury inflows, and early gains from its burgeoning AI infrastructure business. Core earnings jumped to $629 million, up from $211 million in the previous quarter, while total assets grew 27% to $11.5 billion, according to the company’s Tuesday report.
The firm also secured $4.5 billion in new digital-asset treasury mandates, pushing platform assets to $17 billion. This growth reflects a renewed institutional appetite for crypto exposure, coinciding with a broader recovery in digital markets.
Founder and CEO Mike Novogratz attributed the results to nearly a decade of strategic development in both digital-asset markets and physical infrastructure. “We’re half a data-center company and half a digital-assets company,” Novogratz told investors. “Helios is the cornerstone of our future.”
AI Infrastructure Pivot Drives Growth
Galaxy’s transformation of its 800-megawatt Helios campus in Texas, once one of North America’s largest bitcoin mining facilities, into an AI-compute hub is paying off. Under a long-term lease with CoreWeave, the company has secured $1.4 billion in project financing for the first phase and raised an additional $460 million this month to accelerate the conversion. Revenue from Helios is expected to begin flowing in the first half of 2026.
The pivot to AI infrastructure gained validation after BlackRock and Nvidia’s $40 billion acquisition of Aligned Data Centers, which valued power capacity 160% higher than comparable bitcoin mining operations. Novogratz emphasized that Helios is now fully financed and leased, positioning it as a long-term cash flow generator. This shift aligns with a broader market trend recognizing data-center power and compute capacity as critical assets in the AI-driven economy.
Trading and Asset Management Break Records
Galaxy’s digital-assets division posted $318 million in adjusted gross profit, driven by a 140% increase in trading volumes and a single $9 billion bitcoin transaction for a client. The asset-management arm also saw rapid growth, with institutional treasury programs driving inflows. CFO Chris Ferraro described the quarter as a “breakout” for Galaxy, highlighting record performance across trading, investments, and infrastructure.
The company ended the quarter with $1.9 billion in cash and stablecoins and $3.2 billion in total equity, positioning it to scale both its trading and AI infrastructure operations. Galaxy’s diversified approach — blending digital-asset management with real-world compute investments — sets it apart from other crypto-native firms.
Stock Performance and Market Outlook
Galaxy’s stock surged to an all-time high of $44.30 following the earnings announcement before settling around $42. The stock has climbed over 330% since April, when it traded below $10. Analysts attribute the rally to Galaxy’s unique positioning at the intersection of digital assets and AI infrastructure, two sectors attracting significant institutional investment.
Looking ahead, Galaxy’s challenge will be converting its AI infrastructure buildout into consistent revenue as Helios comes online in 2026. For now, the company’s performance underscores its status as a hybrid leader bridging blockchain finance and AI-driven compute demand — a combination that continues to win Wall Street’s favor.
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