Galaxy Digital turned an $85 million loss into a $323 million profit in a single quarter. The turnaround shows a big crypto firm firing on three fronts at once, and traders will now watch whether that strength can survive a softer crypto market.
Key points:
- Galaxy reported $323 million in net income for the third quarter of 2026, after an $85 million loss in the second quarter, with adjusted EBITDA of $455 million.
- Crypto trading volumes rose 12% from the previous quarter, and the average loan book grew 27% to $1.8 billion.
- The board authorized a fresh $200 million share buyback on October 26, after finishing the previous $200 million program on October 15.
For the three months ended September 30, Galaxy posted $569 million in adjusted gross profit and $455 million in adjusted EBITDA. In the second quarter, adjusted gross profit was just $43 million, and adjusted EBITDA was negative $77 million. One caveat matters: profit was still lower than a year earlier, when Galaxy made $505 million, so this is a recovery, not a record.
The biggest driver was the Treasury and Corporate business, which recorded $419 million in adjusted gross profit after a $42 million loss in the second quarter. Management said the gain came largely from higher valuations of its digital asset holdings and private investments, including positions in AI chip startup Etched and Solana treasury firm Forward Industries. By contrast, the core digital assets division still lost $9 million on an adjusted EBITDA basis, although management said it would have been profitable without a one-time accounting adjustment.
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What happens next?
Data centers added a second engine. Galaxy made $79 million in adjusted gross profit from data centers in the third quarter, nearly four times the $20 million of the previous quarter, with $69 million in adjusted EBITDA. The figures include the first full quarter of revenue from its Helios I Phase I lease in Texas, after Galaxy delivered all 133 megawatts of critical IT load to CoreWeave by the end of June. Its total data-center power pipeline now exceeds 5.7 gigawatts, and management expects to exit 2027 with an annualized leasing revenue run rate of $800 million to $850 million as Helios I Phase II comes online.
For traders, the buyback is the clearest signal, because a company does not authorize $200 million of repurchases when it expects trouble. But the profit itself needs a closer read: much of it came from investment valuations, which can reverse quickly if crypto prices fall, rather than from steady trading fees alone. So the next catalysts are simple to watch: whether trading volumes and the $1.8 billion loan book keep growing, whether Helios Phase II stays on schedule for the second quarter of 2027, and whether Galaxy's shares hold their gains while Bitcoin trades around $80,000.
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— BitByLine News Desk
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Sources: The Block, Galaxy Digital