Galaxy Digital earnings show a $323 million profit and a new $200 million buyback

Mike Novogratz's firm is back in the black. Galaxy Digital earnings showed third-quarter net income of $323 million, reversing an $85 million loss in the second quarter, as trading, lending and AI data centers all contributed, and the board approved another $200 million of share buybacks.

What happened

Adjusted gross profit was $569 million and adjusted EBITDA $455 million, with diluted EPS of $0.66 and adjusted EPS of $0.83, the company said. Net income was still below the $505 million of a year earlier, The Block noted.

Digital asset trading volume grew 12% from the prior quarter even as wider spot market volumes declined, and the average loan book rose 27% to $1.8 billion. Assets under management and under stake reached $10.4 billion combined, up 46%. The Treasury & Corporate segment delivered $419 million of adjusted gross profit on higher valuations of its holdings, including stakes in chip startup Etched and Forward Industries, The Block reported.

Data centers produced $79 million of adjusted gross profit and $69 million of adjusted EBITDA in the first full quarter of the Helios I Phase I lease, after all 133 MW of critical IT load was delivered to CoreWeave by the end of June.

Why it matters

Galaxy now looks like part crypto bank, part AI landlord. On the call, Novogratz said he is aiming for leasing revenue running at $800 million to $850 million a year by the end of 2027, once the second phase of Helios I is live, according to The Block. The gross power pipeline exceeds 5.7 GW, and the company held $4.9 billion in cash, stablecoins and Treasuries. Its main tenant sits in the neocloud group whose debt we examined in Nvidia AI backstops.

The crypto side still swings with prices. Bitcoin has been stuck near $80,000, as we noted in Bitcoin Fed jitters, and was flat at $80,736 on Wednesday ahead of the Fed decision, CNBC reported. These Galaxy Digital earnings leaned heavily on investment gains, which can reverse if markets turn.

What's next

The new buyback has no end date and does not oblige Galaxy to buy the full amount; the previous $200 million program finished on Oct. 15 after about 9.8 million shares. Helios I Phase II data halls are scheduled for delivery in the second quarter of 2027. Whether Galaxy Digital earnings stay this strong depends on that build and on crypto markets. Details are in Galaxy's results release.

The call

We say bitcoin will be above $80,000 at noon ET on October 31, measured on Binance's BTC/USDT one-minute candle. Polymarket's "Will the price of Bitcoin be above $80,000 on October 31?" market priced Yes at 65% at 08:22 MSK on Oct. 28. Bitcoin is sitting only slightly above that line, so the Fed decision and Big Tech earnings this week are the main risks to this call.