Galaxy Digital

What they do

Galaxy operates two business segments: Digital Assets and Data Centers. The Digital Assets segment provides OTC spot and derivatives trading, lending, structured products, M&A advisory, capital markets services, and asset management through ETF and alternative strategies, plus blockchain infrastructure (staking, tokenization, custodial technology). The Data Centers segment develops and will operate HPC infrastructure, anchored by the Helios campus in West Texas under a 15-year lease with CoreWeave.

Revenue drivers

• Digital Assets – Global Markets — Generates revenue from OTC spot and derivatives trading, lending, structured products, and investment banking advisory services. This is a primary revenue contributor as the company has relationships with approximately 1,700 trading counterparties.
• Digital Assets – Asset Management & Infrastructure Solutions — Generates revenue from management fees on ETF and alternative investment strategies, plus staking, tokenization, and custodial technology services. As of March 31, 2026, approximately $8.7 billion in assets were across the platform.
• Data Centers – Helios Campus Leases — Long-term revenue from leasing HPC capacity to CoreWeave. The initial 133 MW critical IT load (using ~200 MW gross power) is expected to be delivered by end of H1 2026, with additional 393 MW critical IT load under Phase II and Phase III leases expected to be delivered starting in 2027.

Recent performance

For Q1 2026 (three months ended March 31, 2026), Galaxy reported a net loss of $216.3 million, improved from a net loss of $295.4 million in Q1 2025. Quarterly revenue was $10.01 billion for March 31, 2026. Annual revenue was $60.24 billion in 2025, up from $42.50 billion in 2024 and $51.58 billion in 2023. However, net income swung from $346.7 million in 2024 to a net loss of $241.3 million in 2025. Operating cash flow was negative $316.6 million in 2025.

Strategy

Galaxy is leveraging its experience in bitcoin mining infrastructure to build HPC data center capacity, with the Helios campus as the centerpiece. The company secured ERCOT approval for over 1.6 GW of gross power capacity at Helios, with 830 MW yet to be contracted. In October 2025, Galaxy launched GalaxyOne, a retail fintech platform offering an FDIC-insured high-yield deposit account (via Cross River Bank), debt securities, and commission-free equities and crypto trading (via DriveWealth and Paxos). The company continues to expand its Digital Assets segment by adding staking, margin-based financing, and active ETFs.

Risks

• Limited operating history and profitability uncertainty — Galaxy's business lines are nascent and unproven; the company reported a net loss in 2025 and negative operating cash flow for three consecutive years, and profitability is not assured.
• Digital asset price volatility — The highly volatile nature of cryptocurrencies directly impacts Galaxy's trading revenue, investment portfolio, and client activity, leading to significant fluctuations in operating results.
• Regulatory risk on digital asset securities classification — A determination that a digital asset Galaxy transacts in is a 'security' under federal securities laws could adversely affect the asset's value and result in adverse regulatory consequences for Galaxy.
• Execution risk in HPC data center conversion — Galaxy's strategy to convert bitcoin mining infrastructure into AI/HPC data centers is capital-intensive and subject to cost overruns, delays, and reliance on financing; any failure could materially impact financial condition.

Outlook

Management expects to deliver substantially all 133 MW of critical IT load at Helios by the end of the first half of 2026 under the CoreWeave lease. The Phase II and Phase III leases for an additional 393 MW of critical IT load are expected to be delivered starting in 2027. The remaining 830 MW of approved power capacity at Helios remains available to be contracted. Galaxy continues to seek financing for its data center expansion and aims to grow its Digital Assets platform through new products and increased institutional adoption.