Where the $323 million came from
Galaxy Digital reported $323 million of net income for the third quarter of 2026, reversing an $85 million loss in the prior quarter. The reversal is real, but it did not come from the part of the business most people mean by “Galaxy.” The Digital Assets franchise, covering trading and asset management, posted negative $9 million of adjusted EBITDA, its second straight quarterly loss on that measure. The profit came from Treasury & Corporate, which swung from a $78 million adjusted EBITDA loss to a $395 million gain, and from Data Centers, which grew adjusted EBITDA to $69 million from $11 million.
Three segments, two different economics
The company splits into three parts, and only one depends directly on crypto prices. Treasury & Corporate holds Galaxy’s net digital asset and investment exposure through a diversified allocation across spot positions, derivatives, ETFs, equities and venture investments. Its adjusted gross profit moved from a $42 million loss to a $419 million gain in a single quarter — appreciation across that portfolio, not recurring fee revenue.
Data Centers is the more durable contributor. The segment earned $79 million of adjusted gross profit, up 293%, as the Helios I Phase I lease produced its first full quarter with all 133 megawatts of IT load delivered to CoreWeave. Helios I Phase II is fully financed and under construction after a $3.5 billion senior secured notes offering, with data hall deliveries set to begin in the second quarter of 2027, and the company’s total power pipeline now exceeds 5.7 gigawatts.
The Digital Assets segment is growing while losing money. Trading volumes rose 12% quarter-over-quarter even as broader spot volumes fell; the average loan book grew 27% to $1.8 billion; and assets under management and stake reached $10.4 billion, up 46%. Asset management took in more than $160 million of net inflows, helped by the quarter-end launch of the Sharplink Onchain Yield Fund, and Galaxy signed a multi-year staking agreement with BNY. None of that pushed the segment’s adjusted EBITDA into positive territory.
Why this quarter can reverse
A profit built on portfolio appreciation is reversible in a way contracted data-center revenue is not. The same Treasury & Corporate segment posted negative $78 million of adjusted EBITDA in the second quarter. A gain that tracks the value of digital asset holdings can compress if prices fall, while a lease on a delivered data hall cannot. The adjusted figures are non-GAAP and unaudited, and they exclude equity-based compensation, notes interest, taxes and depreciation, so the $323 million of net income and the $455 million of adjusted EBITDA are related but not interchangeable.
The balance sheet is tilting toward infrastructure
The shift appears beneath the income statement. Total assets rose 51% to $16.4 billion, and equity reached $3.0 billion. Cash, stablecoins and U.S. Treasuries nearly doubled to $4.9 billion. Galaxy now allocates roughly 48% of its equity capital to Data Centers, 33% to Digital Assets and 19% to Treasury & Corporate. The board also approved a further $200 million share repurchase after retiring 9.8 million shares year-to-date, which the company says more than offsets equity-based compensation dilution.
The open question
Galaxy has become a business with a profitable data-center arm, a liquid balance sheet and a digital-assets franchise that still spends more than it earns on its own adjusted measure. The test over the next several quarters is whether trading and asset management can reach sustained profitability before the next down leg in digital asset prices pressures the treasury gains that carried this quarter.
Source: BlockchainReporter.