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    GLXY
    Earnings call· Jun 2026(Q2 FY26)

    Galaxy Digital Q2 FY26 earnings call GLXY

    Aug 5, 2026 Source

    Executive summary

    Galaxy Digital Q2 FY26 — Data Center Expansion and Institutional Digital Asset Infrastructure Drive Strategic Growth

    Galaxy Digital achieved a transformative quarter, successfully bringing Phase 1 of its Helios data center online and securing significant financing for its expansion, positioning itself as a major AI infrastructure provider. Concurrently, its digital assets business demonstrated resilience and strategic growth, deepening institutional partnerships and launching innovative on-chain financial products despite a challenging crypto market. The company is strategically building infrastructure at both ends of the evolving digital economy, leveraging its capital structure to fund ambitious projects while navigating regulatory uncertainties.

    Highlights

    5

    • Phase 1 of Helios data center delivered on schedule and on budget, generating cash flow with 133 megawatts of critical IT delivered to CoreWeave.

    • Secured $3.5 billion high-yield financing for Phase 2 of Helios, fully funding the additional 260 megawatts of IT capacity.

    • Digital Asset segment adjusted gross profit increased 34% QoQ to $66 million despite weaker crypto market conditions.

    • Signed a multiyear agreement with Bank of New York to advance digital asset infrastructure for institutional markets.

    • Expanded data center development pipeline to over 5.7 gigawatts potential power capacity with the acquisition of three new sites (Merlin, Caspian, Celine) in Texas.

    Concerns

    5

    • GAAP net loss of $85 million or $0.09 per share, primarily driven by depreciation of digital asset prices.

    • Firm-wide adjusted EBITDA was negative $77 million.

    • Treasury and Corporate segment reported an adjusted gross loss of $42 million due to digital asset price depreciation.

    • Cash and stablecoins decreased 6% from Q1 to $2.5 billion, reflecting deployment into operating businesses.

    • Net digital assets and investments decreased 15% from Q1 to $1.2 billion due to crypto price depreciation and modest exposure reduction.

    Guidance & targets

    6
    CategoryTargetConfidence
    Phase 1 Data Center Leasing Revenue
    approximately $80 million
    high materiality
    High
    Phase 1 Data Center Adjusted EBITDA Margin
    over 90%
    high materiality
    High
    Phase 2 Helios Data Hall Deliveries Commencement
    Q2 2027
    high materiality
    High
    Phase 2 Helios Data Hall Deliveries Completion
    seven online by end of 2027, final data hall early 2028
    high materiality
    High
    Phase 3 Helios 1 Online
    throughout 2028
    medium materiality
    High
    Merlin Data Center Initial Phase Energization
    2028
    medium materiality
    Medium

    Segment performance

    6
    SegmentRevenueYoYQoQMargin
    Digital Asset Segment
    Delivered top line growth despite lower digital asset prices and weaker industry activity, reflecting continued market share gains.
    		——34%$66 million adjusted gross profit
    Global Markets (within Digital Asset Segment)
    Growth driven by strength in electronic trading and disciplined risk management, despite declining trading volumes.
    Trading volumes: declined 7%
    		——significantly up from Q1$49 million adjusted gross profit
    Lending (within Digital Asset Segment)
    Growth driven by strong originations toward quarter-end and successful prelaunch of Galaxy OnChain Financing Rate (GOFR).
    Average loan book: modestly increased
    		——modestly increased—
    Asset Management and Infrastructure Solutions
    Balance decline primarily reflects lower digital asset prices and modest net outflows. Expanded investment platform with new funds.
    Combined assets under management and assets under stake: $7 billionCombined assets under management and assets under stake growth: down 12% from Q1
    		———$17 million adjusted gross profit
    Data Centers
    First quarter of real operating financial results, reflecting phased delivery of data halls throughout the quarter. Phase 1 fully online by quarter end.
    Adjusted EBITDA: $11 million
    		———$20 million adjusted gross profit
    Treasury and Corporate
    Results driven primarily by the depreciation of digital asset prices during the quarter.
    		———adjusted gross loss of $42 million

    Operational metrics

    25
    GAAP Net Loss
    $85 million
    Q2 FY26

    Primarily driven by depreciation of digital asset prices.

    Firm-wide Adjusted EBITDA
    -$77 million
    Q2 FY26

    Reflects the impact of digital asset price depreciation on the Treasury and Corporate segment.

    Combined Operating Businesses Adjusted Gross Profit
    $86 millionup significantly from Q1
    Q2 FY26

    Represents the performance of Digital Asset and Data Center segments.

    Combined Operating Businesses Adjusted EBITDA
    $1 millionup significantly from Q1
    Q2 FY26

    Represents the performance of Digital Asset and Data Center segments.

    Firm-wide Operating Expenses (excluding specific items)
    $172 millionup $25 million quarter-over-quarter
    Q2 FY26

    Increase driven primarily by previously capitalized interest and depreciation expense now recognized with data center revenue.

    Total Assets
    $10.8 billionup 9% from prior period
    Q2 FY26

    Balance sheet total assets at quarter end.

    Total Equity
    $2.7 billionessentially flat quarter-over-quarter
    Q2 FY26

    Mix shifted towards operating businesses, expected to grow with data center investment.

    Cash and Stablecoins
    $2.5 billiondown 6% from Q1
    Q2 FY26

    Reflecting cash deployed into operating businesses, primarily Helios build.

    Net Digital Assets and Investments
    $1.2 billiondown 15% from Q1
    Q2 FY26

    Reflecting depreciation of crypto prices and modest reduction in overall net digital asset exposure.

    Data Center CapEx
    $448 millionup from $354 million in Q1
    Q2 FY26

    Expected to continue increasing alongside the pace of construction at Helios.

    Clean Electricity Investment Tax Credit
    $65 million
    Q2 FY26

    Total credit recognized, with half flowing through P&L due to Up-C corporate structure.

    Data Center Segment Total Assets
    $2.5 billion
    Q2 FY26

    Expected to keep growing as the business scales.

    Data Center Segment Total Liabilities
    $1.5 billion
    Q2 FY26

    Expected to keep growing as the business scales.

    Helios Phase 1 Critical IT Delivered
    133 megawatts
    Q2 FY26

    Phase 1 delivered on schedule and on budget.

    Galaxy OnChain Financing Rate (GOFR) Loan Originations
    $300 million
    Q2 FY26

    Generated from the newly launched product, reflecting strong early demand.

    Galaxy Fintech Fund Assets at Launch
    $100 million
    Q2 FY26

    Long/short equity hedge fund focused on digital asset transformation of financial services.

    Helios 1 Gross Power Capacity
    800 megawatts
    Q2 FY26

    Total capacity for Helios 1 across all three phases.

    Helios 2 Approved Capacity
    830 megawatts
    Q2 FY26

    Approved capacity for which conversations with potential tenants are advancing.

    Helios 3 Interconnection Application
    1 gigawatt
    Q2 FY26

    Expected to qualify for inclusion in batch zero as study load.

    Merlin Initial Phase Capacity
    74 megawatts
    Q2 FY26

    Initial phase expected to begin energization in 2028.

    Merlin Potential Growth Capacity
    500 megawatts
    Q2 FY26

    Potential to grow over time as transmission infrastructure is upgraded.

    Caspian Potential Gross Power Capacity
    700 megawatts
    Q2 FY26

    Eligible for batch zero baseload classification, on an advanced development path.

    Celine Potential Gross Power Capacity
    900 megawatts
    Q2 FY26

    Eligible to be classified as batch zero study load.

    Total Potential Power Capacity (Helios + new campuses)
    5.7 gigawatts
    Q2 FY26

    Provides a visible development pipeline for over half a decade.

    Long Lead Electrical Equipment Purchase Orders
    $180 million
    Q2 FY26

    Proactively managing infrastructure procurement to support energization timelines.

    Industry KPIs

    1
    MetricValueDetails
    Fundraising inflowsmodest net outflows

    Product announcements

    6
    ProductTypeDetails
    OTC Prediction Marketslaunch
    Galaxy OnChain Financing Rate (GOFR)launch
    Galaxy Curatorlaunch
    Galaxy Fintech Fundlaunch
    SWEEPlaunch
    Galaxy Ventures franchise (next vintage)roadmap

    Deals & partnerships

    8
    Bank of New YorkMultiyear agreement to advance digital asset infrastructure for institutional markets.multiyear

    Galaxy has forward-deployed engineers on site. Reflects trust in Galaxy's technology and ability to monetize product and engineering talent.

    Morgan Stanley Wealth ManagementSelected Galaxy to help power staking for two new digital asset ETPs and referral program for digital asset lending.

    New distribution partnership expanding Galaxy's footprint and opening new channels for customers.

    State Street Investment ManagementPartnership for the launch of SWEEP, a tokenized private equity fund.

    SWEEP offers 24/7 liquidity and serves as eligible margin collateral on Galaxy's platform.

    HIT contractingNew general contractor for Phase 2 of Helios data center.

    HIT contracting is a leading builder of hyperscale data centers, chosen due to their track record and aspirations in Texas, replacing Cleco from Phase 1.

    Texas Tech15-year naming rights partnership for Red Raider Football stadium (Galaxy Stadium).15 years

    Includes opportunities for student athletes and strengthens talent pipeline for Galaxy's West Texas operations, exploring AI-focused academic initiatives.

    CoreWeaveLease agreement for 133 megawatts of critical IT at Helios Phase 1.

    First phase of Helios data center delivered on schedule and on budget.

    Various lendersPrivate 144A offering of $3.5 billion of 5-year senior secured notes.$3.5 billion5 years

    Structured at an 85% loan to cost, combined with Galaxy equity, fully funds Phase 2.

    Landowners/DevelopersAcquisition of three new data center sites (Merlin, Caspian, Celine) in Texas.

    Structured to commit modest capital upfront, with bulk contingent on development milestones and long-term leasing.

    Risks & headwinds

    4
    Challenging Macro Backdrop for Digital AssetsQ2 FY26

    Crypto prices declined double digits in Q2; trading volumes and on-chain activity remained subdued.

    Mitigation: Building a diversified business model with recurring revenue uncorrelated to market activity; continued market share gains and focus on institutional demand for infrastructure.

    Regulatory Uncertainty for Digital AssetsNear-term (September for potential legislative action)

    Waiting for White House response to ethics compromise; no clarity expected before recess. SEC/CFTC committed to putting out rules.

    Mitigation: Living without clarity since business started; commitment from SEC/CFTC to establish rules of the road.

    Data Center Market Constraints and Political Headwinds in TexasOngoing

    Forward market supply of new projects constrained by physical delivery and political headwinds; Governor Abbott directed audit of all data center projects seeking grid interconnection.

    Mitigation: Proactively managing infrastructure procurement; focusing on responsible development, meeting all requirements, and posting financial security to prioritize projects; deep relationships with state/local government.

    Grid Constraints and Expansion Challenges for Data CentersOngoing

    Grid constraints and fear around grid expansion continue to percolate.

    Mitigation: Targeting front-of-the-meter sites with confidence in deliverability; researching behind-the-meter generation but not making it a primary focus due to complexity.

    What to watch in Q3 FY26

    5

    Phase 1 Data Center Leasing Revenue

    Q3 FY26
    Current$20 million adjusted gross profit (Q2)
    Targetapproximately $80 million

    Why it matters

    Verifies the ramp-up and revenue generation of the newly operational Helios Phase 1, a key driver for the data center segment's profitability.

    With Phase 1 now fully online, beginning in the third quarter, we expect Phase 1 to generate its first full quarter of leasing revenue of approximately $80 million and a project level adjusted EBITDA margin of over 90%.

    Q&A highlights

    6

    Update on discussions with potential tenants for the 830 megawatts at Helios 2, tenant composition (hyperscalers, neo clouds), and gating factors for signing tenants.

    Discussions are ongoing with various tenant types, but Helios 2's late 2028 energization schedule is a primary gating factor as many tenants seek earlier power. The company is building long-term relationships and observing new market structures (e.g., credit wraps) that could broaden the tenant opportunity set.

    “I think the -- as I said in the remarks, the #1 factor for us in that today is Helios 2 energization schedule is currently slated for late 2028. And the industry, as you know, is in such a backlog of necessary supply to meet demand today that those -- a lot of those tenants are focused on how can I lease 2026 power, however, unrealistic that is today in terms of actual being able to deliver that.”

    asked by Patrick Moley · answered by Michael Novogratz

    2 min read6 chapters

    Detailed Narrative

    01

    Strategic Pivot to AI and Digital Asset Infrastructure

    Galaxy Digital is strategically positioning itself at the intersection of AI and digital finance, recognizing that both rely on robust infrastructure. The company is building financial rails for on-chain finance and power/compute infrastructure for AI, aiming to capitalize on the increasing digitization of the economy. This dual focus is seen as a core strength, with both segments delivering strong results in the quarter.

    02

    Data Center Execution and Expansion

    The company successfully delivered Phase 1 of its Helios data center on schedule and budget, providing 133 megawatts of critical IT to CoreWeave and commencing cash flow generation. This execution validates Galaxy's capabilities in large-scale data center development. Furthermore, Galaxy expanded its development pipeline by acquiring three new sites (Merlin, Caspian, Celine) in Texas, bringing its total potential power capacity to over 5.7 gigawatts, positioning it as a significant player in the data center market.

    03

    Institutional Digital Asset Adoption and Product Innovation

    Despite a challenging crypto market, Galaxy's Digital Asset segment grew, driven by increased institutional demand for digital asset infrastructure. A multiyear agreement with Bank of New York for digital asset infrastructure development marks a significant milestone. The company also launched new products like the OTC Prediction Markets, Galaxy OnChain Financing Rate (GOFR), and Galaxy Curator, expanding its offerings and distribution channels for institutional clients.

    04

    Capital Allocation and Balance Sheet Strength

    Galaxy completed a $3.5 billion high-yield financing for Phase 2 of Helios, ensuring capital for its data center roadmap. Total assets grew 9% to $10.8 billion, with 72% of equity capital now allocated to operating businesses, reflecting a strategic shift. While cash and digital assets saw a modest decline due to investments and market depreciation, the company maintains a strong capital base to fund its growth initiatives.

    05

    Regulatory and Market Dynamics in Texas Data Centers

    The Texas data center market is highly competitive, with strong demand for large loads. Galaxy is actively navigating the ERCOT batch process for grid interconnection and is prepared for Governor Abbott's directive for a comprehensive audit of data center projects. The company emphasizes its responsible development approach, having completed required steps and posted financial security for its projects, expecting to be prioritized in the process.

    06

    Strategic Partnerships and Talent Development

    Galaxy is forging strategic partnerships, including with HIT contracting for Helios Phase 2 and a 15-year naming rights deal with Texas Tech for Galaxy Stadium. The Texas Tech partnership aims to strengthen talent pipelines and explore AI-focused academic initiatives, reinforcing Galaxy's commitment to the communities where it operates and its long-term technology ecosystem.

    AI-generated summary of the company’s earnings call. Not investment advice.