Galaxy Digital (GLXY) Q2 FY26 earnings call: guidance and Q&A

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

Which products are key near-term investment/growth priorities in digital assets, differentiating between trading and crypto infrastructure, and where is traction strongest?

The focus is on partnership-level engagements with large institutions looking to build and own their own infrastructure, offering modular building blocks for staking, tokenization, wallet infrastructure, and vaults/curation. The Bank of New York agreement is a prime example, reflecting a deeper, longer-term relationship approach.

“So these are really -- I think what we see as the real opportunity is these partnership level engagements. The one that we just announced with Bank of New York is the first. And there are other similar type conversations. But the way we think about it is really these are engagements where we see a deeper, longer-term relationship where we can build together with large institutions.”

asked by James Yaro · answered by Anthony Paquette

Clarification on the financing strategy for Helios Phase 2 and 3, specifically if it was a single deal or done to get ahead of market turbulence.

Phase 2 and 3 were not financed in one deal. The recent $3.5 billion high-yield bond was specific to Phase 2. Galaxy had prefunded equity for Phase 2 and expects to prefund equity for Phase 3 through prior capital planning and cash generation. Future debt financing for Phase 2 is expected as it ramps up.

“So just to clarify, Phase 2 and Phase 3 were not done as one single deal. So the high-yield bond offering we did very recently was specific to Phase 2, which is the largest phase of Helios 1 for CoreWeave. It was a $3.5 billion high-yield notes offering.”

asked by Edward Engel · answered by Michael Novogratz

Is Galaxy exploring behind-the-meter power solutions for its new data center sites, especially given the tight power market?

All targeted sites are front-of-the-meter, with confidence in grid infrastructure development over time. While behind-the-meter generation is being researched and may be pursued in the future, it's not the current focus due to its complexity, financing challenges, and operational dependencies compared to front-of-the-meter assets.

“On the behind-the-meter side, we have continued to do a lot of work on our side. We actually have advanced some pretty specific conversations on potential partnerships and potential projects that we would look at to do behind-the-meter. We do think behind-the-meter generation attached to data centers is going to become more prevalent, particularly as grid constraints and fear around grid expansion sort of continues to percolate.”

asked by Gregory Lewis · answered by Anthony Paquette

What drove the decision to change the general contractor from Cleco (Phase 1) to HIT contracting for Phase 2?

The change was a collaborative decision driven by Cleco's existing project commitments, Galaxy's aggressive timeline requirements for Phase 2 (double the size of Phase 1), and the need for a larger workforce. HIT contracting, a nationally recognized data center contractor with aspirations in Texas, was a suitable replacement.

“But there's a lot -- given their project commitments and our time line requirements and the necessary labor and workforces that were required for Phase 2, which is double the size on a similar time line from Phase 1. We made a decision ultimately to go ahead, and it was really a collaborative decision with [ Cleco ] to go ahead with [ HIT ] for Phase 2 was a top nationally recognized data center contractor, a strong track record of delivering and who themselves had aspirations to really build a much bigger presence in Texas as the focus has moved to the large-scale development in the industry in Texas.”

asked by Bill Papanastasiou · answered by Michael Novogratz

Where is the most tangible convergence between AI computing and on-chain financial markets, and what capabilities allow Galaxy's businesses to create more value together?

While there isn't a direct, fast pivot for convergence, the company sees both as long-term infrastructure plays. The data center business provides insight into the rapid AI revolution, reinforcing the importance of blockchain rails for all financial instruments. The data center's future cash flow also provides stability for the crypto business to navigate transitions without pressure, creating a beneficial 'barbell' structure.

“What it has done for us has given us a bird's eye view of just how much capital and how fast the AI revolution is coming, how much capital is taking and how fast the revolution is coming. And understanding that really why crypto, why blockchain rails are going to become so important. But there's, in some ways, two very different businesses at the tail sides of one big theme.”

asked by Nathan Frankovitz · answered by Michael Novogratz