Galaxy Digital (NASDAQ: GLXY) shares advanced after the company reported a sharp return to profitability in the third quarter of 2026 and authorized a fresh share repurchase program.
The digital asset and infrastructure firm posted net income of $323 million for the three months ended September 30, reversing an $85 million loss from the prior quarter.
Diluted earnings per share came in at $0.66, while adjusted earnings per share reached $0.83.
Adjusted gross profit totaled $569 million and adjusted EBITDA stood at $455 million, both substantially higher than the second-quarter figures of $43 million and negative $77 million, respectively.
The improvement reflected gains across Galaxy’s core activities.
In the digital assets segment, trading volumes rose 12 percent quarter-over-quarter, outperforming broader spot-market activity that declined during the period.
The firm’s average loan book expanded 27 percent to $1.8 billion, supported by stronger demand for financing products including its Galaxy Onchain Financing Rate as market conditions improved.
Combined assets under management and assets under stake reached $10.4 billion, up 46 percent from the end of June, aided by net inflows into asset-management products and growth in staking.
Galaxy’s expanding data-center operations contributed meaningfully to results.
The segment generated $79 million in adjusted gross profit and $69 million in adjusted EBITDA, compared with $20 million and $11 million, respectively, in the previous quarter.
These gains coincided with the first full quarter of revenue under the Helios I Phase I lease, following delivery of all 133 megawatts of critical IT load to CoreWeave by the end of the second quarter.
The company has fully financed Helios I Phase II through a $3.5 billion senior secured notes offering and expects data-hall deliveries to begin in the second quarter of 2027.
Galaxy’s overall data-center power pipeline now exceeds 5.7 gigawatts.On the balance sheet, total assets increased 51 percent quarter-over-quarter to $16.4 billion.
Equity capital stood at $3.0 billion, while cash, stablecoins, and U.S. Treasuries totaled $4.9 billion.
The Treasury and Corporate segment, which holds the firm’s digital asset and investment exposures, drove a large portion of the quarterly earnings recovery through higher valuations of those holdings.
In connection with the results, Galaxy’s board authorized an additional repurchase of up to $200 million of Class A common stock.
The company had completed its prior $200 million authorization on October 15, having repurchased approximately 9.8 million shares year-to-date—more than offsetting dilution from equity-based compensation.
The new program has no fixed expiration and is intended to allow opportunistic returns of capital to shareholders when the stock trades at a discount to the company’s assessment of intrinsic value.
Separately, Galaxy’s research team has expressed a constructive view on the broader digital asset market.
Head of firmwide research Alex Thorn has argued that the Bitcoin bear market ended in June 2026 and that the asset has entered an accumulation phase.
The analysis cites technical indicators, including multiple weekly closes above the 50-week moving average after an extended period below it, reduced selling from long-term holders and large institutional participants, and the strengthening case for Bitcoin as a hedge amid elevated U.S. fiscal deficits.
The research concludes that current levels represent an attractive opportunity to buy and hold, while noting that a sustained break below key technical support would challenge the outlook. This perspective aligns with the firm’s overall emphasis on disciplined execution across both digital assets and AI-related infrastructure as drivers of longer-term value.
