Shares Rise Modestly After Beat

Shares of Galaxy Digital (GLXY) are ahead 2% on Tuesday after the crypto-focused financial firm beat third quarter revenue expectations by a wide margin and confirmed major progress on its Helios data center project.

Led by CEO Mike Novogratz, the company reported $29 billion in revenue, nearly doubling analyst forecasts of $16 billion. Galaxy credited its trading business and growth in digital asset valuations for the outperformance.

The company also announced that CoreWeave (CRWV), a cloud infrastructure firm focused on AI workloads, has committed to the full 800-megawatt capacity at Galaxy’s Helios data center in Texas. With this commitment and a $1.4 billion project financing deal from Deutsche Bank closed in August, phase one of the project is fully funded and on track.

Galaxy COO Chris Ferraro described the pace of construction as “extraordinary,” with more than 500,000 labor hours logged and over 700 workers on site daily. The first data hall is expected to power on in early December, with commissioning to follow.

Ferraro said Helios has moved beyond the planning phase and is on track to become one of the world’s largest AI and high-performance computing campuses.

Jefferies highlighted the significance of Galaxy’s Helios data center project, noting that the company secured a $460 million equity investment from an unnamed asset manager to support its build-out.

Analysts emphasized that construction remains on schedule, with initial delivery expected in the first half of 2026. While Galaxy currently has no additional power capacity available, Jefferies pointed to the company’s ongoing efforts with ERCOT and WETT to secure another 2.7 gigawatts of capacity. The firm said it is closely watching Helios’ development and expects any future power approvals to serve as a “significant tailwind for the stock.”

Galaxy One Targets High-Net-Worth Clients

On the retail side, Ferraro spotlighted Galaxy One, an investing platform for crypto, equities, and yield products that the company launched earlier this month. Ferraro said the platform is aimed at mass affluent investors — those with significant wealth but underserved by traditional platforms.

He cited early uptake, pointing to users with an average net worth of $2 million and annual income over $340,000. The goal, according to the company, is to become a one-stop shop for managing both traditional and digital assets.

“Over time, we expect this product to broaden and diversify our sources of funding, which will help drive efficiency and profitability in our digital assets business overall,” Ferraro said.

Navigating a Volatile Crypto Market

The company also addressed recent forced liquidations in the crypto ecosystem. Novogratz said Galaxy’s trading desk performed well during the volatility, avoiding credit losses that impacted other firms, including some DeFi market makers.

He added that the recent wave of crypto liquidations led to reduced market liquidity and wider bid/ask spreads, but also opened up hiring opportunities and highlighted the importance of disciplined risk management.

Looking Ahead

Galaxy executives emphasized their long-term strategy: expanding the Helios blueprint into other regions and diversifying its data center tenant base beyond CoreWeave. They also see potential to refinance Helios once phase one stabilizes, which could unlock hundreds of millions in equity to fund future build-outs.

“There’s a gold rush going on,” Ferraro said. “You’ve got to be very careful during gold rushes that you build in smart places at the right price.” He emphasized that Galaxy is focused on delivering projects “on time and on budget,” a capability he believes is undervalued in the current market.

Despite strong momentum, Jefferies noted that Q4 could be more challenging if digital asset prices continue to soften. Still, analysts believe Galaxy is in a strong position to weather any short-term volatility.

“Continued momentum across KPIs and capital execution at Helios favorably position the company heading into Q4,” Jefferies wrote in a client note.

Shares of Galaxy Digital are now up nearly 130% year-to-date.