Galaxy Digital Posts $505M Q3 Profit, Assets Hit $17B

Galaxy Digital’s third-quarter performance marked a watershed moment for the institutional crypto firm, with profits reaching $505 million amid a broader market resurgence. The New York-based company saw its platform assets grow to a record $17 billion, representing a staggering 70% increase quarter-over-quarter. This explosive growth translated directly to the company’s bottom line, with revenue surging 231% year-over-year to $28.4 million for the quarter.

The company’s trading business showed particularly strong momentum, with trading volumes increasing 140% quarter-over-quarter. This included a massive $9 billion notional Bitcoin sale that Galaxy facilitated earlier this year, demonstrating the firm’s capacity to handle institutional-scale transactions. The performance was so strong that analysts at investment bank Compass Point noted Galaxy’s earnings before interest and taxes came in 236% above Wall Street estimates, prompting expectations that investors would adjust their forecasts higher.

Market reaction was immediately positive, with Galaxy shares jumping to $46 when markets opened on Monday before settling around $43, representing an 8.3% increase on the day. This shareholder enthusiasm reflects growing confidence in Galaxy’s ability to capitalize on the expanding institutional crypto market.

Central to Galaxy Digital’s growth strategy is the recent debut of GalaxyOne, a platform that positions the firm as a direct competitor to retail-focused platforms like Coinbase and Robinhood. The new offering allows customers to trade both stocks and crypto in one place, mirroring services offered by its better-known rivals while leveraging Galaxy’s institutional expertise.

What distinguishes GalaxyOne from pure retail competitors is its dual approach to the market. While offering unified trading capabilities similar to Robinhood and Kraken, Galaxy is simultaneously targeting accredited investors with specialized products like high-yield cash accounts that aren’t universally available. This hybrid strategy allows the firm to capture value across both retail and sophisticated investor segments.

The timing of GalaxyOne’s launch appears strategic, coming as the firm benefits from Wall Street’s growing embrace of crypto treasury management. Galaxy reported that crypto treasury firms have parked $4.5 billion in assets at the company, activity that is expected to generate approximately $40 million in annual recurring fees. This institutional backing provides Galaxy with a stable revenue base as it expands into the competitive retail space.

Beyond its trading and platform businesses, Galaxy Digital has built a diversified operation that spans multiple crypto verticals. The company reported $9 billion in assets under management by the end of the third quarter, complemented by an additional $7 billion in “assets under stake” that were earning blockchain rewards. This dual approach to asset management reflects the firm’s comprehensive understanding of the crypto ecosystem.

The company’s lending business also showed robust growth, with the average loan book size increasing to $1.8 billion on what the firm described as “increased client diversity.” This expansion across multiple business lines demonstrates Galaxy’s ability to serve varied client needs while managing risk through diversification.

Looking beyond traditional crypto services, Galaxy is expanding into data center infrastructure, with the firm confirming it remains on schedule to deliver power to AI cloud computing platform CoreWeave in the first half of next year. This move into AI infrastructure represents a strategic bet on the convergence of crypto mining infrastructure and high-performance computing, potentially opening new revenue streams beyond the firm’s core financial services.