Galaxy Digital Inc., the cryptocurrency financial services conglomerate founded and led by billionaire Michael Novogratz, reported higher-than-expected third-quarter revenue and earnings, pushing its shares higher in pre-market trading.
The firm recorded net income of $323 million, or 66 cents a share, marking a decline of approximately 36% compared with the same period a year ago. Total revenue reached $8.06 billion, outperforming the $7.8 billion average estimate derived from an analyst survey conducted by . Despite beating expectations, revenue was also down compared to the year-ago period. Following the financial release, shares of Galaxy rose about 8% in pre-market trading.
Financial results for the quarter received a significant lift from the company’s strategic push into the artificial intelligence data-center sector. Galaxy continued to energize additional operations, successfully fulfilling its infrastructure contract with neocloud startup CoreWeave Inc. According to a company statement released Tuesday, the data centers generated an adjusted gross profit of $79 million and an adjusted earnings before interest, taxes, depreciation, and amortization of $69 million.
Operating as a crypto conglomerate, Galaxy remains exposed to substantial market volatility across both the digital-asset and data-center industries. The firm has ventured heavily into AI infrastructure through a multi-billion-dollar contract with CoreWeave, which involves converting Galaxy’s existing Bitcoin mining assets into high-performance data centers capable of supporting artificial intelligence applications.
These operations unfold against a backdrop of financial headwinds. A prolonged cryptocurrency market downturn throughout the year has depressed share prices across public digital-asset companies. Galaxy operates a broad portfolio spanning trading, asset management, and brokerage services, leaving its shares down roughly 30% for the year. Beyond crypto market pressures, the firm faces investor skepticism regarding excessive spending on AI infrastructure, compounded by waning demand for debt held by its major tenant, CoreWeave.
Financial institutions continue to evaluate the company’s multifaceted risk profile. A report from BTIG, which maintains a buy rating on Galaxy, outlined several company-specific risks. These include potential delays in energizing operations, high-performance computing counterparty risks, and declines in cryptocurrency prices that could negatively impact collateral and digital asset values on the company’s balance sheet.
