Galaxy Digital Falls 8% Despite Strong Q2 Growth and AI Expansion at Helios
Galaxy Digital (GLXY) shares declined 8% on Tuesday after releasing its second-quarter earnings, as investors appeared to lock in gains following a strong rally since the firm’s Nasdaq listing in May—even as operational and infrastructure milestones continued to build.
The digital asset and financial services firm, led by CEO Mike Novogratz, reported a 28% quarter-over-quarter increase in Global Markets revenue to $55.4 million, defying a 22% dip in overall trading volumes. According to brokerage KBW, Galaxy outperformed market peers, with its average loan book rising to $1.1 billion—surpassing Coinbase’s (COIN) $879 million.
Total assets on Galaxy’s platform surged 27% to $8.9 billion. However, adjusted gross profit from its asset management arm declined by 26%, reflecting decreased on-chain activity across the ecosystem.
A major highlight in the quarter was infrastructure expansion. CoreWeave exercised its final option to access an additional 133 megawatts (MW) of compute capacity at Galaxy’s Helios facility, bringing total commitments to 800MW. Galaxy also announced the purchase of 160 adjacent acres with a 1-gigawatt (GW) interconnection request, paving the way to potentially scale Helios to 3.5GW—cementing its role as a strategic AI and high-performance computing (HPC) hub.
The company ended the quarter with $2.5 billion in total liquidity, including $1.1 billion in cash and stablecoins, and $1.3 billion in net digital assets. Galaxy’s corporate debt remains at $1.1 billion.
As of June 30, the firm held 17,102 BTC valued at $1.8 billion, up from 13,704 BTC worth $1.3 billion at the end of 2024.
Brokerage KBW noted a strong start to Q3, with record July activity. Galaxy helped facilitate the sale of over 80,000 bitcoin and secured the last tranche of AI/HPC compute through its expanded deal with CoreWeave (CRWV).
Despite the post-earnings dip, attributed in part to broader market weakness—bitcoin was down 1% to around $113,000—Galaxy shares are still up 13% since their Nasdaq debut.
