Galaxy Digital: from volatility to predictability
By Prathik Desai
Compiled:Block unicorn
Bulldozers are idle in the heat. The land is desolate, the contract is uncertain, and the idea of transforming an encrypted money exchange company into an electric power company seems to be a dream。
A year ago, the Helios data centre in Texas was just a commitment in the desert。
Today, the situation is very different. Although the turbinesNot yet operational, but contracts have been signed and financing transactions have been completed. Land leased, transformer orderedPurchase. This company, which used to benefit from volatility, is now investing in certainty。
Galaxy Digitalas at 30 September 2025Quarterly financial statementsThis may not be directly demonstrated, but a careful look at its data over the past year reveals a clear shift. Galaxy's trading department is still dealing with billions of dollars of transactions, but the movement in the coming months is clear to anyone concerned。
Quarter after quarterGalaxyMore and more like a banker。
Point Snack
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GalaxyThe volume of transactions is at an all-time high, but profits have declined compared to other business segments
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Corporate financial authority increased four times over the same year, generating $40 million in annual recurrent income, marking Galaxy ' s first predictable source of income
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Financial and enterprise sectorIncome growthup to $408 million, over 55 per cent of total adjusted gross profit
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HeliosProject started as planned in the first half of 2026SignCoreWeave lease agreement (526 MW) and $1.4 billion in project financing
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Despite strong profit growthGalaxy Digital IncThe stock price fell by 10%
DATThe banker
Two months ago, I was talking about Galaxy's officeLoudHow the sound changed: from the traderLoudIt's the customer who keeps the idle fundsSoft buzzI don't know. Initially a side project to help issuers manage stable currency reserves, Galaxy has now been transformed into assisting enterprises to manage their digital asset bank (DAT)。
Over the past few quarters, the business sector has created reliable cash flows by providing a platform for hosting, revenue and liquidity for clients, including DAO, exchanges and start-ups. Galaxy helps these clients build their vaults and earn them at every levelBase point costI don't know。
Over the past 12 months, the scale of asset management in this business has increased more than fourfold, from approximately $1 billion in financial assets to more than $4.5 billion today. While revenues from this operation may be relatively moderate compared to transactions in the third quarter of 2025, it represents an important trend from a transaction-based model to a subscription-based model. The annual recurrent revenue of the enterprise ' s funds management operations is approximately $40 million, which means that it represents sustained long-term income rather than sporadic transaction gains。
However, the management of funds is not without risk or protection from market fluctuations. Galaxy CEOMike NovogratzIt was acknowledged that the business would fluctuate with the market for encrypted currencies。
Despite these challenges, the trajectory of development is clear。GalaxyEvery quarter, learning how to delink income from volatility. While this is still a gradual process, the financial position of the company shows that it is on the right track。
While this is not the most exciting source of income, it is reliable and strategic for a company that relies on the performance of traders to build its reputationSexTransformation。
The profit problem that triggered the crisis
Most of Galaxy's income still follows the old method, that's rightRepresentativeTransactions executed by clients are charged. I don't knowThe profitability of this cost structure remains low, below 1%I don't know。
Last quarter, I wrote about the company's "0.15% problem" -- the volume of transactions is at an all-time high, but the price difference is extremely low. This pattern remains in place this quarter. Although the volume of spot and derivative transactions in the digital asset sector increased by 140 per cent in the third quarter of 2025, a significant proportion of them came from clients representing clientsSaleTHE 80,000 BTC DEAL。
YesIn the third quarter of 2025, Galaxy over 97 per cent of the digital asset sector was restructuredProfit before amortization of interest tax depreciation(EBITCA) WAS ONLY $250 MILLION, OR LESS THAN 45 PER CENT OF THE TOTAL EBITDA。
IN CONTRAST, EBITDA WAS $376 MILLION, OR LESS THAN 2 PER CENT OF TOTAL INCOME, AS A RESULT OF THE RESTRUCTURING OF THE FINANCE AND BUSINESS SECTOR。
That's the crisis Galaxy decided to deal with: the more liquidity they provide, the less profits they make。
So how do they solve this problem? Find a way to generate revenue. When other companies found stable currencies or borrowed them as collateral, Galaxy focused on building business finance management. This model does not rely as heavily on arbitrage or market timing as transactions; rather, it relies on long-term cooperative relationships, hosting and recurring costs。
This strategic shift suggests that the future growth of Galaxy will come more from market advisory services for DAT than from market fluctuations themselves. DAT's revenue is small but stable, but the company's next heavy-pound project, Helios, will bring more significant and sustainable resultsEntitiesProceed。
Two revenue engines
In western Texas, the heat of the desert no longer means risk, but opportunity. The company that once flourished at perfect market times has now been contracted and mobilizedYeahFunds and an agreement with CoreWeave, one of America's leading artificial intelligence computing companies. As a tenant, CoreWeave committed to providing rent security for 15 years。
Once fully online, the Helios data centre is expected to generate more than $1 billion in annual revenue, with the EBITA profit margin of up to 90 per cent. Financial and data centre operations will gradually reduce Galaxy's dependence on market timing — a luxury in the volatile area of encrypted currency。
This strategic transformation is aimed at creating a stable income base free from market volatility。
Summary
Investors should note that although the transaction is stillGalaxyTop card, but cost and futureLeaseStarts smoothing the curve。
Every encrypted money company will eventually face the same dilemma:BuildWhat?"
For Galaxy, this quarter marks a turning point. The creation of the revenues that appear on time every time is perhaps the most boring idea in the company's history, but also the most transformative。
This is the end of the in-depth analysis. I'll see you in the next article。
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