Galaxy Digital Sees Strong Growth Amidst Crypto Market Volatility
Shares of Galaxy Digital (GLXY) surged by 2% after the company reported impressive third-quarter revenue numbers and major developments in its data center project. Led by Mike Novogratz, Galaxy Digital exceeded revenue expectations, reporting $29 billion—almost doubling the analyst forecast of $16 billion. The company attributes this outperformance to its robust trading business and the favorable growth in digital asset valuations. As the crypto market becomes increasingly volatile, Galaxy’s strong performance showcases its resilience and strategic direction within the fast-evolving financial landscape.
A significant highlight for Galaxy Digital is its Helios data center project in Texas, which has garnered substantial backing from CoreWeave, a cloud infrastructure firm. CoreWeave has committed to utilizing the full 800-megawatt capacity of the Helios facility. Coupled with a $1.4 billion financing deal from Deutsche Bank, Galaxy’s Helios project is fully funded and on track for completion. Galaxy’s COO, Chris Ferraro, reported extraordinary construction progress, with over 500,000 labor hours logged and a daily workforce of over 700 individuals. Not only is the project expected to be operational in early December, but it is also poised to become one of the largest AI and high-performance computing campuses worldwide.
The Helios data center’s importance extends beyond immediate operational capacity. Jefferies recently underscored the project’s significance, revealing that Galaxy secured a $460 million equity investment from an unnamed asset manager to aid in its construction. Analysts have noted that construction is on schedule, with initial delivery expected in the first half of 2026. While the company currently has no additional power capacity available, ongoing discussions with ERCOT and WETT aim to secure an additional 2.7 gigawatts of capacity, which could serve as a significant catalyst for growth and enhance stock performance.
Underscoring its mission to diversify offerings, Galaxy Digital recently launched Galaxy One, a new investing platform tailored for high-net-worth clients. The platform integrates traditional assets with digital currencies, targeting affluent investors who are often underserved by conventional financial services. Ferraro noted early user statistics, including an average net worth of $2 million and annual incomes exceeding $340,000. The initiative is designed to broaden Galaxy’s funding sources and enhance profitability across its digital asset services, thereby positioning the company favorably in a crowded market.
Galaxy’s adaptability during periods of market turbulence has been evident. Novogratz reported that the firm’s trading desk effectively navigated recent forced liquidations that impacted various participants in the crypto ecosystem, avoiding credit losses unlike many DeFi market makers. While the crypto space has faced dips in market liquidity and wider bid/ask spreads, these conditions have created openings for new hires and highlighted important risk management practices crucial for sustained success.
Looking ahead, Galaxy’s leadership has articulated a long-term vision that includes replicating the Helios blueprint in other regions, as well as diversifying its data center tenant base beyond CoreWeave. The potential to refinance Helios once phase one stabilizes could unlock significant equity, supporting future expansions. Ferraro emphasized the critical nature of smart investing during this "gold rush," advocating for meticulous project delivery on time and within budget. While some analysts have cautioned that the fourth quarter may pose challenges if digital asset prices continue to decline, the current operational momentum and strategic execution at Helios set Galaxy Digital on strong footing for resilience amid uncertainty.
