Galaxy Digital (GLXY) shares rose 2% on Tuesday after the crypto-focused financial firm significantly surpassed third-quarter revenue projections and announced substantial advancements in its Helios data center initiative.
Under the leadership of CEO Mike Novogratz, the company reported an impressive $29 billion in revenue, nearly double the analysts’ predictions of $16 billion. Galaxy attributed this success to its trading operations and the increase in digital asset valuations.
The firm revealed that CoreWeave (CRWV), a cloud infrastructure provider concentrating on AI tasks, has committed to utilizing the entire 800-megawatt capacity of Galaxy’s Helios data center in Texas. This commitment, alongside a $1.4 billion project financing agreement with Deutsche Bank finalized in August, ensures that phase one of the project is completely funded and progressing as planned.
Chris Ferraro, Galaxy’s COO, characterized the construction pace as “extraordinary,” with over 500,000 labor hours recorded and more than 700 workers on-site daily. The first data hall is expected to be operational by early December, with commissioning to follow shortly thereafter.
Ferraro indicated that Helios has moved past the planning stage and is on track to become one of the largest AI and high-performance computing campuses globally.
Jefferies underscored the importance of Galaxy’s Helios project, highlighting that the company received a $460 million equity injection from an unnamed asset manager to facilitate its development.
Analysts confirmed that construction remains on schedule, with initial deliveries anticipated in the first half of 2026. Although Galaxy currently lacks additional power capacity, Jefferies noted the company’s ongoing discussions with ERCOT and WETT to secure an additional 2.7 gigawatts of capacity. They are monitoring Helios’ progress closely and expect future power approvals to provide a “substantial boost for the stock.”
Galaxy One Entices High-Net-Worth Investors
On the retail front, Ferraro highlighted Galaxy One, an investment platform for cryptocurrencies, equities, and yield products recently launched by the company. He explained that this platform is designed for mass affluent investors — individuals with considerable wealth but often overlooked by traditional platforms.
Ferraro noted early interest, pointing out that users have an average net worth of $2 million and an annual income exceeding $340,000. The company’s ambition is to serve as a comprehensive solution for managing both traditional and digital assets.
“In time, we anticipate this product will diversify our funding sources, enhancing efficiency and profitability in our digital assets sector overall,” Ferraro stated.
Navigating a Turbulent Crypto Landscape
The firm also addressed the recent forced liquidations within the crypto market. Novogratz mentioned that Galaxy’s trading desk navigated the volatility effectively, avoiding credit losses that affected other companies, including some DeFi market makers.
He pointed out that the latest series of crypto liquidations has decreased market liquidity and widened bid/ask spreads. However, this situation also created hiring prospects and emphasized the necessity of thorough risk management.
Future Prospects
Galaxy executives reiterated their long-term vision: expanding the Helios model into other regions and diversifying its data center client base beyond CoreWeave. They also see a chance to refinance Helios once phase one stabilizes, potentially unlocking hundreds of millions in equity for future expansions.
“There’s a gold rush happening,” Ferraro remarked. “During a gold rush, it’s crucial to build wisely in the right locations at the right costs.” He emphasized Galaxy’s commitment to delivering projects “on time and on budget,” a capability he believes is undervalued in the current market scenario.
Despite substantial momentum, Jefferies warned that Q4 could be more challenging if digital asset prices continue to decline. Nonetheless, analysts believe Galaxy is well-positioned to handle any short-term fluctuations.
“The ongoing momentum across KPIs and successful execution at Helios positions the company favorably as it heads into Q4,” Jefferies noted in a client communication.
Shares of Galaxy Digital have increased nearly 130% year-to-date.
