Galaxy Digital

Q2 2026 GAAP net loss was $85 million, or $0.09 per share, and firm-wide adjusted EBITDA was negative $77 million. Combined operating businesses adjusted gross profit was $86 million and adjusted EBITDA was $1 million, both up significantly from Q1. Digital Asset segment adjusted gross profit was $66 million, up $17 million or 34% quarter over quarter; Asset Management and Infrastructure Solutions adjusted gross profit was $17 million; and the Data Center segment delivered $20 million of adjusted gross profit and $11 million of adjusted EBITDA. Cash and stablecoins were $2.5 billion; total assets were $10.8 billion; total equity was $2.7 billion; and roughly $1.2 billion in net digital assets and investments were held at quarter end. Data center CapEx was $448 million in Q2, up from $354 million in Q1. Management said Phase I should generate first full-quarter leasing revenue of approximately $80 million in Q3 and a project-level adjusted EBITDA margin of over 90%. They also said the $3.5 billion 5-year senior secured note financing fully funds Phase II, which will add another 260 MW of critical IT capacity starting next year.

Mike Novogratz framed the quarter as a proof point for Galaxy's dual strategy: building infrastructure for both digital finance and AI compute. He emphasized that finance is moving onchain and that AI is driving demand for power and compute, positioning Galaxy as one of the few companies building at both ends of that stack. His tone was upbeat and confident, but he also acknowledged crypto market weakness and regulatory uncertainty, saying the company can keep building even if legislation does not pass.

Tony Paquette focused on the financial turn from construction to operations. He highlighted that Phase I is now online, that data centers produced $20 million of adjusted gross profit and $11 million of adjusted EBITDA in the quarter, and that Q3 should reflect the first full quarter of roughly $80 million in leasing revenue from Phase I. He also cited the $3.5 billion high-yield notes, $448 million of Q2 data center CapEx, $2.5 billion of cash and stablecoins, and $65 million of clean electricity investment tax credit recognition, with $32 million flowing through as a tax benefit on the segment income statement.

Analysts pressed on how Galaxy will monetize the 830 MW of unleased Helios II capacity, and management said discussions span hyperscalers, neoclouds, labs and new entrants, but the main constraint is the late-2028 energization schedule versus customers' desire for earlier power. Management said it is also waiting for newer tenant-wrap and guarantee structures to mature before committing the asset. Questions on the digital asset infrastructure strategy focused on which products matter most; management pointed to staking, tokenization, wallets, vault curation and related partnership-level engagements, with Bank of New York described as the first of several similar long-cycle opportunities. Analysts also asked about ERCOT approvals and behind-the-meter power; management said all acquired sites have completed the required steps for their respective processes, but Galaxy remains focused on front-of-the-meter assets because behind-the-meter adds complexity, cost and financing challenges.