Galaxy Digital Q3 FY2025 earnings call

• Q3 was the best quarter in Galaxy's history with over $500 million net income and assets on platform at $17 billion. - Executed a $9 billion Bitcoin trade and helped launch a large Solana DApp raising $1.7 billion. - Digital Asset segment had record adjusted gross profit of $318 million. - Treasury and Corporate segment had adjusted gross profit of $408 million from gains in portfolios. - Data center construction for CoreWeave is on track with $1.4 billion project financing closed. - Launched GalaxyOne for individual investors with access to cash, crypto, and equities trading.

In Q3, Galaxy had record performance. The Digital Asset segment delivered a record adjusted gross profit of $318 million, driven by strong momentum across trading, investment banking, asset management, and staking. The Treasury and Corporate segment had adjusted gross profit of $408 million, primarily from gains in digital asset and investment portfolios. Data center segment financial results are de minimis until H1 2026. GAAP net income for the quarter was $505 million, with assets on platform reaching $17 billion. Firm-wide adjusted EBITDA was $629 million, up from $211 million in Q2. Cash and stablecoins ended Q3 at $1.9 billion, up ~$700 million from Q2.

• Data center segment expects to begin recognizing revenue under CoreWeave lease agreement in H1 2026. - Plan to refinance $1.4 billion construction loan for Helios Phase 1 at lower cost to unlock equity. - Expect continued growth in asset management and staking, with focus on broadening Galaxy's reach through product rollouts like GalaxyOne.

• Market volatility in crypto and traditional markets could impact financial results. - Regulatory changes in digital assets and data centers could affect operations. - Credit risks in lending business if market conditions deteriorate. - Uncertainty around useful life of GPUs and technology cycles in data centers.

Q: Has the forced liquidations in crypto had ramifications on market structure and client franchise?

A: Galaxy did well during liquidation, no credit losses. Market makers and retail were hurt, leading to less liquidity and wider spreads.

Q: Update on data center power approval timing?

A: Uncertain on exact timing, but good signs and active partnerships with stakeholders.

Q: Cadence of pulling down $1.4 billion construction financing?

A: Not pulling down all at once, prefunded equity, drawing regularly following project budget.

Q: Competitive positioning in data center market?

A: Focus on execution, building on time and budget is key, undervalued in market.

Q: Digital asset treasury demand and sustainability?

A: On tail end of large issuance, but some DApps could grow big, bringing new investors.

Q: Lending book demand and growth?

A: Demand broad-based from institutional clients, building automated margin-based financing system slowly.