Galaxy Digital Q4 FY2025 earnings call

Management Statement and Operational Highlights

• Data Center: Completed a large load interconnect study and received ERCOT approval for 830 MW of additional power at Helios campus, more than doubling approved capacity. On track to deliver first data hall to CoreWeave in Q1 2026, with remaining halls by end of Q2 2026. Phase two development kicked off, with evaluation of debt financing.
• Digital Assets: Despite crypto market challenges, digital assets business had strong client engagement. Global Markets saw adjusted gross profit growth. Asset management rolled out new products and partnerships. Galaxy One showed progress with high yield products and user feedback-driven enhancements. Focus on on-chain solutions and institutional workflows.
• Blockchain Plumbing: Bull market in digital asset plumbing, with traditional assets shifting to blockchain rails. Engaged with large banks and asset managers on various blockchain initiatives.

Segment Performance

• Data Center Business: Over 1.6 gigawatts of improved capacity. Recently approved 830 megawatts of additional power in Texas. Engaging with potential tenants for the new site. On track to deliver first data halls by 2026. Plans for further expansion in Texas and other states.
• Digital Assets Business: GAAP net loss of $241 million in 2025 due to one-time items. Adjusted EBITDA was $34 million. Digital assets operating segment had record adjusted gross profit of $5 million in 2025 (up from $3 million in 2024). Global Markets had adjusted gross profit of $423 million in 2025 (up 88% year-over-year). Average loan book held steady at $1.8 billion. Digital asset trading volumes declined 40% quarter-over-quarter in Q4.
• Treasury and Corporate: Held approximately $1.7 billion of net digital assets and investments at year-end, down 22% quarter-over-quarter. Cash and stablecoins on balance sheet were $2.6 billion, up ~$700 million from Q3, from strategic capital raises in Q4.

Guidance

• Data Center: Expect to begin energizing additional 830 MW capacity at Helios campus in late 2028 to early 2029. Focus on continued data center build and general corporate purposes, including liquidity for exchangeable notes maturing in 2026.
• Digital Assets: Continue to focus on growing the loan book with disciplined risk management, expanding on-chain solutions, and partnering with institutional clients. Anticipate market structure bill passing to accelerate blockchain adoption.

Risks

• Crypto Market Volatility: Continued bear market conditions for crypto assets, with potential for further price declines. Impact on balance sheet and investment portfolio due to market depreciation.
• Regulatory Uncertainty: Changes in crypto legislation and regulatory environment could affect business operations and growth prospects.
• Infrastructure Execution Risks: Delays or issues in data center construction and power approvals could impact timeline for delivering data halls and scaling the business.

Question and Answer

Q: Thoughts on crypto market structure bill chances and impact?

A: Mike Novogratz thinks a deal is 75-80% likely, sees bill as important for accelerating blockchain adoption, with potential M&A pickup post-passage.

Q: Future build out at Helios and tenant engagements?

A: Christopher Ferraro discussed the 830 MW approval and ongoing processes for additional 1.8 GW, emphasizing focus on strong partners and balanced pricing.

Q: Crypto cycle outlook and signals?

A: Mike Novogratz sees crypto closer to bottom of range, watching for market structure bill and seller exhaustion as signals.

Q: Galaxy's position in tokenized markets and banks?

A: Focus on credit and infrastructure, with on-chain credit and wallet infrastructure being key areas, helping traditional players enter the market.

Q: Tenant engagements and HPC deals?

A: Michael Novogratz and Christopher Ferraro discussed balancing partner relationships and market-driven pricing, with focus on strong, long-term partnerships.

Q: Helios construction timeline and Galaxy One yield?

A: Christopher Ferraro noted Helios construction timeline and prudence in tenant partnerships, while Anthony Paquette stated Galaxy One 8% yield not at risk from Clarity Act.