According to Woofun AI, Galaxy Digital (GLXY.US) showed a differentiated strategic dual-engine operation trend in the second quarter of 2026: Despite pressure on book performance due to fluctuations in the crypto market, substantial delivery of the Texas data center business is gradually being converted into determined rental income. The company's net loss for the quarter was US$85 million, a significant loss of US$131 million compared to US$216 million in the first quarter. This financial improvement was mainly due to the restoration of operating gross profit and the first positive contribution of the data center sector. The core fact is anchored in the fact that Galaxy (GLXY.US) is transforming from a traditional crypto service provider that simply relies on currency price fluctuations to a hybrid fintech company with asset-heavy infrastructure, and the resilience of its financial structure has been initially verified in the process of narrowing losses.
This transformation did not happen overnight, but was driven by the refined operation of the digital asset business and the physical delivery of the Helios data center, enabling the company to have a more stable cash flow support point in the face of a downward market cycle.
It is worth noting that although overall net profit is still negative, adjusted gross profit has been corrected, showing an increase in the hematopoietic capacity of the main business. This provides a necessary internal capital cycle foundation for subsequent large-scale capital expenditure, and also conveys management's firm expectations for long-term infrastructure return on investment.
Deeply disassembling the financial details, the performance of Galaxy (GLXY.US) business segments showed clear structural differentiation. Adjusted gross profit reached 43 million US dollars, compared to a loss of 88 million US dollars in the first quarter. This reversal was mainly due to the collaborative efforts of the two core business businesses of digital assets and data centers. Specifically, the digital asset business achieved adjusted gross profit of 66 million US dollars, an increase of 34% over the previous month. Although its adjusted EBITDA was still a loss of 11 million US dollars, the loss margin has narrowed significantly;
At the same time, the data center business achieved adjusted gross profit of $20 million and contributed an adjusted EBITDA of $11 million, becoming the first core sector to generate positive operating cash flow. However, the main factor that brought Galaxy (GLXY.US)'s overall adjusted EBITDA back into the loss range was its own investment portfolio classified in the “Money Management and Corporate Affairs” section. The sector recorded an adjusted gross loss of $42 million and an adjusted EBITDA loss of $78 million in the second quarter. Galaxy (GLXY.US) clearly stated that this was mainly due to unrealized losses from related digital assets and investment positions.
According to data compiled by Woofun AI, the two operations of digital assets and data centers contributed a total of 1 million US dollars to adjusted EBITDA, but after adding huge losses in the fund management and corporate affairs sectors, the company's overall adjusted EBITDA was finally fixed at a loss of 77 million US dollars.
This comparison of data clearly reveals the financial reality that Galaxy (GLXY.US) is currently facing: the operating business already has self-hematopoietic capacity, but investment exposure on the balance sheet is still eroding overall profits. The key to whether overall profit can be achieved in the future is how to balance the relationship between operating cash inflows and investment asset fluctuations.
The balance sheet and investment exposure details further reveal Galaxy's (GLXY.US) risk exposure structure. As of June 30, the company's portfolio had net exposure of $1.16 billion, down from $1,362 billion at the beginning of the period. Among them, venture capital and fund investments accounted for the largest share of $606 million; Bitcoin exposure was $400 million; other token exposure was $76 million; Solana exposure was $58 million; and other liquidity investments were $19 million. The financial report specifically emphasizes that Bitcoin and Solana's exposure amounts include not only spot, but also derivatives, short positions, and other hedged positions, encapsulated tokens, and related investment instruments, so they cannot simply be equated with the size of spot coin holdings.
Looking at the overall balance and liability situation, Galaxy (GLXY.US)'s total assets increased 9% from US$9992 billion to US$10.844 billion; total equity fell slightly from US$2,779 billion to US$2,720 billion; and cash and stablecoin reserves fell from US$2,655 billion to US$2,459 million. These changes in the balance at the end of the period reflect the company's strategy of continuing to adjust asset allocation while maintaining a liquidity safety cushion. Net exposure to digital assets and investments fell from US$1,362 billion to US$1,160 million, indicating that the company has taken more careful risk control measures in the midst of market fluctuations to cushion the impact of falling currency prices by reducing high-risk exposure.
Although this balance sheet management method limits the flexibility of investment returns in the short term, it also guarantees the company's viability in extreme market environments, and reflects management's art of balancing the pursuit of growth and risk control.
The digital asset business showed a contrast between declining transaction volume and rising gross profit, which reflected Galaxy's (GLXY.US) ability to maintain its share in a weak market environment. The adjusted gross profit of the global market business increased from 31 million US dollars to 49 million US dollars, an increase of 58% over the previous month; the number of counterparties increased from 1,691 to 1,741, and the average loan size remained flat at about 1.4 billion US dollars.
Despite a 7% month-on-month decline in trading volume, Galaxy (GLXY.US) indicated that the industry's trading volume declined by more than double digits during the same period, which meant that the company successfully maintained its relative market share against the backdrop of overall market contraction. Asset management and infrastructure solution data was more directly affected by currency prices. At the end of the second quarter, the total asset management scale and pledged assets were about US$7.1 billion, down 12% from the previous month, mainly due to the decline in digital asset prices. Of this, ETF-related assets were $1,805 million, alternative assets were $2.553 billion, and pledged assets were $2.79 billion.
This data combination shows that Galaxy (GLXY.US)'s asset management business structure is being diversified, and the share of ETFs and alternative assets is increasing, helping to reduce dependence on the price of a single crypto asset. However, the decline in the scale of asset management also reminds investors that in a bear market environment, AUM-based rate revenue is under pressure, and Galaxy (GLXY.US) needs to offset the negative impact of currency price fluctuations on overall revenue by increasing the added value of services and expanding sources of non-rate revenue.
This fine-tuning of the business structure is an important strategy for Galaxy (GLXY.US) to cope with cyclical market changes. It aims to smooth the revenue curve and enhance the business's cyclical resilience through product diversification.
The delivery and revenue expectations of the Helios data center mark the official transition of Galaxy (GLXY.US)'s layout in Texas from the capital expenditure stage to the profit realization stage. Galaxy (GLXY.US) has delivered 200MW of total electricity from Helios Phase I to CoreWeave, corresponding to 133MW critical IT load, and completed Phase 1 delivery as planned. Rents were gradually confirmed in the second quarter along with the delivered capacity, making the data center division a revenue-generating quarterly operation for the first time. After delivery, Galaxy (GLXY.US) expects Helios Phase I to generate approximately $80 million in rental revenue per quarter starting in the third quarter of 2026, with a project-level adjusted EBITDA margin of over 90%. The basic term of the CoreWeave lease is 15 years, and the total contracted critical IT load for the three phases is 526MW. The company estimates that the average annual revenue for this portion of the lease will exceed $1.2 billion over the entire lease period, and the average lease-level adjusted EBITDA margin is expected to exceed 90%.
This high-margin, long-term lease structure provides Galaxy (GLXY.US) with extremely stable cash flow expectations. However, this business is also more capital-intensive, with data center capital expenditure of US$448 million in the second quarter, up from US$354 million in the first quarter. By the end of the quarter, total liabilities attributed to the data center business in the financial report increased from $1.30 billion to $1,548 million. This indicates that Galaxy (GLXY.US) is leveraging to accelerate infrastructure expansion to seize limited power resources and land reserves. High capital expenses and high liabilities require Galaxy (GLXY.US) to have strong financing and cost control capabilities to ensure that the project is delivered on schedule and that the expected return on investment is achieved. Helios's successful delivery is not only a milestone in Galaxy's (GLXY.US) data center business, but also a key step in its transformation from an asset-light service provider to an asset-heavy operator. This transformation will profoundly change the company's financial structure and risk profile.
Financing progress, potential power lines, and details of park acquisitions outline a broad blueprint for Galaxy (GLXY.US)'s expansion in Texas. On July 28, a project company under Galaxy (GLXY.US) completed a $3.5 billion private offering of advanced guarantee notes due in 2031. The proceeds will be used for Helios Phase II construction. Phase II plans to add 260 MW of critical IT capacity, and the data hall is expected to begin delivery in the second quarter of 2027. As for the most prominent “over 5.7 GW” in the financial report, a qualifier must be added. It indicates that the potential power lines that Galaxy (GLXY.US) has laid out in Texas are not the capacity that has already been electrified or contracted for lease. Currently, Helios has been approved for a power capacity of over 1.6 GW, and two additional 1GW load applications are in the ERCOT grid connection process; the three newly acquired Merlin, Caspian, and Selene parks have a maximum potential capacity of about 500 MW, 700 MW, and 900 MW, respectively, of which the Merlin initial agreement supports about 74 MW.
This series of data and actions shows that Galaxy (GLXY.US) is actively targeting power resources in Texas to cope with the surge in computing power demand brought about by the artificial intelligence outbreak. By acquiring existing campuses and applying for new power capacity, Galaxy (GLXY.US) is trying to build a data center cluster with significant scale effects, thereby gaining an advantageous position in the fierce market competition.
However, there is a huge gap between potential capacity and actual delivery capacity, and how to convert the 5.7 GW potential pipeline into billable MW will be the biggest challenge facing Galaxy (GLXY.US). This requires the company to maintain efficient execution in various aspects such as engineering construction, power coordination, and customer signing. Delays in any process may lead to overexpenditure of capital expenses and an extension of the return on investment cycle. Therefore, although Galaxy's (GLXY.US) expansion strategy is ambitious, its success depends on detailed control of execution and the extent to which the market's demand for data centers continues to be strong.
New product launches, compliance progress, and CEO strategic outlook showcased Galaxy (GLXY.US)'s innovative experiments and compliance layout in the digital asset field. In the second quarter and after the quarter, Galaxy (GLXY.US) successively launched institutional OTC forecasting market transactions, on-chain financing rate products (GOFR), and Galaxy Curator. Among them, GOFR, an on-chain financing rate product, integrates floating interest rates in on-chain lending markets such as Aave, Morpho, Spark, and Kamino into a dynamically rebalanced financing rate. Customers directly face Galaxy (GLXY.US), and Galaxy (GLXY.US) handles wallet, smart contract execution, and collateral monitoring.
The company promises to invest up to $100 million of its own capital as priority loss protection, but the scope of protection is subject to specific provisions. Galaxy Curator builds institutional treasury strategies based on Morpho and is distributed through Fireblocks Earn, allowing institutions to access on-chain revenue products in existing approval, signing, and policy control processes. These new products have expanded the service boundaries of Galaxy (GLXY.US), but revenue has not been separately disclosed in this quarter's earnings report, so the more accurate expression is “expansion of product capacity” rather than “the growth curve has been verified.”
Compliance channels are also progressing simultaneously. In May, the New York State Department of Financial Services granted GalaxyOne Prime NY a bitlicense and remittance license, allowing it to provide regulated digital asset trading and custody services to New York State institutions. In August, Galaxy (GLXY.US) and Bank of New York Mellon (BNY) (BK.US) announced a multi-year partnership to provide pledge support for the BNY (BK.US) digital asset escrow platform and participate in platform infrastructure construction as a design partner. In the same CEO letter, Mike Novogratz outlined Galaxy's (GLXY.US) strategy as a combination of two forces: financial activity moved to the chain, and the development of artificial intelligence continued to drive demand for electricity, land, and data centers.
This is management's explanation of the company's direction, not the financial result itself. The actual information on the report for the second quarter is simpler: crypto asset prices can still significantly affect profit and loss, the resilience of the digital asset management business has improved, and data centers have begun to contribute positively to adjusted EBITDA for the first time. As a result, the exam questions facing Galaxy (GLXY.US) became specific. On-chain products need to turn institutional cooperation into continuous revenue, and Texas parks need to turn potential GW into billable MW per node. In the financial report, on the one hand, there is a currency price curve that still fluctuates, and on the other side is an electricity meter that has already started spinning. The weight of the next stage depends on whether the latter can light up on time and on budget.