Galaxy Digital (GLXY) shares rose 2% on Tuesday after the cryptocurrency-focused financial company beat third-quarter revenue expectations by a wide margin and confirmed major progress on its Helios data center project.
Led by CEO Mike Novogratz, the company reported $29 billion in revenue, nearly doubling analyst forecasts of $16 billion. Galaxy attributed the outperformance to its trading business and growth in digital asset valuations.
The company also announced that CoreWeave (CRWV), a cloud infrastructure company focused on AI workloads, has committed to utilizing the full 800 megawatts of capacity at Galaxy’s Helios data center in Texas. With this commitment and a $1.4 billion project financing deal from Deutsche Bank closed in August, the first phase of the project is fully funded and underway.
Galaxy COO Chris Ferraro described the pace of construction as “extraordinary”, with more than 500,000 work hours logged and more than 700 workers on site daily. The first data room is expected to come online in early December, followed by commissioning.
Ferraro said Helios has moved beyond the planning phase and is on track to become one of the largest high-performance computing and artificial intelligence campuses in the world.
Jefferies highlighted the importance of Galaxy’s Helios data center project, noting that the company secured a $460 million equity investment from an unnamed asset manager to support its construction.
Analysts emphasized that construction remains on schedule, with initial delivery expected in the first half of 2026. While Galaxy currently has no additional power capacity available, Jefferies noted the company’s ongoing efforts with ERCOT and WETT to secure another 2.7 gigawatts of capacity. The firm said it is closely monitoring the development of Helios and expects any future energy approvals to serve as a “significant tailwind for the stock.”
Galaxy One targets high net worth customers
In retail, Ferraro highlighted Galaxy One, an investment platform for cryptocurrencies, stocks and performance products that the company launched earlier this month. Ferraro said the platform is aimed at mass and wealthy investors, those with significant wealth but underserved by traditional platforms.
It cited early adoption, pointing to users with an average net worth of $2 million and an annual income of more than $340,000. The goal, according to the company, is to become a one-stop shop for managing both traditional and digital assets.
“Over time, we expect this product to expand and diversify our funding sources, which will help drive the efficiency and profitability of our overall digital asset business,” Ferraro said.
Navigating a volatile crypto market
The company also addressed the recent forced liquidations in the crypto ecosystem. Novogratz said Galaxy’s trading desk performed well during the volatility, avoiding credit losses that hit other companies, including some DeFi market makers.
He added that the recent wave of cryptocurrency liquidations led to reduced market liquidity and higher bid-ask spreads, but also opened up trading opportunities and highlighted the importance of disciplined risk management.
Looking to the future
Galaxy executives emphasized their long-term strategy: expanding the Helios plan to other regions and diversifying its data center tenant base beyond CoreWeave. They also see potential to refinance Helios once phase one stabilizes, which could unlock hundreds of millions in capital to fund future builds.
“There’s a gold rush,” Ferraro said. “You have to be very careful during the gold rush and build in smart places at the right price.” He emphasized that Galaxy is focused on delivering projects “on time and on budget,” a capability he believes is undervalued in today’s market.
Despite the strong momentum, Jefferies noted that the fourth quarter could be more challenging if digital asset prices continue to weaken. Still, analysts believe Galaxy is in a strong position to weather any near-term volatility.
“Continued momentum on KPIs and capital execution at Helios positions the company favorably heading into the fourth quarter,” Jefferies wrote in a client note.
Galaxy Digital stock is up nearly 130% so far this year.
