Shares of Galaxy Digital (GLXY) are up 2% on Tuesday after the crypto-focused financial company comfortably beat third-quarter revenue expectations and confirmed major progress in its Helios data center project.
Led by CEO Mike Novogratz, the company reported revenue of $29 billion, almost double analysts’ forecasts of $16 billion. Galaxy attributed this outperformance to its trading activities and the growth in the valuation of digital assets.
The company also announced that CoreWeave (CRWV), a cloud infrastructure company focused on AI workloads, has committed to providing the full 800 megawatt capacity of Galaxy’s Helios data center in Texas. With this commitment and a $1.4 billion project financing agreement reached by Deutsche Bank in August, the first phase of the project is fully funded and on track.
Galaxy COO Chris Ferraro called the pace of construction “extraordinary,” with more than 500,000 work hours logged and more than 700 workers on site daily. The first data room is expected to be commissioned in early December, with commissioning to follow.
Ferraro said Helios has moved beyond the planning phase and is on track to become one of the largest AI and high-performance computing campuses in the world.
Jefferies highlighted the importance of Galaxy’s Helios data center project, noting that the company has secured a $460 million equity investment from an unnamed asset manager to support its construction.
Analysts stressed that construction remains on schedule, with initial delivery expected in the first half of 2026. Although Galaxy currently has no additional electric capacity available, Jefferies highlighted the company’s ongoing efforts with ERCOT and WETT to secure an additional 2.7 gigawatts of capacity. The company said it is closely monitoring Helios’ development and expects any future electric approvals to serve as a “significant tailwind for the stock.”
Galaxy One targets wealthy customers
On the retail side, Ferraro highlighted Galaxy One, an investment platform for crypto, stocks and yield products that the company launched earlier this month. Ferraro said the platform is aimed at mass affluent investors – those who have significant wealth but are underserved by traditional platforms.
He cited early adoption, highlighting users with an average net worth of $2 million and annual income above $340,000. The goal, according to the company, is to become a one-stop shop for traditional and digital asset management.
“Over time, we hope this product will expand and diversify our funding sources, helping to increase the efficiency and profitability of our digital assets business as a whole,” Ferraro said.
Navigating a Volatile Crypto Market
The company also addressed recent forced liquidations in the crypto ecosystem. Novogratz said Galaxy’s trading desk performed well during the volatility, avoiding credit losses that affected other firms, including some DeFi market makers.
He added that the recent wave of crypto liquidations had led to reduced market liquidity and wider bid/ask spreads, but also opened up hiring opportunities and highlighted the importance of disciplined risk management.
Looking to the future
Galaxy executives outlined their long-term strategy: expanding Project Helios to other regions and diversifying its data center tenant base beyond CoreWeave. They also see the possibility of refinancing Helios once the first phase has stabilized, which could unlock hundreds of millions in equity to fund future developments.
“There’s a gold rush,” Ferraro said. “During the gold rush, you have to be very careful to build in smart locations and 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 strong momentum, Jefferies noted that the fourth quarter could be more challenging if digital asset prices continue to decline. Nonetheless, analysts believe that Galaxy is in a good position to weather any short-term volatility.
“Continued KPI momentum and capital execution at Helios favorably positions the company heading into the fourth quarter,” Jefferies wrote in a client note.
Shares of Galaxy Digital are now up nearly 130% year to date.
