Galaxy Digital Returns to Profitability with $30.7M Q2 Earnings as Bitcoin Holdings and AI Strategy Drive Growth

Galaxy Digital Inc. has emerged from a challenging period to post strong second-quarter results, reporting net income of $30.7 million for Q2 2025, marking a dramatic turnaround from the $295 million loss recorded in the previous quarter. The digital asset investment firm's recovery has been largely attributed to the appreciation of its cryptocurrency holdings and strategic expansion into artificial intelligence infrastructure.

Strong Financial Performance Driven by Digital Asset Appreciation

The company's adjusted EBITDA reached $211 million for Q2 2025, representing a remarkable recovery from the negative $290 million recorded in Q1 2025. This substantial improvement was primarily driven by mark-to-market gains on digital assets and investment holdings maintained on Galaxy's balance sheet, demonstrating the company's ability to capitalize on favorable market conditions in the cryptocurrency sector.

Galaxy's total assets expanded significantly to $9.1 billion as of June 30, 2025, up 43% from $6.3 billion in the previous quarter. This growth reflects both the appreciation of existing holdings and strategic investments in expanding the company's operational capacity.

The company's balance sheet strength is further evidenced by total equity of $2.6 billion as of June 30, 2025, alongside substantial liquidity with $1.2 billion in cash and stablecoins. This financial foundation positions Galaxy well for continued growth initiatives across its business segments.

Digital Assets Business Shows Resilience Despite Market Headwinds

Galaxy's Digital Assets segment generated adjusted gross profit of $71.4 million in Q2 2025, representing a 10% quarter-over-quarter increase despite challenging market conditions. This growth was primarily driven by the Global Markets division, which posted adjusted gross profit of $55.4 million, up 28% from the previous quarter.

The Global Markets' performance is particularly noteworthy given the broader market context. While digital asset trading volumes declined 22% quarter-over-quarter, Galaxy significantly outperformed the broader market, which saw spot trading volumes fall approximately 30% over the same period. This outperformance demonstrates the company's competitive positioning and market expertise.

A key driver of Global Markets' success was the expansion of Galaxy's loan book, with average loan book size increasing to $1.1 billion in Q2 2025, fueled by continued demand for margin lending and a growing client base. The company also expanded its trading counterparty base to 1,445, up 5% from the previous quarter.

The Investment Banking team contributed to quarterly results through revenue recognition associated with their role as exclusive financial advisor to Bitstamp in its acquisition by Robinhood, which closed during the quarter.

Asset Management Faces Headwinds But Maintains Strong AUM Growth

Galaxy's Asset Management & Infrastructure Solutions segment generated $16.0 million of adjusted gross profit in Q2 2025, declining 26% from the prior quarter. This decrease was primarily attributed to lower industry-wide on-chain activity in Q2 2025, which reduced validator rewards earned through Galaxy's staking business.

Despite these operational headwinds, Galaxy demonstrated strong asset gathering capabilities, ending Q2 2025 with approximately $9 billion in combined assets under management and assets under stake. This represents a 27% quarter-over-quarter increase, driven by appreciating digital asset prices and net inflows into Galaxy's asset management business.

The breakdown of assets on the platform shows diversification across multiple product categories: $3.3 billion in ETFs (up 28%), $2.4 billion in Alternatives (up 18%), and $3.2 billion in Assets Under Management (up 34%). This diversification provides Galaxy with multiple revenue streams and reduces dependence on any single product category.

Subsequent to quarter end, Galaxy enhanced its market reach by integrating with Fireblocks, significantly broadening access to Galaxy's staking services by connecting to Fireblocks' global network of institutions. This marks the third custodial integration for Galaxy's Blockchain Infrastructure team in 2025, demonstrating continued expansion of distribution capabilities.

Strategic Expansion into AI and High-Performance Computing

Galaxy's most significant strategic initiative involves the expansion of its data center business to capitalize on the growing demand for artificial intelligence and high-performance computing infrastructure. The company's Helios data center campus represents a major growth opportunity, with CoreWeave exercising its final option to access an additional 133 MW of incremental critical IT load during the third quarter.

This expansion brings CoreWeave's total commitment to the full 800 MW of gross power currently approved at Helios, structured under a 15-year lease agreement. The phased development approach includes Phase I (133MW) expected to be delivered by the first half of 2026, Phase II (260MW) throughout 2027, and Phase III (133MW) starting in 2028, with an anticipated average annual revenue of over $1 billion based on committed contractual terms.

Galaxy has further expanded its data center footprint by entering into a definitive purchase and sale agreement to acquire 160 acres of land and a 1 GW load interconnection request adjacent to the Helios campus. Upon completion, this acquisition will expand the Helios campus to over 1,500 acres of contiguous land under Galaxy's direct control and increase total potential power capacity to 3.5 GW.

Construction progress remains on schedule, with major interior demolition for Phase I complete and site work underway to install key electrical, mechanical, and backup power infrastructure. Galaxy expects to begin generating Data Centers revenue in the first half of 2026 when it starts delivering critical IT capacity to CoreWeave.

Diversified Digital Asset Portfolio Provides Stability

Galaxy maintains a diversified balance sheet exposure to the digital asset ecosystem through strategic allocations across spot positions, ETFs, venture investments, private equity holdings, and fund investments. As of June 30, 2025, the company's balance sheet net digital asset and investment exposure totaled approximately $2 billion.

The portfolio composition demonstrates thoughtful diversification, with significant positions in Bitcoin and Ethereum alongside exposure to other digital assets and venture investments. This approach provides upside participation in digital asset appreciation while managing concentration risk through diversification across multiple asset categories and investment vehicles.

Galaxy's venture, private equity, and fund investments, totaling $718 million as of June 30, 2025, represent a 15% increase from the previous quarter. These investments provide exposure to emerging trends and technologies within the digital asset ecosystem while offering potential for significant returns as portfolio companies mature.

Corporate Milestones and Market Positioning

A significant corporate milestone was achieved on May 16, 2025, when Galaxy began trading on Nasdaq under the ticker GLXY, following the successful completion of reorganization and domestication as a Delaware-incorporated entity. This listing enhances Galaxy's profile among institutional investors and provides access to deeper capital markets.

July marked the strongest monthly financial performance for Galaxy's Digital Assets operating business in the firm's history, with record results in Global Markets and steady progress in Asset Management & Infrastructure Solutions. This performance demonstrates the company's operational momentum and market positioning.

Subsequent to quarter end, Galaxy completed the sale of over 80,000 bitcoin on behalf of a client, representing one of the largest notional bitcoin transactions in digital asset history. This transaction showcases Galaxy's capabilities in handling large-scale institutional transactions and reinforces its position as a leading digital asset services provider.

Looking Forward: Strategic Positioning for Multiple Growth Vectors

Galaxy Digital has positioned itself to benefit from multiple growth vectors within the digital asset and technology infrastructure sectors. The company's traditional digital asset business provides exposure to cryptocurrency market growth, while the expanding data center operations offer participation in the artificial intelligence boom.

The combination of a strong balance sheet, diversified revenue streams, and strategic investments in high-growth areas positions Galaxy well for continued expansion. The company's dual focus on digital assets and AI infrastructure reflects management's recognition of converging technology trends and the opportunity to serve institutional clients across multiple high-growth sectors.

Galaxy's recovery from Q1 losses to Q2 profitability demonstrates the company's resilience and ability to capitalize on favorable market conditions. With substantial cash reserves, committed revenue from the CoreWeave partnership, and continued expansion of its asset management platform, Galaxy appears well-positioned to sustain growth momentum in the coming quarters.

The company's success in Q2 2025 validates its strategic approach of combining traditional digital asset services with emerging technology infrastructure opportunities, creating a differentiated platform that serves institutional clients' evolving needs across the digital economy.