Galaxy Digital Inc.

11/10/2025 | Press release | Distributed by Public on 11/10/2025 16:12

Quarterly Report for Quarter Ending September 30, 2025 (Form 10-Q)

Management's Discussion and Analysis of Financial Condition and Results of Operations
Management's discussion and analysis of our financial condition and results of operations should be read in conjunction with the condensed consolidated interim financial statements and notes thereto included elsewhere in this Quarterly Report on Form 10-Q. Some of the information contained in this Quarterly Report on Form 10-Q includes forward-looking statements that involve risks and uncertainties. You should read the sections titled "Special Note Regarding Forward-Looking Statements" and "Risk Factors" for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.
Overview
Galaxy is a global leader in digital assets and data center infrastructure, delivering solutions that accelerate progress in finance and artificial intelligence ("AI"). We are strategically positioned to bridge traditional finance and the emerging digital economy, facilitating efficient access and adoption of digital assets by institutional clients through our Global Markets and Asset Management & Infrastructure Solutions businesses within our Digital Assets segment. We also develop, and will in the future operate, high performance computing ("HPC") data center infrastructure to meet the rising global demand for reliable power and scalable compute capacity driven by accelerated AI growth.
Digital Assets
Galaxy's Digital Assets operating business segment provides a comprehensive and evolving suite of financial products and services tailored for institutions seeking exposure to the digital asset ecosystem. This segment includes our Global Markets and Asset Management & Infrastructure Solutions businesses.
Our Global Markets business provides over-the-counter ("OTC") spot and derivatives trading, lending, and structured products, as well as transaction advisory and equity and debt capital markets services. Our client base includes more than 1,500 trading counterparties globally as of September 30, 2025, including asset managers, hedge funds, family offices, Qualified Individuals1and corporations.
•Galaxy's trading business includes electronic OTC, high-touch OTC, derivatives trading, and lending. The electronic and high-touch OTC businesses operate on a principal basis, providing liquidity in digital assets to institutional clients and Qualified Individuals. In our electronic OTC business, trading is facilitated through API connectivity. Our high-touch OTC offering mirrors the electronic desk in strategy and risk management, but operates primarily through chat-based channels. The desk utilizes a blend of internal and third-party platforms to access liquidity and manage risk, with 24/7 coverage to support client engagement and execution. The derivatives trading business offers liquidity in options and forwards to institutional counterparties, with trading activity spanning both OTC and exchange-listed and cleared products.
•Our investment banking business provides strategic and transaction advisory services focused on the digital assets sector. The team assists clients with growth strategy, mergers and acquisitions, capital formation, and other financial transactions. Leveraging deep industry knowledge and a strong global network, Galaxy connects innovative companies with institutional investors and delivers customized solutions to support growth, liquidity, and long-term value creation in the digital economy.
Our Asset Management & Infrastructure Solutions business encompasses our investment management division and blockchain infrastructure products and services, with approximately $17.0 billion in assets across the platform as of September 30, 2025.
•Our asset management business manages a diverse suite of exchange-traded funds ("ETFs") and alternatives strategies, taking the investing DNA that has been core to Galaxy since our founding and externalizing it for institutional allocators and Qualified Individuals.
•Galaxy's Asset Management ETFs include a suite of passive and active products developed in partnership with leading asset managers in the U.S., Brazil, Canada, and Europe. Galaxy's Asset Management passive ETFs feature regulated, spot digital asset ETFs, while its active ETFs provide exposure to digital assets and other
1"Qualified Individuals" are Eligible Contract Participants, as defined by the Commodities Exchange Act, knowledgeable employees of Galaxy and accredited investors, who are usually high net worth individuals.
disruptive technologies. Galaxy's Asset Management alternative investment strategies encompass actively managed long-biased and long-short funds, and a venture franchise. Galaxy Asset Management offers a Liquid Crypto Fund designed to provide access to both core and next generation digital assets and an Absolute Return Fund, launched in 2025, which employs a multi-asset strategy with long and short positions across the digital asset ecosystem and adjacent disruptive technologies. Galaxy Asset Management's venture franchise includes Galaxy Interactive, which invests at the intersection of content, technology and social commerce, with a focus on video games and the infrastructure powering immersive virtual worlds. Additionally, our inaugural crypto venture fund targets early-stage investments in protocols, software infrastructure, and financialized applications. The venture franchise also features two global, multi-manager venture funds and manages a subset of Galaxy's balance sheet venture investments.
•Galaxy managed $10.5 billion in assets across strategies, including ETFs and alternatives, across public and private markets as of September 30, 2025, a 126% increase year-over-year and 81% increase quarter-over-quarter. $2.4 billion of the $10.5 billion of assets under management ("AUM") represented engagements managed by Galaxy's asset management team to unwind portfolios on behalf of the estate of FTX as well as assets held within Commodity Pool Operator ("CPO") vehicles. Excluding these opportunistic assets, Galaxy Asset Management's AUM increased by 92% year-over-year to $8.1 billion as of September 30, 2025, driven by $3.7 billion of gross inflows and $2.0 billion of net market appreciation partially offset by $1.8 billion of gross outflows and increased 53% quarter-over-quarter as of September 30, 2025, driven by $2.7 billion of gross inflows and $0.7 billion of net market appreciation partially offset by $0.7 billion of gross outflows.
•Our Infrastructure Solutions business includes blockchain-centric technology and infrastructure including staking, tokenization and custodial technology.
•Our staking business operates validator nodes to secure blockchains and enable our institutional clients to earn staking rewards, use staked assets as collateral for loans and participate in an increasingly on-chain and decentralized future. Galaxy provides validator services to eleven different blockchain networks, including Ethereum and Solana. As part of our broader suite of infrastructure solutions, we offer secure, institutional-grade cold and hot wallet technology for institutions seeking to self-custody their assets, along with integrated tokenization capabilities.
•Galaxy reported assets under stake ("AUS") of approximately $6.6 billion as of September 30, 2025, as compared to AUS of approximately $4.2 billion as of December 31, 2024.
Data Centers
Our Data Centers operating business segment develops, and will in the future operate, HPC infrastructure to meet the growing demand for large-scale, power-ready facilities. Galaxy's Helios data center campus, located in the panhandle region of West Texas, is developing 133 megawatts ("MW") of critical IT load, utilizing approximately 200 MW of gross power capacity, for CoreWeave. In April 2025, CoreWeave exercised its first option under its 15-year lease agreement with Galaxy (the "Lease Agreement"), and in August 2025, we entered into the phase II lease agreement (the "Phase II Lease Agreement") with CoreWeave for the uptake of an additional 260 MW of incremental critical IT load. Also in August 2025, CoreWeave exercised and entered into its second option under the Lease Agreement pursuant to a Phase III option agreement (the "Phase III Option Agreement"), under which it committed to enter into a lease agreement for the uptake of an additional 133 MW of incremental critical IT load. Together, the Phase II Lease Agreement and the Phase III Option Agreement are expected to increase CoreWeave's contracted capacity at the Helios data center campus to 526 MW of critical IT load by 2028. The retrofit of Helios will be completed in phases, with the full 133 MW of initial critical IT load expected to be delivered by the end of the first half of 2026.
Treasury and Corporate
In addition to our two operating business segments, Galaxy holds a diversified portfolio of digital assets, venture, private equity, and fund investments on its balance sheet, and also conducts bitcoin mining operations, all of which are reported within the Treasury and Corporate segment. Treasury engages in proprietary quantitative, arbitrage and macro trading strategies.
Financial and Operational Highlights
•Galaxy generated Net income of $505.1 million and Net income of $240.3 million for the three and nine months ended September 30, 2025, respectively, compared to Net loss of $33.3 million and Net income of $229.2 million for the three and nine months ended September 30, 2024, respectively.
•Galaxy generated Adjusted EBITDA of $629.4 million and $551.1 million for the three and nine months ended September 30, 2025, respectively, compared to Adjusted EBITDA of $1.9 million and $353.2 million for the three and nine months ended September 30, 2024, respectively.2
•Total equity as of September 30, 2025 was $3.2 billion, an increase of 45% from $2.2 billion as of December 31, 2024.
•In August 2025, Galaxy and CoreWeave entered into the Phase II Lease Agreement and the Phase III Option Agreement, which together are expected to increase CoreWeave's contracted capacity at the Helios data center campus to 526 MW of critical IT load by 2028.
•On August 15, 2025, Galaxy Helios I LLC ("Galaxy Helios I") entered into a credit agreement (the "Credit Agreement" and, together with the related transaction documents, the "Project Financing Documents") with Deutsche Bank AG providing for a senior secured term loan facility in an aggregate principal amount of up to $1.4 billion (the "Loan Amount"), to finance the first phase of the buildout of our Helios data center campus (the "Project Financing").
Recent Developments
Tokenized Galaxy
Since September 2025, we enable a natively tokenized version of our Class A common stock, which we refer to as "Tokenized GLXY." As part of this project, holders of our traditional Class A common stock, which we refer to as "Traditional GLXY," can obtain Tokenized GLXY. Tokenized GLXY can be held by investors in their self-custodial wallets and transferred bilaterally between "allowedlisted" wallets, and we may in the future permit Tokenized GLXY to be traded over decentralized exchanges or other trading platforms, subject to certain regulatory considerations. Holders of Tokenized GLXY retain the same rights and privileges as holders of Traditional GLXY and on-chain trading of Tokenized GLXY would provide another potential trading market for our Class A common stock, alongside existing trading markets for Traditional GLXY including Nasdaq and the TSX. On May 20, 2025, we entered into a Digital Transfer Agency Agreement with Superstate Services LLC (the "Digital Transfer Agent") pursuant to which the Digital Transfer Agent has agreed to create and maintain an "Allowlist" of wallet addresses of individuals and entities who have completed the Digital Transfer Agent's onboarding requirements and are permitted to hold, transfer and facilitate transfers of Tokenized GLXY. Tokenized GLXY provides an additional mechanism for investors to hold and transact in shares in the Company, which may improve settlement efficiency and increase accessibility. Tokenized GLXY may also introduce new risks and uncertainties (including, among others, regulatory and liquidity risks) that could adversely affect the market for, and the trading price of, both Tokenized GLXY and Traditional GLXY.
GalaxyOne
On October 6, 2025, we announced the launch of GalaxyOne. GalaxyOne is a retail financial technology platform designed for individual investors seeking the best of both traditional and digital markets. Its core offerings include (i) access to a Federal Deposit Insurance Corporation ("FDIC") -insured high-yield demand deposit account offered by our bank partner Cross River Bank for U.S.-based depositors, (ii) a debt security issued by Galaxy Digital LP and guaranteed by GDH LP through the Galaxy Premium Yield Investment Note, initially offering 8.00% yield at the inception of the product, for U.S. accredited investors, and (iii) access to equities and crypto trading via our regulated partners DriveWealth LLC and Paxos, respectively. We are not a bank and are not a member of the FDIC. FDIC-insured high-yield demand deposit accounts and related banking services are provided by our bank partner, Cross River Bank. The Galaxy Premium Yield Investment Note is only available to accredited investors and is offered and sold in unregistered transactions in reliance on Rule 506(c) of Regulation D under the Securities Act. In conjunction with this launch, our legacy GalaxyOne platform for institutional clients was renamed to "GalaxyOne Institutional."
Private Placement
On October 10, 2025, we entered into investment agreements with certain institutional investors for a $460 million private strategic investment in our Class A common stock (the "October Private Placement"), consisting of a purchase of 9,027,778 shares of Class A common stock from us and 3,750,000 shares of Class A common stock from certain of our executive officers, including our Founder, at $36.00 per share. The October Private Placement closed on October 17, 2025.
2See the section titled "Non-GAAP Financial Measures" below for a reconciliation of Net Income / (loss) to Adjusted EBITDA and an explanation for why we consider Adjusted EBITDA to be a helpful metric for investors.
We intend to use the net proceeds to us from the October Private Placement for general corporate purposes and to power the buildout of our Helios data center campus.
2031 Exchangeable Notes
On October 30, 2025, GDH LP issued $1.3 billion aggregate principal amount of 0.50% exchangeable senior notes due 2031 (the "2031 Exchangeable Notes"). From time to time and subject to the terms of the indenture governing the 2031 Exchangeable Notes, the 2031 Exchangeable Notes are exchangeable for shares of our Class A common stock at the option of the holders thereof. We intend to use the net proceeds from the offering to support growth across our core operating businesses and for general corporate purposes, which may include the repayment of the 2026 Exchangeable Notes (as defined herein).
Our Business Model
Galaxy's business generates revenue through a variety of channels, creating a diversified and resilient cash flow base that is not directly correlated to any single asset, token, or business line. Within the Digital Assets operating business segment, the Global Markets business earns revenue from spreads on client trades, net interest income from lending activities, and fees from M&A and capital raising transactions. Galaxy's Asset Management & Infrastructure Solutions business generates management and performance fees on assets under management, fees on assets staked to our validator nodes and licensing fees from institutions who leverage GK8's proprietary self-custody technology.
Within our Data Centers operating business segment, we expect the majority of revenue to come from long-term lease agreements with cloud service provider clients that Galaxy may obtain from time to time for HPC. Galaxy does not currently earn any revenue from its Data Centers business, but expects this segment to become a significant and diversified source of long-term, predictable revenue for Galaxy, uncorrelated to the prices of digital assets, particularly once we begin to deliver critical IT load for CoreWeave (and potentially other future tenants) starting in 2026.
We also earn revenue by managing a diversified portfolio of digital assets, venture, private equity, and fund investments on our balance sheet, as well as through our bitcoin mining operations, all of which are reported within the Treasury and Corporate segment.
Non-GAAP Financial Measures
To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with GAAP, we use certain non-GAAP financial measures, as described below, to understand and evaluate our business. These non-GAAP financial measures, which may be different than similarly-titled measures used by other companies, are presented to enhance investors' overall understanding of our financial performance and should not be considered a substitute for, or superior to, the financial information prepared and presented in accordance with GAAP. Adjusted gross profit and Adjusted EBITDA are non-GAAP financial measures that that are used by management, in addition to GAAP financial measures, to understand and compare our operating results across accounting periods, for risk management and operational decision-making.
We believe Adjusted gross profit is a helpful non-GAAP financial measure to our management and investors because it eliminates the impact of the directly attributable transaction expenses. As such, it provides useful information about our financial performance, enhances the overall understanding of our past performance and future prospects, allows for greater transparency with respect to important metrics used by our management for financial, risk management and operational decision-making and provides an additional tool for investors to use to understand and compare our operating results across accounting periods.
We believe Adjusted EBITDA provides investors with additional useful information in evaluating Galaxy's operating performance, as well as a useful measure for period-to-period comparisons of our business performance.
Adjusted gross profit is defined as revenues and gains / (losses) from operations, excluding (i) transaction expenses and (ii) impairment of digital assets.
Adjusted EBITDA is defined as Net income / (loss), excluding (i) equity based compensation, (ii) interest expense on structural debt, (iii) taxes, (iv) depreciation and amortization expense, (v) gains and losses on the embedded derivative on our Exchangeable Notes which ceased to exist upon consolidation as a result of the Reorganization Transactions, (vi) mining-related impairment loss / loss on disposal of mining equipment, (vii) settlement expense, (viii) other (income) / expense, net and (ix) reorganization and reorganization merger costs that we believe are not indicative of our ongoing results. The above items are excluded from our Adjusted EBITDA because these items are non-cash in nature, or because
the amount and timing of these items are unpredictable, are not driven by core results of operations, and render comparisons with prior periods and competitors less meaningful.
These non-GAAP financial measures do not have any standardized meanings prescribed by GAAP and may not be comparable to similar measures presented by other companies in our industry. These non-GAAP financial measures have been prepared by, and are the responsibility of, Galaxy's management, and have not been audited or reviewed by our independent registered public accounting firm. You should not place undue reliance on these non-GAAP financial measures.
The following table presents a reconciliation of Adjusted gross profit to the most directly comparable GAAP measure, revenues and gains / (losses) from operations:
Three Months Ended September 30, 2025
(in thousands)
Digital Assets Data Centers Treasury and Corporate Total
Revenues and gains / (losses) from operations $ 28,805,865 $ 2,662 $ 410,326 $ 29,218,853
Less: Transaction expenses
28,290,508 - 2,269 28,292,777
Less: Impairment of digital assets 197,702 - - 197,702
Adjusted gross profit
$ 317,655 $ 2,662 $ 408,057 $ 728,374
Three Months Ended September 30, 2024
(in thousands)
Digital Assets Data Centers Treasury and Corporate Total
Revenues and gains / (losses) from operations $ 8,626,967 $ - $ 85,323 $ 8,712,290
Less: Transaction expenses
8,509,752 - 26,383 8,536,135
Less: Impairment of digital assets 47,931 - 60,535 108,466
Adjusted gross profit
$ 69,284 $ - $ (1,595) $ 67,689
Nine Months Ended September 30, 2025
(in thousands)
Digital Assets Data Centers Treasury and Corporate Total
Revenues and gains / (losses) from operations $ 50,580,979 $ 2,662 $ 547,736 $ 51,131,377
Less: Transaction expenses
49,807,846 - 61,881 49,869,727
Less: Impairment of digital assets 319,317 - 118,291 437,608
Adjusted gross profit
$ 453,816 $ 2,662 $ 367,564 $ 824,042
Nine Months Ended September 30, 2024
(in thousands)
Digital Assets Data Centers Treasury and Corporate Total
Revenues and gains / (losses) from operations $ 26,852,394 $ - $ 553,030 27,405,424
Less: Transaction expenses
26,583,046 - 76,015 26,659,061
Less: Impairment of digital assets 67,198 - 123,741 190,939
Adjusted gross profit
$ 202,150 $ - $ 353,274 $ 555,424
The following table presents a reconciliation of Adjusted EBITDA to the most directly comparable GAAP measure, Net income / (loss):
(in thousands)
Digital Assets
Data Centers
Treasury and Corporate
Three Months Ended
September 30, 2025
Net income / (loss)
$ 234,392 $ 2,104 $ 268,561 $ 505,057
Add back:
Equity based compensation 11,989 1,645 8,423 22,057
Notes interest and other expense
- - 14,415 14,415
Taxes
- - 40,145 40,145
Depreciation and amortization expense 3,812 - 3,585 7,397
Unrealized (gain) / loss on notes payable - derivative - - - -
Mining related impairment loss / loss on disposal
- - 38,027 38,027
Settlement expense
- - 1,810 1,810
Other (income) / expense, net
(272) (90) (595) (957)
Reorganization and reorganization merger costs - - 1,401 1,401
Adjusted EBITDA
$ 249,921 $ 3,659 $ 375,772 $ 629,352
(in thousands)
Digital Assets
Data Centers
Treasury and Corporate
Three Months Ended September 30, 2024
Net income / (loss)
$ 8,855 $ (1,875) $ (40,310) $ (33,330)
Add back:
Equity based compensation 11,128 - 6,585 17,713
Notes interest and other expense
9,107 9,107
Taxes
(7,885) (7,885)
Depreciation and amortization expense 3,568 1,875 7,565 13,008
Mining related impairment loss / loss on disposal
- - - -
Unrealized (gain) / loss on notes payable - derivative - - 2,858 2,858
Other (income) / expense, net
- - (781) (781)
Reorganization and reorganization merger costs - - 1,227 1,227
Adjusted EBITDA
$ 23,551 $ - $ (21,634) $ 1,917
(in thousands) Digital Assets Data Centers Treasury and Corporate Nine Months Ended
September 30, 2025
Net income / (loss)
$ 235,386 $ (795) $ 5,725 $ 240,316
Add back:
Equity based compensation 29,757 2,115 18,997 50,869
Notes interest and other expense
- - 42,726 42,726
Taxes
- - 45,503 45,503
Depreciation and amortization expense 10,927 1,251 15,290 27,468
Mining related impairment loss / loss on disposal
- - 95,057 95,057
Unrealized (gain) / loss on notes payable - derivative - - 35,544 35,544
Reorganization and reorganization merger costs - - 8,687 8,687
Settlement expense
- - 7,344 7,344
Other (income) / expense, net
(148) (90) (2,185) (2,423)
Adjusted EBITDA
$ 275,922 $ 2,481 $ 272,688 $ 551,091
(in thousands)
Digital Assets
Data Centers
Treasury and Corporate
Nine Months Ended
September 30, 2024
Net income / (loss)
$ 17,601 $ (5,349) $ 216,949 $ 229,201
Add back:
Equity based compensation 41,875 - 19,626 61,501
Notes interest and other expense
- - 26,564 26,564
Taxes
- - (12,602) (12,602)
Depreciation and amortization expense 8,057 5,349 20,058 33,464
Mining related impairment loss / loss on disposal
- - - -
Unrealized (gain) / loss on notes payable - derivative - - 15,144 15,144
Reorganization and reorganization merger costs - - 2,564 2,564
Other (income) / expense, net
$ (2,606) (2,606)
Adjusted EBITDA
$ 67,533 $ - $ 285,697 $ 353,230
Key Factors Affecting Our Performance
The growth and success of our business as well as our financial condition and operating results have been, and will continue to be, affected by a number of factors, including:
Price and volatility of digital assets
Values of digital assets have been highly volatile. Effects from speculation regarding the future appreciation or depreciation in the value of digital assets, making their market prices more volatile, may materially and adversely affect the value of our digital asset inventory. Changing investor confidence and resultant fluctuations in the price of various digital assets may cause uncertainty in the market and could negatively impact trading volumes of digital assets, which would negatively impact our business and operating results.
Adoption of digital assets
The cryptoeconomy experienced rapid growth in 2021 driven by the simultaneous widespread adoption of digital assets, expanded use of cryptocurrencies and broader blockchain innovations including DeFi and the growth of non-fungible tokens ("NFTs") as a prominent form of tokenization. After a retreat in 2022, cryptocurrency markets started to rally in 2023, which continued through December 2024. After a brief retreat in the first quarter of 2025, the price of bitcoin stayed above $100,000 throughout the third quarter of 2025 and reached another all-time high, temporarily exceeding $126,000 on October 6, 2025. The initially retail-driven adoption of cryptocurrencies has evolved to include institutional holders, utilizing digital assets as both a store of value and for commercial applications. The lead up to the launch of the spot-based bitcoin ETFs in the U.S. in the first quarter of 2024 followed by the U.S. Presidential election in November 2024 provided a boost to bitcoin. According to the Crypto Market Sizing Report released by Crypto.com, the number of worldwide individual cryptocurrency users rose to 708 million as of September 2025, up from 659 million as of December 31, 2024 and 580 million in December 2023. Moreover, bitcoin's trailing five-year compounded annual growth rate reached 60% as of September 30, 2025. However, historical trends are not indicative of future adoption, and it is possible that the adoption of digital assets and blockchain technology may slow, take longer to develop, or never be broadly adopted, which would negatively impact our business and operating results.
Strategic acquisitions and investments
We intend to continue to use our scale, expertise and balance sheet to identify and execute on acquisitions across our business lines. A series of acquisitions has diversified our product offerings and revenue sources. This includes the acquisition of the Helios bitcoin mining facility and its operations from Argo Blockchain in December 2022. In February 2023, we completed the acquisition of GK8, a developer of secure technology solutions for self-custody of digital assets by institutions, from the Chapter 11 bankruptcy estates of Celsius Network, LLC and its affiliated debtors in possession (the "Celsius Estate"). In July 2024, we acquired the assets of CMF, a blockchain node operator that provides trusted, secure services to decentralized protocols across the digital asset ecosystem. In December 2024, we acquired Fierce, a financial application software provider that we relaunched in October 2025 as GalaxyOne. See "-Recent Developments". Any such acquisitions of, or investments in, companies with complementary products and technologies may affect our future operating results.
Regulation in U.S. and international markets
Our financial prospects and continued growth depend in part on our ability to continue to operate in a manner compliant with regulations. Our business is subject to the oversight of numerous regulatory agencies in the U.S. and other jurisdictions, including, but not limited to, FinCEN, the SEC and the Commodities Futures Trading Commission ("CFTC"). Many of these agencies have issued consumer advisories regarding the risks posed by digital assets to investors. Our strategy is to continue to invest significantly in our finance, legal, compliance, and security functions in order to remain at the forefront of digital asset policy initiatives and regulatory trends. We primarily service institutional customers potentially mitigating some of the compliance risks. However, as the industry matures, we may experience fluctuations in our operating results as a result of changes in the laws and regulations that are applicable to our business.
Critical Accounting Policies and Estimates
Our unaudited condensed consolidated financial statements are prepared in accordance with GAAP. In preparing the condensed consolidated financial statements, we apply accounting policies and estimates that affect the reported amounts and related disclosures. Inherent in such policies are certain key assumptions and estimates made by management, which we believe best reflect our underlying business and economic conditions. Our estimates are based on historical experience and various other factors and assumptions that we believe are reasonable under the circumstances. We regularly re-evaluate our estimates used in the preparation of the condensed consolidated financial statements based on our latest assessment of the current and projected business and economic environment. By their nature, these estimates and judgments are subject to an inherent degree of uncertainty and actual results could differ materially from the amounts reported based on these estimates.
There have been no material changes to our critical accounting policies and estimates as compared to the critical accounting policies and estimates included in the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2025.
Components of Results of Operations
Revenue
•Digital assets sales:Gross sales proceeds from sales of digital intangible assets.
•Fees: Performance and management fees for unconsolidated funds, for which the Company acts as the general partner and / or manager. Additionally, this includes fees received for investment advisory services including mergers and acquisition advisory, as well as fees earned through technology licensing, mining hosting operations, and mining equipment lease income.
•Blockchain rewards: Gross amount of blockchain generated digital assets and transaction fees earned for proof-of-stake validation, also referred to as staking.
•Proprietary mining: Bitcoin rewards from proprietary digital asset mining.
•Lending: The return that is earned from digital assets and fiat currencies lent to counterparties.
Gains / (losses) from operations
•Net gain / (loss) on digital assets: Realized and unrealized gains / (losses) from changes in the fair value of digital assets that are measured using fair value in accordance with our accounting policies. This includes net gains resulting from the return of Digital intangible assets borrowed and Collateral payable. Digital assets borrowed and Collateral payable digital asset liabilities each contain an embedded derivative that is valued based on the market prices of the underlying digital assets; certain corresponding Digital intangible assets may be held at the lower of cost or lowest observable fair value. Upon repayment of the digital asset loans, the impaired digital intangible assets would have a lower carrying value than the liabilities, resulting in a gain on extinguishment of the Digital asset loans payable. Other digital asset balances such as Digital assets receivable, digital assets posted as collateral, and Digital assets loan receivable, net of allowance are also measured at the fair value of the underlying digital assets and the resulting fluctuations are also included in Net gain / (loss) on digital assets.
•Net gain / (loss) on investments: Gains / (losses) from the changes in fair value of investments, as well as the gain / (loss) from sales of investments held by the Company.
•Net gain / (loss) on derivatives trading: Change in fair value of derivative assets and liabilities, resulting from contracts held by the Company for trading and hedging purposes.
Operating expenses
Operating expenses consist of transaction expenses, impairment of digital assets, compensation and benefits, general and administrative (inclusive of depreciation and amortization), technology, professional fees, and exchangeable notes interest expense.
Transaction expenses
Transaction expenses consist of the following:
•Digital assets sales costs: Carrying value of digital assets sold, net of impairment if applicable, allocated on a first-in-first-out basis.
•Blockchain reward distributions: As a principal in the provision of staking services, the Company recognizes the amount of staking rewards earned by third-parties utilizing the Company's validation infrastructure as part of its operating expenses.
•Borrowing costs: Costs of borrowing digital assets and fiat from clients and counterparties. Borrowed digital assets and fiat are utilized in our trading and lending operations.
•Mining and hosting costs: Mining power costs, including realized and unrealized gains and losses on power purchase agreements, hosting fee expense and costs of mining equipment recognized through sales-type finance leases.
•Other transaction expenses: Trading commissions, custody, and exchange fees incurred by the Company.
Impairment of digital assets
Impairment loss from digital intangible assets which have been marked to the lower of cost or lowest observable fair value in the current period.
Results of Operations
Below is a discussion of our results of operations for the three and nine months ended September 30, 2025 compared to the three and nine months ended September 30, 2024. The results of operations presented below should be reviewed in conjunction with Galaxy's consolidated financial statements and notes thereto included elsewhere in this Quarterly Report on Form 10-Q.
Three and Nine Months Ended September 30, 2025 Compared to Three and Nine Months Ended September 30, 2024
The table below presents our results of operations for the three and nine months ended September 30, 2025 and 2024.
Three Months Ended September 30, Nine Months Ended September 30,
(in millions) 2025 2024
$ Change
% Change 2025 2024
$ Change
% Change
Revenues
$ 28,401.9 $ 8,570.7 $ 19,831.2 231 % $ 50,039.6 $ 26,788.9 $ 23,250.7 87 %
Gains / (losses) from operations 817.0 141.6 $ 675.3 477 % 1,091.7 616.5 $ 475.2 77 %
Revenues and gains / (losses) from operations
29,218.9 8,712.3 20,506.6 235 % 51,131.4 27,405.4 23,726.0 87 %
Operating expenses:
Transaction expenses 28,292.8 8,536.1 19,756.6 231 % 49,869.7 26,659.1 23,210.7 87 %
Impairment of digital assets 197.7 108.5 89.2 82 % 437.6 190.9 246.7 129 %
Compensation and benefits 85.0 57.3 27.8 49 % 207.0 179.6 27.4 15 %
General and administrative 58.7 23.9 34.8 146 % 164.5 65.9 98.6 150 %
Technology 11.5 7.6 3.9 51 % 33.0 21.4 11.6 54 %
Professional fees 14.5 10.9 3.5 32 % 58.0 38.2 19.8 52 %
Notes interest expense 14.4 7.1 7.3 103 % 42.7 21.1 21.6 102 %
Total operating expenses 28,674.6 8,751.4 19,923.2 228 % 50,812.6 27,176.3 23,636.3 87 %
Other income / (expense):
Unrealized gain / (loss) on notes payable - derivative - (2.9) 2.9 100 % (35.5) (15.1) (20.4) (135) %
Other income / (expense), net 1.0 0.8 0.2 25 % 2.5 2.6 (0.1) (4) %
Total other income / (expense)
1.0 (2.1) 3.0 143 % (33.0) (12.5) (20.5) (164) %
$ 545.2 $ (41.2) $ 586.4 1,423 % $ 285.8 $ 216.6 $ 69.2 32 %
Income taxes expense / (benefit) 40.1 (7.9) 48.0 608 % 45.5 (12.6) 58.1 461 %
Net income / (loss)
$ 505.1 $ (33.3) $ 538.4 1,617 % $ 240.3 $ 229.2 $ 11.1 5 %
Revenues and gains from operations
Revenue
Three Months Ended September 30, Nine Months Ended September 30,
(in millions) 2025 2024 Change % Change 2025 2024 Change % Change
Digital assets sales $ 28,199.0 $ 8,464.8 $ 19,734.2 233 % $ 49,613.6 $ 26,507.7 $ 23,105.9 87 %
Fees 104.3 20.7 83.6 404 % 132.8 75.4 57.4 76 %
Blockchain rewards 52.2 48.1 4.1 9 % 164.5 96.1 68.4 71 %
Proprietary mining 1.2 11.4 (10.3) (90) % 13.4 47.9 (34.5) (72) %
Revenues from contract with customers
$ 28,356.7 $ 8,545.0 $ 19,811.6 232 % $ 49,924.3 $ 26,727.1 $ 23,197.2 87 %
Blockchain rewards from non-customers(1)
2.6 1.9 0.7 37 % 13.2 5.5 7.7 140 %
Lending 42.6 23.6 19.0 81 % 102.2 56.4 45.8 81 %
Total revenues
$ 28,401.9 $ 8,570.5 $ 19,831.3 231 % $ 50,039.7 $ 26,789.0 $ 23,250.7 87 %
______________
(1)Includes blockchain rewards earned from decentralized finance protocols and third-party staking infrastructure.
Total revenues were $28.4 billion and $50.0 billion, an increase of $19.8 billion and an increase of $23.3 billion, or 231% and 87%, respectively, for the three and nine months ended September 30, 2025, compared to the three and nine months ended September 30, 2024. The increase for the three months ended September 30, 2025 was primarily driven by a $19.7 billion increasein Digital assets sales. The increasefor the nine months ended September 30, 2025was primarily driven by a $23.1 billion increasein Digital assets sales. Galaxy recognizes revenue from transactions with customers, which include centralized trading platforms, and the corresponding Digital asset sales cost, on a gross basis because of its
role as principal in sales and purchases of digital intangible assets. The significant volume of Galaxy's digital intangible asset transactions results in significant Digital assets sales revenue with corresponding significant digital asset sales cost reflected in Transaction expenses. As a result, the magnitude of changes in Revenue on the Company's statement of operations overshadow other parts of the business, but are predominantly offset by Transaction expenses in Net income.
Digital assets sales were $28.2 billion and $49.6 billion, an increase of $19.7 billion and increase of $23.1 billion, or 233% and 87%, respectively, for the three and nine months ended September 30, 2025, compared to the three and nine months ended September 30, 2024. The increase for the three months ended September 30, 2025, was primarily driven by increased trade volumes resulting from a significant trade execution in the third quarter of 2025, supplemented by higher average digital asset prices in 2025. The increase for the nine months ended September 30, 2025, was also driven by the significant trade execution in the third quarter of 2025 and supplemented by higher average price of digital assets in 2025. Digital assets sales associated with external customer facing trades are reflected in the Digital Assets segment.
Sales of bitcoin, ether and tether made up 86%and 86%, versus 87%and 89%, of Digital assets sales for the three and nine months ended September 30, 2025 and three and nine months ended September 30, 2024, respectively. Approximately 52%of Digital asset sales revenue for the three months ended September 30, 2025 was comprised of the sale of bitcoin, compared to 51% of Digital assets sales revenue for the three months ended September 30, 2024. Approximately 15% of Digital asset sales revenue for the three months ended September 30, 2025 was comprised of the sale ofether,compared to 14%of Digital assets sales revenue for the three months ended September 30, 2024. Approximately 53%of Digital asset sales revenue for the nine months ended September 30, 2025 was comprised of the sale ofbitcoin,compared to 58%of Digital assets sales revenue for the nine months ended September 30, 2024. Approximately 14%of Digital asset sales revenue for the nine months ended September 30, 2025 was comprised of the sale of ether,compared to 14% of Digital assets sales revenue for the nine months ended September 30, 2024.
Fee revenue was $104.3 million and $132.8 million, an increase of $83.6 million and $57.4 million, or 404% and 76%, respectively, for the three and nine months ended September 30, 2025, compared to the three and nine months ended September 30, 2024. For the three and nine months ended September 30, 2025, the increase was primarily attributable to the investment banking fees earned from us acting as placement agent in a private placement (the "Forward PIPE Transaction") by Forward Industries, Inc., a global design company that initiated a Solana focused treasury strategy ("Forward Industries"), as well as additional asset management fees earned during the quarter due to increased assets under management. The increase was partially offset by the cessation of mining hosting contracts at the Helios site during the first quarter of 2025 in anticipation of the data center conversion. No mining hosting revenue was generated for the three and nine months ended September 30, 2025, as compared to mining hosting revenue of $7.0 million and $24.9 million during the three and nine months ended September 30, 2024.
Blockchain rewards from customers were $52.2 million and $164.5 million, an increase of $4.1 million and $68.4 million, or 9% and 71% respectively, for the three and nine months ended September 30, 2025 compared to the three and nine months ended September 30, 2024. The increase was attributable to both increased assets under stake and a higher average price of digital assets during the 2025 periods. Galaxy launched proof of stake ("PoS") validation infrastructure services (reflected within the Digital Assets segment) in late 2023 to which third party and proprietary digital assets may be bonded on PoS networks to generate blockchain rewards. The delegation of staked digital assets to Galaxy-operated validation infrastructure by a number of digital assert treasury companies starting in the second quarter of 2025 contributed to the increased Blockchain rewards from customers earned in the three and nine months ended September 30, 2025 as compared to the three and nine months ended September 30, 2024. The net portion of the blockchain rewards retained by Galaxy earned on third party digital assets bonded to Galaxy validator nodes was between 5%and 10%as of September 30, 2025. Blockchain rewards generated by the Digital Assets segment on Treasury and Corporate digital assets are eliminated on consolidation within the Treasury and Corporate segment. Blockchain rewards earned from non-customers are primarily generated from participation in various decentralized finance protocols. The yield generated from these activities are primarily driven by the value of the underlying digital asset at the time of receipt and the various incentives provided by the protocols to participants.
Proprietary mining was $1.2 million and $13.4 million, a decrease of $10.3 million and $34.5 million, or 90% and 72%, for the three and nine months ended September 30, 2025, compared to the three and nine months ended September 30, 2024. The decrease for the three and nine months ended September 30, 2025 was attributable to the cessation of proprietary mining at the Helios site at the end of the first quarter of 2025 and to lower hash price that resulted from the halving of the bitcoin network in April 2024. Mining activities are reflected within the Treasury and Corporate segment.
Lending revenues were $42.6 million and $102.2 million, an increase of $19.0 million and $45.8 million, or 81% and 81%, for the three and nine months ended September 30, 2025, compared to the three and nine months ended September 30, 2024. This increase was primarily attributable to the increased size of the loan book. The average loan book size for the
three and nine months ended September 30, 2025 was $1.8 billion and $1.3 billion compared to $668.1 million and $566.1 million for the three and nine months ended September 30, 2024. Counterparty loan originations were $493.2 million and $2.2 billionfor the three and nine months ended September 30, 2025 compared to$825.8 million and $1.4 billion for the three and nine months ended September 30, 2024. External lending revenue is reflected within the Digital Assets segment.
Gains / (losses) from operations
Three Months Ended September 30, Nine Months Ended September 30,
(in millions)
2025 2024 Change % Change 2025 2024 Change % Change
Net gain / (loss) on digital assets $ 453.8 $ 112.0 $ 341.8 305.2 % - $ 570.5 $ 436.4 $ 134.1 30.7 %
Net gain / (loss) on investments 297.8 13.3 $ 284.5 2,139.1 % - 360.0 (25.2) $ 385.2 1,528.6 %
Net gain / (loss) on derivatives trading 65.4 16.3 $ 49.1 301.2 % - 161.2 205.3 $ (44.1) (21.5) %
Net gain / (loss) from operations
$ 817.0 $ 141.6 $ 675.4 477 % $ 1,091.7 $ 616.5 $ 475.2 77 %
Net gain / (loss) on digital assets was $453.8 millionand $570.5 millionfor the three and nine months ended September 30, 2025, compared to a Net gain / (loss) on digital assets of $112.0 million and $436.4 million for the three and nine months ended September 30, 2024. The net gain on digital assets during the nine months ended September 30, 2025 was driven by net gains of approximately $325.1 million on bitcoin including associated DeFi assets, net gains of approximately $122.9 million on SOL, including associated DeFi assets as well as restricted tokens, and net gains of approximately $116.6 million on ether including associated DeFi assets, partially offset by net losses of approximately $57.9 million on certain restricted digital assets including TIA and SPEC and net losses of approximately $17.2 million on digital assets receivable. The net gain on digital assets during the three months ended September 30, 2025 was primarily driven by net gains on bitcoin including associated DeFi assets of approximately $182.6 million, net gains on ether including associated DeFi assets of approximately $135.5 million, and net gains on SOL, including associated DeFi assets as well as restricted tokens of approximately $100.4 million. Galaxy transacts significantly in and holds net long positions predominantly in bitcoin, which increasedin value by 6%and 22%, respectively, in the three and nine months ended September 30, 2025, and in ether, which increasedin value by 67%and 24%, respectively, in the three and nine months ended September 30, 2025. The net gain or loss on digital assets not measured at fair value depends on the difference in value of the underlying digital asset between the time of recognition and derecognition. Net loss on digital financial assets in the three and nine months ended September 30, 2025 was driven by decreased valuations for digital assets from Galaxy's net borrowed positions in these assets, which include certain tokenized financial instruments. Net gain / (loss) on digital assets is reflected in both the Digital Assets and Treasury and Corporate segments depending on the underlying activity.
The primary drivers for the net gains and losses on digital assets were as follows:
Three months ended September 30, Nine months ended September 30,
(in millions)
2025 2024 Change % Change 2025 2024 Change % Change
Net gain/(loss) on digital intangible assets measured at fair value $ 279.4 $ 179.1 $ 100.4 56.1 % $ 127.4 $ 316.5 $ (189.0) (59.7) %
Net gain/(loss) on digital intangible assets not measured at fair value (1)
202.8 (66.8) 269.6 403.6 % 472.6 119.8 352.8 294.5 %
Net gain/(loss) on digital financial assets measured at fair value(2)
(28.5) (0.3) (28.2) n/m (29.5) 0.1 (29.6) n/m
Net gain/(loss) on digital assets
$ 453.8 $ 112.0 $ 341.8 305.2 % $ 570.5 $ 436.4 $ 134.1 30.7 %
_______________
(1)Includes gain on derecognition of impaired digital assets.
(2)Includes gains and losses on tokenized financial assets such as U.S. Treasuries as well as tokenized variable debt tokens.
Net gain on investments was $297.8 million and $360.0 million for the three and nine months ended September 30, 2025, respectively, compared to a Net gain on investments of $13.3 million and Net loss on investments of $25.2 million for the three and nine months ended September 30, 2024, respectively. The net gain for the three months ended September 30, 2025 was primarily attributable to net unrealized gains on Ripple Labs, Inc., Bullish Global and Bitcoin ETFs as well as realized gains on the sponsored Galaxy Digital Crypto Vol Fund, which holds Solana and AVAX, Bullish Global, and
bitcoin ETFs. The net gain for the nine months ended September 30, 2025 was primarily attributable to unrealized gains on Ripple Labs, Inc., Bullish Global, and bitcoin ETFs as well as realized gains on bitcoin ETFs, Xapo and the sponsored Galaxy Digital Crypto Vol Fund. The net gain for the three months ended September 30, 2024 was primarily attributable to realized gains earned on the distribution of bitcoin and cash from investments including Mt. Gox Investment Fund LP, partially offset by unrealized losses on short positions. The net loss for the nine months ended September 30, 2024 was primarily attributable to realized losses on short positions partially offset by realized gains on distributions of digital assets, including bitcoin, and cash received from investments including Mt. Gox Investment Fund LP and the FTX bankruptcy claims, as well as unrealized gains on the Company's investments in BTC ETFs and the sponsored Galaxy Digital Crypto Vol Fund LLC. Net gains and losses on proprietary investments are reflected in the Treasury and Corporate segment.
Net gain on derivatives trading was $65.4 millionand $161.2 million, an increase of $49.1 millionand a decrease of $44.1 million, or 301%and (21)%, for the three and nine months ended September 30, 2025, compared to the three and nine months ended September 30, 2024, respectively. Derivatives trading gains include proprietary trading and hedging activities.The increasefor the three months ended September 30, 2025 was primarily attributable to a $53.0 million increase of realized and unrealized gains on settled and unsettled digital asset derivatives, partially offset by a decrease of $13.0 million in realized and unrealized gains on settled and unsettled interest rate derivatives. The decrease for the nine months ended September 30, 2025 was primarily attributable to a $52.0 million decrease of realized and unrealized gains on settled and unsettled digital asset derivatives, partially offset by a $17.1 million increase in realized and unrealized gains on settled and unsettled foreign currency derivatives.Net gain / (loss) on derivatives is reflected in both the Digital Assets and Treasury and Corporate segments dependent on the underlying activity.
Net derivative gain represents gains / (losses) from settled derivative trades and gains / (losses) on open derivatives. It was driven by the following free-standing derivatives:
Three Months Ended September 30, 2025 Nine Months Ended September 30, 2025
(in thousands)
Gains / (losses) on open derivatives
Gains / (losses) from settled derivative trades
Net gain on derivatives trading
Gains / (losses) on open derivatives Gains / (losses) from settled derivative trades Net gain on derivatives trading
Digital assets(1)
$ 14,390 $ 54,052 $ 68,442 $ 97,400 $ 30,715 $ 128,115
Foreign currencies (3,308) (1,913) (5,221) (1,571) 20,722 19,151
Interest rates (228) (2,305) (2,533) (900) 1,397 497
Equity securities
(577) (1,134) (1,711) (4,941) 8,868 3,927
Commodities 1,173 5,265 6,438 1,307 8,240 9,547
Total
$ 11,450 $ 53,965 $ 65,415 $ 91,295 $ 69,942 $ 161,237
________________
(1)Galaxy actively hedged its exposure to restricted digital assets and digital asset receivables, which contributed $30.3 million and $94.7 million to Net derivative gain in the three and nine months ended September 30, 2025, respectively.
Three Months Ended September 30, 2024 Nine Months Ended September 30, 2024
(in thousands)
Gains / (losses) on open derivatives
Gains / (losses) from settled derivative trades
Net gain on derivatives trading
Gains / (losses) on open derivatives Gains / (losses) from settled derivative trades Net gain on derivatives trading
Digital assets(1)
$ 7,848 $ 7,561 $ 15,409 $ 27,692 $ 152,383 $ 180,075
Foreign currencies (5,783) 4,754 (1,029) 1,951 64 2,015
Interest rates 853 9,618 10,471 (2,765) 7,194 4,429
Equity securities
2,406 (10,874) (8,468) (13,605) 22,827 9,222
Commodities 684 (727) (43) (581) 10,142 9,561
Total
$ 6,008 $ 10,332 $ 16,340 $ 12,692 $ 192,610 $ 205,302
_______________
(1)Galaxy actively hedged its exposure to restricted digital assets and digital asset receivables, which contributed $1.1 million and $22.3 millionto Net derivative gain in the three and nine months ended September 30, 2024, respectively.
Operating expenses
Transaction expenses
Three Months Ended September 30, Nine Months Ended September 30,
(in millions)
2025 2024 Change % Change 2025 2024 Change % Change
Digital assets sales costs $ 28,186.5 $ 8,454.2 $ 19,732.3 233 % $ 49,572.4 $ 26,471.6 $ 23,100.8 87 %
Blockchain reward distributions 41.7 39.3 2.3 6 % 131.5 69.5 62.0 89 %
Borrowing costs 51.5 26.6 24.9 94 % 127.1 63.3 63.8 101 %
Mining costs 0.8 10.0 (9.2) (92) % 7.1 35.7 (28.6) (80) %
Other transaction expenses 12.2 6.0 6.2 103 % 31.7 18.9 12.8 68 %
Transaction expenses
$ 28,292.7 $ 8,536.1 $ 19,756.5 231 % $ 49,869.8 $ 26,659.0 $ 23,210.8 87 %
Digital assets sales costs were $28.2 billion and $49.6 billion , an increase of $19.7 billion and $23.1 billion, or 233% and 87%, respectively, for the three and nine months ended September 30, 2025, compared to the three and nine months ended September 30, 2024. This was primarily driven by increased trade volumes resulting from a significant trade execution in the third quarter of 2025, supplemented by higher average digital asset prices in 2025. Digital assets sales costsmust be analyzed in conjunction with Impairment of digital assets and Net gain/(loss) on digital assets. As a percentage of Digital assets sales and Net gain/(loss) on digital assets, Digital assets sales costs and Impairment of digital assets collectively were approximately 100% for each of the three and nine months ended September 30, 2025 and 2024. Digital assets sales cost associated with external customer facing trades are reflected in the Digital Assets segment.
Blockchain reward distributions were $41.7 million and $131.5 million, an increase of $2.3 million and $62.0 million, or 6% and 89%, respectively, for the three and nine months ended September 30, 2025 compared to $39.3 million and $69.5 million for the three and nine months ended September 30, 2024, respectively. Galaxy launched validators in 2023 (reflected within the Digital Assets segment) to which third party and proprietary digital assets may be bonded on PoS networks to generate blockchain rewards. Blockchain reward distributions represent the staking rewards earned on third party assets staked on Galaxy validators which are passed on to the third parties, net of the fees which Galaxy charges. The delegation of staked digital assets to Galaxy-operated validation infrastructure by a number of digital assert treasury companies starting in the second quarter of 2025 contributed to the increased Blockchain rewards and associated Blockchain reward distributions in the three and nine months ended September 30, 2025 as compared to the three and nine months ended September 30, 2024. The net portion of the blockchain rewards retained by Galaxy earned on third party digital assets bonded to Galaxy validator nodes, including the CPO, was between 5% and 10% as of September 30, 2025. Blockchain reward distributions generated by the Digital Assets segment on Treasury and Corporate digital assets are eliminated on consolidation within the Treasury and Corporate segment.
Borrowing costs were $51.5 million and $127.1 million, an increase of $24.9 million and $63.8 million, or 94% and 101%, respectively, for the three and nine months ended September 30, 2025, compared to the three and nine months ended September 30, 2024, primarily due to higher average borrowing volumes supporting increased operational activity.
Mining costs were $0.8 million and $7.1 million, a decrease of $9.2 million and $28.6 million, or 92% and 80%, for the three and nine months ended September 30, 2025, compared to the three and nine months ended September 30, 2024. The decrease is attributable to the cessation of mining hosting contracts during the first quarter of 2025 and the elimination of proprietary mining at the Helios site at the end of the first quarter of 2025 in anticipation of the data center conversion. Power costs make up the majority of mining business expense. Galaxy had hashrate under management ("HUM") attributable to its remaining bitcoin mining machines of 0.2exahashas of September 30, 2025 compared to HUM of 6.2exahashas of September 30, 2024. Mining activities are reflected within the Treasury and Corporate segment.
Other transaction expenses were $12.2 million and $31.7 million, an increase of $6.2 million and $12.8 million, or 103% and 68%, for the three and nine months ended September 30, 2025, respectively, compared to the three and nine months ended September 30, 2024. Other transaction expenses include exchange, custodial and trading fees.
Impairment of digital assets was $197.7 million and $437.6 million, an increase of $89.2 million and $246.7 million, or 82% and 129%, respectively, for the three and nine months ended September 30, 2025, compared to the three and nine months ended September 30, 2024. This increase was primarily attributable to the mix of digital intangible assets with
which the Company transacted; specifically higher exposure to digital assets which convey enforceable rights to Galaxy over the underlying assets, such as digital assets from many decentralized finance protocols and wrapped tokens, during the three and nine months ended September 30, 2025, as compared to the same period last year, resulted in higher impairment as the associated assets typically do not qualify for fair value treatment under ASU 2023-08. Impairment of digital assets includes expense associated with digital intangible assets held at lower of cost or market that were sold during the period and those digital intangible assets still held by Galaxy at the end of the period.
Compensation and benefits were $85.0 million and $207.0 million, an increase of $27.8 million and $27.4 million, or 49% and 15%, respectively, for the three and nine months ended September 30, 2025, compared to the three and nine months ended September 30, 2024. The increase for the three months ended September 30, 2025 was due to an increase in headcount and an increase of the cash settled share based deferred bonus awards liability due to an increase in Galaxy's share price.
General and administrative expenses were $58.7 million and $164.5 million, an increase of $34.8 million and an increase of $98.6 million, or 146% and 150%, respectively, for the three and nine months ended September 30, 2025, compared to the three and nine months ended September 30, 2024. The increase for the three months ended September 30, 2025 was primarily driven by additional impairment of $38.0 million on proprietary mining equipment and infrastructure. The increase for the nine months ended September 30, 2025 was primarily driven by loss on disposal and impairment of mining equipment of $95.1 million incurred during the period. Depreciation and amortization of $7.4 million and $27.5 million was included in General and administrative expenses for the three and nine months ended September 30, 2025, which decreased by $5.6 million and $6.0 million compared to $13.0 million and $33.5 million for the three and nine months ended September 30, 2024 due to the lower cost basis and write-off of mining equipment and infrastructure in anticipation of the data center conversion.
Net Income/(Loss)
Galaxy generated Net incomeof $505.1 millionand Net income of $240.3 million for the three and nine months ended September 30, 2025, respectively, compared to Net loss of $33.3 million and Net income of $229.2 million for the three and nine months ended September 30, 2024, respectively. The primary drivers of Net income for the three and nine months ended September 30, 2025 were gains on our investment and digital assets portfolios, as well as significant revenues recognized from structuring the Forward PIPE Transaction, partially offset by an increase in operating expenses, specifically from loss on disposal and impairment of our mining equipment and infrastructure. Galaxy transacts significantly in bitcoin which increased in value by 6% and 22%during the three and nine months ended September 30, 2025, respectively, and ether which increased in value by 67%and 24%during the three and nine months ended September 30, 2025, respectively. Net trading gains and gains on our net long digital assets position were the drivers of Net income during the three and nine months ended September 30, 2024.
The following table represents select financial data and a discussion of significant changes for the past eight quarters:
(in millions) September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023
Net gain / (loss) on digital assets
$ 453.8 $ 134.9 $ (18.2) $ 198.2 $ 112.0 $ (22.0) $ 346.4 $ 281.2
Net gain / (loss) on investments
$ 297.8 $ 195.4 $ (133.2) $ 284.0 $ 13.3 $ (101.5) $ 63.0 $ 37.6
Quarter over quarter fluctuation
Bitcoin
6% 30% (12)% 48% 1% (12)% 69% 57%
Ether
67% 36% (45)% 28% (24)% (6)% 60% 37%
Cryptocurrency market capitalization 16% 24% (18)% 51% (4)% (14)% 64% 53%
Bitcoin price(1)
$114,056 $107,144 $82,549 $93,429 $63,329 $62,678 $71,334 $42,265
Ether price(1)
$4,146 $2,486 $1,823 $3,333 $2,603 $3,433 $3,648 $2,281
Cryptocurrency market capitalization(2)
$3,993,636 $3,429,992 $2,766,428 $3,393,595 $2,250,803 $2,332,883 $2,702,110 $1,647,895
(1)Represents coinmarketcap.com quoted price as of 23:59 UTC for bitcoin and ether. Presented in whole dollars.
(2)Represents market capitalization data from coinmarketcap.com through September 30, 2024 and from coingecko.com starting with the period ended December 31, 2024.
Net gain / (loss) on digital assets and investments have historically been correlated with fluctuations in the prices of bitcoin and ether as demonstrated in the table above. As Galaxy's operating businesses in the Digital Assets and Data Center segments mature, digital asset prices are anticipated to have a proportionally less significant impact on Net income in the future.
Components of Financial Position
The following represents selected financial data and a discussion of significant changes.
As of
(in millions) September 30, 2025 December 31, 2024 Change % Change
Digital intangible assets(1)
$ 3,841.6 $ 2,568.6 $ 1,273.0 50 %
Digital financial assets
322.9 359.7 (36.8) (10) %
Digital assets loans receivable
1,299.7 579.5 720.2 124 %
Assets posted as collateral - digital assets
712.8 277.1 435.7 157 %
Digital assets receivable(1)
21.4 60.7 (39.3) (65) %
Digital assets subtotal
6,198.4 3,845.6 $ 2,352.8 61 %
Digital assets borrowed(1)
3,064.8 1,497.6 1,567.2 105 %
Collateral payable - digital assets
2,525.0 1,324.7 1,200.3 91 %
Digital asset liabilities subtotal 5,589.8 2,822.3 $ 2,767.5 98 %
Investments(1)
2,106.2 1,643.5 462.7 28 %
Property and equipment 874.1 237.0 637.1 269 %
Total assets $ 11,522.7 $ 7,119.9 $ 4,402.8 62 %
Total liabilities $ 8,350.4 $ 4,925.5 $ 3,424.9 70 %
(1)Includes current and non-current portion.
As of September 30, 2025, our digital asset balances were $6.2 billion, an increaseof $2.4 billionfrom December 31, 2024. This increasewas driven by a significant increase in Digital assets borrowed to support increased operations, an increase in digital asset collateral payable due to the increased size of our loan portfolio, as well as increases in digital asset prices. These same drivers also drove the increaseof $2.8 billionin our digital assets liabilities balances which totaled $5.6 billion as of September 30, 2025. The Company's largest digital asset holding as of both September 30, 2025 and December 31, 2024 was bitcoin. During the nine months ended September 30, 2025, the price of bitcoin increased by 22%.
Investments increased $462.7 million during the nine months to $2.1 billion as of September 30, 2025. This increase was primarily due to investments in Forward Industries, as well as unrealized gains of $156.7 million on investments still held at September 30, 2025. As of September 30, 2025, Galaxy's largest investments were bitcoin and ether spot ETF investments of $640.8 million, limited partner interests in Galaxy-sponsored funds totaling $359.6 million, Forward Industries of $255.6 million, and Ripple Labs, Inc. of $170.8 million. As of December 31, 2024, Galaxy's largest investments were bitcoin and ether spot ETF investments of $669.2 million and limited partner interests in Galaxy-sponsored funds totaling $398.4 million.
Property and equipment increased $637.1 millionduring the nine months to $874.1 millionas of September 30, 2025. The increasewas primarily due to investment in AI/HPC infrastructure to build out our data center hosting facility at Helios in West Texas, partially offset byan $87.3 million impairment of mining equipment and related infrastructure and $12.3 million of disposals of mining equipment net carrying value associated with the data center conversion of our Helios campus. We capitalize costs, including direct labor and materials, associated with the development and construction of our AI/HPC data center infrastructure while the assets are being prepared for their intended use.
Total assets increased by $4.4 billion during the nine months to $11.5 billion as of September 30, 2025, primarily due to the $637.0 million increase in Property and equipment and $2.4 billion increase in digital assets balances described above.
Total liabilities increased by $3.4 billion during the nine months to $8.4 billion as of September 30, 2025, primarily due to the $1.6 billion and $1.2 billion increase in digital assets borrowed and digital asset collateral payable, respectively, as described above.
Liquidity and Capital Resources
We held $1.1 billionin cash and cash equivalents as of September 30, 2025, an increase of $675.3 million, or 146.1%, as compared to December 31, 2024. The following table provides a breakdown of the Company's cash and cash equivalents balances by location:
(in millions) September 30, 2025 December 31, 2024
Digital asset trading platforms 154.6 64.7
Other financial institutions(1)
982.8 397.4
Total
$ 1,137.4 $ 462.1
__________________
(1)Includes banks, other trading platforms, and broker-dealers
Working capital (current assets less current liabilities) was $2.3 billionand Total equitywas $3.2 billionas of September 30, 2025, compared to working capital of $2.0 billion and Total equity of $2.2 billion as of December 31, 2024. As of September 30, 2025 and December 31, 2024, we held total gross digital assets with a carrying value of $4.2 billion and $2.9 billion, respectively.
On August 15, 2025, Galaxy Helios I LLC entered into the Credit Agreement with Deutsche Bank AG providing for a senior secured term loan facility in an aggregate principal amount of up to $1.4 billion. The intended use for this facility is to finance the construction and development of a data center project in Dickens County, Texas and related costs. As of September 30, 2025, the outstanding amount drawn under the Credit Agreement was $433.5 million, which is recognized within Notes payable in the Company's condensed consolidated interim statements of financial position. See Note 18 of the Company's consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for additional information on the Credit Agreement.
In June 2025, the Company and certain selling stockholders sold 35,980,967 shares of Class A common stock in an underwritten public offering, of which 26,400,000 shares were offered by the Company and the remaining sold by the selling stockholders (including pursuant to the underwriter's option to purchase additional shares), at an offering price of $19.00 per share. Net proceeds to the Company from the offering were approximately $477.8 million after deducting underwriting discounts and offering costs. We are utilizing the net proceeds from this offering to finance the continued expansion of our AI/HPC infrastructure at the Helios data center campus and general corporate purposes.
In November 2024, Galaxy issued $402.5 million of 2.500% Exchangeable Senior Notes due 2029. From time to time and subject to the terms of the indenture governing the 2029 Exchangeable Notes, the 2029 Exchangeable Notes are exchangeable for shares of Class A common stock. We are utilizing the net proceeds from the offering to support the build-out of high-performance computing infrastructure at our Helios data center in West Texas and for general corporate purposes. See Note 18 of the Company's condensed consolidated interim financial statements included elsewhere in this Quarterly Report on Form 10-Q for additional information on the 2029 Exchangeable Notes.
In April 2024, Galaxy raised C$169.4 million from a syndicate of underwriters, led by Canaccord Genuity Corp. Galaxy issued 12,100,000 ordinary shares pursuant to the transaction. We are utilizing the net proceeds for working capital and general corporate purposes.
In the general course of business, we make commitments to invest in our managed funds and to purchase equipment. As we grow our business, we expect our operating expenses to increase. In addition, we make investments in early-stage companies and coin networks in the digital assets space. Individual investments tend to be small but in the aggregate, these investments can constrain our liquidity. We consider our liquidity position and projected liquidity needs when committing to new investments.
From time to time we receive cash inflows from our investments via strategic disposal and redemptions, as well as via distributions. On a net cash basis, we expect to continue to make investments in our sectors as we find compelling opportunities, balanced by conservatively managing our liquidity.
The $978 millionincrease in Total equity during the nine months ended September 30, 2025 was primarily due to our public offering of shares in June 2025 and the impact of the Reorganization Transactions, as well as Net income during the period of $240 million.
(in thousands) September 30, 2025 December 31, 2024
Total assets $ 11,522,716 $ 7,119,855
Total liabilities $ 8,350,397 $ 4,925,503
Total equity
3,172,319 2,194,352
As of September 30, 2025 and through the date of this filing, we have not experienced any difficulties meeting counterparty requests to return loans or collateral.
To meet our estimated capital expenditure requirements related to the conversion of the existing bitcoin mining infrastructure at our Helios campus to AI/HPC data center infrastructure, we will need to obtain additional debt, equity and/or equity-linked financing. The final terms and availability of any such financing will depend on various factors, including market conditions at the time. Beyond the Helios campus conversion, we believe that our existing cash and cash equivalents and cash flows from operations will be sufficient to support working capital requirements for at least the next 12 months. We expect these sources will be sufficient to fund our long-term contractual obligations and capital needs. However, this is subject, to a certain extent, to general economic, financial, competitive, regulatory, and factors that are beyond our control. See "Risk Factors-Risks Related to our Operations-Our expansion into the AI/HPC data center business will require substantial additional capital. We may be unable to obtain additional financing for this or for other areas of business development on acceptable terms or at all" in this Quarterly Report on Form 10-Q. In the event there is insufficient working capital to support the growth of the business, we may sell digital assets to generate cash to meet obligations as they come due, or may exit all or a portion of an investment if an exit price is advantageous to us. We may also seek additional sources of financing in the future, including but not limited to, issuing equity, convertible notes or a debt facility.
Refer to Note 17 of Galaxy's consolidated financial statements included in this Quarterly Report on Form 10-Q for further information on commitments and contingencies and Note 15 of Galaxy's consolidated financial statements for further information on the Company's lease obligations. A table summarizing our contractual obligations is included in "Contractual Obligations" below. As of September 30, 2025 and December 31, 2024, we did not have any other off-balance sheet arrangements that have, or are reasonably likely to have, a current or future effect on our results of operations or financial position.
Cash Flows
For the Nine Months Ended
(in thousands) September 30, 2025 September 30, 2024
Net cash provided by (used in) operating activities 756,948 172,735
Net cash provided by (used in) investing activities (710,469) (457,566)
Net cash provided by (used in) financing activities 628,844 240,198
Nine Months Ended September 30, 2025
Cash and cash equivalents for the nine months ended September 30, 2025 increased from $462.1 million to $1.1 billion. The Company utilized $710.5 million for its investing activities, which was primarily due to purchases of investments of $2.5 billion and purchases of property, equipment and intangible assets of $634.5 million partially offset by proceeds and distributions from investments of $2.6 billion. Net cash provided by financing activities was $628.8 million primarily due to $522.5 million, net of costs, from share issuances and $416.2 million of proceeds from Notes payable, net of issuance costs, partially offset by $178.4 million net cash used for margin loans payable. Operating activities provided an additional $756.9 million.
Nine Months Ended September 30, 2024
Cash and cash equivalents during the nine months ended September 30, 2024 decreased from $316.6 million to $272.0 million. The Company used $457.6 million for its investing activities, which was primarily due to purchases of investments of $2.8 billion partially offset by proceeds and distributions from investments of $2.4 billion. Net cash provided by financing activities was $240.2 million primarily due to $122.6 million, net of costs, from share issuances and $391.8 million of proceeds from loans payable partially offset by $236.0 million repayment of loans payable. Operating activities provided an additional $172.7 million.
Contractual Obligations
The following table presents a summary of our contractual obligations as of September 30, 2025:
(in thousands)
Payments Due by Period
Contractual Obligations
Total Less than
1 year 		1 - 3
years 		4 - 5
years 		After
5 years
Loans and collateral payable(1)
$ 5,928,857 $ 5,919,277 $ 9,580 $ - $ -
Lease obligations
14,524 1,427 8,719 4,378 -
Notes payable
1,288,254 440,754 445,000 402,500 -
Data center commitments
908,089 908,089 - - -
Legal settlement 160,000 40,000 120,000 - -
Other obligations(2)
137,333 2,081 135,252 - -
Total Contractual Obligations $ 8,437,057 $ 7,311,628 $ 718,551 $ 406,878 $ -
__________________
(1)Includes fiat and digital asset payables. Loans and collateral with terms of less than one year and those without a prespecified maturity date are included in the Less than 1 year category. However, these balances are generally extended and rolled into new loans and/or collateral.
(2)Includes obligations to fund capital commitments to seven portfolio companies. Excludes other liabilities related to goods and services required in the ordinary course of business.
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