Galaxy Digital Inc.

Galaxy is a global financial services and infrastructure company focused on digital assets and High Performance Computing (HPC). The company aims to facilitate efficient access and adoption of digital assets by institutional clients through its Digital Assets segment and develops and will operate HPC data center infrastructure to meet rising global demand for reliable power and scalable compute capacity driven by accelerated AI growth ⁷. Galaxy was founded in 2018 by Wall Street veterans to serve the evolving needs of traditional financial institutions and the emerging technology-driven financial system, offering a suite of financial products and services for institutional allocation to the digital asset space ⁷. As of December 31, 2025, Galaxy has relationships with over 1,600 trading counterparties, including crypto-native and traditional finance firms, and manages approximately $12.3 billion in assets across its platform ⁷.

The core business model revolves around two operating segments: Digital Assets and Data Centers, supplemented by a Treasury and Corporate segment. The Digital Assets segment generates revenue through transaction fees tied to trading volume, gains or losses on principal positions, interest income from lending activities, and fees for structuring loans ⁸. The Asset Management business within Digital Assets generates revenue through management fees on assets under management (AUM) and performance fees for certain Alternatives strategies ⁹. The Data Centers segment generates revenue through lease agreements for HPC data center capacity ⁹.

The Digital Assets operating business segment includes Global Markets and Asset Management & Infrastructure Solutions. The Global Markets business provides OTC spot and derivatives trading, lending, and structured products on a principal basis, with execution capabilities via voice, electronic trading, API, or GUI. It offers cash- and physically-settled options, deliverable and non-deliverable futures, forwards, and swaps, along with tailored lending solutions such as margin lending, revolving credit facilities, collar loans, miner financing, and collateralized loan obligations ⁸. The investment banking arm within Global Markets offers capital-raising and M&A advisory services to digital asset industry clients, earning fee income based on transaction value or capital raised, and fixed fees on select mandates ⁹.

The Asset Management & Infrastructure Solutions business encompasses investment management and blockchain infrastructure products. The Asset Management business manages a diverse suite of ETF and Alternatives strategies, including passive and active ETFs developed with leading asset managers across the United States, Canada, Brazil, and Europe. Its alternative investment strategies include an actively managed long-only token selecting fund, a long-short hedge fund, and a venture franchise, Galaxy Interactive, which invests in video games and immersive virtual worlds, as well as an inaugural digital assets venture fund targeting early-stage investments in protocols, software infrastructure, and financialized applications ⁹. The Infrastructure Solutions business provides blockchain-centric technology including staking, tokenization, and custodial technology, operating validator nodes for eleven blockchain networks like Ethereum and Solana, and offering institutional-grade cold and hot wallet technology with integrated tokenization capabilities ⁹.

For the fiscal year ended December 31, 2025, Galaxy reported a net loss of $(241) million, compared to a net income of $347 million in 2024 and $229 million in 2023 ⁷. As of December 31, 2025, the company held digital intangible assets of $3.6 billion, digital financial assets of $988.6 million, and bitcoin and ether spot ETF investments of $535.8 million ²¹. The company's total approved power capacity at its Helios campus doubled to over 1.6 gigawatts (GW) in January 2026 ⁹.

In terms of year-over-year comparisons, the company experienced a significant shift from net income in 2024 and 2023 to a net loss of $(241) million in 2025 ⁷. This volatility and price movement contributed to the financial performance for 2025, despite digital asset prices reaching an all-time high during the year, they ended with a lower fair value than 2024 ²¹.

Significant operational developments during the period include the launch of GalaxyOne in October 2025, a retail financial technology platform providing access to traditional and digital markets, including an FDIC-insured high-yield demand deposit account and seamless access to U.S. commission-free equities and crypto trading via regulated partners ⁷. The company is also leveraging its bitcoin mining infrastructure experience to develop HPC data center infrastructure, with its Helios campus developing the first 133 megawatts (MW) of critical IT load for CoreWeave, expected to be delivered by the end of the first half of 2026 ⁷. CoreWeave exercised options in April and August 2025, leading to Phase II and Phase III lease agreements, which are expected to increase contracted capacity to 526 MW of critical IT load by 2028 ⁹. In January 2026, Galaxy announced the initial $75 million closing of its tokenized CLO, the first of its kind ¹⁰.

Galaxy's strategy includes expanding into the Artificial Intelligence (AI) and High Performance Computing (HPC) data center business, leveraging its experience in developing and operating industrial scale bitcoin mining infrastructure ⁴. The company's Helios data center campus in West Texas is developing the first 133 megawatts (MW) of critical IT load for CoreWeave, Inc., utilizing approximately 200 MW of gross power capacity, with full delivery expected by the end of the first half of 2026 ⁷. CoreWeave has exercised options under the Lease Agreement in April 2025 and August 2025, leading to Phase II and Phase III lease agreements in August 2025 and January 2026, respectively, which are expected to increase CoreWeave's contracted capacity at the Helios campus to 526 MW of critical IT load by 2028 ⁹. The Electric Reliability Council of Texas (ERCOT) has approved over 1.6 gigawatts (GW) of gross power capacity at the Helios campus, with 600 MW supporting the incremental 393 MW leased to CoreWeave, expected to be delivered starting in 2027, and the remaining 830 MW available to be contracted ⁷.

The company is also focused on growth in its Digital Assets segment through new products and capabilities such as staking, margin-based financing, and active exchange-traded funds ⁷. In October 2025, Galaxy launched GalaxyOne, a retail financial technology platform offering access to traditional and digital markets, including an FDIC-insured high-yield demand deposit account and U.S. commission-free equities and crypto trading ⁷. The company is also developing non-custodial staking services for institutional clients across multiple blockchain networks and products that enable clients to use staked assets as collateral for loans ¹⁰. Furthermore, Galaxy is expanding its tokenization capabilities, offering tokenization of real-world assets to enhance liquidity and facilitate efficient trading, and recently announced the initial $75 million closing of its tokenized CLO in January 2026 ¹⁰.

Operationally, the company expects to invest significant capital and resources in its AI/HPC data center development and other business development areas ¹⁹. Delays in development, cost overruns, inflation, commodity price volatility, supply chain disruptions, or other unforeseen circumstances could increase capital requirements beyond current expectations ²⁴. The company aims to mitigate supply chain risks by pre-purchasing or stockpiling critical equipment ²⁴.

Planned capital allocation includes continued investment in product development and technology initiatives across its businesses, with recent efforts focused on staking services, tokenization capabilities, and venture investing ¹⁰. The board of directors authorized a share repurchase program in February 2026 to repurchase up to $200 million of outstanding Class A common stock ⁷⁷. The company currently intends to retain future earnings to fund business development and growth, and does not anticipate paying cash dividends in the foreseeable future ⁷⁵.

Structural headwinds and execution risks include the highly competitive and rapidly evolving industries in which Galaxy operates, facing competition from established financial institutions, emerging crypto-native entities, and other AI/HPC hyperscalers ²⁸. The success of the AI/HPC data center business is highly dependent on its relationship with CoreWeave, and the risk that this customer or any future customer may fail to renew, terminate, default on, or underperform contractual obligations could curtail growth ²⁵. The company also faces risks related to a limited number of AI/HPC data center equipment suppliers and potential supply chain disruptions ²⁶.

Geographic, regulatory, and macro factors identified as constraints include the complex and rapidly evolving global regulatory environment for digital assets and AI [12, 59]. The company is subject to oversight by federal, state, and foreign regulators, with laws and regulations evolving frequently and potentially conflicting across jurisdictions ¹². Regulatory uncertainty regarding the classification of digital assets as "securities" could adversely affect the value of digital assets and have adverse regulatory consequences for the company ²². The AI industry is also subject to developing and evolving regulatory frameworks globally, which could increase compliance costs and decrease demand for AI/HPC infrastructure ⁵⁹.

Galaxy operates in highly competitive and rapidly evolving industries, facing significant macroeconomic, competitive, regulatory, geopolitical, and operational risks. The company's operating results are highly susceptible to the volatile nature of cryptocurrency prices and transaction volumes, with significant investments in digital assets totaling $3.6 billion in digital intangible assets, $988.6 million in digital financial assets, and $535.8 million in bitcoin and ether spot ETF investments as of December 31, 2025 ²¹. A key regulatory risk is the potential for digital assets to be classified as "securities" by the SEC or federal courts, which could materially and adversely impact the trading value of such assets, impose adverse regulatory consequences, and affect the market price of Class A common stock ²². The company's expansion into the AI/HPC data center business is capital-intensive and unproven, with risks including construction delays, cost overruns, and dependence on a single customer, CoreWeave, for a significant portion of initial revenue [19, 25]. Operational risks include reliance on third-party service providers for critical functions, exposing the company to potential system failures, cybersecurity breaches, and operational difficulties ³³. The company also faces counterparty credit risk from trading counterparties, clearing agents, and DeFi protocols, with approximately $2.1 billion in digital assets held at digital asset trading platforms and decentralized finance protocols or custodians without SOC reporting available as of December 31, 2025 ²⁹. Furthermore, the company's lending activities, including unsecured digital asset lending, expose it to losses up to the full value of such assets ⁴⁶. Cybersecurity incidents are a constant threat, with the digital asset and AI industries being particular targets, and any breach could result in substantial costs, reputational damage, and regulatory enforcement actions ⁶⁰. The company is also subject to stringent and rapidly evolving data privacy and information security laws globally, such as GDPR, with potential fines of up to €20 million in the EU or £17.5 million in the U.K., or up to 4% of annual global revenue, for non-compliance ⁶³.

Management emphasizes Galaxy's position as a global financial services and infrastructure company focused on digital assets and HPC, aiming to facilitate efficient access and adoption of digital assets for institutional clients and to develop and operate HPC data center infrastructure for AI growth ⁷. A key strategic priority is the expansion into the AI/HPC data center business, leveraging existing bitcoin mining infrastructure, with the Helios campus developing 133 megawatts (MW) of critical IT load for CoreWeave, expected by the end of the first half of 2026 ⁷. Another strategic focus is the growth of the Digital Assets segment through new products and capabilities like staking, margin-based financing, and active exchange-traded funds, as evidenced by the launch of GalaxyOne in October 2025, a retail financial technology platform ⁷. Management also highlights the company's commitment to innovation, including the development of non-custodial staking services and tokenization capabilities, such as the initial $75 million closing of its tokenized CLO in January 2026 ¹⁰. The board of directors authorized a share repurchase program in February 2026 to repurchase up to $200 million of outstanding Class A common stock, indicating a focus on shareholder value ⁷⁷.