Galaxy Digital Reports Record Q3 Earnings and Strategic Expansion, Driving Analyst Price Target Hikes

Executive Summary

Galaxy Digital achieved a record Q3 net income of $505 million, propelled by a 140% surge in trading volumes and a $9 billion Bitcoin transaction, prompting analysts at Cantor, Canaccord Genuity, and Benchmark to raise price targets and maintain bullish ratings, reflecting positive market sentiment.

The Event in Detail

Galaxy Digital reported a net income of $505 million for the quarter ending September 30, with adjusted earnings reaching $629 million. The company concluded the quarter with $3.2 billion in equity, including $1.9 billion in cash and stablecoins. A significant contributor to the quarter's performance was a 140% increase in trading volumes, driven by heightened spot and derivatives activity. This included the execution of a $9 billion notional Bitcoin sale, representing over 80,000 BTC, on behalf of a client as part of their estate planning strategy.

Following the earnings announcement, Galaxy Digital shares surged, climbing nearly 16% at one point before settling higher with a 9% increase to trade above $43. The stock has gained over 84% year-to-date. In response to the strong results and strategic initiatives, multiple financial institutions revised their outlooks:

• Cantor Fitzgerald reiterated a "Buy" rating, raising its price target from C$35 to C$40.
• Canaccord Genuity reiterated a "Buy" rating, increasing its price target from C$46.23 to C$47.64.
• Benchmark Co. reiterated a "Buy" rating, raising its price target from C$53.24 to C$56.04.

Financial Mechanics and Strategic Expansion

Galaxy Digital's robust performance is underpinned by a dual strategy encompassing its digital asset platform and its ventures into AI/High-Performance Computing (HPC) data centers. The digital asset platform reported approximately $9 billion in combined assets as of June 2025, comprising $3.3 billion in ETFs and exchange-traded products, $3.1 billion in staked assets, and $2.4 billion in "alternatives." This platform offers comprehensive solutions including OTC spot and derivatives trading, liquidity provision, institutional financing, and M&A advisory for clients in crypto, Web3, and AI-infrastructure. The company also utilizes GK8 for institutional cold and hot custody and multi-party computation.

In its AI/HPC initiative, Galaxy Digital's Helios campus in Texas holds an approved capacity of 800 megawatts (MW), with a future expansion of 2.7 gigawatts (GW) under study. A key partnership with CoreWeave secures it as an anchor tenant for Helios under a 15-year agreement committing 526 MW of power. This capacity is scheduled for phased delivery, with 133 MW, 260 MW, and 133 MW coming online in the first semesters of 2026, 2027, and 2028, respectively. Management projects these phases will generate approximately $1 billion in average annual revenue from Helios. To facilitate expansion, Galaxy secured a $1.4 billion loan for the Helios site. The company also announced plans to participate in a $1.65 billion Solana treasury initiative alongside Cantor Fitzgerald, Multicoin Capital, and Jump Crypto. Additionally, Galaxy is exploring tokenization as a bridge between traditional finance and crypto, with plans for tokenized money market funds on Ethereum, Solana, and Stellar, and the launch of GalaxyOne, a US retail platform for cash, crypto, and stocks.

Galaxy's balance sheet includes a diversified mix of crypto and investments, with approximately $748 million in spot BTC and wrappers, $196 million in spot ETH and ETH wrappers, $330 million in other token exposure, and $718 million in stakes in private crypto and Web3 companies, funds, and other private-equity holdings.

Market Implications

Galaxy Digital's robust financial results and strategic diversification underscore the increasing mainstream acceptance and institutional engagement within the crypto sector. The successful absorption of a $9 billion Bitcoin sell-off by the market, described by analysts as having "minimal price disruption," highlights the growing liquidity and maturity of digital asset markets. This event could lead to increased investor interest and capital inflow into crypto-native financial services firms and companies integrating AI infrastructure within the Web3 space. The company's dual strategy aligns with broader market trends, as CoinGecko's Q3 2025 report indicates the global crypto market expanded by approximately $563 billion to reach $4 trillion, its highest level since 2021.

Analyst consensus remains strongly positive, with 11 analysts maintaining a "buy" rating and no "hold" or "sell" assignments, reflecting confidence in Galaxy's positioning. This performance reinforces the narrative of institutional adoption and the evolving maturity of the crypto industry, potentially influencing GLXY's stock price and overall market sentiment positively in the short to medium term.

Broader Context and Outlook

Galaxy Digital's strategy to integrate AI/HPC data centers positions it to capitalize on explosive sector-wide expansion in both digital finance and AI. Projections indicate that global demand for data center capacity will increase by 298%, from 55 GW in 2023 to 219 GW by 2030. Annual data center spending is expected to rise from $349 billion in 2024 to an estimated $800 billion in 2028. Benchmark analysts' valuation of Galaxy, which includes $29 per share for its 3.5 GW HPC pipeline, $7 per share in crypto investments, and $7 per share for its operating business, suggests that the company's current share price may not fully reflect its leadership across both industries. This approach echoes strategies adopted by other Bitcoin miners, such as CleanSpark, Bitfarms, and Iris Energy, which are also integrating AI and data-center services into their revenue models. Galaxy's long-term partnerships and planned infrastructure developments are poised to generate significant, high-margin cash flows beginning in 2026, enhancing earnings visibility and improving overall capitalization efficiency as these business lines scale.