Key Points

• Galaxy Digital's stock drew buying interest after the company reported strong third-quarter revenue growth.
• The firm announced another $200 million share buyback as revenue rises.
• Technical analysis suggests the stock faces further downside.

Galaxy Digital (GLXY) attracted buyer interest on Oct. 27 after the company reported a return to profitability in the third quarter and unveiled an additional $200 million share repurchase program alongside the expansion of its data center operations.

The company recorded $323 million in net income for the quarter, a sharp reversal from the $85 million loss posted in the second quarter. Despite the results, the stock remained under pressure, extending its broader decline from earlier highs. Taken together, the announcements capture the two sides of Galaxy's business: trading and asset-management results that move with cryptocurrency prices, and a data center buildout that advances facility by facility.

Strong Quarter Driven by the Crypto Rally

Galaxy, a prominent player in both the artificial intelligence (AI) and crypto industries, performed well in the third quarter as Bitcoin and other altcoins rose. According to the company's third-quarter 2026 results announcement, total assets grew 51% during the quarter to $16.4 billion, while net digital assets and investments climbed 48% to $1.7 billion.

Gross revenue jumped to $8.7 billion, and gross profit from the firm's digital assets business rose to $71 million. Net income surged to more than $321 million, a significant increase from the $85 million loss reported in the second quarter of this year.

The company said its digital asset trading volume rose 12% in Q3, supported by the broader rebound in the crypto market, with its volume growth outpacing the overall spot market. The average loan book size soared 27% to $1.8 billion, aided by the Galaxy Onchain Financing Rate. Assets under management (AUM) rose 46% to $10.4 billion, driven by the rally in crypto prices, which lifted the value of the firm's holdings.

Exposure to the AI Data Center Business

Like other leading crypto companies, Galaxy Digital has entered the artificial intelligence industry, though its approach differs from peers that develop and operate data centers themselves. Instead, Galaxy is building data centers, known as Helios, and leasing the space to other companies in the sector.

CoreWeave, its largest client, has already started using the Helios 1 project, and the company is now in advanced stages of building the Helios 2 and Helios 3 facilities. The data center business generated a gross profit of $79 million and an adjusted EBITDA of $69 million. Galaxy is now in talks with tenants for its additional 830 MW of approved capacity. Because Galaxy leases capacity rather than running the facilities for its own AI workloads, converting the Helios pipeline into revenue depends on signing tenants — the step CoreWeave has already taken with Helios 1, and the one still pending for the additional 830 MW.

Against this backdrop, the company has continued repurchasing its shares. It bought back 9.8 million shares this year, and the board has approved an additional $200 million in repurchases. The goal is to reduce the number of outstanding shares and boost earnings per share.

The company still faces potential risks. Its crypto assets could come under pressure if Bitcoin and other cryptocurrency prices drop. Bitcoin has already fallen to $80,000 from its September high of $87,300, and the price of Ethereum has also slumped in recent weeks. This matters for Galaxy because it ended the quarter holding BTC worth $538 million and Ether valued at $128 million. How the next quarter compares will hinge on two of the same variables: cryptocurrency prices, which set the value of those holdings and shape trading activity, and whether talks over the remaining Helios capacity turn into signed tenant agreements.

Technical Analysis

The daily chart shows that GLXY stock has slumped in recent months. It bottomed at $14.14 this month before rebounding to $16.67 after the earnings report. Even so, the stock remains well below its 50-day and 100-day moving averages and has fallen beneath the Supertrend indicator, a strongly bearish signal. The technical setup points to a likely resumption of the downward trend, with the key support level of $14.14 in focus. A move below that level would signal further downside.

This article provides information, not financial advice. Stock and cryptocurrency investments carry substantial volatility and the potential for losses. Readers should conduct independent research before investing.

Source: The Market Periodical