Galaxy Digital (GLXY) stock surged 6.63% to $16.72, gaining $1.04, after the company reported strong third-quarter earnings and a new share buyback authorization. Galaxy posted $323 million in net income and approved an additional $200 million share repurchase program, while stronger digital asset operations and expanding artificial intelligence data center investments supported the quarterly performance for the period ending September 30, 2026.

Galaxy Digital Reports $323 Million Q3 Profit as Earnings Recover

Galaxy Digital recorded a sharp earnings recovery during the third quarter, reversing the losses reported in the previous period. The company generated $323 million in net income, compared with an $85 million loss in the second quarter. Adjusted EBITDA — a non-GAAP profitability measure that strips out certain items to show underlying operating performance — reached $455 million, swinging from the previous quarter's $77 million loss.

The company's adjusted gross profit reached $569 million, reflecting improved performance across its business operations. Diluted earnings per share came in at $0.66, while adjusted earnings per share stood at $0.83.

Galaxy attributed the improved financial performance to growth across digital assets, investments, and data center operations. Stronger contributions from the company's digital assets franchise and gains across its investment portfolio drove the results. The firm continues to develop its financial services business while expanding infrastructure for artificial intelligence workloads, and its diversified operations supported earnings through the quarter ending September 30, 2026. The swing from one quarter's loss to a nine-figure profit illustrates how sharply results can move between reporting periods for a firm whose earnings draw on trading and investment activity.

Board Approves Additional $200 Million Share Buyback

Galaxy Digital's board authorized an additional $200 million share repurchase program following the improved quarterly financial performance. The company had already repurchased 9.8 million shares during the first nine months of 2026, and those repurchases exceeded the dilution created by equity-based compensation over the same period. Equity-based compensation awards typically settle in newly issued shares, which increases the outstanding share count over time.

The new authorization provides Galaxy with additional capacity to continue returning capital through repurchases. Buyback programs let a company retire its own outstanding stock, reducing the share count against which per-share results are measured; an authorization sets a ceiling the company may use over time rather than a fixed spending commitment. It came alongside a substantially larger balance sheet. Galaxy's total assets increased 51% quarter over quarter, reaching $16.4 billion from $10.8 billion. Total equity climbed 10% to $3.0 billion, compared with $2.7 billion in the previous quarter. Net digital assets and investments increased 48% to $1.7 billion from $1.2 billion.

The company's liquid holdings nearly doubled, with cash, stablecoins, and U.S. Treasury holdings rising to $4.9 billion from $2.5 billion. That total included $1.325 billion in cash, $812 million in stablecoins — digital tokens designed to hold a steady value against a reference currency such as the U.S. dollar — and $2.756 billion in Treasury securities. Galaxy strengthened its liquidity position while maintaining investments across digital assets and infrastructure development.

Galaxy Digital Expands AI Data Center Business With $3.5 Billion Financing

Galaxy Digital continued expanding its data center operations as part of its broader business development strategy. The company increased its total gross power pipeline to more than 5.7 gigawatts during the quarter, strengthening its infrastructure portfolio and supporting its growing focus on artificial intelligence computing demand. A gross power pipeline represents the total electrical capacity a data center developer controls across existing and planned sites — the resource that AI and high-performance computing facilities consume once built out.

Galaxy completed a $3.5 billion senior secured notes offering to finance construction of Helios I, Phase II. Senior secured notes are bonds backed by collateral that rank ahead of unsecured claims in a repayment structure, a financing form often used to fund large construction projects. Helios is the company's flagship data center campus in West Texas, developed to serve demand from artificial intelligence and high-performance computing customers. The financing supports further development of the company's data center infrastructure alongside its existing digital asset operations, while Galaxy continues to pursue opportunities across financial markets and high-performance computing infrastructure.

Galaxy completed its corporate reorganization in May 2025, establishing the structure supporting its Nasdaq-listed operations. Founded by investor Mike Novogratz, the firm provides financial services tied to digital assets, including trading and asset management, alongside its data center business. Since the reorganization, Galaxy has continued developing its digital asset services while expanding into AI infrastructure. Its third-quarter results highlighted stronger profitability, increased liquidity, and continued capital investment across both business segments. With the $200 million repurchase authorization in place and the $3.5 billion notes proceeds directed toward Helios I, Phase II, the company's coming quarterly disclosures will show how quickly the buyback capacity is deployed and how far the West Texas buildout advances.

Source: Blockonomi