Galaxy Digital (GLXY) is a hybrid platform spanning crypto finance and AI computing power. Its business structure covers three core modules: ① Global Markets (trading, market making, and crypto investment banking); ② Asset Management and Infrastructure Solutions (fund management, staking, custody, and proprietary investment); ③ AI Data Center and Computing Power Infrastructure (Helios Campus).
Over the past three years, Galaxy has achieved a leap from the trough of the crypto winter to synergistic growth across multiple businesses.
In the third quarter of 2025, driven by the Digital Asset Treasury Company boom and the sale of 80,000 BTC, GLXY achieved a record high adjusted gross profit of over $730 million. Its asset management and staking business reached $9 billion in AUM, with staking exceeding $6.6 billion and annual management fees exceeding $40 million. Meanwhile, its Helios mining farm underwent a complete transformation into an AI computing power park, signing a 15-year lease with CoreWeave, securing 800MW of power capacity in three phases, with expected annual revenue exceeding $1 billion upon full delivery. GLXY's financial performance has been highly volatile, significantly affected by the crypto market: it suffered a loss of nearly $1 billion in 2022, returned to profitability in 2023, and achieved a net profit of $365 million in 2024. Although profits declined in the first half of 2025, Q3 profits reached a record high of $505 million despite overall volatility in the crypto market. Adjusted EBITDA turned positive significantly, demonstrating the resilience of the core business. Regarding valuation, we adopted the SOTP (Segmented Valuation) framework: the segmented valuation of Galaxy's digital asset financial services business was $7.7 billion; the segmented valuation of its AI computing infrastructure business was $8.1 billion, totaling $15.8 billion. Adding net assets, the total equity value is approximately $19.4 billion. Galaxy's current market capitalization is $10.1 billion, a 48% discount to our segmented valuation. This may be due to investors adopting a conservative valuation strategy for companies facing both industry cyclical fluctuations (currently at a cyclical peak according to crypto cycles) and business transformation challenges (the computing power business will only begin delivery in 2026). PS: This article represents the author's current stage of thinking as of publication and may change in the future. The views expressed are highly subjective and may contain errors in facts, data, or reasoning. All opinions expressed in this article are not investment advice. Criticism and further discussion from industry peers and readers are welcome. 2. Business and Product Lines Galaxy Digital was founded in 2018 by former Wall Street star investor Michael Novogratz. Novogratz was formerly a partner and macro fund manager at the renowned hedge fund Fortress. Galaxy Digital's business now comprises three core segments: ① Global Markets (including trading, derivatives market making, investment banking, and lending services), ② Asset Management & Infrastructure Solutions (including fund management, staking services, and proprietary trading), and ③ Data Centers (including previous Bitcoin mining and ongoing AI/HPC high-performance computing infrastructure). Below, we provide a detailed breakdown of the business models, latest developments, and revenue contributions of each major product line. 2.1 Global Markets Business Content and Definition The Global Markets business encompasses Galaxy Digital's digital asset trading and related financial services offered to institutional investors, and is its core revenue source. This module comprises two main sections: Franchise Trading and Investment Banking. The Franchise Trading team acts as a market maker and liquidity provider in the crypto market, offering spot and derivatives OTC trading services to over 1,500 counterparties, supporting trading in over 100 mainstream crypto assets. Simultaneously, Galaxy leverages regulated entities to conduct digital asset-backed lending, OTC block brokerage, and structured yield products, providing leverage, hedging, and instant liquidity solutions to institutional clients such as miners and funds. The Investment Banking team provides professional financial advisory services to companies in the blockchain and crypto industry, including M&A advisory, equity and debt financing arrangements, and private placements, helping companies in the digital asset space connect with traditional capital markets. This suite of services enables Galaxy to provide institutional investors with comprehensive financial solutions similar to those offered by Wall Street investment banks, meeting the evolving needs of the crypto finance ecosystem.Key Development Milestones
2018–2019: Galaxy Digital was founded in 2018 with the goal of "bringing crypto to Wall Street and bringing Wall Street into crypto." Early on, it focused on building a comprehensive platform covering trading, asset management, and investment, quickly accumulating an institutional client base.
2020: Galaxy achieved a leapfrog expansion of its trading business through mergers and acquisitions: In November 2020, it acquired DrawBridge Lending, a digital asset lending and structured products company, and Blue Fire Capital, a professional market maker, to enhance its capabilities in over-the-counter lending, futures derivatives, and two-sided market making.
This enabled Galaxy to rapidly expand its trading footprint to include advanced products such as leveraged loans, OTC options, and structured notes, increasing its annual OTC trading volume to over $4 billion and its active counterparties to nearly 200. 2021: The company appointed veterans such as former Goldman Sachs executive Damien Vanderwilt to establish an investment banking division focused on the crypto industry, providing M&A and financing advisory services. In the same year, Galaxy continued to enrich its product line, acquiring Vision Hill Group (a digital asset investment advisor and crypto fund index provider) to strengthen its fund products and data analytics capabilities. On the trading front, the Galaxy Digital Trading team developed the GalaxyOne integrated trading platform (integrating trading, lending, and custody), and completed its key technical framework within the year, laying the foundation for the subsequent launch of a unified institutional service portal. 2022: Despite the crypto market entering a downturn, Galaxy's global market business continued to expand steadily. The sell-side trading division saw its number of counterparties increase to over 930 in the fourth quarter, providing continuous market making and liquidity support for more than 100 digital assets. On the investment banking front, the team seized industry consolidation opportunities, participating in several significant transactions: for example, serving as financial advisor for Genesis Volatility's acquisition by Amberdata, and assisting CoreWeave in securing strategic investment from Magnetar Capital. Notably, the investment banking division also provided transaction advisory support when Galaxy acquired its own Helios mining farm at the end of 2022 (see the data center section below), demonstrating internal synergies. 2023: As the market gradually recovered, Galaxy's global market business rebounded strongly. That year, Galaxy continued to expand its business coverage in Asia, the Middle East, and other regions, establishing teams in Hong Kong and Singapore to serve local institutional clients (such as family offices and funds). The investment banking division remained active in the first half of 2023, participating in numerous industry mergers and acquisitions and financings, such as advising (on the buyer) when GK8, a crypto custody company, was acquired by Galaxy, and participating in several mining company restructuring projects. Despite continued volatility in the crypto industry that year, Galaxy's global markets segment demonstrated a more stable revenue curve than traditional crypto exchanges due to its more diversified business model (including interest income, market-making spreads, advisory fees, etc.). 2024: Galaxy's digital asset market saw a significant recovery, with its global markets business achieving record results. Full-year counterparty trading and advisory revenue reached $215 million, exceeding the total of the previous two years. Q4 alone generated $68.1 million in revenue (a 26% increase quarter-over-quarter). The growth was primarily driven by active derivatives trading and strong institutional lending demand – Galaxy's OTC derivatives and credit business surged in the quarter, with counterparty trading volume increasing by 56% quarter-over-quarter and the average loan book size expanding to a record high of $861 million. As of the end of 2024, Galaxy had a total of 1,328 counterparties, a significant increase from the previous year. In investment banking, Galaxy completed 9 advisory deals in 2024, with 3 successfully closed in Q4 alone. These included serving as the exclusive financial advisor for Ethereum staking service provider Attestant's acquisition by Bitwise, and assisting Thunder Bridge Capital's merger and listing with Coincheck (a SPAC transaction). These deals generated substantial fee revenue for Galaxy, solidifying its reputation in the crypto investment banking market. 2025: Entering 2025, driven by positive expectations such as ETFs, the digital asset market rebounded strongly, and Galaxy's global market business reached new heights. In the third quarter of 2025, Galaxy's global market division generated an adjusted gross profit of $295 million, a surge of 432% compared to the previous quarter, setting a new record. The company's total trading volume increased by 140% quarter-over-quarter, reaching its highest level ever, far exceeding the market average growth rate. One standout business was Galaxy's role in selling 80,000 Bitcoins (nominal value of approximately $9 billion) for a large institution, a single transaction that significantly contributed to the quarterly spot trading volume. The two major ETH-backed cryptocurrency companies, BMNR and SBET, also acquired ETH through Galaxy. Meanwhile, Galaxy's institutional lending business also expanded rapidly, with the average loan balance reaching $1.78 billion in Q3, a 60% increase from Q2, indicating that more and more institutions are seeking crypto credit financing through Galaxy. In investment banking, Galaxy seized the current market financing window, completing a $1.65 billion PIPE private placement for Forward Industries in Q3 (acting as joint placement agent and financial advisor) and serving as the exclusive financial advisor for the sale of Coin Metrics to Talos. These high-profile deals further solidified Galaxy's leading position in digital asset investment banking. Looking ahead to 2025, amid the crypto stock boom, the market expects Galaxy's global markets business to achieve revenue and profit levels far exceeding previous years.
Summary of Financial Reports and Public Statements (2023–2025)
Revenue and Profit: In 2023, due to the tail end of a bear market, Galaxy as a whole still recorded a loss, but the global market segment improved in the second half of the year. Entering 2024, the global market business became the main driver of the company's performance: full-year counterparty trading and advisory revenue reached US$215 million, a significant increase compared to 2022 (which was only about US$100 million due to the market downturn). Among them, the profit share of derivatives and quantitative trading increased, and interest income also increased with the expansion of lending scale. The adjusted EBITDA of the global market business in 2024 exceeded US$100 million, highlighting operating leverage. In Q4 2024, global market revenue reached US$68.1 million, directly driving the company's net profit to turn a profit for the quarter.
Global market revenue reached US$68.1 million, directly driving the company's net profit to turn a profit for the quarter.
By Q3 2025, Galaxy reported adjusted EBITDA of $250 million for its digital asset business (including global markets and asset management), with global markets contributing significantly. Adjusted gross profit for the global markets segment reached $295 million in the quarter. This reflects the strong profitability elasticity of Galaxy's trading business under bull market conditions. It's worth noting that the company's overall net profit for the first three quarters of 2025 will still be affected by fluctuations in proprietary investments (e.g., a loss in Q1 due to falling digital asset prices), but the growth trend of its core operating business remains quite robust. Management anticipates further growth in trading-related revenue with the full launch of the GalaxyOne platform and increased institutional client access in the Q3 2025 earnings report. Meanwhile, the cost-to-income ratio of the global markets business has decreased (reflecting improved operational efficiency), bringing substantial operating leverage gains to the company.
GLXY 25Q3 Global Market Profits, Loan Size, and Counterparty Data
Business Content and Definition
The Asset Management & Infrastructure Solutions segment integrates Galaxy Digital's businesses in digital asset investment management and blockchain infrastructure technology services, and is an important complement to the Global Market segment.
Key Development Milestones
2019–2020: Galaxy began its asset management business, partnering with traditional financial institutions to issue crypto investment products. In 2019, Galaxy partnered with Canada's CI Financial to launch the CI Galaxy Bitcoin Fund (a closed-end Bitcoin fund listed on the Toronto Stock Exchange), one of the first publicly offered Bitcoin investment products in North America. Subsequently, in 2020, they jointly launched the CI Galaxy Bitcoin ETF, which became one of the Bitcoin ETFs with the lowest management fees globally at the time. Through these collaborations, Galaxy established its pioneering position in the public crypto product field.
2019–2020: Galaxy began its foray into asset management, partnering with traditional financial institutions to issue crypto investment products.
2021: In May, Galaxy acquired Vision Hill Group (a New York-based digital asset investment advisor and asset management company), bringing its team and products (including crypto hedge fund indices, the data platform VisionTrack, and crypto fund of funds) under its umbrella. Following the acquisition, the Galaxy Fund Management platform was able to provide institutions with richer data-driven investment decision support and a more comprehensive product line of funds. In the same year, Galaxy Asset Management continued to expand its actively managed products, such as launching the Galaxy Liquid Alpha fund, and managed approximately $2.7 billion in assets at the end of the year (a significant increase from $407 million at the beginning of the year).
2022: In Q4, Galaxy announced a strategic partnership with Itaú Asset Management, one of Brazil's largest private banks, to jointly develop a series of digital asset ETF products for the Brazilian market.
2022: In Q4, Galaxy announced a strategic partnership with Itaú Asset Management, one of Brazil's largest private banks, to jointly develop a series of digital asset ETF products for the Brazilian market.
2025: In 2025, with a clearer market and regulatory environment, Galaxy's Asset Management & Infrastructure segment continued its strong growth. In Q3 2025, Galaxy reported an adjusted gross profit of $23.2 million for the segment, a 44% increase from Q2, reflecting the expansion of the business. The main driver of this growth was the net inflow of over $2 billion in new funds during the quarter, originating from multi-year mandates from large digital asset holders. These institutions (such as crypto project foundations and publicly traded treasuries) entrust Galaxy with the management and staking of their assets, reportedly contributing over $4.5 billion in assets as of Q3, generating over $40 million in recurring management fees annually. Galaxy refers to this type of service as "Digital Asset Treasury Outsourcing," which helps projects or companies manage their crypto asset reserves and achieve steady growth.
2025: In 2025, with a clearer market and regulatory environment, Galaxy continued its strong growth in Asset Management & Infrastructure.
Summary of Financial Statements and Public Reports (2023–2025)
Asset Management Business Performance: In 2023, Galaxy Asset Management's revenue declined due to a sluggish market, but management fee income began to rebound in Q4. 2024 saw a bumper year for the company's asset management business: total revenue of US$49 million was recorded, a record high (a significant increase compared to approximately US$28 million in 2022). The drivers included: firstly, net inflows of organic funds and market growth boosted assets under management and fee-based income; secondly, Galaxy's entrusted execution of FTX's bankruptcy estate disposal contributed substantial commissions to creditors' asset sales.
Summary of Financial Statements and Public Reports (2023–2025)
Asset Management Business Performance: In 2023, Galaxy Asset Management's revenue declined due to a sluggish market, but management fee income began to rebound in the following year.
Galaxy 25Q3 Adjusted Gross Profit, AUM (including ETFs and alternative products), and Pledged Assets
Overall, from 2023 to 2025, Galaxy's digital asset segment, including global markets and asset management, achieved a leap from a trough to a peak, driven by favorable factors such as the crypto bull market, regulatory support, and the launch of ETFs, with both revenue and profit reaching new records.
Galaxy 25Q3 Adjusted Gross Profit, AUM (including ETFs and alternative products), and Pledged Assets
2.3 Data Centers & Computing Power Business Data Centers & Computing Power is Galaxy Digital's second major strategic area outside of digital assets, focusing on the investment, construction, and operation of basic computing infrastructure. Its core is to transform abundant energy and data center resources into computing power usable for blockchain mining and high-performance computing (HPC), creating value for itself and its customers. Galaxy initially entered this field with Bitcoin mining: by deploying specialized mining machines, it uses its own or hosted data center computing power to obtain Bitcoin block rewards. At the same time, the company also provides hosting services and financial support to other miners (such as machine hosting and maintenance, electricity purchase strategy consulting, mining machine financing, etc.), building a mining ecosystem. With the explosive growth in computing power demand driven by the era of artificial intelligence and big data, Galaxy began a strategic adjustment in 2023, gradually expanding its data center resources for high-performance computing tasks such as AI model training and cloud rendering. Specifically, Galaxy partnered with AI infrastructure companies to transform its large campuses into AI computing power supply bases, generating stable rental and service revenue through a model of leasing electricity and server racks (equivalent to providing "Infrastructure as a Service (IaaS)"). Currently, Galaxy's core data center asset is the Helios data center campus in Dickens County, Texas. The Helios campus was initially developed by Argo Blockchain to utilize cheap renewable energy (wind and solar) in Western Texas for Bitcoin mining. However, the surge in natural gas prices at the end of 2022 led to increased electricity prices, and Argo's lack of an effective fixed-price electricity purchase agreement left it completely exposed to extreme electricity price fluctuations. Under pressure from a liquidity crisis, Argo sold its Helios facility to Galaxy Digital in December 2022 for $65 million (along with a $35 million loan). For Galaxy, this deal included not only the physical assets but also crucial 800 MW of grid-connected power capacity. Currently in Texas, grid-connected approval queues for large loads have stretched to over four years, making Helios' existing grid permits one of the most valuable intangible assets on its balance sheet. In terms of sheer size, 800MW places Helios among the world's top-tier computing campuses—by comparison, Google's new AI data center in Arizona is planned for approximately 1200MW, and Microsoft's expansion projects in Iowa and elsewhere are in the 300-600MW range. Therefore, Helios is already quite substantial in scale. If the 3.5GW target is achieved in the future (the long-term 2700 MW grid connection permit is still under review), it will be almost twice the size of the world's largest data center cluster. In terms of specific business operations, Galaxy itself does not directly operate AI cloud services, but has signed a 15-year long-term hosting agreement with CoreWeave. CoreWeave is a top-tier cloud service provider invested in by NVIDIA and has an extremely strong demand for computing infrastructure. The series of long-term lease agreements signed by both parties effectively transform Galaxy's power resources into stable cash flow similar to bonds. Currently, CoreWeave has exercised all available options, locking in all of Helios's currently approved power capacity of 800 MW. The cooperation between the two parties adopts a Triple-Net lease structure: Galaxy is mainly responsible for providing the physical enclosure and power access, while CoreWeave is responsible for electricity costs (including the risk of electricity price fluctuations), equipment maintenance costs, insurance premiums, and taxes. In this model, Galaxy is more like a digital real estate developer than an operations service provider, thus its cash flow stability is quite high. For Galaxy, its revenue is almost equivalent to its net profit, and the EBITDA margin of this business is expected to be as high as 90%. Galaxy has divided the development of its Helios campus into multiple phases: Phase I plans to deploy 133 MW in the first half of 2026, Phase II in 2027 with 260 MW, and Phase III in 2027 with 133 MW, providing a total of 526 MW of "critical IT load" available for servers (corresponding to a total power capacity of 800 MW). To adapt to CoreWeave's needs, Helios is accelerating its transformation from a "mining farm" to an "HPC data center," mainly including cooling system upgrades, redundant architecture, and structural reinforcement. **Key Development Milestones** 2018–2020: Driven by the digital asset bull market, Galaxy recognized the significant value of upstream computing power and began venturing into Bitcoin mining. Initially, the company adopted a cooperative hosting model, entrusting its mining machines to professional mining farms for operation, while providing supporting financial services such as mining machine financing and off-farm guarantees, accumulating experience and resources in the process. During this period, Galaxy quietly invested in some mining infrastructure projects and assembled a team proficient in power and mining machine technology, preparing for the subsequent construction of its own mining farms. 2021: Galaxy officially announced the establishment of the "Galaxy Mining" mining division, elevating mining to one of the company's core strategies. That year, Galaxy expanded its cooperation with several large North American mining farms and actively sought suitable locations in Texas and other regions to build its own data centers. 2022: This year marked a milestone for Galaxy's data center business. On December 28, 2022, Galaxy announced the acquisition of Argo Blockchain's Helios Bitcoin mining farm (including all operating assets) in Dickens County, Texas, for $65 million, and provided Argo with a $35 million loan to help it overcome a liquidity crisis. The Helios farm, which had only recently begun operation, had 180 MW of installed power capacity and significant room for expansion. Galaxy immediately took over operations after the acquisition, using it as its core mining base. The company announced plans to increase Helios's installed power to 200 MW by the end of 2023, with some capacity used for hosting third-party mining rigs and some for Galaxy's own mining operations. This acquisition significantly expanded Galaxy's mining footprint and was seen as "Galaxy owning its own Bitcoin mining factory."
2023: Galaxy's data center business began transitioning from a "mining model" to a "mining + hashrate leasing dual-track" model. In the first half of the year, Helios mining farms steadily expanded: by mid-2023, approximately 3 EH/s of hashrate had been deployed, with Galaxy self-operated and co-located equally. The recovery in Bitcoin prices in the first half of the year also restored profitability to mining operations. In Q2 of 2023, Galaxy revealed in its financial report that its mining division, Hashrate Under Management (HUM), reached approximately 3.5 EH/s, with the unit cost of BTC produced by its self-operated portion remaining at a low level in the industry. In the second half of the year, while continuing to increase the Helios Bitcoin hashrate, the company proactively negotiated a cooperation agreement with CoreWeave, exploring the possibility of leasing some of the Helios's power and space to CoreWeave for GPU server deployment.
In September 2023, Galaxy reached a preliminary agreement with CoreWeave, under which Galaxy would provide the site and power infrastructure in Helios, while CoreWeave would deploy AI equipment in phases. This marked the beginning of Galaxy's strategic transformation of its data center business. In Q4 2023, Galaxy's mining business Hashrate managed a scale of 6.1 EH/s, mining 977 Bitcoins throughout the year; however, the company clearly stated that it would reduce its self-operated mining scale after the agreement took effect, focusing its efforts on the transformation and construction of Helios. 2024: In this year, Galaxy's data center business shifted its focus entirely to HPC. On March 28, 2024, Galaxy announced the signing of a formal Phase I lease agreement with CoreWeave: Galaxy would provide 133 MW of "critical IT load" in Helios for CoreWeave to deploy AI/HPC infrastructure in the first phase, with a lease term of 15 years. Under the terms of the contract, CoreWeave will pay Galaxy a lease fee similar to that of data center hosting, with a total estimated revenue of approximately $4.5 billion for Galaxy over 15 years. Galaxy stated that it plans to deliver the full capacity of Phase I for CoreWeave's use in the first half of 2026. Then, in April 2024, CoreWeave exercised the first option in the contract (Phase II), leasing an additional 260 MW of IT load on Helios, bringing the total committed capacity to 393 MW. Galaxy stated that this Phase II contract will be executed on similar economic terms to Phase I (i.e., a long-term lease), with the Phase II capacity expected to be delivered in 2027. Simultaneously, Galaxy began significantly reducing its Bitcoin mining investment: in the first half of 2024, it sold some mining rigs and gradually shut down its self-operated mining rig expansion plans, using the freed-up power and space from Helios to renovate its data center to accommodate high-density GPU servers. On November 7, 2024, Galaxy announced that it had reached a preliminary agreement with a major financial institution on the terms of financing for the Helios project. The financing was subsequently closed in 2025 (see below). At the end of 2024, Galaxy's mining business hashrate dropped to 6.1 EH/s, with some mining machines in a state of being idle and awaiting sale; the proportion of self-operated mining profits in the company's overall revenue declined throughout the year, while capital expenditures in the data center sector increased significantly, indicating an investment phase. However, in that year, Galaxy successfully completed a strategic transformation: from a pure Bitcoin mining farm operator to an AI data center developer with long-term contracts with major clients. 2025: Galaxy's data center business enters a phase of full-scale construction and financing. On August 15, 2025, Galaxy announced that it had completed a $1.4 billion project financing (debt financing) to accelerate the development of the Helios AI data center. The loan, led by a major institution, was issued at 80% loan-to-cost with a term of three years, secured by the Helios Phase I assets. Galaxy contributed $350 million of its own capital, bringing the total funding for Phase I to $1.7 billion. This means that the construction and renovation of Helios Phase I (including substation upgrades, cooling systems, and data center structural reinforcement) is fully supported by funding, ensuring on-time delivery. In August 2025, Galaxy also disclosed that CoreWeave had exercised its final option (Phase III), locking in an additional 133 MW of capacity, bringing its total leased capacity at Helios to 800 MW. At this point, all approved power capacity at the Galaxy Helios campus is fully leased. The company anticipates that, based on contractual agreements and full utilization of all 526 MW of IT capacity, the Helios project will generate an average of over $1 billion in revenue annually over the next 15 years, becoming a significant long-term cash flow source for Galaxy. To plan for the long term, Galaxy acquired additional land around Helios in 2025, expanding the total campus to over 1,500 acres, capable of supporting a potential power load of up to 3.5 GW (nearly double the existing 800 MW). These capacity increases are currently under review with grid operator ERCOT and will be implemented in phases once approved. In October 2025, Galaxy secured a $460 million equity investment from a top global asset management company to support the Helios project and other corporate purposes. Market rumors suggest the investor is BlackRock (unconfirmed), and the investment, completed in phases, will grant the investor a certain equity stake, symbolizing the recognition and support of traditional mainstream institutions for Galaxy's computing power strategy. At the end of 2025, Galaxy stated that the construction of Helios Phase I was progressing as planned, with 133 MW to be delivered to CoreWeave starting in the first half of 2026; site preparation and infrastructure construction for Phase II were also underway, with delivery expected in 2027; and Phase III was planned to begin delivery in 2028. Mining Business Performance: In 2023, Galaxy's mining business was in the investment phase immediately following the acquisition of Helios, and due to the low price of Bitcoin, it still incurred an overall loss for the year. However, in 2024, with the recovery in prices and operational optimization, the mining segment achieved profitability and contributed stable cash flow. In 2024, Galaxy's mining division generated $94.9 million in revenue, directly mining 977 BTC; after deducting operating costs such as electricity, the average gross margin for the year was approximately 50%. However, Galaxy has already indicated in its financial report that due to strategic transformation, mining revenue will decline significantly in 2025. In 2025, as mining machines are gradually sold off and decommissioned, Galaxy's mining revenue will decrease substantially. In Q3 2025, the data center division (primarily mining) generated only $2.7 million in adjusted gross profit. Galaxy anticipates that with the Helios upgrade underway, there will be almost no significant mining profits in the second half of 2025, until 2026 when some remaining mining machines are restarted or the strategy is adjusted again depending on market conditions. AI/HPC Hosting Business Outlook: Since the Helios contract with CoreWeave will not commence until 2026, there will be no recurring revenue recognized from this segment between 2023 and 2025. Galaxy capitalizes construction costs, therefore the short-term profit statement is not significantly affected. The company explicitly stated in its Q3 2025 financial report: "Galaxy expects that the adjusted gross profit and EBITDA contributed by the data center segment will be insignificant until the first half of 2026" (i.e., still in the preparation phase). However, Galaxy has already provided investors with future earnings guidance: once Helios is officially delivered and operational, the data center segment will become a new cash cow for the company. Based on signed contracts, Galaxy is expected to begin recognizing substantial rental income in the first half of 2026, and due to the other party undertaking operations, Galaxy's gross margin is expected to be quite considerable (similar to the REIT model). In its August 2025 announcement, Galaxy disclosed that once all contracts were fulfilled, it would generate an average of over $1 billion in revenue annually, totaling over $15 billion over 15 years, several times the company's current asset size. Even considering operating costs and loan interest, the net profit contribution would be substantial. This prospect attracted attention in the capital markets in 2025: Galaxy's stock price surged by approximately 60% after announcing full leasing and financing news, indicating a reassessment of the value of its "computing power segment" by investors. In short, the data center business is still in the "sowing" stage financially from 2023 to 2025, but its future "harvest" potential has been repeatedly emphasized in financial reports and management discussions, making it an indispensable part of Galaxy's narrative. In summary, Galaxy Digital's three core business modules—Global Markets, Asset Management & Infrastructure Solutions, and Data Center Computing Power—each cover different value chain segments within the digital asset ecosystem, complementing and synergizing under the company's strategy. The Global Markets module provides revenue from trading and investment banking, leading the market; the Asset Management & Infrastructure module accumulates long-term management fee income and technological advantages, securing high-quality clients; and the Data Center Computing Power module is expected to generate substantial and stable cash flow, providing a "safety net" for the company's performance. Through a clear strategic layout and a series of bold acquisitions and collaborations, Galaxy's management has transformed the company into a unique player spanning finance and technology. In the rapidly changing digital asset industry, the growth potential and mutual support demonstrated by Galaxy's various modules give it rare counter-cyclical and comprehensive characteristics in the eyes of investors. This explains why more and more institutional investors are showing interest and confidence in Galaxy. Looking ahead, Galaxy's three modules are expected to continue to advance in tandem, constantly creating new milestones and achieving value co-creation for shareholders and clients.
Based on the analysis above, Galaxy's business can be divided into two industries: the crypto industry and the AI computing infrastructure industry. We will now analyze the current status and development trends of these two industries in detail.
Industry Status: Market Size, Participants, and Structure
Market Size and Major Participants: The cryptocurrency market regained its growth momentum in 2024-2025, with North American trading activity accounting for approximately one-quarter of the global share. By mid-2025, North America received approximately $2.3 trillion in crypto transaction value in one year, with the monthly peak occurring in December 2024. The global total market capitalization approached $4 trillion at the end of 2024, and trading volume also reached a record high.
In terms of market participants, centralized exchanges (CEXs) still dominate the vast majority of spot and derivatives trading: the annual spot trading volume of the top 10 CEXs reached $17.4 trillion in 2024, doubling from the previous year. Decentralized exchanges (DEXs) have seen rapid growth in recent years, with DEX trading volume accounting for approximately 7.6% of the global total in the first five months of 2025, a significant increase from 3% in 2023. Furthermore, large market makers and OTC institutions provide over-the-counter liquidity and are considered the "third pillar of liquidity" after CEXs and DEXs. Especially for large sums of money, such as hundreds of millions of dollars, OTC trading can avoid the impact of open markets and complete large-scale matching behind the scenes. Leading market makers and brokers (such as Galaxy Digital, Jump Trading, Wintertermute, and Cumberland) play a key role in providing liquidity to exchanges and matching large-scale over-the-counter transactions. Traditional institutional investors (hedge funds, asset management companies, etc.) are increasingly involved, entering the digital asset market through high-level exchange accounts or OTC channels. This has resulted in "large" ($10 million) transactions accounting for as much as 45% of total transactions in the North American market, far exceeding other regions. Market Structure Changes and Liquidity: In terms of market structure, there has recently been a trend of convergence between on-exchange and off-exchange trading. On the one hand, centralized exchanges have undergone a reshuffling, with compliant North American platforms (such as Coinbase and Kraken) consolidating their positions after events like FTX. Simultaneously, some trading volume has shifted to OTC and on-chain DEXs. OTC market trading has surged since 2024: Monthly OTC trading volume throughout 2024 was higher than the same period of the previous year, with OTC trading volume increasing by 106% year-on-year in the fourth quarter, and then surging by 112.6% year-on-year in the first half of 2025. Institutions tend to use "dark pools" (OTC) to complete position building/closing to reduce the impact on open market prices. This makes OTC a hidden liquidity pool, playing a greater role in smoothing market volatility. On the other hand, improvements in decentralized trading technology (such as on-chain order books and Layer 2 scaling) have driven breakthroughs for DEXs in the long-tail asset and perpetual contract markets. For example, by 2025, the trading share of decentralized perpetual contract platforms (such as Hyperliquid) has increased significantly. Although CEXs still account for about 70-80% of the total trading volume, DEXs, with their transparency and trustless advantages, are becoming an important venue for users to exchange emerging tokens and stablecoins. Overall, market liquidity improved significantly in 2024-25 after the downturn in 2022, with the daily trading volume of mainstream cryptocurrencies (BTC, ETH, etc.) returning to the billions of dollars. Stablecoins have played a crucial role in improving liquidity and transparency: USD stablecoins are widely used as a unit of account, and the number of on-chain stablecoin transactions in North America reached a record high at the end of 2024. Because stablecoin transactions are transparent and traceable on-chain, the flow of funds both on and off the exchange becomes more monitorable, thereby improving market transparency. Some institutions also use on-chain analytics tools to monitor fund dynamics, and the overall market transparency has improved compared to a few years ago. Overall, the North American crypto trading market is evolving towards a more institutionalized and multi-layered structure: CEXs provide basic liquidity and fiat currency entry and exit points, DEXs provide long-tail assets and trustless trading, and OTC plays a role in facilitating large-scale fund transfers; together, these three constitute a mature market system. Regulatory Dynamics: The regulatory environment in North America (mainly the United States) has undergone significant changes in recent years, directly impacting market structure and participant behavior. The disagreement between the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) over the classification of digital assets once created regulatory uncertainty: the SEC classified most tokens as securities and strengthened enforcement, taking legal action against exchanges such as Coinbase and Binance in 2023, using "enforcement instead of regulation" to clean up illegal issuance and trading. Meanwhile, the CFTC classified Bitcoin and Ethereum as commodities, authorizing exchanges like the CME Group to offer regulated futures and options trading. This overlap of SEC and CFTC authority led to regulatory fragmentation in the market—some trading instruments could only be traded on the CFTC-regulated futures market (such as Bitcoin futures ETFs), while spot exchanges faced pressure from the SEC to delist some tokens or restrict trading options for U.S. users. The political changes in the U.S. at the end of 2024 brought a regulatory shift: the new administration showed a more open attitude, and agencies such as the SEC and OCC withdrew their previous stringent guidelines that hindered banks from engaging in crypto business, instead developing a clearer framework to encourage traditional institutions to participate. In early 2025, US regulators halted a series of high-profile investigations and enforcement actions, seen as a signal of ending the "enforcement-based regulation" model. The Presidential Task Force even proposed a policy vision to establish the US as a "global crypto capital hub." This policy easing directly boosted market confidence and institutional participation. While regulations became clearer, compliance requirements also increased: transactions were required to adhere to stricter KYC/AML and asset transparency standards, and licensed custodians gradually entered the market to provide compliant custody and settlement services. Notably, the breakthrough in the approval of crypto spot ETFs marked a milestone in US market regulation. The first batch of Bitcoin spot ETFs were approved for listing in the US in early 2024, after which crypto investment products flourished. By July 2025, global Bitcoin ETF assets under management had reached approximately $179.5 billion, with US-listed products accounting for approximately $120 billion. By entering the market through spot ETFs, crypto assets gained access to compliant investment channels through traditional brokerages, making it more convenient for institutions to allocate assets such as Bitcoin in their portfolios. This series of regulatory developments has gradually shifted the North American market environment from suppression to support, leading to a significant surge in trading volume and asset prices at the end of 2024, driven by policy. Overall, regulatory uncertainty is decreasing, and the compliant market framework is becoming increasingly完善, clearing some obstacles for large financial institutions and listed companies to engage in digital asset trading.Development Trends: Institutionalization, Derivatives, and New Products
Institutionalization and Enhanced Compliance: The North American crypto market is undergoing rapid institutionalization, with participants expanding from early retail investors and crypto-native funds to hedge funds, asset management companies, and even traditional banks. In 2024-25, several signs indicate increased institutional participation: a higher proportion of large on-chain transactions, traditional investment banks applying for trading licenses, and well-known asset management companies (such as BlackRock) issuing crypto trust products and even spot ETFs. This is driving market demand to expand from simple trading to supporting services such as compliant custody, auditing, and risk control.
North American Market Characteristics and Galaxy Digital's Role
Regulatory Fragmentation and Regional Characteristics: A key characteristic of the North American (US) market is its complex regulatory system, with both federal and state levels.
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