Financial Performance - Galaxy generated net income of $505.1 million for the three months ended September 30, 2025, compared to a net loss of $33.3 million for the same period in 2024 [285]. - Galaxy's Adjusted EBITDA for the three months ended September 30, 2025, was $629.4 million, a significant increase from $1.9 million for the same period in 2024 [290]. - Adjusted EBITDA for Q3 2025 was $629,352,000, compared to $1,917,000 in Q3 2024, indicating significant growth [305]. - Total revenues and gains from operations for Q3 2025 reached $29,218,853,000, up from $8,712,290,000 in Q3 2024, reflecting a substantial increase [303]. - The company reported a net income of $505,057,000 for Q3 2025, a significant increase from a net loss of $33,330,000 in Q3 2024 [305]. - Total revenues for the nine months ended September 30, 2025, were $51,131,377,000, compared to $27,405,424,000 for the same period in 2024, indicating strong year-over-year growth [303]. - Net income for the three and nine months ended September 30, 2025 was $505.1 million and $240.3 million, compared to a net loss of $33.3 million and net income of $229.2 million for the same periods in 2024 [353]. Assets and Liabilities - Assets under management (AUM) increased by 126% year-over-year to $10.5 billion as of September 30, 2025, with $8.1 billion excluding opportunistic assets [286]. - Galaxy reported assets under stake (AUS) of approximately $6.6 billion as of September 30, 2025, up from approximately $4.2 billion as of December 31, 2024 [286]. - Total assets rose to $11.5 billion, an increase of $4.4 billion, primarily due to a $2.4 billion increase in digital assets and a $637 million increase in property and equipment [362]. - Total liabilities increased to $8.4 billion, up $3.4 billion, mainly due to a $1.6 billion increase in digital assets borrowed and a $1.2 billion increase in collateral payable [362]. - Cash and cash equivalents reached $1.1 billion, a 146.1% increase from $462.1 million at the end of 2024 [363]. - The company entered into a $1.4 billion credit agreement with Deutsche Bank to finance a data center project, with $433.5 million drawn as of September 30, 2025 [364]. Revenue Streams - Digital assets sales reached $28.2 billion for the three months ended September 30, 2025, reflecting a $19.7 billion increase or 233% year-over-year [328]. - Approximately 52% of digital asset sales revenue for the three months ended September 30, 2025, was from bitcoin sales, compared to 51% in the same period of 2024 [329]. - Fee revenue increased to $104.3 million and $132.8 million for the three and nine months ended September 30, 2025, representing increases of 404% and 76% compared to the same periods in 2024 [330]. - Lending revenues reached $42.6 million and $102.2 million, marking an increase of 81% for both the three and nine months ended September 30, 2025, attributed to the growth in the loan book size [333]. - Net gain on digital assets was $453.8 million and $570.5 million for the three and nine months ended September 30, 2025, compared to $112.0 million and $436.4 million in 2024, reflecting a 305.2% increase for the three months [335]. Operational Highlights - The Helios data center campus is expected to reach a contracted capacity of 526 MW of critical IT load by 2028, with the first phase expected to deliver 133 MW by mid-2026 [283]. - The company launched GalaxyOne, a retail financial technology platform, offering FDIC-insured high-yield accounts and access to equities and crypto trading [288]. - The company completed several strategic acquisitions, including the Helios bitcoin mining facility in December 2022 and GK8 in February 2023, diversifying its product offerings [309]. - The company launched proof of stake validation infrastructure services in late 2023, contributing to the increase in blockchain rewards [331]. Market Trends - The number of worldwide individual cryptocurrency users rose to 708 million as of September 2025, up from 580 million in December 2023, showing strong adoption growth [308]. - Bitcoin's price remained above $100,000 throughout Q3 2025, reaching an all-time high of over $126,000 on October 6, 2025, indicating market resilience [308]. - The trailing five-year compounded annual growth rate for bitcoin reached 60% as of September 30, 2025, reflecting strong long-term performance [308]. - Cryptocurrency market capitalization increased by 16% for the three months ended September 30, 2025, compared to the previous quarter [354]. Costs and Expenses - Operating expenses for the three months ended September 30, 2025, totaled $28.7 billion, an increase of $19.9 billion or 228% compared to the same period in 2024 [324]. - Impairment of digital assets for the three months ended September 30, 2025, was $197.7 million, an increase of $89.2 million or 82% year-over-year [324]. - Compensation and benefits expenses increased by 49% to $85.0 million for the three months ended September 30, 2025 [324]. - General and administrative expenses rose to $58.7 million and $164.5 million for the three and nine months ended September 30, 2025, representing increases of 146% and 150% compared to the same periods in 2024 [352]. Risk Management - Galaxy mitigates credit and counterparty risk by requiring collateral assets from counterparties, which are assessed based on liquidity and overall risk profile [386]. - The company limits credit risk by placing cash and digital assets with financial institutions and trading platforms after performing internal due diligence procedures [393]. - Galaxy has a fail-over plan to move cash and digital assets held on a platform if risk exposure significantly changes [393].
Galaxy Digital Inc-A(GLXY) - 2025 Q3 - Quarterly Report