Galaxy Digital Slips Post-Earnings Despite Strong Quarter and AI Expansion

Galaxy Digital (GLXY), led by CEO Mike Novogratz, reported a solid second quarter on Tuesday, but shares fell 8% as investors opted to lock in profits following a strong rally since the firm’s Nasdaq debut in May.

Despite a 22% drop in trading volumes, Galaxy’s Global Markets division saw a 28% quarter-over-quarter revenue increase to $55.4 million—outperforming broader crypto market trends, according to KBW. The firm’s average loan book expanded to $1.1 billion, outpacing Coinbase’s (COIN) $879 million during the same period.

Platform assets surged 27% to $8.9 billion. However, adjusted gross profit from asset management declined 26% due to a slowdown in on-chain activity.

On the infrastructure front, Galaxy secured full control of the Helios data center’s 800-megawatt HPC (high-performance computing) capacity after CoreWeave exercised its final option for 133MW. Galaxy also moved to acquire an adjacent 160-acre parcel with a 1GW interconnection request, potentially expanding Helios’ capacity to 3.5GW—a major step in the firm’s AI and HPC ambitions.

Galaxy ended the quarter with $2.5 billion in total liquidity, consisting of $1.1 billion in cash and stablecoins, and $1.3 billion in net digital assets. Corporate debt stood at $1.1 billion.

The firm held 17,102 bitcoin valued at $1.8 billion as of June 30, up from 13,704 BTC worth $1.3 billion six months earlier.

KBW noted a strong start to Q3, including record July activity and Galaxy’s role in facilitating over 80,000 BTC in sales.

The stock’s 8% dip comes amid broader weakness in crypto markets, with bitcoin slipping over 1% to $113,000. Still, GLXY remains up 13% since its U.S. listing earlier this year.