Key Takeaways:
- Galaxy Digital Q2 earnings report misses analyst expectations.
- Galaxy announces strategic expansion into AI infrastructure, expanding data center capacity.
- Galaxy’s CEO, Michael Novogratz believes crypto treasury issuance has reached its peak.
Galaxy Digital (GLXY) announced its Q2 earnings and missed market expectations. However, managed to flip its fortunes in the second quarter of 2025. Galaxy reported earnings per share (EPS) of $0.08 and revenue of $9 billion against Wall Street Expectations of $0.18 and $13.9 billion, respectively. Nonetheless, Galaxy Digital posted positive net income of over $30 million since its last quarterly earnings.
Why Did Galaxy Miss Analyst Expectations?
Despite reporting a net income of over $30 million from a loss of $295 million during Q1 2025. But caveats are being observed as Galaxy’s trading volumes declined by 22% from the previous quarter. Moreover, its primary revenue stream of digital-asset sales fell to $8.6 billion in Q2, a significant drop from both the prior quarter’s $12.8 billion and the $8.8 billion reported in the same quarter last year.
Even though Galaxy’s financial performance is showing a dramatic improvement, with adjusted gross profit swinging from a $203 million loss last quarter to a profit of over $299 million in Q2, while also achieving 1,000% year-over-year growth. The stock did not show a similar reaction as it missed analyst expectations and also reflects broader market caution around crypto volatility.
Galaxy Digital Expands AI Infrastructure
Galaxy Digital is making a significant strategic expansion into the AI and high-performance computing (HPC) infrastructure business through its Helios data-center campus in West Texas. AI infrastructure firm CoreWeave, has now officially committed to using the full 800 MW of power capacity that is currently approved at the Helios site. This long-term, 15-year lease agreement is expected to generate over $1 billion in annual revenue for Galaxy once it is fully operational.
Additionally, Galaxy has also agreed to acquire an additional 160 acres of land and a new 1-gigawatt (GW) power plant adjacent to the existing Helios campus. This substantial expansion will bring the Helios site’s entire potential power capacity to a whopping 3.5 GW. Ultimately, this expansion is a key part of Galaxy’s strategy to position itself at the intersection of AI, blockchain, and decentralized finance, areas it believes will converge in the coming years.
Crypto Treasury Has Peaked, According to Galaxy CEO
Galaxy’s CEO, Michael Novogratz, said this on Q2 earnings call,
We’ve probably gone through peak treasury company issuance.”
“The question now is which of the existing companies will become monsters.
According to Novogratz, new entrants may have a harder time growing as exponentially as the existing players. Galaxy has developed a significant revenue stream by providing digital asset management services to a portfolio of over 20 crypto treasury firms with roughly $2 billion in assets. Galaxy’s Bitcoin (BTC) holdings increased from 13,704 on December 31st, 2024, to 17,102 BTC on June 30th, 2025.
