Galaxy Digital (GLXY) Q4 2025: Helios Power Capacity Doubles to 1.6 GW, Securing AI Data Center Optionality
Galaxy Digital’s Q4 2025 reveals a business at a strategic crossroads, with the Helios data center campus more than doubling approved power capacity to 1.6 gigawatts while digital asset operations weather a pronounced crypto market downturn. Despite near-term crypto headwinds, Galaxy’s diversified model and infrastructure investments position the company to capture future AI and blockchain adoption tailwinds, with management signaling readiness for an inflection as regulatory and market catalysts emerge.
Summary
- Helios Expansion Unlocks Data Center Growth: 830 megawatts of new ERCOT-approved capacity positions Galaxy as a hyperscale AI infrastructure player.
- Crypto Market Volatility Tests Resilience: Core digital asset businesses remain profitable despite a sector-wide pullback and balance sheet losses.
- Strategic Leverage on Regulatory Clarity: Management sees upcoming U.S. crypto legislation as a pivotal catalyst for institutional blockchain adoption.
Performance Analysis
Galaxy Digital’s Q4 2025 results reflect a sharp divergence between crypto market headwinds and operational progress in both digital assets and data centers. The company reported a substantial GAAP net loss, driven by one-time charges and a pronounced 24% drop in digital asset prices during the quarter. However, adjusted EBITDA remained positive, and the core digital assets segment delivered a record $505 million in adjusted gross profit for the year, up 67% year over year, underscoring the scalability of Galaxy’s fee-based and transaction-driven revenue streams.
Trading volumes and asset platform balances contracted sharply quarter over quarter—trading volumes fell 40% and platform assets dropped 15%—as market sentiment and pricing deteriorated. Yet, the loan book remained robust at $1.8 billion, signaling sustained institutional demand and prudent risk management. Meanwhile, the data center segment’s financial impact remains minimal until phase one of the CoreWeave lease begins contributing revenue, expected in the coming quarter.
- Fee Revenue Anchors Profitability: Recurring transaction and asset management fees cushioned the blow from crypto price declines.
- Loan Book Stability Amid Volatility: The $1.8 billion average loan book size held steady, reflecting conservative risk controls and client growth.
- Balance Sheet Fortified by Capital Raises: $2.6 billion in cash and stablecoins, up $700 million, provides liquidity for ongoing data center build-out and debt repayment.
Despite near-term pain in digital asset prices and portfolio marks, Galaxy’s financials highlight the company’s ability to generate operating leverage and maintain liquidity, even as it invests heavily in future-facing infrastructure.
Executive Commentary
"Could it be more bullish on the data center business? ... There is not a lot of 830-megawatt new sites of power being granted in the United States. ... The data center business will start cash flowing, you know, quite quickly."
Mike Novogratz, Founder & CEO
"Despite these non-recurring charges, our business delivered $34 million of adjusted EBITDA in 2025. This performance came against the backdrop of a 10% decline in the total crypto market cap, driven by a 24% drop in Q4. This profitable performance also underscores the growing scale of our business and the increasing contribution of recurring fee and transaction-oriented revenue within our earnings mix."
Tony [LastName], Chief Financial Officer
Strategic Positioning
1. Helios Data Center: Securing Scale in AI Infrastructure
Galaxy’s Helios campus doubled its approved power capacity to 1.6 gigawatts, solidifying its status as one of the largest AI data center projects in North America. This milestone, enabled by ERCOT’s approval of an additional 830 megawatts, expands Galaxy’s leasing flexibility and enhances its appeal to hyperscale tenants seeking long-term access to scarce power resources. The company is now positioned to serve both existing and new tenants as demand for AI compute accelerates, with phase one data halls set to begin generating cash flow by end of Q1 2026.
2. Digital Asset Platform: Navigating Crypto Cycles, Building Institutional Moats
While crypto market volatility weighed on results, Galaxy’s diversified digital asset platform—spanning trading, lending, asset management, and infrastructure—demonstrated resilience and scalability. Record trading volumes and a stable loan book, paired with new products like Galaxy One (yield platform) and tokenized asset launches, highlight the firm’s ability to adapt and deepen institutional client relationships. The acquisition of Alluvial Finance further expands Galaxy’s footprint in liquid staking, a key enabler for institutional DeFi participation.
3. Regulatory Tailwinds: Positioning for U.S. Crypto Legislation
Management is highly attuned to the evolving U.S. regulatory landscape, with CEO Novogratz estimating a 75-80% probability of crypto market structure legislation passing in the next two to six weeks. Galaxy is investing in D.C. engagement and sees regulatory clarity as a critical unlock for institutional blockchain adoption, particularly in tokenized credit, stablecoins, and on-chain infrastructure for traditional finance (TradFi) players.
4. Capital Allocation and Risk Discipline
Galaxy’s balance sheet—bolstered by $1.6 billion in Q4 capital raises—supports ongoing data center investment and prudent risk management. Management emphasized disciplined growth, liquidity for debt maturities, and a focus on high-credit-quality tenants for future data center phases, reflecting a conservative posture amid market uncertainty.
Key Considerations
Q4 marks a pivotal transition as Galaxy bridges legacy crypto operations with emerging AI and blockchain infrastructure opportunities. The company’s ability to execute on multi-gigawatt data center development while maintaining operational profitability in digital assets is central to its long-term value proposition.
Key Considerations:
- AI Compute Demand Drives Data Center Scarcity: Power approvals are increasingly rare, positioning Helios as a strategic asset in the hyperscale race.
- Fee-Based Revenue Mix Enhances Downside Protection: Recurring transaction and management fees mitigate crypto market cyclicality.
- Regulatory Clarity Could Accelerate Adoption: Passage of U.S. crypto legislation would catalyze traditional finance engagement and tokenization initiatives.
- Capital Structure Supports Growth and Flexibility: Strong liquidity enables continued data center build-out and risk management through volatile cycles.
Risks
Galaxy faces significant risks from continued crypto price volatility, which directly impacts trading activity, asset values, and client flows. Execution risk in the multi-phase Helios build-out is elevated—delays in grid infrastructure, tenant negotiations, or financing could impair returns. Regulatory uncertainty, while potentially a catalyst, remains a persistent overhang until clarity is achieved.
Forward Outlook
For Q1 2026, Galaxy guided to:
- Recognition of initial data center revenue as CoreWeave lease commences
- Continued investment in data center infrastructure and tenant engagement
For full-year 2026, management maintained focus on:
- Scaling Helios campus from construction to operational status
- Expanding digital asset platform offerings and institutional partnerships
Management highlighted several factors that will shape results:
- Timing and outcome of U.S. crypto regulatory legislation
- Market demand for AI compute and large-scale data center capacity
Takeaways
Galaxy is executing a dual-pronged strategy, leveraging its digital asset platform while aggressively investing in AI data center infrastructure. The company’s ability to secure scarce power capacity and maintain operational stability during a crypto downturn signals strong positioning for the next cycle.
- Infrastructure Optionality: Helios’ expanded capacity provides leverage to future AI and hyperscale compute demand, potentially unlocking significant lease economics.
- Digital Asset Resilience: Fee-based and lending businesses cushion volatility, but sector recovery is needed for renewed growth.
- Regulatory Catalysts Loom: Passage of U.S. crypto legislation could trigger institutional adoption and accelerate on-chain finance initiatives.
Conclusion
Galaxy Digital exits 2025 with clear infrastructure tailwinds and operational discipline, but must navigate ongoing crypto volatility and execution risk in its data center build-out. The company’s strategic bets on AI infrastructure and blockchain rails position it for asymmetric upside as market and regulatory catalysts emerge.
Industry Read-Through
Galaxy’s rapid scaling of the Helios campus highlights intensifying competition for power and land in the AI data center sector, signaling a structural scarcity that will benefit early movers. The resilience of fee-based digital asset businesses provides a blueprint for other crypto-native firms seeking to weather market cycles. Upcoming U.S. crypto legislation stands to reshape the institutional landscape, accelerating the convergence of traditional finance and blockchain infrastructure—an industry theme with broad implications for asset managers, banks, and DeFi platforms alike.