Galaxy Digital (GLXY) experienced an 8% decline in share price following its second quarter earnings release, as investors appear to be taking profits after a strong recent rally. The company, which was recently listed on Nasdaq, posted $166 million in operating income and $30.7 million in net income for the quarter.
Galaxy’s Trading Revenue Grows Despite Market Slowdown
Despite a 22% drop in trading volumes, Galaxy’s Global Markets division posted a 28% quarter-over-quarter revenue increase to $55.4 million. This growth indicates the firm’s ability to outperform broader crypto market trends, according to analysts.
Galaxy’s loan book reached $1.1 billion, significantly ahead of peers like Coinbase, which reported $879 million.
Helios Expansion Reaches Full 800MW Capacity
A major highlight was CoreWeave exercising its final 133MW option at Galaxy’s Helios data center, completing the full 800MW of high-performance computing (HPC) capacity. The company also announced it has acquired 160 additional acres near the site and filed a 1GW interconnection request, signaling plans to expand total Helios capacity to 3.5GW.
Assets Rise But On-Chain Revenue Slips
Assets on Galaxy’s platform rose 27% to $8.9 billion, showing continued institutional adoption. However, adjusted gross profit from asset management fell 26%, mainly due to lower on-chain activity during the quarter.
Strong Liquidity and Growing Bitcoin Holdings
Galaxy ended Q2 with $2.5 billion in total liquidity, including $1.1 billion in cash and stablecoins, and $1.3 billion in net digital assets. Its bitcoin holdings grew to 17,102 BTC (worth approximately $1.8 billion), up from 13,704 BTC valued at $1.3 billion just six months prior.
Outlook: Strong Q3 Momentum Begins
Analysts noted that July saw record activity for Galaxy, including facilitating the sale of over 80,000 bitcoin and securing the final tranche of AI/HPC compute capacity.
Despite the post-earnings dip, Galaxy remains financially strong with aggressive infrastructure expansion underway.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.