Executive Summary

Returned to profitability: Net income $30.7M ($0.08 diluted EPS) on Adjusted Gross Profit $299M and Adjusted EBITDA $211M, driven by balance sheet gains and resilient Digital Assets operations .
Digital Assets outperformed a softer market: Global Markets adjusted gross profit rose 28% QoQ to $55.4M; loan book averaged $1.11B; staking faced lower on-chain rewards, especially on Solana, pressuring segment profit .
Structural catalysts: CoreWeave committed to the full 800MW at Helios; campus expanded to >1,500 acres with potential capacity to 3.5GW; Phase I delivery targeted for 1H26; anticipated combined DC average annual revenue now “$1B+” with ~90% EBITDA margins .
Post-quarter positives: Closed a $1.4B Phase I project financing (80% loan-to-cost); July was the best month ever for Digital Assets; executed a >80,000 BTC sell order (~$9B notional), underscoring franchise strength .
Against S&P Global consensus, Q2 EPS ($0.08) missed $0.131*, and revenue lagged $11.69B*; mix and GAAP gross-ups plus a $125M non-cash derivative MTM weighed on comparability and EPS .

What Went Well and What Went Wrong

What Went Well
- Digital Assets momentum: Global Markets adjusted gross profit +28% QoQ to $55.4M despite ~30% industry spot volume decline; average loan book hit $1.11B; Bitstamp advisory revenue recognized .
- Balance sheet tailwind: Treasury & Corporate swung to $228M adjusted gross profit and $198M adjusted EBITDA on mark-to-market gains .
- Data centers de-risking: CoreWeave took the full 800MW; Helios expansion to 3.5GW potential capacity; construction milestones on schedule (demolition complete; key electrical/mechanical/backup systems underway) .
- Management tone: “July was by all accounts, best month we’ve had at Galaxy… All our businesses are starting to fire on full cylinders” — CEO Mike Novogratz .
What Went Wrong
- EPS miss vs Street: Diluted EPS $0.08 vs $0.131 consensus*, with a $125M negative MTM on exchangeable-notes derivative pressuring GAAP results; this charge should not recur post-reorg .
- Staking revenue headwinds: AM & Infrastructure Solutions adjusted gross profit fell to $16.0M (-26% QoQ) due to lower industry on-chain activity, notably Solana .
- GAAP optics: Grossed-up GAAP revenues and transaction expenses (Rev+Gains $9.06B vs Transaction Expenses $8.63B) complicate headline comparisons and mask underlying operating progress .

Financial Results

Metric	Q2 2024	Q1 2025	Q2 2025	Q2 2025 Consensus
Revenues & gains from operations ($USD Billions)	$8.865	$12.856	$9.057	$11.687*
GAAP Revenues ($USD Billions)	$8.883	$12.976	$8.662	—
Net Income ($USD Millions)	-$125.6	-$295.4	$30.7	—
Diluted EPS ($)	-$0.37	—	$0.08	$0.131*
Adjusted Gross Profit ($USD Millions)	-$27.1	-$203.6	$299.2	—
Adjusted EBITDA ($USD Millions)	-$94.8	-$289.5	$211.2	—

Note: GAAP revenue is grossed-up due to US GAAP presentation of certain digital asset flows; Adjusted metrics better reflect operating performance .
Values with asterisks (*) retrieved from S&P Global.

Segment breakdown

Segment Metric	Q1 2025	Q2 2025
Digital Assets Adjusted Gross Profit ($M)	$64.7	$71.4
Digital Assets Adjusted EBITDA ($M)	$13.0	$13.0
Data Centers Revenue ($M)	—	—
Data Centers Adjusted EBITDA ($M)	-$1.2	—
Treasury & Corp Adjusted Gross Profit ($M)	-$268.3	$228.0
Treasury & Corp Adjusted EBITDA ($M)	-$301.4	$198.3
Consolidated Adjusted EBITDA ($M)	-$289.5	$211.2

KPIs

KPI	Q1 2025	Q2 2025
Global Markets Adjusted Gross Profit ($M)	$43.2	$55.4
Loan Book Size (Average, $M)	$874	$1,107
Total Trading Counterparties (count)	1,381	1,445
Assets on Platform ($M)	$7,020	$8,921
ETFs ($M)	$2,598	$3,327
Alternatives ($M)	$2,079	$2,444
Assets Under Stake ($M)	$2,343	$3,150

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Phase I delivery (Helios)	133 MW	1H 2026	1H 2026	Maintained
Phase II delivery	260 MW	Begin 1H 2027	2027	Maintained
Phase III start	133 MW	—	2028	New specificity
Anticipated average annual revenue (Phases I–III, 526 MW)	15-year average	~$900M (Phase I ~$300M + Phase II ~$600M)	$1B+	Raised
EBITDA margin (DC)	Contract term	~90%	~90%	Maintained
Data Centers revenue recognition begins	Company-wide DC	—	1H 2026	New reminder
Phase I project financing	Phase I	“Closing in weeks”	Closed $1.4B facility post-Q2 (80% LTC)	Achieved

Earnings Call Themes & Trends

Topic	Q4 2024 (Q-2)	Q1 2025 (Q-1)	Q2 2025 (Current)	Trend
AI/Data centers strategy	Announced CoreWeave Phase I (133MW) with ~90% EBITDA margins; ERCOT approvals path	Phase II (260MW) added; 15-yr revenue Phase I ~$4.5B; Phase II ~$9B	CoreWeave committed to full 800MW; Helios potential 3.5GW; Phase I construction milestones progressing	Scaling, execution progress
Financing	Plan for project finance ~80/20, 10–11% construction yield; refinance post-stabilization	Phase I financing “imminent”	Closed $1.4B Phase I facility post-Q2 (80% LTC)	De-risked capital stack
Stablecoins/AllUnity	Expect BaFin approval mid-2025	Infrastructure positioning; GK8 stack for tokenization	AllUnity EUR stablecoin launched; GK8 provides tech; euro market opportunity	Product launch, distribution
Tokenization	Expect slow-then-fast adoption; infra build-out	Building wallet/tokenization infra (GK8); exploring roles across issuance/trading	Continued focus; regulatory progress as catalyst	Building capabilities
Trading/Lending	Trading strength; swap-dealer registration; lending book growth	Avg loan book ~$870M; disciplined underwriting	Avg loan book $1.11B; outperformed market despite 30% spot volume drop	Growth and share gains
Staking/on-chain	Staking scale-up; integrations	Custodian integrations (e.g., Zodia)	Lower on-chain activity, especially Solana, pressured rewards; Fireblocks integration expands access	Mixed: distribution up, rewards down
Treasury companies	—	Strong pipeline; multi-year relationships	20+ partners; >$1.5B assets on platform; >$2B notional traded	Structural growth
Regulatory/macro	Pro-crypto U.S. stance; volatility warning	Uplisting to Nasdaq; market structure bills underway	Management optimistic on AI+crypto, macro tailwinds for BTC	Supportive backdrop

Management Commentary

“July was by all accounts, best month we’ve had at Galaxy. All our businesses are starting to fire on full cylinders.” — Mike Novogratz, CEO .
“We generated $299,000,000 in adjusted gross profit… Firmwide adjusted EBITDA came in at $211,000,000.” — Tony Paquette, CFO .
“Our average loan book balance exceeded $1,000,000,000 for the first time… we ended the quarter with roughly $1,400,000,000 in total loans outstanding.” — CFO .
“CoreWeave… has now committed to the full 800 megawatts… We remain confident in our ability to hit key delivery and construction milestones… Phase I in 2026.” — Chris Ferraro, President & CIO .
“We completed the sale of over 80,000 Bitcoin on behalf of a client representing one of the largest notional Bitcoin transactions in history.” — CFO ; corroborated by press release .

Q&A Highlights

Non-USD stablecoins: CEO sees USD dominance near-term but meaningful long-term potential for euro and others as payments and FX go on-chain .
Data center financing cost: Phase I expected sub-10% stream rate; including fees/breakage implies 10–11% yield; larger/cheaper capital over time as track record builds .
Hyperscaler pipeline: CoreWeave’s full 800MW commitment validates demand; broader hyperscaler conversations active, with focus on power availability through 2028–29 .
Solana/on-chain activity: Q2 reflected comedown from meme coin spikes; ecosystems working to drive durable volumes tied to payments and consumer apps .
Treasury companies: Multi-year, perpetual-style mandates aim to deliver fees, staking, lending, and integrated solutions beyond ETFs .

Estimates Context

EPS: $0.08 actual vs $0.131 consensus mean* → Miss of $0.051; impacted by a $125M non-cash negative MTM on notes derivative in Q2, which will not recur post-reorg .
Revenue (GAAP grossed): $9.06B (company) vs $11.69B consensus mean* → Below; note GAAP gross-up and mixed company presentation (Revenues vs Revenues & Gains) complicate comparability .
Street models likely raise DC contribution outlook (Phase I financing closed post-Q2; $1B+ combined average annual revenue guide for 526MW) and adjust staking run-rate lower given weaker on-chain activity .

Values with asterisks (*) retrieved from S&P Global.

Key Takeaways for Investors

Operating recovery with cleaner trajectory: Adjusted EBITDA swung to +$211M from -$290M QoQ; Digital Assets outperformed a down market, and balance sheet gains provided leverage .
Structural growth optionality: Full 800MW commitment at Helios, potential 3.5GW campus, and $1.4B financing de-risk execution; Phase I to revenue in 1H26 with ~90% EBITDA margins .
Multi-engine revenue model: Trading/lending strength, advisory monetization (Bitstamp), asset management distribution (Fireblocks), and treasury companies create diversified, recurring flows .
Near-term estimate dynamics: Expect EPS normalization as derivative MTM falls away post-reorg; Street likely to fine-tune GAAP revenue models given gross-ups and focus on adjusted metrics .
Staking watch-items: On-chain activity (esp. Solana) is key to re-accelerating validator rewards; distribution integrations should support medium-term growth .
Trading implications: July momentum, mega-BTC execution capability, and loan book scale are positive for near-term revenue capture if crypto volatility/liquidity stays favorable .
Medium-term thesis: AI infrastructure plus institutional crypto convergence (tokenization, stablecoins) position Galaxy as a beneficiary of both cycles; disciplined capital and pipeline diversification remain focus areas .

Appendix: Additional Data Points

Q2 highlights: Net income $30.7M; diluted EPS $0.08; Total equity $2.62B; cash and stablecoins $1.18B .
GAAP optics: Revenues & Gains $9.06B; Transaction Expenses $8.63B .
Balance sheet exposures: Net digital asset exposure $1.27B (BTC $748M; ETH $196M; other $330M); venture/fund investments $718M .
July performance flagged as record month in Digital Assets; subsequent large BTC execution and Phase I financing provide positive Q3 setup .

Galaxy Digital Inc. (GLXY)·Q2 2025 Earnings Summary