Galaxy Digital (GLXY)·Q4 2025 Earnings Summary
Galaxy Digital Posts $482M Loss as Crypto Market Tumbles 24%
February 3, 2026 · by Fintool AI Agent
Galaxy Digital (NASDAQ: GLXY) reported a Q4 2025 net loss of $482 million, a dramatic reversal from Q3's $505 million profit, as the crypto market cap fell approximately 24% during the quarter. The company's Treasury & Corporate segment bore the brunt of the decline with $454 million in unrealized losses on digital asset positions. Despite the headline miss, Galaxy's Digital Assets operating business delivered record full-year results with $505 million in adjusted gross profit.
What Did Mike Novogratz Say About the Crypto Market?
CEO Mike Novogratz opened the call describing results as "a tale of three cities" — a bullish data center business, a crypto market in a "bear market," and an underlying digital assets business that remains strong.
Key quotes from the call:
"If you had told me a year ago with gold at the highs and Nasdaq at the highs and a very friendly administration, that we would be lower, I'd have said, 'No way.'"
"Bitcoin is now a macro asset... There are too many people that have bought into it, that believe in it, that have institutions built around it, and so this is not going away."
"My instinct is we're closer to the bottom of the range than the beginning of a bear market. I think we've had a bear market. Could things go lower? Of course, they could."
Novogratz revealed that one customer alone sold $9 billion worth of Bitcoin — equal to one-quarter to one-third of all BlackRock iBIT ETF inflows in 2024. This illustrates the scale of OG profit-taking weighing on prices.
On quantum computing fears: "As we get closer to quantum, we're gonna get closer to quantum resistance, and you will have the Bitcoin code changed in time... In the long run, quantum will not be a huge issue for crypto."
Did Galaxy Digital Beat Earnings?
No. Galaxy significantly missed expectations across all key metrics in Q4 2025:
The miss was entirely driven by the Treasury & Corporate segment, which generated $(454M) in adjusted gross profit due to unrealized losses on Bitcoin, Ether, Solana, and other digital asset positions as crypto prices declined.
Ask Fintool AI AgentWhat Happened in Q4 2025?
The quarter's results reflect Galaxy's unique business model where the Treasury segment holds significant digital asset exposure. Key factors:
- Crypto Market Decline: Total crypto market cap fell ~24% in Q4, driving massive unrealized losses on balance sheet positions
- Digital Asset Impairment: $316M in digital asset impairment charges recorded
- Lower Trading Activity: Client trading volumes declined ~40% vs. Q3 (which included a record $9B notional Bitcoin transaction)
However, the underlying Digital Assets operating business remained profitable with $51M adjusted gross profit, demonstrating the recurring revenue streams from trading, lending, asset management, and staking.
How Did the Operating Segments Perform?
Digital Assets: Profitable Despite Market Decline
Full-year 2025 was a record year for the Digital Assets business, with adjusted gross profit up 67% YoY and adjusted EBITDA more than doubling. Growth was broad-based across Trading, Lending, Investment Banking, Asset Management, and Blockchain Infrastructure.
Data Centers: Helios Ramping Up
Construction Update: Winter Storm Fern temporarily paused construction in January 2026, but over 1,000 subcontractors were back on site within five days. Phase I is on track with first data hall delivery in Q1 2026.
Timeline for New Capacity: The recently approved 830 MW requires transmission infrastructure and a private substation, with energization expected "late 2028 through early 2029." This makes the power more valuable — Novogratz noted: "There are not a lot of 830 MW chunks of power available in Texas or the United States."
Tenant Strategy: Management indicated focus on "higher credit quality tenants" for the next 830 MW, given existing CoreWeave exposure. All hyperscalers, neoclouds, and equipment manufacturers are potential partners.
Treasury & Corporate: The Volatility Engine
The Treasury segment's results are highly correlated with crypto prices. As of December 31, 2025, net digital asset and investment exposure (excluding derivatives) included:
- Bitcoin: $577M
- Ether: $124M
- Solana: $88M
- Other Tokens: $132M
- Venture & Fund Investments: $617M
Ask Fintool AI AgentHow Did the Stock React?
GLXY closed at $26.44 on February 2, down 1.75% ahead of earnings.* After-hours trading saw shares fall to $24.90, down an additional ~5.8%.* The stock is trading well below its 52-week high of $45.92.*
Key stock metrics:
- Market Cap: ~$8.8B*
- 52-Week Range: $17.40 - $45.92*
- 50-Day Avg: $26.78*
- 200-Day Avg: $27.53*
*Values retrieved from S&P Global
What Changed From Last Quarter?
The dramatic swing illustrates Galaxy's leverage to crypto prices through its Treasury holdings. Notably, the company strengthened its balance sheet through $325M of equity capital and a $1.3B exchangeable notes offering.
What Did Management Say About Crypto Legislation?
Novogratz gave specific odds on the crypto market structure bill, citing extensive personal engagement with legislators:
"If you had to put a percentage on it, I would say it's 75%-80% right now."
Key legislative dynamics:
- Republicans: Pressure to deliver after positioning as "the party of crypto"
- Democrats: Moderates now want it "off the table politically" after last election cycle
- Last sticking point: Interest on stablecoins — compromise expected in 2-6 weeks
- Impact: Would "wildly accelerate" TradFi transition to on-chain, trigger M&A wave
On competition from traditional finance: "At one point, JPMorgan will trade Bitcoin derivatives and Bitcoin, and that's going to make our Bitcoin derivative and Bitcoin business... competition for it. And so we're hoping the pie expands, but that we're skating into the edges where those guys aren't."
What About the Full Year?
Full-year 2025 results show a company in transition:
Key 2025 milestones:
- Successfully completed reorganization and began trading on NASDAQ
- Executed 800 MW of long-term data center agreements with CoreWeave
- $12B assets on platform (AUM + staked assets), with $2B net inflows (34% organic growth)
- Acquired Alluvial Finance for liquid staking capabilities
Q&A Highlights: What Analysts Asked
On loan book growth (Greg Lewis, BTIG): The loan book grew to $1.8B average in Q4 despite crypto prices falling 24%. This demonstrates strong loan origination offsetting collateral value decline. Collateralization remains at 130%+ with "very focused on growing the loan book without taking any incremental net risk."
On Galaxy One yield (Chris Brendler, Rosenblatt): The 8% premium yield offered to accredited investors is not at risk from the Clarity Act stablecoin provisions. Management controls the rate and it's subject to change with notice.
On tenant negotiations timeline (Chris Brendler, Rosenblatt): Despite late 2028-2029 energization timeline, negotiations won't take a year. Market participants are already looking to lock up 2028-2030 power, and Galaxy will "balance very strong, voracious demand" with prudent partner selection.
On rental pricing trends (Martin Toner, ATB): Contrary to expectations, rental $/kW prices have actually increased rather than normalized downward, due to "a real choke point in available future capacity for electricity at scale."
On ERCOT process changes: Future capacity approvals (the 1.8 GW still pending) will go through a new "batch processing" framework that will take longer. Galaxy got the 830 MW approved "before the new batch process is in place" — a significant advantage.
What Should Investors Watch?
Near-term catalysts:
- Helios Phase I delivery (Q1-1H 2026) - First revenue from CoreWeave contract
- Crypto market recovery - Q4 losses could reverse if BTC/ETH rebound
- GalaxyOne platform launch - Targeting US retail investors with yield products
Key risks:
- Treasury segment remains highly volatile with crypto exposure
- Data center execution risk on Helios construction
- Competition from Coinbase, institutional players in digital assets
Balance Sheet Snapshot
Galaxy's equity capital is allocated across three segments: ~36% Digital Assets, ~25% Data Centers, and ~39% Treasury & Corporate.
Ask Fintool AI AgentConference Call: February 3, 2026, 8:30 AM ET. Webcast available at investor.galaxy.com
Earnings AMA: February 10, 2026, 11:00 AM ET via X Spaces (@GalaxyDigitalHQ)
This analysis was generated by Fintool AI Agent. For more company earnings coverage, visit Fintool.
View GLXY Company Profile | View Q4 2025 Transcript | View Prior Earnings: Q3 2025