Karla Barker 
Strong quarterly performance drives stock gains
Galaxy Digital shares experienced significant upward movement on Tuesday following the company’s third-quarter earnings report. The institutional cryptocurrency firm posted $505 million in profits during the period, which appears to have caught investor attention. What’s interesting is how the company is positioning itself in the market—they’re going after retail-focused platforms like Robinhood and Coinbase with their new GalaxyOne offering.
Trading activity was particularly noteworthy. The stock jumped to $46 when markets opened, though it settled around $43 later in the day. That still represented an 8.3% increase, which isn’t bad for a single trading session. The volume increase of 140% quarter-over-quarter suggests there’s growing interest in Galaxy’s platform, though I should note that included a massive $9 billion Bitcoin transaction they facilitated earlier this year.
Assets and revenue show substantial growth
Looking at the numbers more closely, Galaxy reported $28.4 million in third-quarter revenue. That’s a 231% increase compared to the same period last year, which is quite substantial. Their platform reached a record $17 billion in assets, up 70% from the previous quarter. That kind of growth rate is something you don’t see every day in financial services.
What caught my eye was the $4.5 billion parked by crypto treasury firms. These are the companies that manage cryptocurrency holdings for larger institutions, and they’re apparently finding value in Galaxy’s services. The company expects this will translate to about $40 million in annual recurring fees, which provides some revenue predictability.
Expanding services and infrastructure
GalaxyOne seems to be their answer to the all-in-one trading platforms that have become popular. It allows customers to trade both stocks and cryptocurrencies in a single interface, similar to what Robinhood and Kraken offer. But they’re also targeting accredited investors with specialized products like high-yield cash accounts that aren’t available to everyone.
Beyond their core financial services, Galaxy is involved in data center infrastructure. They mentioned remaining on schedule to deliver power to AI cloud computing platform CoreWeave in the first half of next year. This diversification might help them weather market volatility better than pure-play crypto companies.
Analysts at Compass Point noted that Galaxy’s earnings before interest and taxes came in 236% above Wall Street estimates. They suggested the increase in platform assets will likely cause investors to adjust their forecasts higher. With $9 billion in assets under management and another $7 billion in “assets under stake” earning blockchain rewards, Galaxy appears to be building a substantial position in the crypto services space.
Still, it’s worth remembering that cryptocurrency markets remain volatile, and companies operating in this space face regulatory uncertainties. The current growth trajectory is impressive, but sustainability will depend on broader market conditions and regulatory developments.