Investors Take Profits After Run-Up, Sending Galaxy Digital Down 8% Post-Report

Galaxy Digital Drops 8% Post-Earnings Despite Record Growth and Helios Expansion

Galaxy Digital (GLXY) shares slipped 8% on Tuesday after the firm reported second-quarter earnings, as investors took profits following a strong run-up since its recent Nasdaq debut. Despite the pullback, the company posted robust financial and operational gains, including a major infrastructure expansion.

Led by CEO Mike Novogratz, Galaxy saw Global Markets revenue jump 28% quarter-over-quarter to $55.4 million, even as trading volumes fell 22%. Brokerage KBW highlighted the performance as a sign of Galaxy outperforming broader market conditions. The firm’s average loan book reached $1.1 billion, outpacing Coinbase’s (COIN) $879 million.

Platform assets grew 27% to $8.9 billion. However, adjusted gross profit in its asset management division fell 26%, weighed down by reduced on-chain activity.

The company also advanced its high-performance computing (HPC) strategy at Helios. CoreWeave exercised its final option to access an additional 133 megawatts (MW) of capacity, bringing total commitments at the site to 800MW. Galaxy also purchased 160 acres of adjacent land, including a 1GW interconnection request, laying the groundwork to potentially expand Helios to a 3.5GW facility.

Galaxy ended the quarter with $2.5 billion in liquidity, split between $1.1 billion in cash and stablecoins and $1.3 billion in net digital assets. Corporate debt remained steady at $1.1 billion.

As of June 30, the firm held 17,102 bitcoin valued at $1.8 billion, up from 13,704 bitcoin worth $1.3 billion six months earlier.

KBW noted a strong start to Q3, with Galaxy facilitating the sale of over 80,000 bitcoin in July and completing its final HPC allocation through CoreWeave.

Tuesday’s share decline came amid a broader crypto market pullback, with bitcoin down 1% to $113,000. Even with the dip, Galaxy shares remain up 13% since their Nasdaq listing in May.