Q2 2025 Galaxy Digital Holdings Earnings Call

Jonathan Goldowsky: Morning and welcome to the Galaxy Digital Holdings Ltd Q2 earnings call. Today's call is being recorded. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press *1 on your telephone. To withdraw your question, please press *2. At this time, I would like to turn the conference over to Jonathan Goldowsky, Head of Investor Relations. Please go ahead, sir.

And welcome to the Galaxy. Digital second quarter 2025 earnings call.

Today's call is being recorded.

After today's presentation, there will be an opportunity to ask questions.

To ask a question, you may press star and 1 on your telephone.

to withdraw your question, please press star and 2

At this time, I would like to turn the conference over to Jonathan koffsky head of investor relations. Please go ahead sir.

Tony Paquette: Good morning and welcome to Galaxy's Q4 2025 earnings call. Before we begin, please note that our remarks, including answers to your questions, may include forward-looking statements. Actual results could differ materially from those described in these statements as a result of various factors, including those identified in the disclaimers in our earnings release or other filings, which have been filed with the U.S. Securities and Exchange Commission and on Cedar Plus. Forward-looking statements speak only as of today and will not be updated. Additionally, we may discuss references to non-GAAP metrics, the reconciliations of which can also be found in our earnings release. Finally, none of the information on this call constitutes a recommendation, solicitation, or offer by Galaxy or its affiliates to buy or sell any securities. With that, I will turn it over to Mike Novogratz, Founder and CEO of Galaxy. Good morning, everyone.

Good morning and welcome to galaxies second quarter 2025 earnings call.

Before we begin, please note that our remarks including answers to your questions. May include forward-looking statements.

actual results could differ materially from those described in these statements as a result of various factors, including those identified in the disclaimers, in our earnings release or other filings, which have been filed with the US Securities and Exchange Commission and on Cedar Plus

Forward-looking statements speak only as of today and will not be updated.

Additionally, we may discuss references to non-gaap metrics, the reconciliations of which can also be found in our earnings release.

Finally none of the information on this call constitutes a recommendation solicitation or offer by Galaxy or its Affiliates to buy or sell any securities.

With that, I'll turn it over to Mike. Noag founder, and CEO of galaxy.

Tony Paquette: I do not really give a weather report, and it is pretty darn nice here in New York. Listen, this is our first earnings call after being a U.S. public listed company, so that is exciting. Tony Paquette and Chris Ferraro are going to go through the second quarter in pretty good detail. I think of these things as a little strange in that we are always looking backwards, talking about what we did. My job is to look forward, not just to Q3, Q4, but to 2028, 2029, 2030. From that perch, I could not be more excited. July, it was, by all accounts, the best month we have had at Galaxy. All our businesses are starting to fire on full cylinders. In the Asset Management space, this phenomena of balance sheet companies, companies raising capital in the public markets to deploy in crypto has exploded.

Yeah, good morning everyone. Um

I don't really give a weather report and it's pretty darn nice here in New York. Uh, listen, this is our first earnings call after, uh, you know, being a US public listed company. So,

That's exciting. Um, Tony. And Chris are going to go through the

The second quarter in pretty good detail. You know I think of these things as a little strange in that.

We're always looking backwards, talking about what we did and, you know, my job is to look forward, uh, not just to Q3 Q4 but, uh, 2028 2029 2030. Um, and so from that perch

Uh, I couldn't be more excited. Uh, July was by all accounts. The best month we've had at Galaxy, uh, all our businesses, uh, are starting to fire on full cylinders right in the asset management space. Uh this phenomena of balance sheet companies you know companies raising capital in the public markets to deploy in crypto. Um

Tony Paquette: We have taken an approach to want to service those. We are partnered with over 20 of those companies between capital execution, Asset Management. It has probably added close to $2 billion of assets on platform, recurring income, that will go on and on and hopefully grow just literally just in the last short period of time. On the trading side, on the markets business, we executed a $9 billion plus trade. It has got to be the largest or one of the largest Bitcoin trades in history. That was fun. It was fun because it yelled loud and clear that there is a group of people that really trust our brand and trust our discretion or execution services. We did it smoothly. The market took it. It tells you how strong the market is right now. That is a tremendous amount of Bitcoin that the market absorbed.

Has exploded. We've taken a approach to to be to want to service those. And so you know we're we're partnered with over 20 of those companies uh between Capital execution Asset Management. It is probably added close to 2 billion dollars of

Of assets on platform, right? You know recurring income you know that will go on and on and hopefully grow. Uh just literally just in the the last short period of time.

You know, on the on the trading side, you know, on the on the markets business we executed a 9 9 plus billion dollar trade. It's got to be the largest or 1 of the largest Bitcoin trades in history. Uh, that was fun. It was fun because it

Yelled loud. And clear that there's a group of people that really trust our brand and Trust, our our discretion or execution Services, uh, we did it smoothly. Uh, the market took it it tells you how strong the market is right now. Um, that's a tremendous amount of

Of Bitcoin that the market absorbed.

Tony Paquette: On the data center company, I told you before, I see both the data center business and the crypto business as growth businesses. We executed and bought another one gigawatt of potential capacity around the Helios site. That would make that a three and a half gigawatt site. It has to be one of the top five data centers in the world if we get that fully built out. That is exciting. We also announced CoreWeave executed the third option. Now that entire 800 megawatt site will be tailor-built for CoreWeave and their clients. Again, firing all cylinders. The Trump administration is doing some amazing things for crypto. If you haven't, I would tell everyone to look at the SEC Chair Paul Atkins' speech on putting the U.S. financial markets and global financial markets on chain. That really is the big challenge for all crypto companies, including Galaxy.

You know, on the data center company, I told you before I see both the data center business and the crypto business as growth businesses.

We executed, uh and bought another 1 gigawatt uh of potential capacity Around The Helio site, that would make that a 3 and a half gigawatt site, got to be 1 of the top 5, data centers in the world. If we get that fully built out, that's exciting. We also announced core weave executed the third option. And so now that entire 800 megawatt site, uh, will be tailor tailor built, uh, for core weave in their clients. Um,

And so again, firing all cylinders I, you know, the Trump Administration is doing some amazing things for crypto. Uh, if you have an, I would tell everyone to look at the sec's. SEC chair. Paul Atkins is speech on.

Tony Paquette: When I say we are building to 2028, 2029, and 2030, those kind of projects really will define us in that next decade. We got a lot more to talk about, I think, next quarter. We have got a lot in store, but I couldn't be more bullish. Finally, and last, I want to welcome Doug Deason to our board. Doug Deason has decades of experience across financial services, real estate, and public markets. Most importantly for me, he is a true Texan. We have a huge investment in Texas, and Texas is going to be a big part of Galaxy's future. Doug is well connected. His family has been there a long time, and he is going to help us really navigate any potholes and opportunities down in Texas, as well as in D.C.

Tony Paquette: I couldn't be more excited. It is also nice to get someone who is a little bit older than me on the board. He is now our senior spokesman. With that, I am going to hand it over to Tony to talk about the quarter. Great. Thanks, Mike, and thanks everyone for joining the call today. As Mike mentioned, Q2 was a pivotal quarter for Galaxy, and Q3 is already off to an exciting start, which Chris and I will touch on a little bit more detail in a few minutes. During Q2, we completed our domestication and reorganization in the U.S. We listed on the NASDAQ. We raised nearly $500 million in common equity capital and saw continued progress on building out our operating businesses across digital assets and AI data centers.

We got a lot more to talk about. I think next quarter, uh, we got a lot in store, uh, but I couldn't be more bullish, uh, finally. And last I want to welcome Doug dieson to our board. Uh, you know, Doug dieson has Decades of experience in Cross Financial Services, real estate and public markets. Uh, but most importantly for me, he's a true Texan. Uh, we have a huge investment in Texas, and Texas is going to be a big part of galaxies future, uh, Doug is well connected. Uh, his family has been there a long time, uh, and he's going to help us really navigate. Uh, any potholes in Opportunities down in Texas, as well as in DC. And so I couldn't be more excited. Uh,

It's also nice to get someone who's a little bit older than me on the board. Uh and so he's now our senior spokesman with Adam and hand it over to to Tony to talk about uh the quarter.

Great. Uh thanks Mike. And thanks everyone for joining the call today.

Is Mike mentioned, Q2 was a pivotal quarter for Galaxy and Q3 is already off to an exciting start with Chris and I will touch on a little bit more detail in a few minutes.

Tony Paquette: From a financial perspective, we made strong progress across the business in the second quarter, generating $299 million in adjusted gross profit and saw a healthy increase in our capital and overall balance sheet. In our operating segments, digital assets delivered $71 million in adjusted gross profit, up 10% quarter over quarter, reflecting continued momentum across the core operating units. Treasury and corporate generated $228 million in adjusted gross profit, driven primarily by marked market gains on the digital assets and investment positions held on our balance sheet. As a reminder, in the data center segment, we do not expect to report financial results until Q1 of 2026, when we begin recognizing revenue from CoreWeave under phase one of our lease agreement. Until then, all expenditures are being capitalized as they directly support the preparation of the facility for operational readiness.

During Q2, we completed our domestication and reorganization in the US, we listed on the U on the NASDAQ. We raised nearly 500 million dollars in common Equity capital and so I'll continue to progress on building out our operating businesses across digital assets and data centers.

From a financial perspective, we made strong progress across the business in the second quarter, generating 299 million in adjusted gross profit and saw a healthy increase in our capital and overall balance sheet.

In our operating segments, digital assets, delivered, 71 million in adjusted gross profit up. 10% quarter over quarter, reflecting continued, momentum across the core operating units.

Treasury and corporate generated 228 million in adjusted gross profit driven, primarily by Mark tomarket, gains on the digital assets and investment positions held on our balance sheet.

As a reminder.

Tony Paquette: Also, beginning this quarter, we are introducing a new profitability metric called adjusted EBITDA. We believe this offers a clearer representation of the business performance in our operating segments going forward. As a reminder, adjusted EBITDA is a non-GAAP measure and should be thought of as complementary, not a replacement of our GAAP financial metrics. A reconciliation to GAAP net income is available in our earnings release. For Q2, firm-wide adjusted EBITDA came in at $211 million. Our total operating expenses, excluding grossed-up transaction costs and digital asset impairments, were $133 million in Q2. We recorded a negative mark-to-market adjustment of $125 million on the embedded derivative associated with our exchangeable notes, which was driven by Galaxy's second quarter stock price performance up until the date of our reorganization in mid-May.

In the data center segment. We do not expect to report Financial results until q1 of 2026. When we begin recognizing revenue from the core weave from core weave, under Phase 1 of our lease agreement, until then all expenditures are being capitalized as they directly support the preparation of the facility for operational readiness.

Also, beginning this quarter, we're introducing a new profitability metric called adjusted ebitda.

We believe this offers a clear representation of the business performance, uh, and our operating segments going forward as a reminder adjusted ebit da is a non-gaap measure and should be thought of as complimentary, not a replacement of our gaap financial metrics, a Reconciliation to gaap. Net income is available in our earnings release for Q2, firmwide adjusted. Evita came in at 211 million.

Our total operating expenses excluding grossed up transaction costs and digital asset impairments were 133 million in Q2.

Tony Paquette: With the successful reorganization and consolidation of our reporting structure, Q2 will be the last quarter that we will be impacted by this mark-to-market adjustment. Our Q2 GAAP net income was $31 million, which included this mark-to-market adjustment, and Q2 GAAP operating income was $166 million. Turning to the balance sheet, we ended the quarter with $2.6 billion in equity capital, up more than $700 million quarter over quarter. This increase was driven by the primary capital raise in May, which generated approximately $480 million in net proceeds, appreciation in our digital assets and balance sheet investments, and a one-time increase of $292 million in equity capital due to the consolidation of our corporate structure as part of the reorganization.

And we recorded a negative in Q2, we recorded a negative, Mark to Market, adjustment of 125 million on the embedded derivative associated with our exchangeable notes, which was driven by galaxies second quarter, stock price performance up until the date of our reorganization in mid-may.

With the successful successful reorganization and consolidation of our reporting structure, Q2 will be the last quarter that we will be impacted by this, Mark to Market adjustment.

Our Q2, gaap net income was 31, 31 million.

Uh, which included this mark-to-market adjustment and Q2 Gap, operating income was 166 million.

Turning to the balance sheet, we ended the quarter with 2.6 billion dollars in equity Capital up more than 700 million quarter over quarter.

Tony Paquette: In accordance with accounting treatment for reverse acquisitions, this $292 million had no impact on net income or adjusted EBITDA during the quarter, but instead was credited directly to equity capital. Cash and stablecoins remain relatively flat at $1.2 billion, with cash proceeds from the May equity raise being used to help fund CapEx related to our Helios data center buildout, as well as continuing to grow our balance sheet and digital assets. We ended Q2 with approximately $2 billion in net digital assets and investments on our balance sheet. As we move forward, we will continue to run our balance sheet with fortress-like principles, managing risk with discipline, and ensuring we have enough capital, liquidity, and access to financial resources as we continue on a growth agenda across both digital assets and data centers. Now, turning to our operating business results, starting with digital assets.

This increase was driven by the primary Capital raise in May which generated approximately 480 million in net proceeds appreciation, in our digital assets and balance sheet Investments and a 1-time increase of 292 million in equity Capital due to the consolidation of our corporate structure as part of the reorganization.

In accordance with accounting treatment, for reverse Acquisitions. This 292 million had no impact on net income or adjusted Evita during the quarter. But instead was credited directly to equity capital,

Cash and stable coins remain relatively flat at 1.2 billion, with cash proceeds from the May Equity, raise being used to help fund, capex related to our Helios data center build out as well as continuing to grow our balance sheet in digital assets.

We ended Q2 with approximately $2 billion in net digital assets and investments on our balance sheet.

Tony Paquette: Our Global Markets business generated $55 million of adjusted gross profit in the quarter, up from $43 million in Q1. While industry-wide spot crypto trading volumes declined by approximately 30% from Q1, our crypto trading volumes were down 20%, and the business was able to capitalize on market dislocations and outperform the overall market. We continue to see increased engagement from traditional financial institutions, and today we are tracking one of the strongest institutional onboarding pipelines we have seen to date. On the lending side, our average loan book balance exceeded $1 billion for the first time, passing an important growth milestone, and we ended the quarter with roughly $1.4 billion in total loans outstanding. From a net interest margin perspective, we saw modest compression during the quarter, and coupled with a mixed shift towards lower margin lending products, our overall lending revenue was down slightly quarter over quarter.

now, turning to our operating business results, starting with digital assets,

our Global markets business generated, 55 million of adjusted gross profit in the quarter up from 43 million in q1.

While industry-wide spot crypto trading volumes declined by approximately 30%.

From q1, our crypto trading volumes were down 20% and the business was able to capitalize on market, dislocations and outperform the overall Market.

We continue to see increased engagement from traditional financial institutions. And today, we are tracking 1 of the strongest, institutional onboarding pipelines. We have seen today,

On the lending side, our average loan book balance exceeded 1 billion. For the first time passing, an important growth Milestone and we ended the quarter with roughly 1.4 billion in total loans outstanding.

Tony Paquette: In advisory, Robinhood's acquisition of Bitstamp officially closed, which Galaxy served as the exclusive advisor to Bitstamp on this transaction. Now turning to Asset Management and infrastructure solutions. We ended the quarter with nearly $9 billion in total assets under management and assets under stake, reflecting market appreciation and organic growth in our Asset Management business. This business generated $16 million in adjusted gross profit, down $6 million from Q1, driven by more muted revenue on the staking side, which I will speak to in just a minute. Asset Management saw approximately $175 million of net inflows this quarter, driven by our venture fund and treasury management solutions, partially offset by certain ETPs net outflows amid the market volatility early in the quarter.

From a net, interest margin perspective. We saw modest compression during the quarter and coupled with a mixed shift towards lower margin lending. Products are overall lending Revenue was down slightly quarter over quarter.

And an advisory, Robinhood's acquisition of Bitstamp officially closed, which Galaxy served as the exclusive adviser to Bitstamp on this transaction.

Now, turning to asset management and infrastructure Solutions.

We ended the quarter with nearly 9 billion in total assets under management and assets under stake reflecting Market, appreciation and organic growth in our asset management business.

This business generated 16 million in adjusted gross profit down 6 million from q1 driven by more muted revenue on the staking side, which I'll speak to in just a minute.

Asset Management saw approximately 175 million of net inflows. This quarter.

Tony Paquette: On the venture side, we announced the final close of Galaxy Ventures Fund with $178 million, which will be focused on early-stage companies building the infrastructure and applications powering the on-chain economy. The fund exceeded its original target size and has already deployed roughly $70 million, with several investments supporting the growth of stablecoin adoption and tokenization. In infrastructure solutions, our assets under stake increased by more than 30% to $3.1 billion in Q2. However, this aggregate staking revenue declined in the second quarter amid a notable drop in on-chain activity across the major protocol ecosystems we support. The slowdown in activity was especially pronounced on the Solana network in Q2, where Galaxy is one of the largest infrastructure providers by stake weight. From a distribution standpoint, we announced our integration with Fireblocks in Q2.

Driven by our venture fund and treasury management solutions, partially offset by certain ETF net outflows amid the market volatility early in the quarter.

On the Venture side, we announced the Final close of galaxies Ventures fund with 178 million, which will be focused on early stage companies.

Building the infrastructure and applications powering the on-chain economy. The fund, exceeded, its original Target size and has already deployed roughly 70 million dollars with several Investments supporting the growth of stablecoin, adoption and tokenization.

In infrastructure. Solutions are assets under stake, increased by more than 30% to 3.1 billion dollars in Q2.

However, this aggregate staking revenue decline in the second quarter occurred amid a notable drop in on-chain activity across the major protocol ecosystems. We support.

The slowdown in activity was especially pronounced on the salana network in Q2, where Galaxy is 1 of the largest infrastructure providers by stake weight.

Tony Paquette: Galaxy staking services are now natively accessible to more than 2,000 of the world's largest financial institutions, making secure, scalable staking available directly through a trusted custody framework. This was the third major integration in 2025 and reflects our continued focus on partner integrations to broaden access, expand distribution, and open new channels for our customers, helping to drive organic growth in our assets on platform. More broadly, as regulatory clarity improves and institutional infrastructure matures, we are seeing a clear uptick in companies of all sizes looking to engage in the digital asset ecosystem. One of these areas that Mike mentioned is the digital asset treasury companies. The recent pickup in activity in this space represents a cross-platform opportunity for Galaxy, drawing on the strength of our trading, Asset Management, advisory, and staking businesses to deliver integrated end-to-end solutions.

From a distribution standpoint. We announced our integration with fireblocks and Q2

Galaxy staking services are now natively accessible to to more than 2,00 of the world's largest financial institutions. Making secure scalable staking available directly through a trusted custody framework. This was the third major integration in 2025 and reflects our continued. Focus on Partner Integrations to broaden, access expand distribution and open new channels from our for our customers, helping to drive organic growth in our assets on platform.

More broadly as regulatory Clarity improves and institutional infrastructure matures, we're seeing a clear uptick in companies of all sizes looking to engage in the digital asset ecosystem.

Tony Paquette: Since kicking off our work with digital asset treasury companies, we have evaluated more than 100 different management opportunities. As Mike mentioned, we are actively supporting over 20 of the most prominent players, providing them with capital, infrastructure, Asset Management, and trading services. These companies are coming to Galaxy because we are a trusted brand and because they see the value of working with a partner that is built for scale. This has begun to play out in our results, with more than $1.5 billion in assets brought on platform and over $2 billion in notional volumes traded since the first quarter of this year. We are focused on long-term strategic relationships to serve clients, help drive thoughtful innovation in the industry, and generate high-quality and sustainable business for Galaxy. Additionally, last week, All Unity formally launched their Euro stablecoin to the market.

1 of these areas is me. Mike mentioned is the digital asset treasury companies, the recent pickup and activity in this space represents a cross-platform opportunity for Galaxy. Drawing on the strengths of our trading Asset Management advisory and staking businesses to deliver Integrated end-to-end Solutions.

Since kicking off our work with digital asset. Treasury companies, we've evaluated more than 100 different management opportunities. And as Mike mentioned, we are actively supporting over 20 of the most prominent players providing them with capital infrastructure, asset management and trading services.

These companies are coming to Galaxy because we are a trusted brand and because they see the value of working with the partner that is built for scale.

This has begun to play out in a results with more than 1.5 billion dollars in assets, brought on platform.

and over 2 billion in notion of volume traded, since the first quarter of this year,

We are focused on long-term strategic relationships to serve clients. Help Drive thoughtful, innovation in the in the industry and generate high-quality and sustainable business for Galaxy.

Tony Paquette: As a reminder, this project has been developed in partnership with DWS and Flow Traders and helps position Galaxy to capitalize on this increasingly important segment of the overall digital asset market. Stepping back, we believe we are at a pivotal moment in the evolution of capital markets. With the passage of the GENIUS Act and hopefully more legislation coming, we are seeing real integration between traditional finance and on-chain infrastructure. As this convergence accelerates, clients will need unified platforms to access, deploy, and optimize their assets across both environments, which will create entirely new market opportunities. At Galaxy, we are continuing to invest in the technology, research, and product innovation to bridge on-chain and off-chain ecosystems, and you will continue to see us add products, services, and new capabilities in the quarters to come.

Additionally, last week, all Unity formed formerly launched their Euro stablecoin to the market. As a reminder, this project has been developed in partnership with DWS and flow Traders. And helps physician Galaxy to capitalize on this increasingly important segment of the overall digital asset Market.

Stepping back, we believe we're at a pivotal moment in the evolution of capital markets.

Agents accelerates clients will need unified platforms to access deploy and optimize their assets across both environments which will create entirely New Market opportunities.

Tony Paquette: Before I turn it over to Chris, I want to touch on a quick Q3 update. As Mike mentioned, digital asset prices continued their upward momentum to start the quarter, with Bitcoin reaching new all-time highs in July and Ether and Solana posting strong gains in the last few weeks. July marked the strongest monthly performance for our digital asset operating business in the firm's history. As Mike mentioned, we completed the sale of over 80,000 Bitcoin on behalf of a client, representing one of the largest notional Bitcoin transactions in history. In Asset Management, we saw strong net inflows and organic growth in staking assets during July. Importantly, in data centers, CoreWeave has exercised its final option on phase three at our Helios campus.

At Galaxy, we're continuing to invest in the technology research and product Innovation to Bridge on-chain and off-chain ecosystems, and you will continue to see us add products services and new capabilities in the quarters to come.

Before I turn it over to Chris, I want to touch on a quick a quick Q3 update.

As Mike mentioned, digital asset prices continue their upward momentum to start the quarter with Bitcoin, reaching new all-time highs in July, and ether, and salana posting strong gains in the last few weeks.

July marked the strongest monthly performance for our digital asset, operating business in the firm's history.

And as Mike mentioned, we completed the sale of over 80,000 Bitcoin on behalf of a client representing 1 of the largest notional, Bitcoin transactions in history.

And asset management. We saw strong net inflows and organic growth in staking assets during July.

Tony Paquette: We recently signed a purchase agreement to acquire 160 acres of adjacent land, which could provide an additional one gigawatt of increased power capacity at Helios in the future. With that, let me turn it over to Chris. Thanks, Tony. Focusing on our data center business, I am pleased to announce that subsequent to quarter end, we expanded our partnership with CoreWeave, who exercised its final option to access an additional 133 megawatts of critical IT load for its AI and HPC operations at our Helios data center campus. With this expansion, CoreWeave has now committed to the full 800 megawatts of gross power currently approved for at Helios. This additional capacity will be structured on terms similar to those outlined for both phases one and two.

And importantly, in digital, uh, data centers, CoreWeave has exercised its final option on Phase 3 at our Helios campus. We recently signed a purchase agreement to acquire 160 acres of adjacent land, which could provide an additional 1 gigawatt of increased power capacity at Helios in the future. With that, let me turn it over to Chris.

Thanks Tony.

Focusing on our data center business. I'm pleased to announce that subsequent to quarter end. We expanded our partnership with core weave who exercised, its final option to access an additional 133. Megawatts of critical it load for its Ai and HPC operations at our Helio data center campus.

With this expansion. Core weep has now committed to the full 800 megawatts of gross power. Currently approved for at Helios

Tony Paquette: Throughout the second quarter, the team was laser-focused on execution as we continued transforming the Helios campus into a world-class AI and HPC campus. We are now squarely in the build phase, and I could not be more pleased with the pace and precision we are delivering at the site level. From a construction perspective, we have made meaningful progress in retrofitting the existing building and campus. The interior phase one building has been fully demolished in preparation for the build-out of the data center, including the removal of legacy infrastructure, including immersion cooling systems and the former Bitcoin mining machines. We are finalizing an agreement to sell over half of our legacy Bitcoin mining machines, and that sale is expected to close by the end of Q3. For the remaining machines, we have now signed a new hosting agreement.

This additional capacity will be structured on terms similar to those outlines for both phases 1 and 2.

Throughout the second quarter, the team was laser focused on execution. As we continue transforming the Helios campus into a world-class Ai and HPC campus.

We're now squarely in the build phase and I couldn't be more pleased with the pace and precision we're delivering at the site level.

From a construction perspective, we have made, meaningful progress, in retrofitting the existing building and campus.

the interior Phase 1 building has been fully demolished in preparation for the buildout of the data center, including the removal of Legacy infrastructure, including immersion, cooling systems, and the former Bitcoin mining machines

We are finalizing the agreement to sell over half of our Legacy, Bitcoin, mining machines. And that sale is expected to close by the end of Q3.

Tony Paquette: Upon energization with our new hosting provider, beginning in late 2025 and into the first half of 2026, and combined with our East Texas Bitcoin mining site, we anticipate a total mining capacity of approximately 1.8 exahash per second. At today's Bitcoin prices and network difficulty, we expect our mining operations to generate more than $30 million in annual revenue and be an EBITDA positive contributor to the business. At the Helios campus, we are working to complete the earthwork and concrete foundations for our new electrical, mechanical, and backup generator infrastructure. The backup generators are scheduled to be delivered throughout the second half of this year and into Q1 2026, keeping us on track for energization. These backup generators are a key part of our electrical infrastructure and are designed to provide full backup power for all critical mechanical systems for the data center.

For the remaining machines, we have now signed a new hosting agreement.

Upon energization with our new hosting provider, uh, beginning in late, 2025, and into the first half of 2026 and combined with our East Texas Bitcoin mining site. We anticipate a total mining capacity of approximately 1.8, exit, hash per second,

At today's Bitcoin prices and network difficulty, we expect our mining operations to generate more than 30 million dollars in annual revenue and be an ibida positive contributor to the business.

At the Helios campus. We're working to complete the earthwork and concrete foundations for our new electrical mechanical and backup generator infrastructure.

The backup generators are scheduled to be delivered throughout the second half of this year and into q1 2026. Keeping us on track for energization.

Tony Paquette: On the electrical front, we have taken a modular approach to accelerate the deployment and commissioning of the systems by prefabricating electrical houses offsite. These electrical houses, or E-houses, are self-contained units that house switchboards, UPS systems, batteries, transformers, and other distribution gear. These are being assembled offsite at multiple fabrication facilities. The first units are expected to ship later this month to the Helios campus for installation and integration with the onsite electrical infrastructure. Our chillers begin arriving this month and will continue into Q4. These chillers will operate as part of our broader mechanical cooling infrastructure, providing chilled water to cool the GPUs. Together with our coolant distribution units, the chillers provide a next-generation cooling solution for critical AI infrastructure.

These backup generators are a key part of our electrical infrastructure and are designed to provide full backup power for all critical and mechanical systems for the data center.

On the electrical front, we've taken a modular approach to accelerate the deployment and commissioning of the systems by prefabrik electrical houses electrical houses off-site.

These electrical houses or e-house's are self-contained units that house switchboards UPS systems batteries Transformers and other distribution gear.

These are being assembled off-site and multiple fabrication facilities, the first units are expected to ship later this month to the Helios campus for installation and integration with the on-site electrical infrastructure.

Our chillers begin arriving this month and will continue into Q4. These chillers will operate as part of our broader mechanical cooling infrastructure, providing chilled water to cool. The gpus

together with our coolant distribution units. The chillers provide a Next Generation cooling solution for critical. AI infrastructure,

Tony Paquette: In order to bring all these components together and execute the build, we are partnering with Clayco as our general contractor, operating under a construction management scope for the phase one project. Clayco brings deep expertise in mission-critical infrastructure and a strong track record that includes more than $12.7 billion in advanced technology projects. Clayco's expertise gives us high conviction in their ability to deliver large, complex infrastructure projects requiring tight coordination on aggressive timelines, which is exactly what we are building at the Helios campus. They have a team of over 100 subcontractors and trade partners who are boots on the ground at Helios now as we speak, driving progress forward. The combination of earthwork, electrical, and mechanical contractors are coming together as planned, and we remain confident in our ability to hit key delivery and construction milestones in the second half of 2025 and first half of 2026.

In order to bring all these components together and execute the build. We are partnering with Clicquot as our general contractor operating under a construction management scope for the phase 1 Project Cleo brings deep expertise in Mission critical infrastructure, and a strong track record that includes more than 12.7 billion dollars in advanced technology projects.

Cleo's expertise gives us High conviction in their ability to deliver large complex infrastructure projects, requiring tight coordination on aggressive timelines, which is exactly what we're building at the Helios campus.

They have a team of over 100 subcontractors and trade Partners who are boots on the ground at Helios. Now as we speak driving progress forward.

Tony Paquette: This keeps us firmly on track to deliver the 133 megawatts of critical IT capacity for phase one in various tranches throughout the first half of 2026, aligned with CoreWeave's deployment timeline. With phase one advancing towards energization, we are preparing to seamlessly transition into phase two construction. Let us shift to capital and financing, where we have made equally important progress. We are in the very final stages of securing phase one project-level debt financing. Project-level debt financing agreements for large-scale data center developments are inherently complex, requiring extensive due diligence, bespoke structuring, and lengthy negotiation processes. As such, these transactions often take considerable time to finalize, even when counterparties are highly engaged. That said, based on the strength of the asset and the structure we've developed, we believe we're well positioned to close this financing imminently.

Electrical and mechanical contractors are coming together as planned. And we remain confident in our ability to hit key delivery and construction. Milestones in the second half of 2025 and first half of 2026,

this keeps us firmly on track to deliver the 133, megawatts of critical, it capacity for Phase 1 in various tranches throughout the first half of 2026 aligned with korres deployment timeline.

With Phase 1 advancing towards energization. We're preparing to seamlessly transition into phase 2 Construction.

Let's shift to Capital and financing where we've made equally important progress.

We are in the very final stages of securing Phase 1 Project level debt financing.

Tony Paquette: As a reminder, the equity portion of phase one has already been funded through our existing equity capital. Once we have secured the project-level debt financing, we will have the capital necessary to fund the anticipated CapEx for phase one of approximately $11 million to $13 million per megawatt. For phase two, we are still finalizing the design and engineering specifications, but expect the total project CapEx to be slightly higher than the phase one on a per-megawatt basis. We have already commenced work on project-level debt financing for the phase two project. Throughout the phase one financing processes, we've established strong relationships with a wide range of banks and private credit managers who are active in the space. I have confidence in our ability to secure debt financing for phase two in the coming months.

Project level debt financing agreements for large-scale data. Center developments are inherently complex. Requiring, extensive due diligence, bespoke structuring and lengthy negotiation processes as such these transactions often take considerable time to finalize. Even when counterparties are highly engaged. That said, based on the strength of the asset and the structure we've developed we believe we're well positioned to close this financing imminently.

as a reminder, the equity portion of phase 1 has already been funded through our existing Equity capital

Once we have secured the project level debt financing, we will have the capital necessary to fund the anticipated capex for Phase. 1 of approximately 11 million to 13 million per megawatt.

For Phase 2. We are still finalizing the design and Engineering specifications, but expect the total project capex to be slightly higher than the phase 1 on a per megawatt basis.

We have already commenced work on Project level. Debt financing for the phase 2 project.

Throughout the phase, 1 financing processes. We've established strong relationships with a wide range of Banks and private credit managers who are active in the space and I have confidence in our ability to secure debt financing for Phase 2 in the coming months.

Tony Paquette: On the equity side, we are exploring supplementing our parent company equity with project-level equity financing, particularly from infrastructure-focused and private equity-style funds that are actively seeking exposure to AI data centers and HPC data center projects. As always, our approach to capital is opportunistic and disciplined. Once these projects are stabilized and generating revenue, we'll look to refinance at lower costs of capital. This opportunity is expected to unlock committed equity, allowing us to recycle capital into future build-outs while keeping our capital stack nimble and optimized for growth. Finally, shifting to power, we developed a healthy origination pipeline focused on land, powered land, powered shells, and built to suit data centers. This pipeline remains a critical part of how we scale in a disciplined and capital-efficient way.

On the equity side, we are exploring supplementing. Our parent company Equity with project. Level Equity, financing particularly from infrastructure focused and private Equity style funds, that are actively seeking exposure to Ai and HPC data center projects.

As always, our approach to Capital is opportunistic and disciplined.

Once these projects are stabilized and generating Revenue, we'll look to refinance at lower cost of capital.

This opportunity is expected to unlock, uh, unlock committed Equity, allowing us to recycle Capital into future buildout while keeping our Capital stack Nimble and optimized for growth.

Finally shifting to power, we developed a healthy, origination pipeline focused on land powered land, powered, shells and built to suit data centers.

Tony Paquette: Since last quarter, we've narrowed our pipeline from over 40 sites to a select set of high-quality opportunities, rigorously evaluated based on development stage, power capacity, and energization timelines. We are highly selective when it comes to powered land, ensuring that any project we pursue meaningfully expands our data center footprint and advances our position as a multi-asset owner and developer. We have already begun to execute on our growth objectives. Subsequent to quarter end, we entered into a definitive purchase and sale agreement to acquire 160 acres and a one-gigawatt load interconnection request adjacent to the Helios campus.

This pipeline remains a critical part of how we scale in a disciplined and capital efficient way.

Since last quarter, we've narrowed our pipeline from over 40 sites to a select set of high-quality opportunities. Regularly, evaluated based on development stage, power capacity and energization timelines. We are highly selective when it comes to power land. Ensuring that any project we pursue meaningfully expands our data center footprint and advances our position as a multi-asset owner and developer

Tony Paquette: At the close of this land acquisition, we will have expanded the Helios campus to over 1,500 acres of contiguous land under Galaxy's direct control, and we will have increased our total potential power capacity at the Helios campus to 3.5 gigawatts, giving it the potential to become one of the largest AI data center campuses in the world. It also provides us with an important plot of land adjacent to what will be two of the largest switching stations in Texas, strengthening our long-term presence in the region. With 2.7 gigawatts of total power capacity now under various stages of study, we are working very closely with ERCOT, AEP, WET, and other stakeholders to finalize studies and approvals.

we've already begun to execute on our growth objectives. Subsequent to quarter end, we entered into a definitive purchase and sale agreement to acquire 16060 acres, and a 1. Gigawatt load in your connection request, adjacent to the Helios campus.

At the close of this land acquisition, we will have expanded the Helios campus to over 1500 Acres, of contiguous land under galaxies Direct Control. And we'll have increased our total potential power capacity at the Helios campus to 3.5 gigawatts giving it the potential to become 1 of the largest AI data center campuses in the world.

It also provides us with an important plot of land adjacent to what will be 2 of the largest switching stations in Texas. Strengthening our long-term presence in the region.

With 2.7 gigawatts of total power capacity. Now, under various stages of study, we're working very closely with kott AEP wet and other stakeholders to finalize, studies and approvals.

Tony Paquette: The load interconnection process for the original 1.7 gigawatts we submitted in 2024 has taken longer than initially anticipated, largely due to ERCOT's efforts to clean up a backlog of speculative and inactive projects that have congested the load interconnection queue. As a result, ERCOT and the transmission utility companies are applying greater scrutiny to new load interconnection requests to ensure that near-term development is anchored in real execution. From our perspective, that is a positive shift and one that ultimately benefits well-capitalized, credible developers like Galaxy. We expect to have clear visibility in the back half of this year. We have also been actively building out our data center team, hiring key talent with deep industry expertise, including engineering and construction team members with experience at leading hyperscalers like Microsoft and Meta. We are full speed ahead on phase one, with construction advancing in line with our delivery schedule.

The load interconnection process for the original 1.7. Gigawatts. We submitted in 2024 has taken longer than initially, anticipated, largely due to erat, efforts to clean up a backlog of speculative and inactive projects that have congested the load interconnection Cube.

As a result Urka and the transmission utility companies are applying greater scrutiny to new load, interconnection requests, to ensure that near-term development is anchored in real execution from our perspective. That's a positive shift and 1 that ultimately benefits. Well, capitalized credible developers like Galaxy.

We expect to have clear visibility in the back half of this year.

We have also been actively building out our data center. Team hiring key Talent with deep industry, expertise, including engineering and construction team members with experts with experience at leading hyperscalers, like Microsoft and meta

Tony Paquette: Phase two is ramping, with both infrastructure planning, lease finalization, and capital formation progressing well. We will share more on phase three as decisions take shape. I am incredibly encouraged by the momentum this team has built. We have made real progress this quarter, and we are going to stay focused, disciplined, and execution-driven as we enter into the second half of this year. Now back to the operator for questions. Thank you.

Where Full Speed Ahead on Phase 1, with construction advancing in line with our delivery schedule.

Phase 2 is ramping, with both infrastructure planning lease finalization and capital formation progressing well.

And we're going to stay focused disciplined, and execution driven. As we enter into the second half of this year.

Now back to the operator for questions. Thank you.

Operator: Thank you very much. We will now begin the question and answer session. Anyone who wishes to ask a question may press *1 on your telephone. If you are using a speakerphone, please pick up your handset before asking a question. If at any time your question has been addressed and you would like to withdraw your question, please press *2. Our first question comes from James Yarrow and Goldman Sachs. Please go ahead.

Thank you very much. We will now begin the question and answer session.

Anyone wishes to ask a question, may press star and 1 on your telephone.

If you are using a speaker-phone, please pick up your handset before asking a question.

If at any time your question has been addressed you and you would like to withdraw your question. Please press star and 2

Our first question comes from James siaro and kulman. Saks. Please, go ahead.

James Yarrow: For taking the question, I was hoping you might be able to touch a little bit on the outlook for growth of non-U.S. dollar stablecoins. Obviously, there has been quite limited non-U.S. dollar stablecoin growth so far, and a material portion of the U.S. dollar stablecoins are as customers want access to dollars. Do you expect these non-U.S. dollar stablecoins to resemble the size of the dollar ones and perhaps why?

Mike Novogratz: In the short run, no. Most stablecoins right now are used for liquidity in markets, and that is still mostly denominated in dollars. But over time, I think you are going to see the Euro stablecoin and other stablecoins from separate countries pick up as digital currencies start replacing traditional currencies, and the FX market moves to a more digital place. That is going to also happen with payments, European payments, when AI takes off and the agents are starting to spend money. So I would guess in the short run, no, they are not going to be nearly as big, but I think long-term potential is really great.

For taking the question, I was hoping you might be able to to touch a little bit on the outlook for growth of non US dollar stable coins. This has been quite limited, non US dollar stablecoin growth so far and a material portion of the US stable. US dollar stable coins are as customers want access to Dollars. Um do you expect these non US dollar stable coins to to to resemble the size of the of the, of the dollar ones? And perhaps why

you know, in the short run know, um, most stable coins uh,

Right now are used for liquidity in markets and that is still mostly denominated in dollars. Um, but over time, I think you're going to see the Euro stable coin and other stable coins from separate countries pick up as digital currencies start replacing you know, traditional currencies and the FX Market moves to a more digital uh place that's going to also happen with payments, you know, European payments with

1 Aiello.

I I would guess in the short run, know it's they're not going to be nearly as big, but I think long term potential is is really great.

James Yarrow: is really helpful. Thank you. Then, maybe just turning to the AI data centers, we have seen tightening credit spreads over the past few months. Maybe just any update on the expected financing cost range for the project debt for phases one and two.

That's really helpful. Thank you. Um, and then maybe just turning to the data centers. Um, we've seen tightening credit spreads over the past few months, maybe just any update on the expected financing costs range for the project debt for for phases uh 1 and 2.

Tony Paquette: Yeah. Hey, James. Good morning. Thank you. So, I think our expectation on where we land on phase one is in line with what we have articulated in the past. It will come out at a sub-10% stream rate. But when you take into account sort of upfront fees and potential breakage, depending on when you assume we would have a refinancing event or not, we will likely end up in the 10% to 11% expected yield in terms of cost of capital. Even as credit spreads are tightening sort of in real time, these are negotiated deals that have been going on for months. We look to that as the expected direction of travel once we look at a stabilized project for takeout. On the phase two side, we are pretty preliminary there. It will be interesting.

Yeah, hey Jays. Good morning, thank you. Um so you know, I I think the uh, our expectation on where we where we land on Phase 1 is in line with with what we've articulated in the past. It it will it will come out at a, at a, a sub 10% stream rate. But when you take into account, sort of, you know, upfront fees and potential breakage, depending on, when you assume we'd have a refinancing event or not, um, we'll we'll likely end up in the uh, in the 10 to 11% expected yield.

Tony Paquette: I think our expectation is that we are a young company doing this. As we produce results, i.e., as we sign leases, as we get financings closed and we start building, then we sort of earn the right to achieve larger financings at lower cost. Our goal on phase two is going to be sort of twofold. One, it is for sure going to be a larger project. Just getting that financed, I think, is the primary goal. Also the profile of our company, both now as a U.S. public company, larger equity capital base, clear line of sight to delivering stabilization on phase one. Our expectation is that should lead lenders to also give us positive treatment on that front.

In terms of cost of capital um even as credit spreads are tightening sort of in real time like these. These are negotiated deals that have been going on for months. And so um we look to that as as the expected uh, direction of travel. Once we look at a stabilized project for takeout, um, on on the phase 2 side, we'll, you know, we're we're pretty preliminary there. It'll be interesting. I think our expectation is um, that uh, we're we're a young company doing this. And uh as we produce results, I as we sign leases, as we get financing closed and we start building, then we sort of earn the right to um to achieve larger financing at lower cost. And so um our goal on Phase 2 is going to be sort of 2-fold 1. It's for sure going to be a a larger project. Um and so just getting that Finance, I think is is the primary goal but also um uh the profile of our company. Both now as a public US public company, larger Equity, Capital base,

Um, I have a clear line of sight to delivering stabilization on Phase 1. Um, our expectation is that this should lead lenders to also give us positive treatment on that front.

Operator: The next question comes from Patrick Moley with Piper Sandler. Please go ahead.

The next question comes from Patrick moldy, with Piper Handler, please go ahead.

Patrick Moley: Yes. Good morning. Thanks for taking the question. I was hoping you could just update us on your general conversations with hyperscalers and other AI-adjacent companies. It seems like, with the decision to expand the footprint at Helios, those conversations must be going pretty well. Demand seems like it remains strong across the board, but any color that you can give on how those conversations have been going would be great. Thanks.

Yes, good morning, thanks for taking the question. I was hoping you just update us on your just, general conversations with hyperscalers and other AI adjacent companies. It seems like you know with the decision to expand the footprint at Helios. Those conversations must be going pretty well. Um the man seems like it remains strong across the board but any color that you can give on on how those conversations have been going. Would be great. Thanks.

Tony Paquette: Sure. I will start. The most recent announcement, which we put out with regards to CoreWeave executing the third option, I think, is the most important sign. They signaled their intent from the beginning to ultimately be the single bill-to-suit tenant for our existing 800 megawatts. They had the option to step into that relationship basically over the past year. This final execution, I think, just crystallizes, at least from their end, the opportunities that they are seeing with their clients in terms of on the demand side. With other hyperscalers, obviously, we are not continuing to acquire a pipeline of potential energy for no reason. I think our partnership with CoreWeave is going to take up the vast majority of our attention over the next few years. That being said, the other hyperscalers out there are equally committed to growing.

Sure. Um, I'll I'll start so the, you know, the

Tony Paquette: I think if you see in their guidance and their numbers on the CapEx perspective, they have all not only reiterated their expected CapEx budgets, but actually have started to increase them as well. I think what you are seeing publicly in terms of their announcements is very consistent with the conversations that we are having with them. The other thing we are seeing, which is what we expected to see, which was all of those potential clients focused on power when we started this journey over a year ago, was on near-term power 2026-2027 deliveries. As time ticks on, their interest in power deliveries that are now 2027, 2028, 2029, they have just rolled that interest forward. I think we are seeing continued demand extending through out years now, which fits nicely with basically the asset and the energy capacity that we are accruing in Texas.

Relationship over basically over the past year and this final execution, I think just just crystallizes at least from their end, their the opportunities that they're seeing with their clients, um, in terms of on the demand side, um, with with other hyperscalers, um, obviously, we're we're not, um, continuing to acquire a pipeline of potential, uh, energy for no reason. I think the, um, uh, our partnership with core we is going to take up the vast majority of our attention over the next few years. That being said, um, the the higher, the other hyperscalers out there are, um, uh, equally committed to Growing. I think if you see in their guidance and their numbers on the capex perspective, they've, they've all, uh, not only, um, uh, reiterated, their expected cap Edge, but a capex budgets, but actually have have started to increase them as well. And so, I, I think what you're seeing publicly in terms of their announcements is very consistent with um, with the conversations that that we're having uh, with them. Um, and so the other thing you

You're we, we are seeing which which is what we expected to see, which was, um, uh, all of those potential clients focused on power. Um, when when we started this journey, um, uh, over a year ago was on near-term power 2026 2027, deliveries, and as time as time ticks on, um, their interest in power deliveries that are now 27 28/29, um, they've just rolled that interest forward and so I I think the we're we're seeing continued demand extending through

Um out years now which fits nicely with with basically the asset and the energy capacity that we're that we're aing in Texas.

Patrick Moley: Okay, that's great color. Then, just as a follow-up, switching over to the digital asset business, you mentioned the strong institutional client pipeline and called out some of the Bitcoin treasury companies that you're working with. Could you maybe just talk a little bit about traditional financial firms, asset managers, hedge funds, how that base of clients has looked like? Are you seeing a big uptick there, and how are these potential new customers engaging you on the traditional finance side? Thanks.

Mike Novogratz: I think one, you can answer it from a few different angles. One angle we are seeing is that almost every trade-fi company is preparing or starting to prepare for a world where things move from accounts to wallets, where stocks, equities are tokenized, where funds are tokenized, where stablecoins become a much bigger part of payment systems. On the infrastructure side, we are engaged in lots of conversations with both Asset Management and banks. On the sales and trading side, we have trade-fi hedge funds that are far more comfortable in crypto than they were two years ago. Bitcoin has become just a macro asset for most hedge funds. It is not a big deal to either buy it or sell it anymore, where it used to be huge, huge hurdles of approval. They still feel more comfortable in equities than crypto.

Okay, that's great color and then just as a follow-up switching over to the digital asset business, you mentioned the strong institutional client pipeline um and called out some of the Bitcoin treasury companies that you're working with. Could you maybe just talk a little bit about, you know, traditional Financial firms, active managers hedge funds. You know how that base of clients has has looked like are you seeing um a big uptick there and how are these you know, potential new customers engaging you on the traditional Finance side. Thanks.

Well, I think 1, you know you can answer it from a few different angles 1 angle. We're seeing is that

Almost every trade fee.

Company is preparing or starting to prepare for a world where things move from accounts to wallets where stocks, you know, equities are tokenized, where funds are tokenized or stable coins, become a much bigger part of payment systems. And so on the infrastructure side, we're engaged in lots of conversations um, with both asset managers and and and and and Banks.

um,

you know, on the sales and trading side, uh,

we have trade by hedge funds that are far more comfortable.

Uh, in crypto than they were 2 years ago. And so, you know, Bitcoin has become just a macro asset for most for most hedge funds. Um, it's not a big deal to be either buy it or sell it anymore. Where it used to be huge huge, um, hurdles of approval, um,

Mike Novogratz: You are seeing a lot of action in crypto ETFs and these balance sheet companies. That will change in time. Some of that is financing, right? The crypto ETFs are easier to finance, same prime brokers. I think you are going to see kind of a merger of both unchained crypto and trade-fi stuff over the next few years.

they still feel more comfortable in equities than crypto. Um, and so you're seeing a lot of

action in, you know, ETFs and and um,

And these, these balance sheet companies. Um, that will change in time. Some of that is financing, right? It's the ETFs are easier to finance the same Prime Brokers. Um, but I think you're going to see kind of a merger of both on Shane crypto and and and and trade fee stuff over the next few years.

Operator: Our next question comes from Brett Knobeloch with Cantor Fitzgerald. Please go ahead.

Our next question comes from Brett knobloch with counterfeit gal, please go ahead.

Thomas Shinske: Hi, guys. This is Thomas Shinske on for Brett. Thank you for taking my question. Just one for me. Regarding the recent sale of over 80,000 Bitcoin on behalf of a Satoshi-era client, can you just share any insight into how Galaxy was selected for this mandate? Was there a formal RFP process? What do you think differentiated Galaxy from other potential counterparties for this client looking to offload his Bitcoin?

Mike Novogratz: As a start, one of the reasons we got that trade and many others is that we are really religious about not speaking about why clients do things or their motivations. I would say we have worked really hard since 2016, 2017, even pre-Galaxy Digital Holdings Ltd., at building up a network of people that care about this community. This was our relationships that have gone back many years now of just building trust. In lots of ways, as much as this is a digital platform, technology, there is still a whole lot of hand-to-hand combat in trust. We do that every single day. We hammer it into our employees that that is all we have, right? I think that is, maybe it does not answer exactly what you want, but that is the answer I am going to give you.

Hi guys. This is, uh, Thomas shinsky on for Brett. Thank you for taking my question. Um, just 1 from me, I guess regarding the recent sale of over 80,000 Bitcoin on behalf of a, you know, Satoshi era client, I guess, can you just share any insight into how galaxies was selected for this mandate? Um, was there a formal RFP process and and what do you think differentiated Galaxy from other potential counterparties for this um you know, client looking to offload his Bitcoin?

as a start, 1 of the reasons, we

got that trade and and many others is that we are

and this was, you know, our our relationships that have

have gone back many years now of just building trust and you know in lots of ways as much as this is a

A.

Digital platform.

You know, uh, technology. Uh, there's a still, a whole lot of hand-to-hand combat in trust. And, you know, we we, we do that every single day and

You know we hammer it into our our employees that that's all we have right, you know? And so

Thomas Shinske: No worries. Thanks, Mike.

I mean I think that's that that's a maybe it doesn't answer exactly what you want, but that's the answer. I'm going to give you.

No worries. Thanks Mike.

Operator: The next question comes from Greg Lewis with Compass Point Research. Please go ahead.

Thomas Shinske: Yeah, thank you. Good morning, everybody. Thanks for taking my questions. I was hoping you could talk a little bit more. You mentioned in Q2 about the slowdown in activity on the Solana layer one. Kind of curious, at a high level, maybe what was driving that. Then as we look at July, it seems like a lot of things are improving in terms of activity along the crypto ecosystem. Kind of curious what you are seeing on the Solana network in July, if you are able to comment on that at this point.

The next question comes from, Greg, Louise with PT please, go ahead. Yeah, thank you. And uh, good morning everybody. And thanks for taking my questions. Um, you know, I was hoping you could talk a little bit more, um, you know, you mentioned in Q2, um, about, you know, the slowdown in activity on on the salana, uh, layer 1, um, kind of curious, um, you know, at a high level maybe what was driving that and then and then as we look at July, um, you know, it it seems like a lot of things are, you know, improving along in terms of activity along the crypto ecosystem kind of curious, what you're seeing on on the salon and network in in July, if you're able to come

At this point.

Tony Paquette: Yeah, sure. Morning, Greg. I will start. I think what we saw pretty much through the first half of this year was a coming off of a pretty aggressive, localized volume on Solana for things like meme coin launches and things like that. So, Q2 was more of the same after that activity in prior quarters, in the prior year, had slowed down and leveled off. I could tell you that Solana, as well as some of the other non-Bitcoin layer ones, the teams all around those ecosystems, whether it is the foundations or app builders and things like that, who are committed to those networks, are pretty aggressively focused on how do we now build functionality so that on-chain volumes are not flash-in-the-pan meme coin type volumes and instead are enduring volumes to either support things like stablecoin payments and money movements, actual consumer apps, and things like that.

Uh, yeah, sure. Um, morning Greg, I I'll start. Yeah, I think we what, what? We saw pretty much through the first half of this year, um, was a, was a, a coming off of, um, a pretty aggressive, like localized, uh, volume on salana, for, for things like memecoin launches and things like that. And so, it really Q Q2 was, was more of the same, um, after that activity in Prior quarters, um, in the prior year, uh, had slowed down and leveled off. Um, I I, I could tell you that, um, salana, um, as well as, um, some of the other other non Bitcoin layer ones, um, the teams all around those ecosystems, whether it's the foundations or, um, or or app Builders, and things like that, um, who are committed to, uh, to those networks are pretty aggressively focused on how do we now, build functionality. So that onchain volumes

Tony Paquette: So, that takes time to layer into the layer ones, no pun intended, and actually have working technology. But that is the focus of the industry now, is bringing durable growing volumes on chain. Just where we are at now is at least on Solana specifically was a kink following a pretty aggressive on-chain volume run-up for meme coins.

Are not flash in the pan, memecoin type volumes and instead are enduring volumes to either support things like stablecoin payments, uh, and money movements. Um, actual consumer apps and things like that. So, that takes time to like, to layer into, to, to the lair ones, and no pun intended, um, and actually have working technology, but, but that, that is the focus of the industry, now is bringing durable, growing volumes on chain. Um,

Just where we're at now. Is it is at least I'm still on a specifically with a a kink following a pretty aggressive. Um uh onchain volume run up from meme coins.

Thomas Shinske: Okay, great. My other question is around these treasury strategies. Clearly, Galaxy's working hard. You called out the 20 customers that you brought on. As you think of the revenue lifecycle of that opportunity for Galaxy, obviously the initial acquisitions of the cryptocurrencies is important and a revenue driver. Could you talk a little bit beyond once they are on the platform, how we are thinking about those other opportunities in terms of the Asset Management and the staking and potentially the lending, how you think that plays out in terms of a revenue opportunity.

Okay, great. And and then my other question is, is, is around these treasury strategies? I mean, I mean, clearly, you know, galaxies working hard, you, you, you called out the the 20, you know, customers that you brought on as as you think of the revenue life cycle of of that opportunity for Galaxy the the initial

you know, Acquisitions of of of, of the

of the

Cry of the cryptocurrencies is important, um, in a revenue driver. But then, you know, could you talk a little bit beyond, you know, once they're, you know, I guess on the platform, you know, how we're thinking about

Mike Novogratz: Sure. So, there is an asset management fee that we are getting in most of these for managing the assets, which, you know, roughly is about a percent. There is a staking opportunity in most of these, not the Bitcoin versions, of course, but the non-Bitcoin versions. So, our assets under stake are going up. There is, of course, staking revenue that comes with that. You know, the push for all of these companies is going to be to say, hey, we can do something that an ETF does not do to drive extra return. So, you are going to see lending, you are going to see on-chain activity. There is, in essence, a race to create the most value, right? Again, Michael Saylor pioneered this idea.

You know, there's other opportunities in terms of the asset management and the staking and potentially, The Lending, kind of like how how you think that that kind of plays out in in terms of a revenue opportunity.

Sure. So there's an asset management fee that we're getting in most of these for managing the assets, which, you know, roughly is about a percent. Um, there is a staking, you know, opportunity, uh, in most of these, uh, not the Bitcoin versions, of course, but the, the non Bitcoin uh, versions, uh, and so our assets under stake are going up and there's of course staking Revenue that comes with that. And, you know, the

The push for all of these companies is going to be to say, hey, we can do something that an ETF, does it do, uh, to drive extra return and so you're going to see lending, uh, you're going to see onchain.

Activity, uh, and there's in in essence a race to create.

Uh, the most value.

Mike Novogratz: He was able to create value in MicroStrategy via being first and providing access to Bitcoin when a lot of people did not have that access and created this almost machine and has not had to do much more than just buy the Bitcoin and provide leverage. He is doing it with all kinds of different preferred structures. At first, converts, now preferred equity, preferred debt. I think you are going to see the other companies have to go one step further. We are seeing that. Those are the services we are trying to provide.

He was able to create value in micro strategy, uh, by a being first and providing access. Uh,

Tony Paquette: Yeah. The only thing I will add, if I may, Mike, is I think it is important that our relationship with these companies spans the capital creation, as Mike said, on the way in, as well as the ongoing management of the assets in the companies. In a lot of cases, those are actually being done under multi-year contracts. If you think about the vehicles, what is different about these vehicles is they are really closed-end perpetual vehicles. Our goal is to do a really good job to help the management teams and the shareholders of these companies make sure they have hardened infrastructure, that they are managing their assets well, that they are growing their asset base in the underlying currency as most efficiently as they can. That should set us up for having basically a perpetual relationship with them because these vehicles do not have redemption.

To bitcoin when a lot of people didn't have that access uh, and created this almost machine. Um, and hasn't had to do much more than just buy the Bitcoin and provide leverage, and he's doing it with all kinds of different preferred structures that first converts now, preferred Equity preferred debt, um, I think you're going to see the other companies have to go 1 step further. And and we're seeing that and those are the services we're trying to provide

Yeah, and the only thing I'll add if I went met Mike is um, I think it's important that. So our relationship with these companies spends, the the capital creation as Mike said, sort of, you know, on the way in, as well as the ongoing management of the assets. Uh, in the, in the companies that in, in a lot of cases, those are actually being um done under multi-year contracts. Um, and then, if you think about the vehicles, what's different about these vehicles, um, is they're really, they're really closed in Perpetual vehicles. And so our goal is to do a really good job, um, to help the management teams and, and the shareholders of these companies, um, make sure they have hardened infrastructure that they're managing their assets. Well that they're that they're growing their asset base in, in, in the, underlying currency as most efficiently as they can. And that should set us up for having basically a Perpetual relationship with them because

Tony Paquette: They are not crypto ETFs. Once the capital is in, it is there forever. It is just our job to do a great job forever.

Cuz these vehicles, you know, don't have Redemption, they're not ETFs and so once the capital is in, it's there forever. Um and so it's just our job to do a great job forever.

Operator: The next question comes from Chris Ferraro with Compass Point Research. Please go ahead.

The next question comes from Chris Bernell, and with rosin, B Securities, please go ahead.

Speaker 8: If I take my questions, I congratulate the results and also appreciate the additional disclosure. I am on a train right now, so I am going to ask my two-part question all at once. The first question is on the AI data centers business and how much you want to lean into this business. We are already sort of building the pipeline out of 28 now, but I know you are actively looking for additional sites. You are expanding Helios sites, but also looking for additional sites. Is there a plan to potentially add a lot more capacity before the end of the decade, or is this going to be more methodical so that future growth will be by 2029, 2030, and that kind of thing?

Speaker 8: The second part of the question is how big do you want the AI data centers business to be? It is kind of a different business than the digital assets business. Your sort of updated thoughts on separating the two at some point would be great. Thanks so much.

Uh, if I send my questions, congratulations, the results and also appreciate the additional disclosure. Um, I'm gonna train right now, so I'm gonna ask my 2-part question all at once. Um, the first question is on the data center business and how much you want to lean into this business? We you know we already sort of building the pipeline of 28 now but I know you're actively looking for for additional sites um that you're expanding Helio site but also looking for additional sites, you know, is there a plan to, you know, potentially add a lot more capacity before the end of the decade or is this going to be more methodical? So that the future growth will be like, 2029 or 2030 and that, that kind of thing. And then the second part of the question is, um, you know, how big do you want this data center business to be? It's kind of a different business than that of visual assets business. And there's your updated thoughts on on separating the 2 at some point, would be great. Thanks so much.

Tony Paquette: Yeah, thanks, thanks, Chris. I will take at least the first part, and I think Mike will chime in as well. Long-term strategically for us, the answer to your question today is definitely door number two, which is methodical growth. That is for a couple of reasons. One, the industry is relatively nascent, and people's expectations long-term around demand are forming. Obviously, they are forming across the board at the biggest companies in the world in tens to hundreds of billions of dollars in terms of notional. It is one of the biggest commitments to a new growth industry that I think the world may have ever seen. But it is still pretty nascent. There is also a practical component, which is these are very large-scale long-term development projects that take a lot of capital. Our ability to grow into the opportunity is wholly dependent on two things.

Tony Paquette: One, us executing excellently, but then also two, growing and getting bigger as a company so that we can actually support the growth. Meaning it would be totally imprudent for us to now take on in parallel, for example, another $10 billion build because that requires a capital base and the attention and resources that we are just not built out for today. I think the idea is to methodically build a base of really high-quality assets and high recurring revenue, which then allows us to accelerate growth from there as we see the opportunity develop. That is the way we are approaching it in terms of how large we want to do this.

Yeah, thanks. Thanks, Chris. I I, I'll take at least the first part and I think Mike Mike Will chime in, as well. Long term strategically for us. The, the, the answer to your question today is definitely Door Number 2, which is, which is methodical growth. Um, and that's for a couple reasons, right? Like 1, the the industry is relatively nent and people's expectations, long term around demand. Are are forming, obviously they're forming the board at the biggest companies in the world in tens to hundreds of billions of dollars in terms of notional. And so it's, it's 1 of the biggest commitments, um, to a new growth industry that I think the world may like has ever seen, but it's still pretty innocent and so, um, and then there's also a practical component which is these are very large scale long-term development projects, that take a lot of capital. And so the, our ability to grow, um, into the opportunity is sort of wholly dependent on 2 things. 1 US, executing excellently but then also too.

Growing and getting bigger as a company, so that we can actually support the growth. So, um, you know, meaning like it would be totally imprudent for us to to now, take on, in parallel, for example, like another 10 billion dollar bill because that requires a capital base and, you know, the attention and resources that we're just not built out for today. So I think the idea is to methodically build a base of really high quality assets and high recurring Revenue, which then allow

Mike Novogratz: In terms of, we have two businesses under one roof. There are a lot of great companies with multiple businesses under one roof. I think of Amazon with a retail business, an entertainment business, and a cloud business. We are going to keep them under one roof for a while. As long as one plus one equals more than two, we will probably keep this setup. If the markets at one point tell us, hey, you are going to get more value by splitting them, then we are pretty rational guys. I do think, to highlight what Chris Ferraro said, this next 12 months is really important because we go from putting out a lot of money to having an asset that starts spitting out cash. Once 12 months from now, 24 months from now, Helios becomes a big cash generator for us.

That was us to then accelerate growth from there as we see the opportunity to develop so that that that's the way we're approaching it. Um, yeah, in terms of how large we want to. So in terms of we have 2 businesses under 1 roof, uh there are a lot of great companies with multiple businesses under 1 roof, I think of Amazon.

With a retail business, an entertainment business and Cloud business. Um,

We're going to keep them under 1 roof for a while and as long as 1 plus 1 equals more than 2. Uh we'll probably you know keep this this this setup if it if the markets at 1 Point tell us hey you're going to get more value by splitting them then we're pretty rational guys. Uh, I do think

said this next

12 months is really important because we go from putting out a lot of money to having a an asset that starts spitting out cash.

And, you know, once

12 months from now, 24 months from now.

Mike Novogratz: It allows a lot more flexibility in how we deploy capital. Right now, in some ways, we are sharing capital because while the leases are mostly underwritten, I am sorry, the financing is mostly underwritten by this wonderful lease, there is still a parent guarantee and parent equity requirements. We are having the best of both worlds in lots of ways. We are going to kind of run that until we think there is a more credible path forward.

Helios becomes a, a big Cash Generator for us. It allows uh,

It allows a lot more flexibility in.

Deploy capital.

Right? Right down in some ways. We're sharing Capital, uh, because well, the leases are mostly under in. Uh, I'm sorry with the the financing is mostly underwritten by this wonderful lease. Uh, they're still a parent guarantee and parent Equity. Uh,

Um, requirements. And so we're, we're we're having the best of both worlds, in lots of ways. Um, we're going to kind of run that until, uh,

Until we think there's a, a more acreditable uh, path forward.

Operator: Our next question comes from John Peterson with Jefferies. Please go ahead.

Thomas Shinske: Oh, great. Thank you. Good morning, guys. Maybe just to come back to stick with data centers, I am curious for more commentary on hyperscalers. I know you talked about it earlier, but I am curious what hurdles you think that Galaxy might still need to cross to convince hyperscalers to sign a deal with Galaxy. Are they waiting to see a finished product with the CoreWeave data centers, or is it more about proving the funding capacity or something else?

Our next question comes from John Peterson with Jeffries. Please go ahead.

Oh great, thank you. Good morning guys. Uh in terms maybe just to come back just to stick with data centers and I'm curious for more commentary and hyperscalers you know you talked about it earlier but I'm curious what hurdles you think that galaxies might still need to cross to convince hyperscalers to, um, you know, to sign a deal with galaxies? Are they waiting to see a finished product with, uh, with the core weave data centers? Um, or is it?

More about, uh, you know, proving that you have funding capacity or, or something else.

Tony Paquette: Yeah. Good morning, John. I think practically speaking, the other hyperscalers evaluating Galaxy as a partner, the reality was that we dedicated our first 800 megawatts of available capacity to CoreWeave. I do think it is true that the bigger, more established hyperscaler companies do care a whole lot about who their counterparties are, have they built data centers for the last 10 years, what's their track record, et cetera, which of course, up until now, we haven't had. I do think that they will care about it. But we also, once we made the decision to partner with CoreWeave, we really didn't have anything to sell them, to be totally candid. I think it's less about, it's been less about us being evaluated as a new upstart from a data center development perspective and more about just literal practical availability.

Yeah um uh Morgan Johns. So yeah, I think practically speaking the other hyperscalers evaluating Galaxy as a partner. The the reality was is that we dedicated um our first 800 megawatts of available capacity to core weave and so you know I do think it is true that the the bigger more established hyperscaler companies do care a whole lot about who their counterparties are. Have they have they built data centers for the last 10 years, what's their track record, Etc? Which of course up until now we haven't had and so I I do think that they, they will care about it, but we also, we also, you know, once we made the decision to partner with core weave, we really didn't have anything to sell them.

Tony Paquette: I think for us, the setup for us was let's partner with CoreWeave, let's execute on our existing 800 megawatt project, which is a very large project and is going to span multiple years. Along the way, let's make sure we build up a pipeline of additional capacity that we are going to get approved for over time. As that capacity comes on, we'll have demonstrated our ability to deliver and sort of check that box off for the hyperscaler. Slightly different characterization than I think that, you would think, but that's been the reality.

To be to be totally candid. So I I think it's it's less about it's been less about us being evaluated as a new um upstart from a data center development perspective and and more about just literal practical availability. Um so I think for us the the setup for us was let's partner with Corey with execute on our existing 800 megawatt project which is a very large project and is going to spend multiple years. Um and along the way, let's make sure we build up a pipeline of additional capacity that we are. Um, going to get approved.

Thomas Shinske: Yeah, that is really helpful. Would you say, I guess when we, I know we are thinking ahead past the 800 megawatts, but would it be a priority to diversify and bring in a different customer, or are you comfortable with, you know, building solely for CoreWeave?

Before over time. And as that capacity comes on, we'll, we'll have demonstrated our ability to deliver and sort of check that box off for the hyperscaler. So slightly different characterization than I think the, you know, you would think. But that that's that's been the reality.

Yeah, that's really helpful. Would you say, uh, I guess when we and I know we're thinking ahead past the 800 megawatts, but would it be a priority to diversify and, and bring in, um, a different customer or are you comfortable, um, with, uh, you know, being, you know, building solely for Coors,

Tony Paquette: Yeah, I think that we have definitely become, we have definitely gotten comfortable, taking on pretty significant exposure to CoreWeave relative to the size of our business. I think that that's sort of, that cannot be debated based on the size of the mandate that we committed to them. On a go-forward basis, I think it would be natural for anyone who had an opportunity in front of them to build a portfolio of AI data centers to think about diversification in terms of end client, in terms of regional geography, et cetera. I think generally speaking, from a real estate or portfolio perspective, that kind of diversification usually leads to premium valuation, usually leads to ability to finance things more effectively. That is definitely on our long-term roadmap.

yeah, I I think that um,

We we have definitely become. We have definitely uh, gotten comfortable, you know?

Tony Paquette: I do not want to undersell, though, A, how good a partner CoreWeave has been, and B, as their business grows and they are successful and their success grows and their credit quality improves, which would be our expectation over time, that, it certainly does not preclude us from wanting to continue to do business with them as a result. So we are going to keep an eye on it. I think it would be natural for all businesses to think about broader diversification to build the best and most durable business over time. So we are definitely going to look at that.

Taking on pretty significant exposure to core weave relative to to the size of our business. So I I think that that sort of, that can't be debated based on on the size of the Mandate that we committed to them, um, on a go forward basis. Um, I think it would be natural for anyone who had an opportunity in front of them, to build a portfolio of data centers to think about diversification, um, in terms of and client in terms of, uh, Regional geography, Etc. I think, generally speaking, you know, from a real estate or or uh, portfolio perspective that kind of diversification, usually leads to premium valuation, usually leads to ability to finance things, more effectively. And so that's definitely on our long-term roadmap. I, I don't want to um, undersell though. Um, you know, a how good a

Look at that.

Operator: The next question comes from Matthew Galenko and Maxim Group. Please go ahead.

The next question comes from Matthew galeno and Maxim group, please go ahead.

Speaker 8: Hey, good morning. Thanks for taking my question. Going back to the treasury companies, I am curious if you can maybe talk about the competitive environment and the process of building those relationships and winning them. If you have a pulse on what we should expect to see in the second half of 2025 and into 2026 as far as maybe new players coming into the treasury space, I do not know if you could offer a number, like what percentage you feel like you are touching before they are announcing and engaging. How do you feel about the outreach and getting to them before they commit to anybody else? Thank you.

Hey, good morning. Thanks for taking my question. I guess, going back to the treasury companies. I'm curious if you can, uh, maybe talk about the competitive environment and the process of, um, sort of building those relationships and winning them. And if you have a pulse on, maybe, um, you know what, we should expect to see in, you know, a second half 25, and it's a 2026 as far as, uh, maybe new players coming into the

Mike Novogratz: Yeah, listen, we are seeing a tremendous amount of opportunities there. It will slow. At one point, the market gets saturated. Most of them are offering similar products. You will see them in different tokens or different mixes of tokens. But I think we have probably gone through peak treasury company issuance of new companies. What will be most interesting is which of the existing companies become monsters. I mean, you think about the impact that MicroStrategy has had on the entire Bitcoin ecosystem. It is probably the single most important player in the Bitcoin ecosystem. It has bought the most coins. Because of that, it has this huge marketing piece to it. We have seen that in Ethereum.

The treasury space and sort of how. Um, you know, I don't know if you could offer a number like, what percentage? You feel like you're you're touching before they're announcing and and and engaging, or you know how how, you know you feel about the Outreach and and getting to them before they commit to anybody else. Thank you.

yeah, listen, we are, um,

Seeing a tremendous amount of opportunities, there it will slow. You know, at 1 Point, the market gets saturated, um, most of them are offering similar product and so you'll see them in different tokens or or different mixes of tokens. Um, but I think we're probably we've probably gone through Peak treasury company issuance, uh, of new companies, uh, what will be most interesting is which of the existing companies

Uh, become monsters, right? I mean, you think about the impact that MicroStrategy has had on the entire Bitcoin ecosystem. You know, it's probably the single most important player in the Bitcoin ecosystem; it's bought the most coins. It's because of that it has this huge, uh, marketing.

Mike Novogratz: There are two leaders and a few coming up that all of a sudden, Ethereum, from having zero treasury companies, eight weeks ago, 10 weeks ago, now the biggest buyers of ETH are SharpLink, which is Joe Lubin's company, or we are participating, and Tom Lee's company. I think you are going to continue to see those companies grow. I think the new companies in those ecosystems will have a harder time getting oxygen. But there will be new companies in new ecosystems as we go forward. What I think we learned in this, and it is a great lesson for me, was how much bigger the equity market investor base is than the traditional crypto market investor base. If you think about from the very start as a Bitcoin proselytizer, you are trying to bring people into the tent.

Piece to it. Um we've seen that in ethereum, there are you know 2 leaders in a in a in a few coming up uh that all of a sudden ethereum from having from having zero treasury companies,

you know, 8 weeks ago, 10 weeks ago, uh,

Now, the biggest buyers of eth.

Uh are, you know, sharp link, uh, you know, which is Joe lupin's company uh, or or we're we're participating uh and and uh Tom Lee's company. Uh and so I I think you're going to continue to see those companies grow. Uh and I'm I think the new companies in those

In those.

Ecosystems will have a harder time getting oxygen, but there'll be new companies and new ecosystems as we go go forward. Um,

What I think we learned in this.

and it's a great lesson for me, was

How much bigger the equity Market investor base is than the traditional crypto Market investor base. And so if you think about

Mike Novogratz: The job was to orange pill people and explain how this worked and bring them into the community. These treasury companies have done an amazing job of bringing people into the crypto tent. I think they are going to continue to play a pretty important part.

From the very start as as a Bitcoin prosizer, you're trying to bring people into the tent, right. The job was to orange pill people and explain how this worked and bring them into the community. Uh

These treasury companies have done an amazing job of bringing people into the crypto tent. And I think, uh,

They're going to continue to play a pretty important part.

Operator: The next question comes from Edward Engel with Compass Point Research. Please go ahead.

The next question comes from. Edward angle with compass point, please go ahead.

Speaker 8: Hi, thanks for taking my question. Just wanted to follow up on some of the digital treasury companies. I do see Galaxy Digital Holdings Ltd. has been on some of the PIPE deals for some of these. I am just wondering, are these meaningful investments for your balance sheet or kind of just smaller contributions, just kind of invest alongside some of your clients? Thanks.

Um, hi. Thanks for taking my question. Just wanted to follow up on some of this digital asset treasury companies. Um, I do see galaxies has been on some of the pipe dealers for some of these. They're just wondering, are these meaningful Investments for your balance sheet or kind of just smaller contributions just kind of invest alongside some of your clients. Um, thanks.

Tony Paquette: Hey, Ed. Thanks. Good morning. Yeah, I think generally speaking, these are relatively small investments for us. Our primary focus has been how can we put our franchise forward and partner with people who actually value our franchise and the skills and the experience you bring to the table to help them make their company better, rather than, you know, I will characterize it as buying your way in. So we definitely write checks. We do that generally in the general course of business through a lot of different sleeves at Galaxy, through our venture fund, through our opportunistic pocket of capital. But our commitment from a capital perspective on these is really one of support with our business and reputation and services very much front and center as the goal.

Pad, thanks. Good morning. Yeah, I I think generally speaking these, These are relatively small Investments for us. Um, uh, our, our primary focus has been uh,

how can we, um, how can we put our franchise forward and partner with people who actually value our franchise and the skills? And the, the experience you bring to the table to help them make their company better ra, rather than, you know, I'll characterize as buying your way in. So we, we definitely, we definitely write checks. We we do that generally in, in general course of business, um, through a lot of different slees at galaxies, through our Venture fund, through our opportunistic, fun uh, pockets of capital but our, our commitment, from a capital perspective. On these is really is really a 1 of support. Um, with our, our business and reputation and services very much front and center as the goal.

Speaker 8: Great. Just to squeeze one more in, for the additional capacity that you are purchasing adjacent to Helios, I am curious if the timeline of that for card approval is any different than your existing pipeline.

Um great and then just to squeeze 1 more in, uh, for the additional capacity that you're purchasing in adjacent to Helios. Um, curious just if the timeline of that for or kind of approval is a different than your existing pipeline.

Tony Paquette: Yeah, I would think about the additional 1 gigawatt of interconnect request at the land we are acquiring to be somewhat on par with our existing 1.7 in the backlog. Think about 1.7 sort of going to 2.7 in terms of timeline. To be a little more specific, this new property interconnect is largely focused on the new pitchfork switching station that is being built and delivered. Our existing 1.7 effectively was parsed between our existing tile line into the conduit switching station, which has up to 1.6 gigawatts today approved, which would be an incremental 800 from what we already have. This sort of layers into the new CapEx project that has already been approved and is in flight in ERCOT for the new switching station, which now we own a significant amount of the land all surrounding that new project.

Uh, 1, gigawatt of interconnect request, um, at the at at the land, we are acquiring to, to be somewhat on par with our existing 1.7, uh, in the backlog. And so, um, uh, so think about 1.7 sort of going to 2.7 in terms of timeline to be, to be a little more specific, um, this this new, uh, property, um, interconnect is largely focused on, uh, on the new, um, Pitchfork switching station that's being built and delivered. And so, um, our existing 1.7, you know, effectively was was parsed between our existing tie line into into the cotton with switching station, which, which has up to 1.6. Gigawatts today approved, the, the the, which would be an incremental 800, from what we already have. Um, and so this, this sort of layers into, uh, the new cap, Edge project that's already been approved and and is in Flight in, in our cut for the, the new switching station, which, which now we are we we own significant amount of the land

Uh, all surrounding that new project.

Operator: Our next question comes from Devin Ryan with Citizens. Please go ahead.

Our next question comes from David Ryan with citizens, please go ahead.

Speaker 8: Hey, thanks. Good morning. I just want to come back to the theme of tokenization. As we get closer to the market script for clarity, it would be great just getting an update on how you see Galaxy Digital Holdings Ltd. as a player of stratified pumps on chain. Essentially, do you see yourself helping product manufacturers tokenize assets to raise primary capital? Do you have interest in providing traditional assets like tokenized stocks and bonds? You really just want to think about where you want to play. Are there areas where you do not want to participate there? Then just what other resources you need to add to get where you want to be. Thanks.

Hey, thanks. Uh, good morning. Um, just want to come back to the theme of tokenization, and as we get closer to market stroke for clarity, it'd be great just getting an update on how you see Galaxy as a player trying to find comes on chain. And essentially, if you see yourself as helping what makes an accurate token that token has to raise primary capital. Do you have interest in, you know, providing creative traditional assets like tokenized stocks and bonds? And you really just want to think about where you want to play or other areas where you don't want to participate there.

Into one of the resources, you need to add to get where you want to be. Thanks.

Mike Novogratz: Yeah, that's the $64,000 question for where crypto is going. I think everybody in this industry, including Galaxy Digital Holdings Ltd., is trying to figure out what role we best play. We have a tokenization engine. We have a wallet business in GK8. We are doing a lot of staking. We put that together as an infrastructure package, and we are going to certainly look to be part of the solution for people on infrastructure. It is unclear where these are going to trade still. We will certainly be trading once they are trading and debating, you know, do you team up with people to be part of that exchange or platform? But the roadmap is not necessarily written there yet. Some of that is, a lot of that is regulatory. If we tokenize Apple stock, for instance, where is the liquidity of that going to exist?

Yeah, that's the 64,000 question for where crypto is going. Uh, and I think everybody in this industry including Galaxy is is trying to figure out

Where where we best? Uh, what role we best play? Listen, we we have a tokenization engine. We have, uh, a wallet, uh,

You know, business and GK8, uh,

We are doing a lot of staking and so we put that together as an infrastructure package and we're going to certainly uh look to be part of the solution for people on infrastructure. Um, it's unclear where these are going to trade still. Um, we will certainly be trading once they're trading and debating, you know, uh, do you team up uh with people to, to be part of that exchange or platform? But it hasn't, you know, the

The road map's not necessarily written there yet. Some of that is uh, a lot of that is regulatory. Um, and so if we tokenize,

Mike Novogratz: There is not a great answer yet, other than we are hyper-focused on it. We do think more, the Head of the SEC said we are going to try to move things on chain. Building that backbone and muscle is really important.

You know, Apple stock, for instance, you know, where, where is the liquidity of that going to going to going to exist? Um,

and so,

Yeah there's not a great answer yet. Uh other than we're we're hyper focused on it. Um we do think more, I mean listen the the the head of the SEC said we're going to try to move things on chain and and

You know, building that backbone and muscle is is really important.

Speaker 8: Got it. Thank you. Just a quick follow-up, maybe shorter term, the outlook to the investment banking team as the crypto capital markets reopen. Obviously, companies come in public here. There is a lot of M&A, and then I think we will find some M&A in the space. I know it is not necessarily a core drive of it, but it can drive also from quarter to quarter. Any sense of the opportunity from here in any way can frame maybe the incremental revenues that you see from that.

Got it. Uh thank you and just a quick follow up, maybe shorter term just um you know the the investment banking team is very good at marketing through obviously.

Public here. Um, there's a lot of m&a and I

um,

No, sorry. Sorry. Core driver like

Any sense like the opportunity from here in any way? You can frame maybe the incremental revenues that that you see from that,

Tony Paquette: Yep. On the investment banking side, I would say where we have really shined over the years is focusing on boutique M&A opportunities where our expertise on both the buy and the sell side, specifically to crypto companies, where they sit in the ecosystem, what their value add is, really shines. That pipeline is the highest quality and largest in terms of dollar numbers and live transactions than we have ever seen before. What is important about it is historically, if you remember, we had a pipeline in that business that was pretty large, and there were some really chunky, very large transactions in there. Now we have numerous nine-figure M&A proposed transactions that we are pursuing all at once. We have a higher number and a lot broader and durable pipeline of opportunities that are all very high-quality companies that will very likely get bought and sold.

Yep. Um, so the on the investment banking side I would say our um,

Where we've really shined over the years, is focusing on Boutique m&a opportunities, where our expertise on both the buy and the sell side specifically to to crypto crypto companies, where they sit in the ecosystem, what their value add is really shines. That that pipeline has is the highest quality and largest in terms of dollar number and

And live transactions then we've ever seen before. And what's important about it is historically, if you remember, we we had a pipeline in that business, um, that was pretty large and there were, there were some really chunky very large transactions in there. Now we have we have numerous, um, 9-figure. Um,

Tony Paquette: That part of the business we are actually pretty excited about. Given the size of that market and those opportunities relative to the rest of our business, for the foreseeable near term, it is going to be a relatively smaller contributor, but nonetheless an important growing one that is important to not just the earnings of the business, but also the knowledge base and continuing to build our reputation as being one of the smartest players in the space. That is what we are most excited about there. What the team is also focused on outside of that, which are really near-term deals we are transacting in, is a little bit what Mike said, which was investing in talent, some licensure around traditional broker-dealer abilities, and thinking about what an on-chain capital markets business would look like.

Tony Paquette: I think what we knew all along was we are unlikely to be smart to compete against the large banks for traditional capital markets deals. I am not sure that we agree that that should be applied to the new on-chain economy that is growing. What we are investing in early stages is thinking about our strategy around capital raising on chain, whether that be in security token form or non-security other token form, depending on where market structure comes out. That is our R&D phase today right now.

And so, um, that part of the business, um, we're actually pretty excited about. Um, it it, it's, you know, given the size of that market and those opportunities relative to the rest of our business. It's, it's for the for the foreseeable near-term. It's going to be a relatively smaller contributor but nonetheless, an important growing 1 that, that is, uh, that's important to the not just the earnings of the business, but also the the knowledge base and continuing to build our reputation, um, as being 1 of the smartest players in the space. So that's what we're most excited about their, what, what the team is also focused on outside of that, which are, which are really near-term deals. We are transacting in is a little bit, what, Mike said, which was um, investing in Talent, some lensure around. Um traditional broker dealer, um uh uh abilities. Um and thinking about what an on-chain Capital markets business would look like. I think what we what we know knew all along was we're unlikely to

To to unlikely to be smart to compete against the large banks for traditional Capital markets deals. Um, but I'm not sure that that we agree that that should be applied to the new onchain, uh, economy that's growing. And so what we are investing in early stages is thinking about our strategy around Capital raising on chain whether that be in in security token form or non-security other token form depending on where Market structure comes out. And so that that's that's our R&D phase today, right now.

Operator: The next question comes from Joseph Vafi with Canaccord. Please go ahead.

Speaker 8: Hey, guys. Good morning. Great progress on everything. A lot of questions have been answered or asked, so I will just ask a quick one. Just really curious on this $9 billion notional trade. It feels like the market absorbed that trade really well. So, A, congratulations on that execution. But just kind of peeling a layer of the onion off the mechanics of it. Were you surprised to see that trade? It felt like the Bitcoin market only dropped a very small amount on such a large trade. So just any color on the mechanics and demand you saw for that block. Thanks.

The next question comes from Joseph V with karna court, please go ahead.

Hey guys. Good morning. Um, great progress on there and uh everything a lot of questions been answered or asked. So just ask a quick 1 just really curious on this 9 billion dollar notional trade. Um you know it feels like the market absorbed that trade really well. Um so a congratulations on that execution but just kind of you know peeling a layer of the onion off the mechanics of it.

Mike Novogratz: Yeah, I mean, I will give you some public info. You can, just because Michael Saylor, you know, puts out what he bought each, you know, puts out what he buys each week. Call it grace, call it luck, call it fortune, call it timing, a combination of all of it, but, you know, the execution happened when there was a tremendous amount of buying. That buying is coming mostly from these balance sheet companies, not just Michael Saylor's, but the Truth Social, the Trump version, you know, lots of them happen to be buying in that same, and that is public information. So, you know, supply met demand, our demand met supply. We continue to see, you know, big buying of crypto from balance sheet companies. You know, the Ethereum companies are buying, you know, a couple hundred million dollars each a week, at least.

Uh, were you surprised to see, um, that trade, it felt like the, the, you know, Bitcoin Market only dropped, you know, a very small amount on such a large trade. So just, you know, you know, any color on the mechanics and, um, you know, demand you saw, um, for that block. Thanks.

Yeah, I mean I I I'll give you some public info. Uh you can just because Michael Saylor, you know, puts out what he bought each.

You know, he puts out what he buys each week, uh,

Call it Grace. Call it lock, call it Fortune, call it timing, uh, cam combination of all the butt.

You know, the, the execution happened when there was a tremendous amount of buying and that buying is coming, mostly from these balance sheet companies, not just Michael Saylor but Trump uh the the truth social the Trump trump version, you know, lots of them happen to be buying in that same and that's public information. And so, you know, Supply meet demand or demand that Supply.

um,

And we continue to see.

You know, big buying of crypto from balance sheet companies.

you know, the the ethereum

companies are buying, you know, a couple hundred million dollars, uh, each a week.

Mike Novogratz: So I think as long as that continues, crypto prices are going to look pretty good. You know, there is a backdrop that this all happens in, right? We have, the economy finally showed a big drop in, you know, jobs and the revisions to jobs last Friday. We are now pricing an 80% chance of a cut in September. The President is becoming more and more vocal about a new Fed chief, and, you know, he fundamentally believes Chairman Powell is making a mistake not having cut rates sooner. But when, you know, the executive gets involved with the central bank and fires the head of the BLS, all of that plays into the Bitcoin narrative, plays into, oh heck, we are going to have to inflate our way out of this giant debt trap. So the macro story for Bitcoin and crypto is increasing, not decreasing.

Um at least and so I think as long as that continues crypto prices are going to look pretty good, you know, there's a backdrop that this all happens in, right? We've got

uh,

The economy finally showed a big drop in, you know, jobs in the revisions to jobs last Friday. Uh, we're now pricing in 80% chance of a cut in September. Uh, the president is becoming more and more vocal about a new fed. Chief and, you know, he fundamentally believes chairman Powell is making mistake not having cut rates.

Uh, sooner, uh, but 1, you know, the executive gets involved with the central bank and buyers the head of the BLS, um, all of that.

Plays into the Bitcoin narrative, uh, plays into oh heck.

Inflator way out of this giant debt trap. And so,

Mike Novogratz: So I think you are going to continue to see decent demand for people wanting Bitcoin as part of their portfolio.

The macro story for Bitcoin and crypto is increasing not decreasing.

and so I I think you're going to continue to see

um,

Speaker 8: Great. Thanks for that color, Mike.

Decent demand for uh, for people wanting Bitcoin as part of their portfolio.

Right. Thanks for that caller mic.

Operator: Ladies and gentlemen, in the interest of time, this concludes our question and answer session. I would like to turn the conference back over to Mike Novogratz, Founder and CEO of Galaxy, for any closing remarks.

Ladies and gentlemen, in the interest of time, this concludes your question and answer session.

Mike Novogratz: Guys, thanks a ton. We do notice that we had more demand than spots for the conference call, for the earnings call. You can call that a rookie mistake as our first U.S. listed earnings call. We promise next time we will not make that.

I would like to turn the conference back over to Mike, novogratz founder, and CEO of galaxies for any closing, remarks.

You guys, thanks. Thanks a ton. We we do notice that, uh, we had more demand than spots, uh, for the conference, call for the earnings call, and uh, you call that a rookie mistake as our first. Uh,

Jonathan Goldowsky: mistake. We are working hard. We are excited over here. I said that earlier. July was the best month we have had. There is a tremendous amount that we did not talk about happening here. We have 615 employees that are coming to work with big smiles every day. I bet you by the time we speak to you next time, that number is bigger. Anyway, thanks a lot, and look forward to talking to you next quarter.

Listed, uh, earnings call, we promise. Next time we won't make that mistake. Uh, we are

Working hard! We're excited over here. I said that earlier; you know July was the best month we've had. There are a tremendous amount of things that we didn't talk about happening here. We have 615 employees that are coming to work with big smiles every day, and I bet you by the time we speak to you next, that number is bigger. Anyway, thanks a lot, and I look forward to talking to you next quarter.

Tony Paquette: Ladies and gentlemen, the conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

Ladies and gentlemen, the conference has now concluded.

Thank you for attending today's presentation. You may now disconnect