Q3 2025 Galaxy Digital Holdings Earnings Call

<unk> galaxies third 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 U S Securities and Exchange Commission and on SEDAR plus <unk>.

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

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 Novogratz founder and CEO of Galaxy one.

Good morning, everyone.

Christopher I would get upset with me if I didn't give you a new York weather report it as a gorgeous day here.

In the big Apple a great fall day.

Would it be more excited to be with you.

Welcome or our new friends, who are logging in on Youtube.

Speaker #1: Good morning and welcome to the Galaxy Digital 3rd Quarter 2025 earnings call. Today's call is being recorded. After today's presentation, there will be an opportunity to ask questions.

Last time at our conference call, we didn't have enough slots, which was a bit embarrassing and so we wanted to make sure.

Our story gets out there and anyone who wants to hear can here and so thanks for following us.

Speaker #1: To ask a question, you may press star then one, on your telephone keypad. To withdraw your question, please press star then two. At this time, I would like to turn the conference over to Jonathan Goldowsky, head of investor relations.

Quarter, three was the best quarter in Galaxy history, and sell I show up today with a grin.

Probably not running the company is that grid last.

Probably for the length of this call and then my face get Sterne and we start grinding.

Speaker #1: Please go ahead, sir.

What happened listen we have for eight years been trying to build a brand of confidence and trust.

Speaker #2: Good morning and welcome to Galaxy's Q3 2025 earnings call. Before we begin, please note that our remarks, including answers to your questions, may include forward-looking statements.

And Q3 and felt like that all kind of came together right. We did a gigantic.

Spot crypto trade, which came to us because the guys in the community that trusted us to to move $9 billion of their bitcoin into cash.

Speaker #2: 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 that have been filed with the U.S.

That didn't come overnight that comes from a long time of relationship building and and liquidity building quite frankly.

Speaker #2: Securities and Exchange Commission and on CDR 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.

We also.

Help launch.

The largest salon a debt.

Again, raising $1 $7 billion $1 $65 billion.

To invest in the Salon and ecosystem and doing it quickly comes from having built up trust with lots of people and so that's kind of the.

Speaker #2: 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.

The story.

Speaker #2: With that, I'll turn it over to Mike Novogratz, founder and CEO of Galaxy.

We've been working hard for eight years, we didn't do a great job telling our story.

Speaker #3: Well, good morning, everyone. Christopher Ferraro would get upset with me if I didn't give you a New York weather report. It is a gorgeous day here, in the Big Apple, a great fall day.

Originally and we are really focused on that part of that was not being here, where six months now in the U S. NASDAQ company. It gives us a lot more ability to tell our story and so part of my job is out there, making sure people understand what galaxy is what we're doing what we are thinking about.

Speaker #3: I couldn't be more excited to be with you. I want to welcome our new friends who are logging in on YouTube. You know, last time at our conference call, we didn't have enough slots, which was a bit embarrassing, and so we wanted to make sure our story gets out there and anyone who wants to hear can hear.

I'll just hit you with a few quick highlights and I'm going to pass this to Tony.

And Chris, but one we generated $500 million plus of net income.

Speaker #3: And so, thanks for following us. Listen, Q3 was the best quarter in Galaxy's history. And so, I show up today with a grin.

That's just a lot.

Our assets on platform reached 17 billion thats by far a record for US that's strong organic growth in asset management is taking.

Speaker #3: Probably about running a company is that grin lasts probably for the length of this call. And then my face gets stern, and we start grinding.

Asset management, we did a great job of understanding when all of these treasury company as we're starting that we could play a role in helping to manage those assets and steak and so that was $4 billion plus of new assets added to the platform and those are high fee paying assets that will be with us for a long time.

Speaker #3: You know, what happened? Listen, we have, for eight years, been trying to build a brand of confidence and trust. And Q3, it felt like that all kind of came together, right?

Speaker #3: We did a gigantic spot crypto trade, which came to us because there are guys in the community who trusted us to move $9 billion of their Bitcoin into cash.

Trading side outside of that 80000, Bitcoin order, we saw record volumes.

And that.

Hopefully continues to grow each quarter.

Those are the businesses that we keep investing in.

Speaker #3: That didn't come overnight. That comes from a long time of relationship building and, quite frankly, liquidity building. We also helped launch the largest Solana dApp.

Thinking that that will in the long run give galaxy great ballast.

Our lending book, which had spent years roughly in that 900 to $1 $2 billion is on the move we were $1 8 billion.

Speaker #3: again, raising $1.7 billion or $1.65 billion to invest in the Solana ecosystem, and doing it quickly, comes from having built up trust with lots of people.

And growing and so I've talked a lot about credit needs needing to be a key part of the galaxy growth story and.

And we are focused on making it so.

Excitingly, we launched Galaxy one.

Speaker #3: And so that's kind of the the story. we've been working hard for eight years. We didn't do a great job telling our story, originally, and we're really focused on that.

Our.

Opening opening four to get individual investors into the Galaxy universe.

We're going to take the knowledge and institutional profile that we've built and galaxy and open the window to more and more people. It's a new business, we're going to give you updates.

Speaker #3: Part of that was not being here. We're six months now in the U.S. Nasdaq company, which gives us a lot more ability to tell our story.

Speaker #3: And so part of my job is out there making sure people understand what Galaxy is, what we're doing, what we're thinking about. I'll just hit you with a few quick highlights, and I'm going to pass this to Tony and and and Chris.

But I'm going to take us a little while to get that really up and running and so.

Let's think of that as a.

Q2, 2006 big update.

Speaker #3: But one, we generated over $500 million of net income. That's just a lot. Our assets on the platform reached $17 billion. That's by far a record for us.

Data centers, which is.

I always think of.

Where have a data center company in half.

Digital assets company.

We are grinding in the data center business.

Speaker #3: That's strong organic growth in asset management and staking. You know, in asset management, we did a great job of understanding when all these treasury companies were starting, that we could play a role in helping them manage those assets and stake.

There are two sides to this there is the 800 megawatts that we have in building that out for core we've that's building on time.

That's building on cost that's getting it financed all of those things Christian is going to talk on.

Speaker #3: And so that was $4 billion plus of new assets. Added to the platform, and those are high-fee-paying assets that'll be with us for a long time.

Im feeling great about and then it's.

We're we're in queue with a bunch of people for more power in Texas, and we will know a lot more about that in the foreseeable future, but we feel pretty good.

Speaker #3: trading side outside of that $80,000 Bitcoin order, we saw record volumes. and that, you know, hopefully continues to grow each quarter. those are the businesses that we keep investing in.

At 800, it is not going to be our or total.

Our total footprint.

And finally <unk>.

And last week, we did a pipe deal.

Speaker #3: thinking that that will, in the long run, give Galaxy great ballast. our lending book, you know, which had spent years roughly in that $900 to $1.2 billion, is is on the move.

<unk> hundred $60 million.

From a large institutional investor couldnt be more excited about having them as a partner and investor in us.

Speaker #3: We were $1.8 billion and growing. And so talked a lot about credit needing to be a key part of the Galaxy growth story, and and we are focused on making it so.

That money is going to be used to help build out a world class company and a world class data Center.

And with that guys like I said couldnt be more excited.

And when a passenger Tony.

Great. Thanks, Mike and thank you everyone for joining the call today.

Speaker #3: Excitingly, we launched Galaxy One. It's our opening for individual investors to get into the Galaxy universe. We're going to take the knowledge and institutional profile that we've built at Galaxy and open the window to more and more people.

As with last quarter I'll provide a summary of galaxies overall performance in Q3, then I'll dive into some more of the details on the digital asset business and then turn it over to Chris to provide a more detailed update on data centers.

As Mike mentioned Q3 was a standout quarter for galaxy with record performance across the digital asset segment and continued operational progress as we scale our core businesses.

Speaker #3: It's a new business. We're going to give you updates, but it's going to take us a little while to get that really up and running.

Speaker #3: And so, let's think of that as a Q2 '26 big update. You know, data centers, which I always think of, we're half a data center company and half a digital assets company.

GAAP net income for the quarter came in at $505 million on record adjusted gross profit of $728 million underscoring the strength of our diversified model and ability to execute in a dynamic market environment. This.

This performance was driven by outsized contributions from both our digital asset segment, and our treasury and corporate investment portfolio.

Speaker #3: we are grinding in the data center business. you know, there are two sides to this. There's the 800 megawatts that we have and building that out for CoreWeave.

And digital assets, we delivered a record adjusted gross profit of $318 million, reflecting strong momentum across trading investment banking asset management and staking.

Speaker #3: that's building on time. that's building on costs. That's getting it financed. All of those things, Chris is going to talk on, I'm feeling great about.

Our platform continues to benefit from increased institutional engagement broader client activity and rising demand for sophisticated investment and advisory solutions.

Speaker #3: And then it's, you know, we're we're in Q with a bunch of people for more power in Texas. And we'll know a lot more about that in the foreseeable future.

And Treasury and corporate we delivered adjusted gross profit of $408 million.

Speaker #3: but we feel pretty good. That 800, it's not going to be our our our total, our total footprint. And finally, listen, last week we did a a pipe deal, $460 million from a large institutional investor, couldn't be more excited about having them as a partner.

Primarily driven by gains across our digital asset and investment portfolios within our private investments book, we saw sizable unrealized gains from our investments in ripple labs and from bullish which went public during Q3.

As a reminder, we've transitioned the majority of our venture investing activity from our balance sheet into our venture franchise within the asset management business, which allows our institutional Lps to invest alongside galaxy, while enabling us to generate long term management fees for overseeing these investments.

Speaker #3: An investor in the U.S. that money is going to be used to help build out a world-class company and a world-class data center. And with that, guys, like I said, couldn't be more excited.

Speaker #3: I'm going to pass it to Tony.

Speaker #4: Great. Thanks,

And data centers as mentioned previously we expect financial results in this segment to be de Minimis until the first half of 2026, when we plan to begin recognizing revenue under phase one of our core lease agreement.

Speaker #3: Mike. And thank you, everyone, for joining the call today. That's with last quarter. I'll provide a summary of Galaxy's overall performance in Q3. Then I'll dive into some more of the details on the digital asset business.

Speaker #3: And then turn it over to Chris to provide a more detailed update on data centers. As Mike mentioned, Q3 was a standout quarter for Galaxy, with record performance across the digital asset segment and continued operational progress.

Until then all major capital expenditures associated with our data center build out are being capitalized, including the interest associated with the $1 $4 billion project level loan we secured during the quarter.

Speaker #3: As we scale our core businesses, Gap's net income for the quarter came in at $505 million, on record adjusted gross profit of $728 million, underscoring the strength of our diversified model and our ability to execute in a dynamic market environment.

Firm wide adjusted EBITDA came in at $629 million up from $211 million in Q2, a clear reflection of the increased scale and profitability across the enterprise.

Total operating expenses, excluding grossed up transaction costs were $184 million in Q3.

Speaker #3: This performance was driven by outsized contributions from both our digital asset segment and our treasury and corporate investment portfolio. In digital assets, we delivered a record adjusted gross profit of $388 million, reflecting strong momentum across trading, investment banking, asset management, and staking.

The increase from Q2 was driven by a $38 million onetime impairment related to our legacy mining infrastructure and an increase in compensation expense.

Looking forward, we do not expect any material further material impairments to our remaining mining equipment, which is now held on our balance sheet at an aggregate value of less than $50 million.

Speaker #3: Our platform continues to benefit from increased institutional engagement, broader client activity, and rising demand for sophisticated investment and advisory solutions. In treasury and corporate, we delivered adjusted gross profit of $408 million, primarily driven by gains across our digital asset and investment portfolios.

Turning to the balance sheet. We ended Q3 with $1 9 billion of cash and stable coins up roughly $700 million from Q2, primarily reflecting the net sale of certain digital assets and investments during the quarter as well as deposits received from <unk>. Following the exercise of their phase two and three options.

Speaker #3: Within our private investments book, we saw sizable unrealized gains from our investments in Ripple Labs and from Bullish, which went public during Q3. As a reminder, we've transitioned the majority of our venture investing activity from our balance sheet into our venture franchise within the asset management business, which allows our institutional LPs to invest alongside Galaxy while enabling us to generate long-term management fees for overseeing these investments.

Within our Treasury and corporate segment, we held approximately $2 1 billion in net digital assets and investments at quarter end, reflecting the continued strategic allocation of capital towards high conviction investment opportunities.

We ended Q3 with $3 2 billion in equity capital up more than 20% quarter over quarter with roughly 65% allocated to our operating businesses.

Speaker #3: In data centers, as mentioned previously, we expect financial results in this segment to be de minimis until the first half of 2026, when we plan to begin recognizing revenue under phase one of our CoreWeave lease agreement.

Over time, we expect the amount of capital allocated to our operating businesses to continue to increase as we scale across both digital assets and data centers.

As Mike mentioned earlier this month, one of the world's largest and most respected names in global asset management made a $460 million investment in Galaxy two.

Speaker #3: Until then, all major capital expenditures associated with our data center buildout are being capitalized, including the interest associated with the $1.4 billion project-level loan we secured during the quarter.

The $325 million in net proceeds to the company will help drive the Buildout of our Helios data Center campus, which Chris will speak to shortly.

Speaker #3: Firm-wide adjusted EBITDA came in at $629 million, up from $211 million in Q2, a clear reflection of the increased scale and profitability across the enterprise.

We feel good about our overall capital position and will look to optimize our sources of funding as we continue building across two major growth businesses.

Speaker #3: Total operating expenses excluding grossed-up transaction costs were $184 million, in Q3. The increase from Q2 was driven by a $38 million one-time impairment related to our legacy mining infrastructure, and an increase in compensation expense.

As mentioned last quarter, we will continue to manage our balance sheet with fortress principles, demonstrating disciplined risk management, and maintaining sufficient capital and liquidity to support sustained growth over the long term.

Speaker #3: Looking forward, we do not expect any material further material impairments to our remaining mining equipment, which is now held on our balance sheet in an aggregate value of less than $50 million.

Now turning to our operating results starting with digital assets.

On last quarter's earnings call. We highlighted that July marked the strongest monthly performance for our digital assets business and that momentum carried through the remainder of Q3, we had record results in global markets generating approximately $295 million of adjusted gross profit driven by healthy trading activity and continued.

Speaker #3: Turning to the balance sheet, we ended Q3 with $1.9 billion of cash and stablecoins, up roughly $700 million from Q2, primarily reflecting the net sale of certain digital assets and investments during the quarter, as well as deposits received from CoreWeave following the exercise of their phase two and three options.

Growth across our client base <unk>.

Industry wide crypto trading volumes improved meaningfully during the quarter, reflecting higher prices strong market sentiment and increased engagement and galaxy outperformed that backdrop delivering record crypto trading volumes that were up 140% from Q2.

Speaker #3: Within our treasury and corporate segment, we held approximately $2.1 billion in net digital assets and investments at quarter end, reflecting the continued strategic allocation of capital towards high conviction investment opportunities.

As Mike mentioned this included the sale of over $9 billion of bitcoin on behalf of a single client.

Speaker #3: We ended Q3 with $3.2 billion in equity capital, up more than 20% quarter over quarter, with roughly $65% allocated to our operating businesses. Over time, we expect the amount of capital allocated to our operating businesses to continue to increase, as we scale across both digital assets and data centers.

And one of the largest notional bitcoin transactions ever completed underscoring our ability to deliver complex transactions at scale with limited market impact.

And our lending business as Mike mentioned, our average loan book loan book grew to over 1.1 dollars 8 billion in Q3, driven by new clients and market appreciation.

Speaker #3: As Mike mentioned earlier this month, one of the world's largest and most respected names in global asset management made a $460 million investment in Galaxy.

A shift in mix caused some net interest margin compression during the quarter and as the crypto lending market evolves, we will continue to maintain prudent risk standards and explore strategies to efficiently fund this business with a focus on supporting long term scalability.

Speaker #3: The $325 million in net proceeds to the company will help drive the buildout of our Helios data center campus, which Chris will speak to shortly.

On the advisory front Galaxy closed two deals during the quarter, including serving as a co placement agent and financial adviser to forward industries on the <unk> six 5 billion private placement.

Speaker #3: We feel good about our overall capital position and will look to optimize our sources of funding as we continue building across two major growth businesses.

Speaker #3: As mentioned last quarter, we will continue to manage our balance sheet with Fortress Principles, demonstrating disciplined risk management and maintaining sufficient capital and liquidity to support sustained growth over the long term.

And this deal highlights the strength of our advisory franchise.

In our growing role as a trusted partner for institutional clients navigating this market. It also marks the first step in a broader partnership with forward industries that extends across our platform, which I'll speak to in a moment.

Speaker #3: Now, turning to our operating results, starting with digital assets. On last quarter's earnings call, we highlighted that July marked the strongest monthly performance for our digital assets business, and that momentum carried through the remainder of Q3.

Shifting to asset management and infrastructure solutions.

We ended the quarter with more than $15 billion in total assets under management and assets under stake nearly doubling from last quarter and generated $23 million and adjusted gross profit, reflecting strong growth across both businesses.

Speaker #3: We had record results in global markets, generating approximately $295 million of adjusted gross profit, driven by healthy trading activity and continued growth across our client base.

Assets under management grew to approximately $9 billion this quarter, reflecting strong net inflows of roughly $2 billion across both ETF and alternative strategies.

Speaker #3: Industry-wide crypto trading volumes improved meaningfully during the quarter, reflecting higher prices and strong market sentiment, and increased engagement, and Galaxy outperformed that backdrop, delivering record crypto trading volumes that were up 140% from Q2.

This momentum was driven by continued adoption of our digital asset Treasury solutions, which with galaxy being selected as the manager of choice by several companies in this space.

Winning these mandates reflects our deep experience managing across market cycles, and navigating volatility to deliver strong risk adjusted returns.

Speaker #3: As Mike mentioned, this included the sale of over $9 billion of Bitcoin on behalf of a single client, and one of the largest notional Bitcoin transactions ever completed, underscoring our ability to deliver complex transactions at scale with limited market impact.

Enforcing our position as a trusted partner.

These mandates also represent a meaningful shift in the profile of our asset management business to more strategic long term capital that generates recurring durable revenue streams.

Speaker #3: In our lending business, as Mike mentioned, our average loan book grew to over $1.8 billion in Q3, driven by new clients and market appreciation.

The asset management business is now firmly run rate profitable, giving us a solid foundation to continue investing in order to expand the platform and broaden our reach.

Speaker #3: A shift in mix caused some net interest margin compression during the quarter, and as the crypto lending market evolves, we will continue to maintain prudent risk standards and explore strategies to efficiently fund this business with a focus on supporting long-term scalability.

Turning to infrastructure solutions are assets under stake more than doubled quarter over quarter to approximately $7 billion with growth being driven largely by digital asset treasuries and our custodian integration strategy.

Speaker #3: On the advisory front, Galaxy closed two deals during the quarter, including serving as a co-placement agent and financial advisor to Forward Industries on the $1.65 billion private placement. This deal highlights the strength of our advisory franchise and our growing role as a trusted partner for institutional clients navigating this market.

Through these integrations with leaders across the custody space, including the custodian for the majority of U S. Crypto Etfs, we positioned ourselves to serve institutional clients at scale and enable our staking services to reach a much broader audience.

Speaker #3: It also marks the first step in a broader partnership with Forward Industries that extends across our platform, which I'll speak to in a moment.

Stepping back Q3 served as a sort of activation of the flywheel across our multiple digital asset businesses. This is an exciting development and notable marker of the continued maturation and galaxies business model. A clear example of this flywheel is our work with digital asset Treasury companies.

Speaker #3: Shifting to asset management and infrastructure solutions, we ended the quarter with more than $15 billion in total assets under management and assets under stake.

Speaker #3: Nearly doubling from last quarter, we generated $23 million in adjusted gross profit, reflecting strong growth across both businesses. Assets under management grew to approximately $9 billion this quarter, reflecting strong net inflows of roughly $2 billion across both ETF and alternative strategies.

What began as an emerging opportunity earlier in the year has evolved into a multichannel business line with mandates across some of the largest public publicly traded holders of digital assets. This includes supporting clients with initial capital raise through our advisory business than leveraging our network to provide operational support and connectivity two key service providers.

Speaker #3: This momentum was driven by continued adoption of our digital asset treasury solutions, which, with Galaxy being selected as the manager of choice by several companies in the space.

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It also includes working closely with treasury teams to implement institutional grade yield strategies aligned with their objectives spanning staking lending trade execution asset management and other onshore opportunities all within a disciplined risk managed framework.

Speaker #3: Winning these mandates reflects our deep experience managing across market cycles and navigating volatility to deliver strong, risk-adjusted returns reinforcing our position as a trusted partner.

Speaker #3: These mandates also represent a meaningful shift in the profile of our asset management business to more strategic, long-term capital that generates recurring, durable revenue streams.

Our partnership with forward industries as a case in point in Q3, we announced a strategic investment alongside Multipoint capital and jumped crypto and forward Salon a base treasury initiatives the largest of its kind to date.

Speaker #3: The asset management business is now firmly run-rate profitable, giving us a solid foundation to continue investing in order to expand the platform and broaden our reach.

We supported forwards private placement through our advisory business assisted them with execution and deployment of the proceeds became the sole asset manager of all their treasury assets and help launch they're validated on the Salon a blockchain.

Speaker #3: Turning to infrastructure solutions, our assets under stake more than doubled quarter over quarter to approximately $7 billion with growth being driven largely by digital asset treasuries and our custodian integration strategy.

Collectively our digital asset Treasury mandates have added more than $4 5 billion.

AUM and <unk> to Galaxy and at current market prices, we expect the annual recurring fee revenue associated with these mandates to be more than $40 million.

Speaker #3: Through these integrations with leaders across the custody space, including the custodian for the majority of U.S. crypto ETFs, we've positioned ourselves to serve institutional clients at scale and enable our staking services to reach a much broader audience.

This is exactly the kind of institutional grade solution Galaxy is uniquely positioned to deliver leveraging our expertise to build long term partnerships and generate durable recurring revenue for the franchise.

Speaker #3: Stepping back, Q3 served as a sort of activation of the flywheel across our multiple digital asset businesses. This is an exciting development and a notable marker of the continued maturation in Galaxy's business model.

Shifting to innovation, a couple of things to highlight.

As part of our broader mission to connect traditional finance with blockchain infrastructure last quarter, we partnered with superstate one of our venture portfolio companies to token is galaxy's class a common stock on the Salon a blockchain.

Speaker #3: A clear example of this flywheel is our work with digital asset treasury companies. What began as an emerging opportunity earlier in the year has evolved into a multi-channel business line with mandates across some of the largest publicly traded holders of digital assets.

As noted in our press release from September. These unchain shares are not a synthetic representation of ownership theyre fully SEC registered securities with the same legal and economic rights as our traditional shares.

Speaker #3: This includes supporting clients with initial capital raised through our advisory business, then leveraging our network to provide operational support and connectivity to key service providers to ensure a successful launch.

We believe this event marks a meaningful step towards modernizing capital markets serves as a proof point for how traditional markets and anqing infrastructure can connect and positions galaxy at the forefront of that evolution.

Speaker #3: It also includes working closely with treasury teams to implement institutional-grade yield strategies aligned with their objectives, spanning staking, lending, trade execution, asset management, and other on-chain opportunities, all within a disciplined, risk-managed framework.

We will continue to work with regulatory agencies, and leading financial institutions to explore new opportunities to broaden and expand <unk> in the coming quarters.

Speaker #3: Our partnership with Forward Industries is a case in point. In Q3, we announced a strategic investment alongside Multi-Coin Capital and Jump Crypto in Forward's Solana-based treasury initiative, the largest of its kind to date.

On artificial intelligence, we're not just building one of the newest largest and most advanced data centers in the world. We have bought into the promise of AI and the impact it can have on our overall company.

Over the past year, we've integrated AI across nearly every function at galaxy from engineering and technology to finance and operations to trading and risk.

Speaker #3: We supported Forward's private placement through our advisory business, assisted them with execution and deployment of the proceeds, became the sole asset manager of all their treasury assets, and helped launch their validator on the Solana blockchain.

Our employees are now using AI tools on a regular basis and productivity gains are materializing.

In particular areas like agenda coding are seeing step change improvements, giving us the confidence that continued investment in these tools will have compounding productivity benefits down the road.

Speaker #3: Collectively, our digital asset treasury mandates have added more than $4.5 billion in AUM and AUX to Galaxy. At current market prices, we expect the annual recurring fee revenue associated with these mandates to be more than $40 million.

Looking forward AI won't just streamline how we operate it will redefine how we serve clients innovate faster and compete at scale.

Speaker #3: This is exactly the kind of institutional-grade solution Galaxy is uniquely positioned to deliver, leveraging our expertise to build long-term partnerships and generate durable, recurring revenue for the franchise.

Last but not least as Mike mentioned two weeks ago, We launched Galaxy, one our first direct to consumer product offering with an exciting growth opportunity for the franchise.

Speaker #3: Shifting to innovation, a couple of things to highlight. As part of our broader mission to connect traditional finance with blockchain infrastructure, last quarter we partnered with Superstate, one of our venture portfolio companies, to tokenize Galaxy's Class A common stock on the Solana blockchain.

Galaxy, one gives us based individual investors access to high yield cash crypto in equities trading all through one single unified platform.

Unlike many mass market retail platforms Galaxy, one offers clients a seamless way to manage assets across both traditional and digital finance supported by galaxies institutional expertise operational rigor and disciplined risk management.

Speaker #3: As noted in our press release from September, these on-chain shares are not a synthetic representation of ownership. They're fully SEC-registered securities with the same legal and economic rights as our traditional shares.

Galaxy, one also opens up new opportunities for cross platform collaboration and integration across our trading asset management and staking businesses.

Speaker #3: We believe this event marks a meaningful step towards modernizing capital markets, serves as a proof point for how traditional markets and on-chain infrastructure can connect, and positions Galaxy as at the forefront of that evolution.

The premium yield product is a good example over time, we expect this product to broaden and diversify our sources of funding, which will help drive efficiency and profitability in our digital assets business overall.

Speaker #3: We will continue to work with regulatory agencies and leading financial institutions to explore new opportunities, to broaden and expand tokenization in the coming quarters.

And while it's still early we are encouraged by Galaxy ones initial traction we're already seeing adoption from clients, who closely aligned with our target market mass affluent investors, who have historically been underserved by traditional platforms and this early engagement reinforces our conviction in the opportunity ahead.

Speaker #3: On artificial intelligence, we're not just building one of the newest, largest, and most advanced data centers in the world. We have bought into the promise of AI and the impact it can have on our overall company.

As Mike mentioned, we have an ambition we have an ambitious roadmap for this for Galaxy, one and we look forward to updating you on progress in the coming quarters.

Speaker #3: Over the past year, we've integrated AI across nearly every function at Galaxy, from engineering and technology to finance and operations to trading and risk.

Wrapping up Q3 was a breakout quarter for Galaxy and our businesses are building momentum we're heading into year end with a strong foundation clear priorities and our long term vision with that I'll turn it over to Chris.

Speaker #3: Our employees are now using AI tools on a regular basis and productivity gains are materializing. In particular, areas like agentic coding are seeing step-change improvements giving us the confidence that continued investment in these tools will have compounding productivity benefits down the road.

Thanks, Tony.

Turning to our data center business it.

It was just one year ago on our third quarter earnings call that we announced the signing of a term sheet to support AI and HBC infrastructure at our Helios campus.

Speaker #3: Looking forward, AI won't just streamline how we operate; it will redefine how we serve clients, innovate faster, and compete at scale. Last but not least is Mike mentioned two weeks ago we launched Galaxy One, our first direct-to-consumer product offering with an exciting growth opportunity for the franchise.

In the 12 short months since the progress has been extraordinary.

<unk> is now committed to the full 800 megawatts of approved capacity, we secured project financing for phase one and construction is advancing at an impressive pace.

Speaker #3: Galaxy One's gives U.S.-based individual investors access to high-yield cash, crypto, and equities trading, all through one single unified platform. Unlike many mass-market retail platforms, Galaxy One offers clients a seamless way to manage assets across both traditional and digital finance, supported by Galaxy's institutional expertise, operational rigor, and disciplined risk management.

After laying the groundwork in the first half of the year, we carried significant momentum into the third quarter, we executed relentlessly and successfully rapidly developing the phase one portion of the Helios campus on budget and on schedule.

Some updates on our construction progress approximately 70% of our civil and concrete work is now complete and equipment deliveries and installations are well underway.

Speaker #3: Galaxy One also opens up new opportunities for cross-platform collaboration and integration across our trading, asset management, and staking businesses. The premium yield product is a good example.

We are now, placing chillers and putting together the piping system that will form the backbone of our advanced liquid cooling design and a central component to support Nextgen Gpus at industry, leading cabinet entities.

Speaker #3: Over time, we expect this product to broaden and diversify our sources of funding, which will help drive efficiency and profitability in our digital assets business overall.

R E houses, which contain the critical electrical infrastructure have started to ship from the integrators and medium voltage switchgear transformers are already being set on their pads.

Speaker #3: And while it's still early, we are encouraged by Galaxy One's initial traction. We are already seeing adoption from clients who closely align with our target market, mass affluent investors, who have historically been underserved by traditional platforms, and this early engagement reinforces our conviction in the opportunity ahead.

The building for phase one is on track to be fully dried in or sealed from weather within the next few weeks an important step that protects the mechanical and electrical equipment from inclement weather and allows interior trade work to proceed regardless of outdoor conditions.

Speaker #3: As Mike mentioned, we have an ambitious roadmap for this for Galaxy One, and we look forward to updating you on progress in the coming quarters.

We've already logged more than 500000 hours worked with over 700 construction team members onsite daily and extraordinary effort that underscores the efficiency precision and discipline of the design and construction team supporting the project.

Speaker #3: Wrapping up, Q3 was a breakout quarter for Galaxy, and our businesses are building momentum. We're heading into year-end with a strong foundation, clear priorities, and a long-term vision.

The next major construction milestone for us is.

Speaker #3: With that, I'll turn it over to Chris. Thanks, Tony. Turning to our data center business, it was just one year ago on our third quarter earnings call that we announced the signing of a term sheet to support AI and HPC infrastructure at our Helios campus.

Is the powering onto the first data Hall, which is scheduled in early December.

Following that milestone will begin commissioning activities with our third party commissioning agent vendors and contractors and preparation for making the first data hall ready for service.

Speaker #3: In the 12 short months since, the progress has been extraordinary. CoreWeave has now committed to the full 800 megawatts of approved capacity, we've secured project financing for phase one, and construction is advancing at an impressive pace.

Importantly, we remain on schedule with construction a testament to our growing data center team the contractors and subcontractors working on the project and the thousands of hours of coordination required for complex projects like this one to be successful.

Speaker #3: After laying the groundwork in the first half of the year, we carried significant momentum into the third quarter. We executed relentlessly and successfully, rapidly developing the phase one portion of the Helios campus on budget and on schedule.

At the same time, we're scaling the supporting infrastructure and Helios campus for both the first and second phase of construction.

Our onsite workforce development hub hub constructed on 90 acres, we own adjacent to the main Helios campus has been open for nearly a month now in support of construction and operation activities.

Speaker #3: Some updates on our construction progress. Approximately 70% of our civil and concrete work is now complete, and equipment deliveries and installations are well underway.

As we look ahead to our phase II and three projects at the Helios campus. We're applying lessons learned from phase one to optimize the design for scalability and construct ability while also enhancing the efficiency of our power and cooling systems.

Speaker #3: We are now placing chillers and putting together the piping system that will form the backbone of our advanced liquid cooling design, an essential component to support next-gen GPUs at industry-leading cabinet densities.

We are proactively securing long lead time items like backup diesel generators and medium voltage switch gear early locking in cost certainty of delivery timelines.

We've transitioned from planning and preparation to full scale execution as the Helios campus rapidly evolves from a construction project into what we expect will become one of the largest AI and high performance computing campuses in the world.

On financing, we achieved a major milestone in August with the closing of a $1 4 billion project financing facility with Deutsche Bank for Phase one of Helios, covering 200 megawatts of utility power.

This deal underscores our ability to execute on efficient capital structures and provides a signal of the market's confidence in our execution capabilities the value of Helios and the long term economics of our lease.

The facility is structured at 80% loan to cost and Galaxy has already funded the equity for the phase one development.

It's a three year loan secured by all Helios phase one assets priced at <unk>, plus 475 basis points, plus ancillary fees, bringing the all in cost to approximately 10% to 11% if held to maturity.

As a reminder, once phase one is stabilized and generating revenue our plan is to refinance the construction loan at a lower cost of capital.

Doing so will likely unlock equity, enabling us to recycle capital into future phases, and additional developments keeping our balance sheet flexible capital structure efficient and our growth momentum is strong.

The success of this financing validates our capital strategy disciplined leverage flexible terms partnership with top top tier institutions and an unwavering focus on execution.

Shifting to power as we spoke about last quarter ERCOT interim process and the level of scrutiny applied to large loads requesting to interconnect to the system has led to delays and additional capacity approvals across the state of Texas.

Despite the longer than expected timeline, we remain convicted in our ability to work through the existing process and contract additional interconnection capacity at the Helios campus.

Based on recent feedback we believe that we are well positioned to receive approval for a portion of the requested capacity that we've studied and submitted for review.

We view this additional capacity as a transformational long term growth opportunity for the Helios campus as we prepare for the next phase of AI and high performance compute demand.

As we shared last quarter. During Q3, we acquired 160 acres of additional land along with an additional one gigawatt vote interconnect study adjacent to the Helios campus.

With this addition, the Helios campus spans over 1500 contiguous acres under galaxies direct control.

Our Helios campus are strategically positioned to become among the largest AI data center campuses in the world and.

The facility is structured at 80% loan to cost, and galaxies has already funded the equity for the phase 1 development.

The facility is structured at 80% loan to cost, and galaxies has already funded the equity for the phase 1 development.

In the power market with exponential generation and battery storage growth Helio stands as a flagship development for both galaxy and the AI data center industry writ large.

It's a 3-year loan secured by all Helios Phase, 1 assets priced at. So for plus 475 basis Points, Plus ancillary fees, bringing the all-in cost to approximately 10 to 11% if held to maturity

We were also encouraged to see wet break ground on the new pitch for 345, Kilovolt Kilovolt substation, which is expected to deliver an additional three gigawatts of power capacity with two synchronous condensers adjacent to the Helios campus starting in 2028.

As a reminder, once Phase 1 is stabilized and generating revenue, our plan is to refinance the construction loan at a lower cost of capital.

As a reminder, once Phase 1 is stabilized and generating Revenue. Our plan is to refinance the construction loan at a lower cost of capital.

It's great to see both wet and ERCOT investing in critical infrastructure in the region reinforcing their commitment to reliability and the long term growth potential of Helios and the broader data center ecosystem.

Doing so will likely unlock Equity enabling us to recycle Capital into future phases and additional developments. Keeping our balance sheet flexible. Our capital structure efficient and our growth momentum, strong.

Doing so will likely unlock Equity enabling us to recycle Capital into future phases and additional developments. Keeping our balance sheet flexible. Our capital structure efficient and our growth momentum, strong.

Across our data center business, we're continuing to thoughtfully and strategically add world class talent with proven expertise and engineering construction and operations to our data center business.

Success of this financing validates, our Capital strategy, discipline, leverage flexible terms partnership with top, top tier institutions and an unwavering focus on execution.

The success of this financing validates, our Capital strategy, discipline, leverage flexible terms partnership with top, top tier institutions and an unwavering focus on execution.

In the last few months, we've made key hires from some of the largest hyperscale or is in the world across the engineering construction and operations verticals of the business the.

Shifting to power. As we spoke about last quarter, Ott intern process and the level of scrutiny applied to large loads requesting to interconnect to the system has led to delays in additional capacity approvals across the state of Texas.

Shifting to power. As we spoke about last quarter, the Kott interim process and the level of scrutiny applied to large loads requesting to interconnect to the system have led to delays in additional capacity approvals across the state of Texas.

The caliber of this team gives me tremendous confidence in our ability to execute with precision across all three phases at Helios and to deliver on the ambitious long term vision, we have for the business.

Despite the longer than expected timeline. We remain convicted in our ability to work through the existing process and contract additional interconnection capacity at the Helios campus.

Despite the longer than expected timeline. We remain convicted in our ability to work through the existing process and contract additional interconnection capacity at the Helios campus.

The Helios campus represents more than just a single project. It's the cornerstone of galaxies next generation infrastructure strategy and the blueprint for a multi campus multi tenant multi gigawatt platform built to power the future of AI and high performance computing.

Based on recent feedback, we believe that we are well positioned to receive approval for a portion of the requested capacity that we've studied and submitted for review.

Based on recent feedback, we believe that we are well positioned to receive approval for a portion of the requested capacity that we've studied and submitted for review.

We view this additional capacity as a transformational long-term growth opportunity for the Helios campus as we prepare for the next phase of AI and high performance compute demand.

We view this additional capacity as a transformational long-term growth opportunity for the Helios campus as we prepare for the next phase of AI and high performance compute demand.

We continue to evaluate additional power and land opportunities across the region and nationally leveraging the blueprint and expertise developed here to replicate the Helios model.

Efficient scalable and AI ready infrastructure built for the next generation of compute demand.

As we shared last quarter during Q3, we acquired 160 Acres of additional land along with an additional 1. Gigawatt load interconnect study adjacent to the Helios campus. With this addition the helis campus spans over 1,500 contiguous acres under galaxies Direct Control.

It's been a transformative year for the business and I couldnt be more proud of how our data center business continues to build momentum and strengthen its position with each passing quarter.

As we shared last quarter during Q3 we acquired 16 160 Acres of additional land along with an additional 1 gigawatt low. Interconnect study adjacent to the Helios campus. With this addition, the Helios campus spans over 1,500 contiguous acres under galaxies Direct Control.

Our Helios campus is strategically positioned to become one of the largest AI data center campuses in the world.

Our Helios campus is strategically positioned to become among the largest AI data center campuses in the world.

You all know back to the operator for questions.

We will now begin the question and answer session to ask a question you May Press Star then one on your Touchtone phone if youre using a speakerphone. Please pick up your handset before pressing the keys if at any time. Your question has been addressed and you would like to have.

We were also encouraged to see wet break ground on a new pitch for 345, kilovolt Kilovolt substation, which is expected to deliver an additional three gigawatts of power capacity with two synchronous condensers adjacent to the Helios campus starting in 2028.

In a power Market with exponential generation and battery storage growth, Helio stands as a flagship development, for both galaxies and the AI data center industry at Large.

In a power market with exponential generation and battery storage growth, Helio stands as a flagship development for both galaxies and the AI data center industry at large.

It's great to see both wet entercom investing in critical infrastructure in the region reinforcing their commitment to reliability and the long term growth potential of Helios and the broader data center ecosystem.

Draw. Your question. Please press Star then two at this time, we will pause momentarily to assemble our roster.

The first question comes from James <unk> with Goldman Sachs. Please go ahead.

Across our data center business, we're continuing to thoughtfully and strategically add world class talent with proven expertise and engineering construction and operations to our data center business.

Good morning, and thanks for taking my questions and congrats on a good quarter.

I wanted to just touch first on the impacts of the forced liquidations we've seen.

In the last few months, we've made key hires from some of the largest hyperscale or in the world across the engineering construction and operations verticals of the business the.

Across the crypto ecosystem has that had ramifications on market structure and your client franchise.

The caliber of this team gives me tremendous confidence in our ability to execute with precision across all three phases at Helios and to deliver on the ambitious long term vision, we have for the business.

Maybe on which customers and maybe you can just summarize what the overall ramifications could be.

Yeah. So.

The Helios campus represents more than just a single project. It's the cornerstone of galaxies next generation infrastructure strategy and the blueprint for a multi campus multi tenant multi gigawatt platform built to power the future of AI and high performance computing.

First of all.

Galaxy did spectacularly well during that during that liquidation.

Operator: Good morning and welcome to the Galaxy Digital Q3 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 then one on your telephone keypad. To withdraw your question, please press star then two. At this time, I would like to turn the conference over to Jonathan Goldowsky, Head of Investor Relations. Please go ahead, sir.

I wanted to shout out our trading desk.

We were quick a quick to move we didn't have any credit losses.

We continue to evaluate additional power and land opportunities across the region and nationally leveraging the blueprint and expertise developed here to replicate the Helios model.

We are all over our customer base and it didn't hit us where it hits everybody else right, So who got hurt on that first and foremost market makers.

Efficient scalable and AI ready infrastructure built for the next generation of compute demand.

Market makers that where market, making on <unk> platforms, like hyper liquid or cross market makers that where market, making on binance plus others and so.

It's been a transformative year for the business and I couldnt be more proud of how our data center business continues to build momentum and strengthen its position with each passing quarter.

Tony Paquette: Good morning and welcome to Galaxy Digital Holdings Ltd.'s Q3 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 CDAR 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 Digital Holdings Ltd. or its affiliates to buy or sell any securities.

You all know back to the operator for questions.

Some estimates as high as 25% of those guys I've got put out of business, which is significant and so what does that mean it means you have a little less liquidity.

We will now begin the question and answer session to ask a question you May Press Star then one on your Touchtone phone if youre using a speakerphone. Please pick up your handset before pressing the keys if at any time. Your question has been addressed and you would like to have.

You have a little wider bid ask spreads probably means there's lots of talent available to hire.

But certainly not great for the ecosystem in the short run.

Draw. Your question. Please press Star then two at this time, we will pause momentarily to assemble our roster.

Who else got hurt was retail lots of retail, especially overseas retail trades crypto very leveraged and I've only scratched my head I was like we got 40 to 80 vol asset I'm not sure you really need two to three times of leverage on it let alone 30 times of leverage but part of the.

The first question comes from James <unk> with Goldman Sachs. Please go ahead.

Good morning, and thanks for taking my questions and congrats on the good quarter.

Ethos of crypto is people want to make a lot of money on a little bit of Audi and so there was a lot of leveraged accounts they got wiped out.

I wanted to just touch first on the impacts of the forced liquidations we've seen.

Tony Paquette: With that, I'll turn it over to Michael Novogratz, Founder and CEO of Galaxy Digital Holdings Ltd.

Not just in crypto, but ever since I have been a trader I've always said when Humpty dumpty brakes, he doesn't get fixed overnight it takes.

Across the crypto ecosystem has that had ramifications on market structure and your client franchise.

Michael Novogratz: Good morning, everyone. Chris Ferraro would get upset with me if I didn't give you a New York weather report. It is a gorgeous day here in the Big Apple, a great fall day. I couldn't be more excited to be with you. I want to welcome our new friends who are logging in on YouTube. Last time at our conference call, we didn't have enough slots, which was a bit embarrassing. We wanted to make sure our story gets out there and anyone who wants to hear can hear. Thanks for following us. Q3 was the best quarter in Galaxy Digital Holdings Ltd.'s history. I show up today with a grin. The problem about running a company is that grin lasts probably for the length of this call, and then my face gets stern and we start grinding. You know, what happened?

Maybe on which customers and maybe you can just summarize what the overall ramifications could be.

Days weeks months for.

Markets.

Regain.

Yeah. So.

That vitality.

First of all.

These do right.

Galaxy did spectacularly well during that.

<unk>, new money and they participate again.

That liquidation.

But it's a short term negative no doubt.

I wanted to shout out our trading desk.

We were quick a quick to move we didn't have any credit losses.

It.

There has been lots written and we wrote a pretty interesting research piece on why this happened.

We are all over our customer base.

There are lawsuits being filed.

And it didn't hit us where it hits everybody else right, So who got hurt in that first and foremost market makers.

But when you when you have a.

A significant deleveraging like that.

Market makers that where market, making on <unk> platforms, like hyper liquid or cross market makers that where market, making on binance plus others and so.

There's both opportunity and they're short term.

And I think that's what we're going through and you see the crypto price.

Michael Novogratz: We have for eight years been trying to build a brand of confidence and trust. In Q3, it felt like that all kind of came together, right? We did a gigantic spot crypto trade, which came to us because there are guys in the community that trusted us to move $9 billion of their Bitcoin into cash. That didn't come overnight. That comes from a long time of relationship building and liquidity building, quite frankly. We also helped launch the largest Solana decentralized application (dApp). Again, raising $1.7 billion, $1.65 billion, to invest in the Solana ecosystem. Doing it quickly comes from having built up trust with lots of people. That's kind of the story that we've been working hard for eight years. We didn't do a great job telling our story originally, and we're really focused on that. Part of that was not being here.

Roughly trading sideways.

Gold has outperformed <unk> significantly in the last five months a big one has outperformed gold for a long time and so some of that is just rotation, but I think some of this recent last 10 days of us going sideways is still the market digesting that that deleveraging.

Hi.

Some estimates as high as 25% of those guys I've got put out of business, which is significant and so what does that mean it means you have a little less liquidity.

You had a little wider bid ask spreads probably means there's lots of talent available to hire.

But certainly not great for the ecosystem in the short run.

That's really helpful color. Thanks, Mike.

Maybe just turning to one other one here you announced galaxy. One earlier. This month, maybe you could just expand on your aspirations in the business and maybe what the right client basis is it existing customers or is this tam expanding and if so what's the new customer Tam.

Who else got hurt was retail lots of retail, especially overseas retail trades crypto very leveraged and I'm really scratching my head I was like we got 40% to 80 vol asset I'm not sure you really need two to three times of leverage on it let alone 30 times of leverage but part of the.

Sure I'll take the first part I'm going to pitch it to Chris listen we are proud of what we launched.

Ethos of crypto as people want to make a lot of money on a little bit of Audi and so there was a lot of leveraged accounts they got wiped out.

It's hard to get a product out and we started with a pretty simple MVP.

We think two unique.

Not just in crypto, but ever since I have been a trader I've always said when Humpty dumpty brakes, he doesn't get fixed overnight it takes.

Pieces one is it's.

The FDIC insurance checking account.

Michael Novogratz: We're six months now in the U.S. A NASDAQ company gives us a lot more ability to tell our story. Part of my job is out there making sure people understand what Galaxy Digital Holdings Ltd. is, what we're doing, what we're thinking about. I'll just hit you with a few quick highlights, and I'm going to pass this to Tony and Chris. One, we generated $500 million plus of net income. That's just a lot. Our assets on platform reached $17 billion. That's by far a record for us. That's strong organic growth in asset management and staking. Asset management, we did a great job of understanding when all these treasury companies were starting that we could play a role in helping them manage those assets and stake. That was $4 billion plus of new assets added to the platform.

That pays a darn darn good the highest interest that we can find in the market.

Days weeks months.

Sure Mark.

Markets.

Regain that.

And then the 8%.

That vitality.

Uh huh.

Galaxy.

And they always do right people get wiped out by new money and they participate again, but it's a short term negative no doubt.

The offering.

And so that's attracting clients, we're pretty excited to see the uptake.

We also have stock trading crypto trading we have a really ambitious roadmap over the next six months to 18 months to rollout and really.

Ed.

There has been lots written and we wrote a pretty interesting research piece on why this happened.

There are lawsuits being filed.

Ill turn that that wallet into a one stop.

But.

When you have a.

One stop serves all wallet, it's certainly not there yet, but it will get there.

A significant deleveraging like that.

There's both opportunity and they're short term.

Our target audience.

Is consumers, it's really the high end consumers.

Pain and I think that's what we're going through and you see the crypto price.

Roughly trading sideways.

That people that want that same touch that galaxy gives.

Gold has outperformed <unk> significantly in the last five months.

Our institutional clients the same knowledge.

Michael Novogratz: Those are high-fee paying assets that will be with us for a long time. Trading side, outside of that $80,000 Bitcoin order, we saw record volumes, and that, you know, hopefully continues to grow each quarter. Those are the businesses that we keep investing in, thinking that that will, in the long run, give Galaxy great ballast. Our lending book, you know, which had spent years roughly in that $900 million to $1.2 billion, is on the move. We were $1.8 billion and growing. I've talked a lot about credit needing to be a key part of the Galaxy growth story, and we are focused on making it so. Excitingly, we launched Galaxy One. It's our, you know, opening to get individual investors into the Galaxy universe. We're going to take the knowledge and institutional profile that we've built at Galaxy and open the window to more and more people.

But we don't want to just limited to that.

<unk> has outperformed gold for a long time and so some of that is just rotation, but I think some of this recent last 10 days of us going sideways is still the market digesting that that deleveraging.

So we built it with the high end consumer in mind.

The crypto ethos is everyone should get the same access to investing and so.

Good.

And I'd kick myself, if I didn't hope.

That's really helpful color. Thanks, Mike.

Maybe just turning to one other one here you announced galaxy. One earlier. This month, maybe you could just expand on your aspirations in the business and maybe what the right client basis is it existing customers or is this tam expanding and if so what's the new customer Tam.

At one point, we're serving a whole lot more customers than just the high end consumer.

Yes.

Couple of quick things I'll add.

US behind launching Galaxy one on the on the consumer side is meant to capture the entirety of our consumer's wallet from an investment portfolio perspective, and so what we're going to aim to do and we started to do we're going to aim to do is add products that help broaden out.

Sure I'll take the first part I'm going to pitch it to Chris listen we are proud of what we launched.

It's hard to get a product out and we started with a pretty simple NDP.

Where where our high net worth consumer can invest their wealth hold it and store it see it every day.

Scott we think two unique.

Pieces one is it's the.

As frictionless as possible reallocate and moving around across the traditional investments equities bonds newer investments digital assets and cash management.

The FDIC insured checking account.

That pays a darn darn good the highest interest that we can find in the market.

Michael Novogratz: It's a new business. We're going to give you updates, but it's going to take us a little while to get that really up and running. Let's think of that as a Q2 2026 big update. You know, data centers, which is, I always think of, we're half a data center company and half a digital assets company. We are grinding in the data center business. There are two sides to this. There's the 800 megawatts that we have and building that out for CoreWeave. That's building on time. That's building on cost. That's getting it financed. All of those things Chris is going to talk on. I'm feeling great about it. Then, we're in queue with a bunch of people for more power in Texas, and we'll know a lot more about that in the foreseeable future.

By the way that's a.

And then the 8%.

A long term roadmap for us on the institutional side as well and so when we think about where our galaxy's business writ large on the digital asset side is going to go there.

Galaxy.

The offering.

So that's attracting clients, we're pretty excited to see the uptake.

The plan is to little by little so start with digital assets, but little by little encroach upon.

We also have stock trading crypto trading we have a really ambitious roadmap over the next six months to 18 months to rollout and really.

All traditional financial services, where we can all in one place give clients access.

To all of the assets they own.

Ill turn that that wallet into a one stop.

The as Mike said, the target user base on <unk>.

One stop serves all wallet, it's certainly not there yet, but it will get there.

So one is definitely different than what we've served historically, so it's a tam expanding opportunity for us.

Our target audience.

Is consumers, it's really the high end consumers.

Early traction for us seems to be hitting the mark with the kind of the kind of customer that we want.

That people that want that same touch that galaxy gives.

Some quick stats.

Our institutional clients the same knowledge.

Average net worth of Galaxy users onboard today.

But we don't want to just limit it to that.

A little over $2 million.

So we built it with the high end consumer in mind, but the crypto ethos is everyone should get the same access to investing and so.

Michael Novogratz: We feel pretty good that 800, it's not going to be our total footprint. Finally, listen, last week we did a PIPE deal, $460 million, from a large institutional investor. Couldn't be more excited about having them as a partner and investor in us. That money is going to be used to help build out a world-class company and a world-class data center. With that, guys, like I said, couldn't be more excited. I'm going to pass it to Tony.

Income is about $340000 and so we're not today targeting.

What I would say low dollar balances high leverage.

Good.

And I'd kick myself, if I didn't hope.

Short duration option trading short term day trading we're really trying to target.

At one point, we're serving a whole lot more customers than just the high end consumer.

Customer base that has historically been underserved, but has traditionally been the highest profitable customer segment of most consumer platforms consumers that earn money have wealth and want to store and allocate it.

Yes.

Couple of quick things I'll add.

US behind launching Galaxy one on the on the consumer side is meant to capture the entirety of our consumer's wallet from an investment portfolio perspective, and so what we're going to aim to do and we started to do we're going to aim to do is add products that help broaden out.

Extremely helpful answers. Thank you so much.

The next question comes from Patrick <unk> with Piper Sandler. Please go ahead.

Tony Paquette: Great. Thanks, Mike. Thank you, everyone, for joining the call today. As with last quarter, I'll provide a summary of Galaxy's overall performance in Q3. I'll dive into some more of the details on the digital asset business and then turn it over to Chris to provide a more detailed update on data centers. As Mike mentioned, Q3 was a standout quarter for Galaxy with record performance across the digital asset segment and continued operational progress as we scale our core businesses. GAAP net income for the quarter came in at $505 million, on record adjusted gross profit of $728 million, underscoring the strength of our diversified model and ability to execute in a dynamic market environment. This performance was driven by outsized contributions from both our digital asset segment and our treasury and corporate investment portfolio.

Where where our high net worth consumer can invest their wealth hold it and store it see it every day.

Yes. Good morning, Thanks for taking the question.

Shifting to the data center business.

And the $2 seven Gigawatts that is currently awaiting approval you said that you expect.

As frictionless as possible reallocate and moving around across the traditional investments equities bonds newer investments digital assets and cash management.

To get approval for that somewhat soon I think any update on the timing there and how large any.

By the way that's a long term roadmap for us on the institutional side as well and so when we think about where our galaxies business writ large on the digital asset side is going to go.

Any tranche that were to get approved would be and then.

Just generally curious what sort of inbounds, you've been getting on the potential for that incremental power how has demand been there what are those conversations been like.

The plan is to little by little so start with digital assets, but little by little encroach upon.

<unk> financial services, where we can all in one place give clients access.

Thanks.

I'm looking at Chris and he is look at it.

These are tricky.

To all of the assets they own.

Tricky questions.

The as Mike said, the target user base on <unk> is definitely different than what we've served historically, so it's a tam expanding opportunity for us.

We're not going to know until we get approval.

Tony Paquette: In digital assets, we delivered a record adjusted gross profit of $318 million, reflecting strong momentum across trading, investment banking, asset management, and staking. Our platform continues to benefit from increased institutional engagement, broader client activity, and rising demand for sophisticated investment and advisory solutions. In treasury and corporate, we delivered an adjusted gross profit of $408 million, primarily driven by gains across our digital asset and investment portfolios. Within our private investments book, we saw sizable unrealized gains from our investments in Ripple Labs and from Bullish, which went public during Q3. As a reminder, we've transitioned the majority of our venture investing activity from our balance sheet into our venture franchise within the asset management business, which allows our institutional LPs to invest alongside Galaxy while enabling us to generate long-term management fees for overseeing these investments.

The honest answer.

We.

We see lots of good signs.

That point too.

Early traction for us seems to be hitting the mark with the kind of the kind of customer that we want.

To an optimistic outcome.

And.

Yes.

Some quick stats.

Predicting the date.

The average net worth of Galaxy users onboard today.

It's probably a fool's game, because if we're wrong, we're going to look foolish in.

Little over $2 million average annual income is about $340000 and so we're not today targeting.

Youre right Youre going to like someone already told us that.

Texas got a little overwhelmed.

What I would say low dollar balances high leverage.

In the last 12 months with how many people have.

Put in for approval.

Short duration option trading short term day trading we're really trying to target a customer base that has historically been underserved, but has traditionally been the highest profitable customer segment of most consumer platforms consumers that earn money have wealth and want to store and allocate it.

<unk> stats out today.

That are kind of shocked at how many how many applications went in now a lot of those applications didn't have studies and didn't have they werent really.

Threats to cause short term approval.

But again.

Extremely helpful answers. Thank you so much.

I'd say that.

In the near future.

The next question comes from Patrick <unk> with Piper Sandler. Please go ahead.

Tony Paquette: In data centers, as mentioned previously, we expect financial results in this segment to be de minimis until the first half of 2026, when we plan to begin recognizing revenue under phase one of our CoreWeave lease agreement. Until then, all major capital expenditures associated with our data center build-out are being capitalized, including the interest associated with the $1.4 billion project-level loan we secured during the quarter. Firm-wide adjusted EBITDA came in at $629 million, up from $211 million in Q2, a clear reflection of the increased scale and profitability across the enterprise. Total operating expenses, excluding grossed-up transaction costs, were $184 million in Q3. The increase from Q2 was driven by a $38 million one-time impairment related to our legacy mining infrastructure and an increase in compensation expense.

You can define that however, you want.

But.

Again, I wish I could give you a better answer, but that's that's where we're at.

Yes. Good morning, Thanks for taking the question so.

Yes.

Shifting to the data center business.

Full of things I'd add.

<unk>.

What gives us higher confidence. These days is all of the major constituents and stakeholders, who we're partnered with down there in terms of getting approval, but implementing interconnect and so it's not just ERCOT. It's wet it's also AEP our utility partner there.

And the two seven Gigawatts that is currently awaiting approval you said that you expect.

To get approval for that somewhat suite I think any update on the timing there and how large any.

Any tranche that were to get approved would be and then.

Just generally curious what sort of inbounds, you've been getting on the potential for that incremental power how has demand been there what are those conversations been like.

All three are extremely active with us specifically today.

Finalized.

Proving finalizing the studies that had been in place for us.

Thanks.

I'm looking at Chris and he is look at it.

For over 18 months now.

And things are progressing at a faster pace today than than they had been earlier in the year. So those are the data points that give us.

These are tricky.

Tricky questions.

We're not going to know until we get approval.

Some pretty pretty good comfort.

The honest answer.

We.

But as Mike said.

Tony Paquette: Looking forward, we do not expect any further material impairments to our remaining mining equipment, which is now held on our balance sheet at an aggregate value of less than $50 million. Turning to the balance sheet, we ended Q3 with $1.9 billion of cash and stablecoins, up roughly $700 million from Q2, primarily reflecting the net sale of certain digital assets and investments during the quarter, as well as deposits received from CoreWeave following the exercise of their phase two and three options. Within our treasury and corporate segment, we held approximately $2.1 billion in net digital assets and investments at quarter end, reflecting the continued strategic allocation of capital towards high-conviction investment opportunities. We ended Q3 with $3.2 billion in equity capital, up more than 20% quarter over quarter, with roughly 65% allocated to our operating businesses.

We see lots of good signs.

Our cut in Texas are going to are going to take the requisite time to make sure that they are not taking on.

That point too.

Loads that are going to stabilize the grid and frankly there is theirs.

To an optimistic outcome.

And.

Yes.

A really really large number of.

Predicting the date.

Thought out not plan not studied loads that have tried to get into the queue that that the good thing is they are very focused on leading that out and.

It's probably a fool's game, because if we're wrong, we're going to look foolish in.

You are right you are going to like sort of already told us that.

Texas got a little overwhelmed.

Working with the folks who have demonstrated that they actually are going to deliver capacity when they say, they're going to deliver that is operating in a load that they say theyre going to to hit your other question really quickly.

In the last 12 months with how many people have.

Put in for approval there.

Our SaaS out today.

Do we see on the on the demand side I would say.

That are kind of shocked at how many how many applications went in now a lot of those applications didn't have studies and didn't have they werent really.

Positive traction on that front.

There there are increasing proactive reach out to us.

Threats to cause short term approval.

Very large customers.

But again.

I'd say that.

In addition to our current partner <unk>, who all want to know.

In the near future.

You can define that however, you want.

When are we getting approval for how much and over what time period and that is.

Tony Paquette: Over time, we expect the amount of capital allocated to our operating businesses to continue to increase as we scale across both digital assets and data centers. As Mike mentioned, earlier this month, one of the world's largest and most respected names in global asset management made a $460 million investment in Galaxy. The $325 million in net proceeds to the company will help drive the build-out of our Helios campus, which Chris will speak to shortly. We feel good about our overall capital position and will look to optimize our sources of funding as we continue building across two major growth businesses. As mentioned last quarter, we will continue to manage our balance sheet with fortress principles, demonstrating disciplined risk management and maintaining sufficient capital and liquidity to support sustained growth over the long term. Now, turning to our operating results, starting with digital assets.

But.

Again, I wish I could give you a better answer, but that's where we're at.

That is a very helpful thing to see.

When thinking about very long term big product decisions on potential incremental capacity that would be coming on in late 2000 in 2028, and 2029 and forward. So I think the demand profile for our power has continued to remain there and grow.

Yes.

A couple of things I'd add.

<unk>.

What gives us higher confidence these days.

All of the major constituents and stakeholders, who we're partnered with down there in terms of getting approval, but implementing interconnect and so it's not just ERCOT. It's wet it's also AEP our utility partner there.

Which is really good sign as we're getting towards the point, where we feel like something is really going to happen.

Okay.

All three are extremely active with us specifically today.

That's great color and then just a follow up Chris you mentioned the plans to eventually refinance.

Finalized.

Moving finalizing the studies that had been in place for us.

And that would unlock some capital any idea how much capital the refinancing could unlock that could potentially go to future.

For over 18 months now.

And things are progressing at a faster pace today than they had been earlier in the year. So those are the data points that give us.

Build out just wondering how to think about that in our model.

Some pretty pretty good comfort.

Yeah. So.

But as Mike said.

We do have we do have a pretty strong expectation that there'll be opportunities. Once we hit stabilization stabilization, meaning we've delivered 100% of the data halls ready for service and they're up and running in quarter, you're just paying rent.

Cut in Texas are going to are going to take the requisite time to make sure that they are not taking on.

Tony Paquette: On last quarter's earnings call, we highlighted that July marked the strongest monthly performance for our digital assets business, and that momentum carried through the remainder of Q3. We had record results in Global Markets, generating approximately $295 million of adjusted gross profit, driven by healthy trading activity and continued growth across our client base. Industry-wide, crypto trading volumes improved meaningfully during the quarter, reflecting higher prices, strong market sentiment, and increased engagement. Galaxy outperformed that backdrop, delivering record crypto trading volumes that were up 140% from Q2. As Mike mentioned, this included the sale of over $9 billion of Bitcoin on behalf of a single client and one of the largest notional Bitcoin transactions ever completed, underscoring our ability to deliver complex transactions at scale with limited market impact.

Loans that are going to do stabilize the grid and frankly there is theirs.

A really really large number of.

Thought out not plan not studied loads that have tried to get into the queue that that the good thing is they are very focused on waiting that out.

We do believe there's going to be opportunities to re look at the financing structure at that subsidiary for phase one.

Working with the folks who have demonstrated that they actually are going to deliver capacity when they say, they're going to deliver that's operating in a load that they say theyre going to to hit your other question really quickly what do.

And do something kind of cool.

The way to think about it.

Today and look the specifics on what Thats going to look like on a forward here. So think about that Q3 Q4 of 2026 is is it's a little unknown because the market is pretty dynamic and changing the views of the AI boom and its sustainability are changing every day.

Do we see on the on the demand side I would say.

Positive traction on that front.

There there are increasing proactive reach out to us.

Very large customers.

The views of <unk> credit profile, which in which lenders are very focused on in addition to galaxy's credit profile.

In addition to our current partner <unk>, who all want to know.

When are we getting approval for how much and over what time period and that is a that is a very helpful thing to see when.

Our changing.

Tony Paquette: In our lending business, as Mike mentioned, our average loan book grew to over $1.8 billion in Q3, driven by new clients and market appreciation. A shift in mix caused some net interest margin compression during the quarter, and as the crypto lending market evolves, we will continue to maintain prudent risk standards and explore strategies to efficiently fund this business with a focus on supporting long-term scalability. On the advisory front, Galaxy closed two deals during the quarter, including serving as a co-placement agent and financial advisor to Forward Industries on the $1.65 billion private placement. This deal highlights the strength of our advisory franchise and our growing role as a trusted partner for institutional clients navigating this market. It also marks the first step in a broader partnership with Forward Industries that extends across our platform, which I'll speak to in a moment.

And getting better by the day on both fronts and so the ultimate outcome is really going be a function of where were we in quarter. We even the markets are then but.

When thinking about very long term big product decisions on potential incremental capacity that would be coming on in late 2000 in 2028, and 2000 2094, So I think the demand profile for us.

But the framework to think about is on a stabilized basis.

There are a bunch of.

Different examples of stabilized cap rates that one one could look at and apply to come up with what sort of phase one.

Our power has continued to to remain there and grow.

Which is really good sign as we're getting towards the point, where we feel like something is really going to happen.

<unk>.

The value would be in a stabilized basis, we think about that today.

Okay.

That's great color and then just a follow up Chris you mentioned the plans to eventually refinance.

In the high single digits, I don't want to be too specific because I think there's.

And that would unlock some capital any idea how much capital the refinance could unlock that could potentially go to future.

We encourage you to continue to be successful and my guess is that number is going to trend lower not higher depending on where long term interest rates are.

But if you think about a high single digit cap rate as as value.

Build out just wondering how to think about that in our model.

Which is different than cost significantly in our case, given the economics associated with the lease then.

Yeah. So.

We do have we do have a pretty strong expectation that there will be opportunities. Once we hit stabilization stabilization, meaning we've delivered a 100% of the data halls ready for service and they're up and running in quarter <unk> is paying rent.

Tony Paquette: Shifting to asset management and infrastructure solutions, we ended the quarter with more than $15 billion in total assets under management and assets under stake, nearly doubling from last quarter and generated $23 million in adjusted gross profit, reflecting strong growth across both businesses. Assets under management grew to approximately $9 billion this quarter, reflecting strong net inflows of roughly $2 billion across both ETF and alternative strategies. This momentum was driven by continued adoption of our digital asset treasury solutions, with Galaxy being selected as the manager of choice by several companies in this space. Winning these mandates reflects our deep experience managing across market cycles and navigating volatility to deliver strong risk-adjusted returns, reinforcing our position as a trusted partner. These mandates also represent a meaningful shift in the profile of our asset management business to more strategic, long-term capital that generates recurring, durable revenue streams.

We think about applying like loan to value as opposed to a loan to cost in that refinancing situation and that will imply a pretty significant opportunity due to refinance that bigger numbers, which should unlock.

We do believe there's going to be opportunities to re look at the financing structure at that subsidiary for phase one.

Multi hundreds of millions of dollars of equity.

Okay, great. Thanks for that and congrats on the strong quarter.

And do something kind of cool.

Thank you.

The way to think about it.

The next question comes from Jon Petersen with Jefferies. Please go ahead.

Today.

The specifics on what that is going to look like on the forward here. So think about that Q3 Q4 of 2026 is is it's a little unknown because the market is pretty dynamic and changing the views of the AI boom and its sustainability are changing every day the views of quarter, we use credit profile.

Great. Thanks, maybe to stick with some data center questions. So the $1 4 billion construction financing can you give us some guidance on the kind of the cadence of when you'll pull that down because I don't think you pulled it all down at once right.

Yes no.

We have not we are not pulling down all at once we.

<unk>, which which lenders are very focused on in addition to galaxies credit profile.

We actually pre funded.

The equity on our end because as we are bringing the financing together.

Our changing.

And getting better by the day on both fronts and so the ultimate outcome is really going to be a function of where were we in quarter. We even the markets are then but the framework to think about is on a stabilized basis.

Project needed to continue which is which is how we think about capitalizing galaxy just to step back real quick is ensuring that we have adequate capitalization to not only support the projects out there.

Tony Paquette: The Asset Management business is now firmly run rate profitable, giving us a solid foundation to continue investing in order to expand the platform and broaden our reach. Turning to Digital Infrastructure Solutions, our assets under stake more than doubled quarter over quarter to approximately $7 billion, with growth being driven largely by digital asset treasuries and our custodian integration strategy. Through these integrations with leaders across the custody space, including the custodian for the majority of U.S. crypto ETFs, we positioned ourselves to serve institutional clients at scale and enable our staking services to reach a much broader audience. Stepping back, Q3 served as a sort of activation of the flywheel across our multiple digital asset businesses. This is an exciting development and notable marker of the continued maturation in Galaxy Digital Holdings Ltd.'s business model.

There are a bunch of <unk>.

The stabilization, but adequate capitalization early so that we can lean in.

Different examples of stabilized cap rates that one one could look at and apply to come up with what sort of phase one.

<unk> on time on budget and use that to get the best kind of financing. So we pre funded equity.

The value would be in a stabilized basis, we think about that today.

At closing we had a we had a relatively small draw to reset our equity back too.

In the high single digits, I don't want to be too specific because I think there's.

The intended 20% equity versus 80% debt on a on a cost basis and then the cadence of draw.

If we inquiries continue to be successful and my guess is that number is going to trend lower not higher depending on where long term interest rates are.

It really follows the project budget, but I would think about it as like relatively straight line on a twice monthly basis through.

But if you think about a high single digit cap rate as as value.

Which is different than cost significantly in our case, given the economics associated with the lease then.

Through the construction project and so as you can imagine since we closed in August now sitting here in October we've had we've had a number a number of us.

We think about applying like loan to value as opposed to a loan to cost in that refinancing situation and that will imply a pretty significant.

Of.

Semi monthly draws.

Tony Paquette: A clear example of this flywheel is our work with digital asset treasury companies. What began as an emerging opportunity earlier in the year has evolved into a multi-channel business line with mandates across some of the largest publicly traded holders of digital assets. This includes supporting clients with initial capital raise through our strategic advisory services, then leveraging our network to provide operational support and connectivity to key service providers to ensure a successful launch. It also includes working closely with treasury teams to implement institutional-grade yield strategies aligned with their objectives, spanning staking, lending, trading, Asset Management, and other on-chain opportunities, all within a disciplined risk-managed framework. Our partnership with Forward Industries is a case in point. In Q3, we announced a strategic investment alongside Multicoin Capital and Jump Crypto in Forward's Solana decentralized application (dApp) treasury initiative, the largest of its kind to date.

So we're we're drawing pretty regularly and we're drawing pretty pretty straight line basis.

Opportunity due to refinance that bigger numbers, which should unlock.

Multi hundreds of millions of dollars of equity.

Okay.

I'll just add.

I'll just add at the end of the quarter jumped drawn about about <unk>.

Okay, great. Thanks for that and congrats on the strong quarter.

$430 million from the.

Thank you.

$1 $4 billion loan facility. So youll see in total notes payable on the balance sheet about 1.15 billion that comprises both the drawn that construction finance as well as our outstanding convertibles.

The next question comes from Jon Petersen with Jefferies. Please go ahead.

Great. Thanks, maybe just stick with some data center questions. This is the $1 4 billion construction financing can you give us some guidance on the kind of the cadence of when you'll pull that down because I don't think you pulled it all down at once right.

Okay, Great. That's helpful. And then I was curious if you had just some thoughts on your competitive positioning in the market from a data center perspective, you probably saw the IPO of Fermi.

Yes, no. We we have not we are not pulling down all at once we we.

Recently, that's building in Amarillo, which isn't too far away from the Helios campus and they're also talking about building. Many gigawatts just how do you think about the competitive nature of that region.

We actually pre funded.

The equity on our end because as we are bringing the financing together.

Project needed to continue which is which is how we think about capitalizing galaxy just to step back real quick is ensuring that we have adequate capitalization to not only support the projects out there.

And just I guess more thoughts on that overall.

That's a great question.

Tony Paquette: We supported Forward's private placement through our strategic advisory services, assisted them with execution and deployment of the proceeds, became the sole asset manager of all their treasury assets, and helped launch their validator on the Solana blockchain. Collectively, our digital asset treasury mandates have added more than $4.5 billion in assets under management (AUM) and assets under stake (AUS) to Galaxy Digital Holdings Ltd., and at current market prices, we expect the annual recurring fee revenue associated with these mandates to be more than $40 million. This is exactly the kind of institutional-grade solution Galaxy is uniquely positioned to deliver, leveraging our expertise to build long-term partnerships and generate durable recurring revenue for the franchise. Shifting to innovation, a couple of things to highlight.

Listen there's multiple facets to it right there is the market.

Status.

I think probably two earnings calls ago, we talked about a pipeline of things we were looking at potentially buy.

At the stabilization, but adequate capitalization early so that we can lean in build on time on budget and use that to get the best kind of financing. So we pre funded equity.

Or or or.

Develop.

That's all gotten far more expensive than it was right.

At closing we had a we had a relatively small draw to reset our equity back too.

Markets for some of these companies.

Without contracts without without customers.

The intended 20% equity versus 80% debt on a on a cost basis and then the cadence of draw.

The market is pricing in a tremendous amount of optimism and so that feeds through to the price projects and so.

It really follows the project budget, but I would think about it as like relatively straight line on a twice monthly basis through the construction project and so as you can imagine since we closed in August messaging here.

In the short run I don't think youre going to see us.

Tony Paquette: As part of our broader mission to connect traditional finance with blockchain infrastructure, last quarter we partnered with SuperState, one of our venture portfolio companies, to tokenize Galaxy's Class A common stock on the Solana blockchain. As noted in our press release from September, these on-chain shares are not a synthetic representation of ownership. They're fully SEC-registered securities with the same legal and economic rights as our traditional shares. We believe this event marks a meaningful step towards modernizing capital markets, serves as a proof point for how traditional markets and on-chain infrastructure can connect, and positions Galaxy at the forefront of that evolution. We will continue to work with regulatory agencies and leading financial institutions to explore new opportunities to broaden and expand tokenization in the coming quarters. On artificial intelligence, we're not just building one of the newest, largest, and most advanced AI data centers in the world.

Reaching out and buying a whole lot more more power.

October we've had we've had a number a number of.

Of <unk>.

At these prices what's unique about.

Semi monthly draws.

And so we're we're drawing pretty regularly and we're drawing pretty pretty straight line basis.

The Helio site is like it's an application process, we already own the land and all the infrastructure is built close.

So that's really I would just add on.

I'll just add at the end of the quarter jump we've drawn about.

Yeah.

We will see.

There's a lot of speculative like I said, a lot of speculative money on this stuff.

About $430 million from the.

$1 $4 billion loan facilities. So youll see in total notes payable on the balance sheet about 1.15 billion that comprises both the drawn that construction finance as well as our outstanding convertibles.

Sure some of those projects will get built but many wound.

And so we're really just laser focused on.

Getting our project built.

Financed.

Okay, Great. That's helpful and then just.

And getting the new land.

Curious if you had just some thoughts on your competitive positioning in the market from a data center perspective, you probably saw the IPO of Fermi.

And new power approved so we can do that same process again.

We're in the market everyday looking at things talking of people trying to understand the landscape.

Recently, that's billion Amarillo, which isn't too far away from the Helios campus and they're also talking about building. Many gigawatts just how do you think about the competitive nature of that region.

But.

Theres, a gold rush going on and so you've got to be very careful during gold rushes that you built in smart places at the right price.

Tony Paquette: We have bought into the promise of AI and the impact it can have on our overall company. Over the past year, we've integrated AI across nearly every function at Galaxy, from engineering and technology to finance and operations to trading and risk. Our employees are now using AI tools on a regular basis, and productivity gains are materializing. In particular, areas like agentic coding are seeing step-change improvements, giving us the confidence that continued investment in these tools will have compounding productivity benefits down the road. Looking forward, AI won't just streamline how we operate. It will redefine how we serve clients, innovate faster, and compete at scale. Last but not least, as Mike Novogratz mentioned, two weeks ago, we launched Galaxy One, our first direct-to-consumer product offering with an exciting growth opportunity for the franchise.

And just I guess more thoughts on that overall.

It's a great question.

Yes.

The other thing I'll add is I think I think the thing that we think the thing Thats underrated.

Listen there's multiple facets to it right there's the market.

Status.

Only in the market today are undervalued is actual execution right. So.

I think probably two earnings calls ago, we talked about a pipeline of things we were looking at potentially buy.

It's relatively easy to.

Or or.

Signed and passed piece of paper with big numbers on them.

Or develop.

That's all gotten far more expensive than it was right.

And signed deals with big numbers on them I think the most important thing.

The markets for some of these companies.

For us.

Without contracts without without customers.

And for long term actual customer demand is.

Not only can you acquire access to power and acquire land, but can you actually build on time and on budget and I think that's pretty under underwriting and pretty underappreciated today in the market.

The market is pricing in a tremendous amount of optimism and so that feeds through to the price projects and so.

In the short run I don't think youre going to see us.

Tony Paquette: Galaxy One gives U.S.-based individual investors access to high-yield cash, crypto, and equities trading all through one single unified platform. Unlike many mass-market retail platforms, Galaxy One offers clients a seamless way to manage assets across both traditional and digital finance, supported by Galaxy's institutional expertise, operational rigor, and disciplined risk management. Galaxy One also opens up new opportunities for cross-platform collaboration and integration across our trading, asset management, and staking businesses. The premium yield product is a good example. Over time, we expect this product to broaden and diversify our sources of funding, which will help drive efficiency and profitability in our digital assets business overall. While it's still early, we are encouraged by Galaxy One's initial traction.

And as we think about the future as.

Reaching out in an.

And buying a whole lot more more power.

Companies like <unk> and also Microsoft.

At these prices what's unique about.

And Google and you name them like their emphasis on can you actually do what you say you're going to do because we need the power when we think we're going to have it.

The Helio site is like it is an application process, we already own the land and all the infrastructure is built close.

Leads us to like to focus squarely on do we have an excellent team we have excellent partners and the construction side and are we.

We will see.

There is a lot of speculative like I said, a lot of speculative money on this stuff I am sure. Some of those projects will get built but many wound.

Delivering on time and on budget, so that we prove the right to win the next contract and I think that we're pretty far ahead of the pack when it comes to that relative to.

And so we're really just laser focused on.

No.

Getting our project built.

To the competitors.

Financed.

Great very helpful. Thank you very much.

And getting the new land at.

New power.

<unk>. So we can do that same process again.

The next question comes from Ed ankle with Compass point.

We're in the market every day looking at things talking to people.

Tony Paquette: We are already seeing adoption from clients who closely align with our target market, mass affluent investors who have historically been underserved by traditional platforms, and this early engagement reinforces our conviction in the opportunity ahead. As Mike mentioned, we have an ambitious roadmap for this for Galaxy One, and we look forward to updating you on progress in the coming quarters. Wrapping up, Q3 was a breakout quarter for Galaxy, and our businesses are building momentum. We're heading into year-end with a strong foundation, clear priorities, and a long-term vision. With that, I'll turn it over to Chris. Thanks, Tony. Turning to our data center business, it was just one year ago on our third quarter earnings call that we announced the signing of a term sheet to support AI and HPC infrastructure at our Helios campus. In the 12 short months since, the progress has been extraordinary.

Please go ahead.

To understand the landscape.

Hey, Thanks for taking my question and congrats on great quarter too.

But.

Theres, a gold rush going on and so you've got to be very careful during gold rushes that you built in smart places at the right price.

Two questions. The first was our Helios other ones on more kind of operating crypto business on Helios, you talked about that being potentially a multi tenant site.

Yes.

The other thing I'll add is I think I think the thing that we think the thing Thats underrated.

Kind of curious how youre thinking about the puts and takes for financing when it comes to partnering with our new cloud core we've or maybe even hyper scaler. Thanks.

Heavily in the market today are undervalued is actual execution right and so.

It's relatively easy to.

Yes.

<unk>.

We're not sure long term what the composition of tenant base is going to be as weak as we built the Helios campus.

Signed and passed piece of paper with big numbers on them.

And signed deals with big numbers on them I think the most important thing.

Ben as I as we've said before over and over again, and we mean it like the partnership with <unk> has been excellent.

For us.

And for long term actual customer demand is.

They are they are a great partner up and down not just not just on signing a commercial agreement, but in design and understanding the difficulties.

Not only can you acquire access to power and acquire land, but can you actually build on time and on budget and I think that's pretty under underwriting and pretty underappreciated today in the market.

Tony Paquette: CoreWeave has now committed to the full 800 megawatts of approved capacity. We've secured project financing for phase one, and construction is advancing at an impressive pace. After laying the groundwork in the first half of the year, we carried significant momentum into the third quarter. We executed relentlessly and successfully, rapidly developing the phase one portion of the Helios campus on budget and on schedule. Some updates on our construction progress. Approximately 70% of our civil and concrete work is now complete, and equipment deliveries and installations are well underway. We are now placing chillers and putting together the piping system that will form the backbone of our advanced liquid cooling design, an essential component to support next-gen GPUs at industry-leading cabinet densities.

That come along with procuring equipment and timelines.

Teams et cetera.

The <unk>.

And as we think about the future as.

Theyre going through a transition period.

Companies like <unk>, and also Microsoft and meta and Google and you name them like their emphasis on can you actually do what you say you're going to do because we need the power when we think we're going to have it.

And everyone should be.

You should talk to them on their earnings call. They are going through a period, where the market is trying to understand what quarter. We used credit quality is today and what it should be on the forward and thats going to be a big big determinant of.

Leads us to like to focus squarely on do we have an excellent team we have excellent partners and the construction side and are we.

Their ability to get better lease rates their ability to get financing ability for us as the as the landlord to finance our projects and so.

Delivering on time and on budget, so that we prove the right to win the next contract and I think that we're pretty far ahead of the pack when it comes to that relative to.

Where that goes how the market evolves is thinking on quarter. We've it's something we're very focused on and something thats a little unknown today as we think about the trade offs.

Tony Paquette: Our e-houses, which contain the critical electrical infrastructure, have started to ship from the integrators, and medium voltage switchgear and transformers are already being set on their pads. The building for phase one is on track to be fully dried in or sealed from weather within the next few weeks, an important step that protects the mechanical and electrical equipment from inclement weather and allows interior trade work to proceed regardless of outdoor conditions. We've already logged more than 500,000 hours worked with over 700 construction team members on site daily, an extraordinary effort that underscores the efficiency, precision, and discipline of the design and construction team supporting the project. The next major construction milestone for us is the powering on of the first data hall, which is scheduled in early December.

To the competitors.

Great very helpful. Thank you very much.

For capacity not yet not yet at least for US there is a real decisions, we made as to whether.

The next question comes from Ed ankle with Compass point please.

On a net economic basis, whether a.

Please go ahead.

Lower yielding lease from a higher credit quality tenant net balances out to a better economic equation for us as we think about broadening the portfolio like were as we are is investors. We're big believers generally in in diversity and risk management and so <unk>.

Hey, Thanks for taking my question and congrats on great quarter too.

Two questions. The first was our Helios other ones on more kind of operating crypto business on Helios, you talked about that being potentially a multi site.

Kind of curious how you're thinking about the puts and takes for financing when it comes to partnering with the cloud core we've or may be even hyper scaler. Thanks.

The economics aside.

As we build the data center business over time diversifying the customer base is just something thats like.

Yes.

<unk>.

Of course, as a core sensibility for us as a as capital allocators and investors.

We're not sure long term what the composition of tenant base is going to be as we as we built the Helios campus.

Tony Paquette: Following that milestone, we'll begin commissioning activities with our third-party commissioning agent, vendors, and contractors in preparation for making the first data hall ready for service. Importantly, we remain on schedule with construction, a testament to our growing data center team, the contractors and subcontractors working on the project, and the thousands of hours of coordination required for complex projects like this one to be successful. At the same time, we're scaling the supporting infrastructure at Helios campus for both the first and second phase of construction. Our on-site workforce development hub, constructed on 90 acres we own adjacent to the main Helios campus, has been open for nearly a month now in support of construction and operation activities.

I think we are biased to want to do that over time anyway economics aside.

We've been as we've said before over and over again, and we mean it like the partnership with <unk> has been excellent.

Whether the economics Pan out, obviously, better or not it's really going to be a function of like where the markets are at a point in time, and where quarterly use credit credit risk perceived credit risk is relative to some of the investment grade tenants.

They are they are a great partner up and down not just not just on signing a commercial agreement, but in design and understanding the difficulties that.

That come along with procuring equipment and timelines.

Great. Thanks for the color and then just kind of a bit more of a bigger picture question, but in.

<unk> et cetera.

The <unk>.

We're going through a transition period.

In the past few months, we've seen galaxy get more involved in the equity space, whether it's the debt investment banking advisory or even now the galaxy one firm for retail.

And everyone should be should should talk to them on their earnings call. They are going through a period, where the market is trying to understand what quarter. We used credit quality is today and what it should be on the forward and thats going to be a big big determinant of.

How do you think about the opportunities within institutional equities.

Blockchain and Wall Street, you are converging more.

<unk> ability to get better lease rates their ability to get financing ability for us as the as the landlord to finance our projects and so.

Tony Paquette: As we look ahead to our phase two and three projects at the Helios campus, we're applying lessons learned from phase one to optimize the design for scalability and constructability while also enhancing the efficiency of our power and cooling systems. We are proactively securing long lead-time items like backup diesel generators and medium voltage switchgear early, locking in cost certainty and delivery timelines. We've transitioned from planning and preparation to full-scale execution as the Helios campus rapidly evolves from a construction project into what we expect will become one of the largest AI and high-performance computing campuses in the world. On financing, we achieved a major milestone in August with the closing of a $1.4 billion project financing facility with Deutsche Bank for phase one of Helios, covering 200 megawatts of utility power.

Yeah listen if you asked me about like.

Five year view and Chris alluded to this early.

Youre going to see so much <unk>.

Where that goes how the market evolves its thinking on quarter. We've it's something we're very focused on and something thats a little unknown today as we think about the trade offs.

Of.

Real world assets of equities or fixed income or commodities that.

For capacity not yet not yet at least for US there is a real decisions, we made as to whether.

Wallets and companies that veterinary engaging you're going to see this blending of what we call digital assets are all crypto right now and we call real world.

On a net economic basis, whether a <unk>.

The traditional finance and so as that blending happens I think youre going to.

Lower yielding lease from a higher credit quality tenant net balances out to a better economic equation for us as we think about broadening the portfolio like were as we are is investors, we're big believers generally in in diversity and risk management and so.

Youre going to see crypto customers, who traditionally have all wanted to shoot the moon.

As they mature slowly look for more conservative product, but the big buyers of conservative product.

Tony Paquette: This deal underscores our ability to execute on efficient capital structures and provides a signal of the market's confidence in our execution capabilities, the value of Helios, and the long-term economics of our lease. The facility is structured at 80% loan-to-cost, and Galaxy has already funded the equity for the phase one development. It's a three-year loan secured by all Helios phase one assets, priced at SOPR plus 475 basis points plus ancillary fees, bringing the all-in cost to approximately 10% to 11% if held to maturity. As a reminder, once phase one is stabilized and generating revenue, our plan is to refinance the construction loan at a lower cost of capital. Doing so will likely unlock equity, enabling us to recycle capital into future phases and additional developments, keeping our balance sheet flexible, our capital structure efficient, and our growth momentum strong.

If it's <unk> credit will most likely be.

Economics aside.

As we build the data center business over time diversifying the customer base is just something thats like.

But we're buyers of credit just in traditional finance side and so what does that mean it means if you're a traditional.

Of course, the core sensibility for us as as capital Allocators and investors.

Finance Company Bank or Finance company you.

You know this is coming and so you are trying to figure out a how to develop your own domain expert teams had a partner with people how to buy.

I think we are biased to want to do that over time anyway economics aside.

Whether the economics Pan out, obviously, better or not it's really going to be a function of like where the markets are at a point in time, and where quarterly use credit credit risk perceived credit risk is relative to some of the investment grade tenants.

Buy it to get ahead of some of that and so I think both from our advisory business, but R. R.

Our core business is partnering we've got a real good three year.

Great. Thanks for the color and then just kind of a bit more of a bigger picture question, but in the past few months, we've seen galaxy get more involved in the equity space, whether it's the debt investment banking advisory or even now the galaxy one for retail.

Sure.

Three year.

Highway of.

Working with the big financial institutions as partners as adviser.

And I, just don't see that slowing down and we see that every day.

Tony Paquette: The success of this financing validates our capital strategy: disciplined leverage, flexible terms, partnership with top-tier institutions, and an unwavering focus on execution. Shifting to power, as we spoke about last quarter, ERCOT's interim process and the level of scrutiny applied to large loads requesting to interconnect to the system has led to delays in additional capacity approvals across the state of Texas. Despite the longer than expected timeline, we remain convicted in our ability to work through the existing process and contract additional interconnection capacity at the Helios campus. Based on recent feedback, we believe that we are well-positioned to receive approval for a portion of the requested capacity that we've studied and submitted for review. We view this additional capacity as a transformational long-term growth opportunity for the Helios campus as we prepare for the next phase of AI and high-performance compute demand.

How do you think about the opportunities within institutional equities now that blockchain and wall Street are converging more.

Steep curve.

Literally has a meeting a day it seems with somebody who is looking at a way to partner with us.

Yes, listen if you asked me about like five year view and Chris alluded to this early.

And so hopefully we're going to announce some of those soon.

But.

Sure.

And so I'm really kind of bullish what does that mean for equity prices.

Youre going to see so much token is Asian.

<unk>.

And some of these companies listen like and anything I mean, it's hard to determine is it is our equity market overvalued fairly valued or undervalued.

Real world assets of equities or fixed income or commodities that.

Wallets and companies that that are engaging you're going to see this blending of what we call digital assets are all crypto right now and we call real world.

Yeah.

Multiples are relatively high.

In general there's lots of liquidity that's driving this thing up there is the beginnings of some AI bubble how long. It goes is everyone's gas and everything gets pulled up with that.

The traditional finance and so as that blending happens I think youre going to.

Youre going to see crypto customers, who traditionally have all wanted to shoot the moon.

I think youre going to see more and more crypto companies that are public and so there's going be more differentiation between companies that actually make money in companies that are just a story.

As they mature slowly look for more conservative product, but the big buyers of conservative product of of if it's cocainize credit will most likely be.

Tony Paquette: As we shared last quarter, during Q3, we acquired 160 acres of additional land along with an additional one gigawatt load interconnect study adjacent to the Helios campus. With this addition, the Helios campus spans over 1,500 contiguous acres under Galaxy's direct control. Our Helios campus is strategically positioned to become among the largest AI data center campuses in the world. In a power market with exponential generation and battery storage growth, Helios stands as a flagship development for both Galaxy and the AI data center industry writ large. We were also encouraged to see we broke ground on the new Pitchfork 345 kilovolt substation, which is expected to deliver an additional 3 gigawatts of power capacity with two synchronous condensers adjacent to the Helios campus starting in 2028.

Or companies that are a story that are going to make money versus companies that are story that arent going to make money.

Youre going to see a consolidation.

People that were buyers of credit just in traditional finance side and so what does that mean it means if you're a traditional.

There are a lot of sub scale crypto companies that have okay businesses that might do.

$75 million $100 million in revenue and <unk>.

Finance Company Bank or Finance company you know this is coming and so you are trying to figure out how to develop your own domain expertise how to partner with people how to buy.

Hunting around and EBITA that don't don't have the capacity to go public, but but might be takeout candidates right now everyone seems to think they're worth too much.

<unk>.

Buy it to get ahead of some of that and so I think both from our advisory business, but R. R.

As we have this euphoria.

So we probably don't really see the chairs reshuffle until there was a setback, but this is going to be an ongoing story for the next three years this merging of.

Our core business is partnering we've got a real good three year.

Our.

Three year.

<unk>.

Highway of.

Crypto.

Infrastructure with traditional finance.

Working with the big financial institutions as partners as adviser.

Tony Paquette: It's great to see both WET and ERCOT investing in critical infrastructure in the region, reinforcing their commitment to reliability and the long-term growth potential of Helios and the broader data center ecosystem. Across our data center business, we're continuing to thoughtfully and strategically add world-class talent with proven expertise in engineering, construction, and operations to our data center business. In the last few months, we've made key hires from some of the largest hyperscalers in the world across the engineering, construction, and operations verticals of the business. The caliber of this team gives me tremendous confidence in our ability to execute with precision across all three phases at Helios and to deliver on the ambitious long-term vision we have for the business. The Helios campus represents more than just a single project.

And I, just don't see that slowing down and we see that every day.

What sort of a follow up Mr angle.

Yes.

A steep curve.

Literally has a meeting a day it seems with somebody who is looking at a way to partner with us.

Okay.

The next question comes from Devin Ryan with citizens. Please go ahead.

And so hopefully we're going to announce some of those soon.

Hey, Thanks, so much and good morning, everyone and I appreciate you taking my questions here.

But.

And so I'm really kind of bullish what does that mean for equity prices.

Just wanted to touch on the digital asset Treasury opportunity.

And some of these companies listen like and anything I mean, it's hard to determine is it is our equity market over valued fairly valued or undervalued.

Galaxy is uniquely positioned here with both.

So it's a combination of your expertise, but also just the breadth of services across capital raising and asset management and trading so love to just get a little more sense of the demand Youre seeing right now from groups that want to launch a strategy.

Yeah.

Multiples are relatively high.

In general there's lots of liquidity that's driving this thing up there is the beginnings of some AI bubble how long. It goes is everyone's gas and everything gets pulled up with that.

How much do you want to be part of that I suspect youre being still very selective here and then I also appreciate it's going to be lumpy, but just wanted to get a sense of how sustainable you think this trajectory is.

Tony Paquette: It's the cornerstone of Galaxy's next-generation infrastructure strategy and the blueprint for a multi-campus, multi-tenant, multi-gigawatt platform built to power the future of AI and high-performance computing. We continue to evaluate additional power and land opportunities across the region and nationally, leveraging the blueprint and expertise developed here to replicate the Helios model. Efficient, scalable, and AI-ready infrastructure built for the next generation of compute demand. It's been a transformative year for the business, and I couldn't be more proud of how our data center business continues to build momentum and strengthen its position with each passing quarter. Thank you all. Now back to the operator for questions.

I think youre going to see more and more crypto companies that are public and so there's going be more differentiation between companies actually make money in companies that are just a story.

And just as you think about kind of the bigger picture for galaxy, how much larger could it be just as some of these stats and you probably raised tens of billions of dollars of capital potentially in the coming years. Thanks.

Or companies that are a story that are going to make money versus companies that are story that arent going to make money.

Youre going to see a consolidation.

There are a lot of sub scale crypto companies that have okay businesses that might do.

I think we're on the tail end of issuance. There is a few more coming down the pipeline, but most of the bigger ecosystems have.

$75 million $100 million in revenue in 2009, and EBITDA that don't don't have the capacity to go public, but but might be takeout candidates right now everyone seems to think they're worth too much.

Have established themselves right you've got a few.

Makes a lot of that you've got it seems like a theory that you've got a bunch of bitcoin deaths, there doesn't seem to be a lot more room and knows at least in those three tokens.

Because we have this euphoria.

And so we probably don't really see the chairs reshuffle until there's a setback, but this is going to be an ongoing story for the next three years this merging of.

Operator: We will now begin the question and answer session. To ask a question, you may press star then one on your touch-tone phone. If you're using a speaker phone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. At this time, we will pause momentarily to assemble our roster. The first question comes from James Yarrow with Goldman Sachs. Please go ahead.

Which are the three biggest tokens and ecosystem for more theres, a hyper liquid debt that hasnt.

We started training effort has been raised.

And so I think we're on the tail end.

The crypto infrastructure with traditional finance.

Yeah.

The large question is how big can some of these things grow right, we saw micro strategy and hats off to Michael Saylor.

What sort of a follow up Mr angle.

Ro.

They are far bigger than everyone expected.

Thank you.

Sure.

The next question comes from Devin Ryan with citizens. Please go ahead.

Minor right now they're aimed at that Tom Lee.

Spearhead.

Hey, Thanks, so much and good morning, everyone and I appreciate you taking my questions here.

Is having that same kind of excitement and growth.

Michael Novogratz: Good morning, and thanks for taking my questions. Congrats on the good quarter. I wanted to just touch first on the impacts of the forced liquidations we've seen across the crypto ecosystem. Has that had ramifications on market structure and your client franchise? Maybe on which customers? Maybe you could just summarize what the overall ramifications could be.

I wanted to touch on the digital asset Treasury opportunity.

I think I looked at it. This morning, it was still a 145% premium raising equity everyday buying a theory.

Galaxy is uniquely positioned here with both.

So it's a combination of your expertise, but also just the breadth of services across capital raising and asset management and trading. So let me just get a little more sense of the demand Youre seeing right now from groups that want to launch a strategy.

And so.

We'll see.

Some of these are going to trade at discounts that there'll be some consolidation.

Net net they are very good for the ecosystem in general they brought a whole lot of new investors into crypto.

How much you want to be part of that I suspect youre being still very selective here and then I also appreciate it's going to be lumpy, but just want to get a sense of how sustainable you think this trajectory is.

Chris Ferraro: Yeah. First of all, Galaxy did spectacularly well during that liquidation. I wanted to shout out our trading desk. We were quick to move. We didn't have any credit losses. We were all over our customer base. It didn't hit us where it hits everybody else, right? Who got hurt in that? First and foremost, market makers. Market makers that were market making on DeFi platforms like Hyperliquid or cross-market makers that were market making on Binance plus others. Some estimates as high as 25% of those guys got put out of business, which is significant. What does that mean? It means you have a little less liquidity. You have a little wider bid-out spreads. It probably means there's lots of talent available to hire, but certainly not great for the ecosystem in the short run. Who else got hurt was retail.

<unk>.

And I think they will evolve to be big investors.

If it's <unk>.

Staking assets or even investing in venture.

And just as you think about kind of the bigger picture for galaxy, how much larger could it be just as some of these dots and you probably raised tens of billions of dollars of capital potentially in the coming years. Thanks.

Platform companies around their major.

Uh huh.

Their major token and so in some ways. They are a supplement or even a replacement of the traditional foundation, which got setup over in Switzerland because of regulatory reasons.

Listen I think we're on the tail end of issuance. There is a few more coming down the pipeline but.

Most of the bigger ecosystems have.

And.

We have established themselves right you've got.

It's a little too early to see exactly what they become but I think that's the optimistic view.

Makes a lot of that you've got it seems like a theory that you've got a bunch of bitcoin deaths, there doesn't seem to be a lot more room and those at least in those three tokens.

Got it thank you.

Just a quick follow up here on the lending book.

Which are the three biggest tokens and ecosystem for more theres, a hyper liquid debt that hasnt officially started trading it but has been raised.

You mentioned, it's on the move $1 $8 billion now.

And I know, it's important for a number of our clients can you just talk about where the demand is coming from right now and then just how you think about capacity for growing that from here.

And so I think we're on the tail end.

Okay.

The large question is how big can some of these things grow right we saw micro strategy.

Yeah, so the yeah.

Yes.

It's off to Michael Saylor.

Demand I would say is pretty broad based and pretty similar to what it what it's been historically for us we sit in the middle of the institutional market.

Chris Ferraro: Lots of retail, especially overseas retail, trades crypto very leveraged. I've always scratched my head. I was like, we got a 40 to 80 vol asset. I'm not sure you really need two to three times the leverage on it, let alone 30 times the leverage. Part of the ethos of crypto is people want to make a lot of money on a little bit of money. There were a lot of leveraged accounts that got wiped out. Not just in crypto, but ever since I've been a trader, I've always said when Humpty Dumpty breaks, he doesn't get fixed overnight. It takes days, weeks, months for markets to kind of regain that vitality. They always do, right? People get wiped out, find new money, and they participate again. It's a short-term negative, no doubt.

Ro.

There are far bigger than anyone ever expected.

Sure.

No.

Minor right now the theory aimed at that Tom Lee.

We have both end customers, who are borrowing cash in crypto largely to two <unk>.

Spearhead.

Is having that same kind of excitement and growth.

I think I looked at it. This morning, it was still a 145% premium raising equity everyday buying a theory.

Positions more capital efficient, so putting on putting on reasonable leverage.

Into their positions, we also sit face we'll call market makers and so.

And so.

We'll see.

Some of these are going to trade at discounts that there'll be some consolidation.

It's been to borrow coin in cash for working capital effectively to make markets and then finally, there is an interdealer market.

Net net they are very good for the ecosystem in general they brought a whole lot of new investors into crypto.

Where the dealers.

<unk>.

Borrowed from one another to fill their customer demand that one is is a steady steady piece of business, but like less interesting to us.

And I think they will evolve to be big investors.

If it's.

So what we have always been focused on and what we just have started nailing.

Staking assets or even investing in venture.

Platform companies around their major.

<unk>.

Chris Ferraro: There's been lots written, and we wrote a pretty interesting research piece on why this happened. There are lawsuits being filed. When you have a significant deleveraging like that, there's both opportunity and there's short-term pain. I think that's what we're going through. You see the crypto price roughly trading sideways. Gold has outperformed Bitcoin significantly in the last five months. Bitcoin had outperformed gold for a long time. Some of that's just rotation. I think some of this recent, the last 10 days of us going sideways is still the market digesting that deleveraging.

With lower cost of capital and therefore ability to provide better straw.

Their major token and so in some ways. They are a supplement or even a replacement of the traditional foundation, which got setup over in Switzerland, because of regulatory reasons and will.

Structures for clients is really delivering.

Len borrow and locate of assets for our institutional trading clients of the firm.

Who want to.

It's a little too early to see exactly what they become but I think that's the optimistic view.

Augment their trading.

What has historically been really a fully funded basis in crypto historically, so that's that's the prime focus of the business, that's where I think it goes.

Got it thank you.

Just a quick follow up here on the lending book.

We have what we have been focused on in the market is still lacking.

As you mentioned, it's on the move $1 $8 billion now.

A.

<unk> automated margin based financing sort of prime brokerage system that allows institutions too.

I know it's important for a number of our clients can you just talk about where the demand is coming from right now and then just how you think about capacity for growing that from here.

Ah.

In a more automated fashion access capital as they trade with leverage constraints et cetera. We are we have been building that we have actually rolled it out on a preliminary basis to a small number of clients.

Michael Novogratz: That's really helpful, Claire. Thanks, Mike. Maybe just turning to one other one here. You announced Galaxy One earlier this month. Maybe you could just expand on your aspirations in the business and maybe what the right client base is. Is it existing customers or is this TAM expanding? If so, what's the new customer TAM?

Yes.

The the.

The demand I would say is pretty broad based and pretty similar to what it what it's been historically for us we sit in the middle of the institutional market.

To do that very slowly because inherent in that is a ton of risk.

We have both end customers, who are borrowing cash in crypto largely too to make.

On the system side on the price action side that.

We're just not going to take in size until we're comfortable with it until the market is ready to have it and so that's why I think longer term we're building out.

Chris Ferraro: Sure. I'll take the first part. I'm going to pitch it to Chris. Listen, we are proud of what we launched. You know, it's hard to get a product out. We started with a pretty simple MVP that's got, we think, two unique pieces. One is it's the FDIC-insured checking account that pays a darn good, the highest interest that we can find in the market. Then the 8% Galaxy offering. That's attracting clients. We're pretty excited to see the uptake. We also have stock trading and crypto trading. We have a really ambitious roadmap over the next 6 to 18 months to roll out and really turn that wallet into a one-stop, you know, one-stop serves-all wallet. It's certainly not there yet, but it will get there. Our target audience is consumers.

To make their positions more capital efficient so putting on putting on reasonable leverage.

Big will be a big driver of <unk>.

Into their positions. We also sit face we'll call market makers, and so participants who borrow coin in cash for working capital effectively to make markets and then finally, there is an interdealer market.

Very fast growth of the loan book, assuming the financing is there for it but that's how we think about the lending business today.

One area that I didn't hit on and you don't really see in the numbers at all today that we think is very interesting, though is our business historically has really been off chain with clients and.

Where the dealers.

Borrowed from one another to fill their customer demand that one is is a steady steady piece of business, but like less interesting to us.

There are nascent.

Pools being built on chain for.

For financing secured financing and in some cases under secured or unsecured financing on chain.

What we have always been focused on and what we just have started nailing.

<unk>.

With lower cost of capital and therefore ability to provide better structures.

We take that that market is very nascent we take that opportunity very seriously, though and so I could see a future where.

Structures for clients is really delivering.

Len borrow and locate of assets for our institutional trading clients of the firm.

Our financing and lending presence doesn't manifest itself purely in our loan book gross growth, but also manifests itself in our infrastructure and technology building.

Who want to.

Augment their trading.

What it has historically been really a fully funded basis in crypto historically, so that's that's the primary focus of the business, that's where I think it goes.

Chris Ferraro: It's really the high-end consumers, the people that want that same touch that Galaxy gives to our institutional clients, the same knowledge. We don't want to just limit it to that. We built it with the high-end consumer in mind. You know, the crypto ethos is everyone should get the same access to investing. I would, you know, I'd kick myself if I didn't hope that at one point we're serving a whole lot more customers than just the high-end consumer.

Where are we provide access to a much broader base of on chain financing that will.

It will be a pretty serious player. It. So we're very focused on that as an opportunity.

We have what we have been focused on in the market is still lacking.

A.

<unk> automated margin based financing sort of prime brokerage system that allows institutions too.

That's great. Thanks for all the color I appreciate it.

The final question will come from Martin Toner with ATB capital markets. Please go ahead.

Ah.

In a more automated fashion access capital as they trade with leverage constraints et cetera. We are we have been building that we have actually rolled it out on a preliminary basis to a small number of clients.

Okay.

Thanks, so much good morning, everyone.

So if I if I take your performance in digital assets this quarter, our annualized that I put a multiple on it it implies it's worth a lot.

Tony Paquette: A couple of quick things I'll add. The ethos behind launching Galaxy One on the consumer side is meant to capture the entirety of a consumer's wallet from an investment portfolio perspective. What we're going to aim to do, what we started to do, is add products that help broaden out where a high-net-worth consumer can invest their wealth, hold it, and store it, see it every day, and as frictionally as possible, reallocate and move it around across traditional investments, equities, bonds, newer investments, digital assets, and cash management.

Going to do that very slowly because inherent in that is a ton of risk.

How sustainable are these results in your view.

On the system side on the price action side that.

Listen crypto as a really a volatile asset class and I think youre going to continue to see.

We're just not going to take in size until we're comfortable with it until the market is ready to have it and so that's why I think longer term we're building out.

At least part of our results trade with that volatility, but our balance sheet. We we try to maneuver our balance sheet to have less of it when we think the market is going down and more of it when the market is going up.

Big will be a big driver of <unk>.

Very fast growth of the loan book, assuming the financing is there for it but that's how we think about the lending business today.

One area that I didn't hit on and you don't really see in the numbers at all today that we think is very interesting, though is our business historically has really been off chain with clients and.

That's a difficult game, we do it better than most but we're certainly not perfect at it. So I think youll see a correlation of our of our treasury our balance sheet assets.

Tony Paquette: By the way, that's a long-term roadmap for us on the institutional side as well. When we think about where Galaxy Digital Holdings Ltd.'s business writ large on the digital asset side is going to go, the plan is to little by little, start with digital assets, but little by little encroach upon all traditional financial services where we can, all in one place, give clients access to all the assets they own. As Mike Novogratz said, the target user base on Galaxy One is definitely different than what we've served historically. It's a TAM expanding opportunity for us. Early traction for us seems to be hitting the mark with the kind of customer that we want. Some quick stats. The average net worth of Galaxy users onboarded today is a little over $2 million. Average annual income is about $340,000.

There are nascent.

The market itself.

Pools being built on train four.

And.

The digital assets business side right the enterprise business.

<unk> financing secured financing and in some cases under secured or unsecured financing on chain.

They'll have some correlation because if the price of crypto goes down the fees, we make in lots of our asset management projects and go down often volumes go down and so crimp does not.

We take that that market is very nascent we take that opportunity very seriously, though and so I could see a future where.

Our financing and lending presence doesn't manifest itself purely in our loan book growth growth, but also manifests itself in our infrastructure and technology building.

Mature enough yet.

That you'll have.

The S&P up or down it doesn't really stop.

Morgan Stanley or Goldman Sachs from having good quarters or bad quarters, we're still going to be a little bit correlated to crypto.

Where are we provide access to a much broader base of on chain financing that will.

<unk> will be a pretty serious player. It. So we're very focused on that as an opportunity.

Our goal of course is to break that correlation and with each quarter, we're doing better at it and so looking at things like assets on platform.

That's great. Thanks for all the color I appreciate it.

Tony Paquette: We're not today targeting, would I say, low dollar balances, high leverage, short duration option trading, short-term day trading. We're really trying to target a customer base that has historically been underserved but has traditionally been the highest profitable customer segment of most consumer platforms, consumers that earn money, have wealth, and want to store and allocate it.

Much more assets on platform more stable our business is going to be.

The final question will come from Martin Toner with ATB capital markets. Please go ahead.

And so that's.

Okay.

That is a north star for Chris Tony Aaron all of Us here.

Thanks, so much good morning, everyone.

So if I if I take your performance in digital assets this quarter, our annualized that I put a multiple on it it implies it's worth a lot.

Jason C.

Our senior management constantly looks at that okay. How do we get more assets on platform, how do we stack more assets on platform.

And we're getting there we're not there yet and so.

How sustainable are these results in your view.

Michael Novogratz: Extremely helpful answers. Thank you so much.

Listen crypto as a really a volatile asset class and I think youre going to continue to see.

Unfortunately, I don't think you should annualize unless you really think we're going to continue to have this kind of great inflow.

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

At least part of our results trade with that volatility, but our balance sheet. We we try to maneuver our balance sheet to have less of it when we think the market is going down and more of it when the market is going up.

And of the crypto markets quarter after quarter, we still are bullish over the medium term.

[Analyst]: Yes, good morning. Thanks for taking the question. Shifting to the data center business and the 2.7 gigawatts that's currently awaiting approval, you said that you expect to get approval for that somewhat soon, I think. Any update on the timing there and how large, you know, any tranche that were to get approved would be? Just generally curious what sort of inbounds you've been getting on the potential for that incremental power. How has demand been there? What have those conversations been like? Thanks.

I still think.

Given the sad state of fiscal affairs in the world that bitcoin out $1 million is going to make sense one day.

That's a difficult game, we do it better than most but we're certainly not perfect at it. So I think youll see a correlation of our of our treasury our balance sheet assets with the market itself.

<unk> always said this publicly I hope it doesn't happen next year, because some real <expletive> had then happening in the U S economy.

And.

Wouldn't be good for any of us.

The digital assets business side right the enterprise business.

But I think we're going to see a slow debasement of Fiat currencies, which is going to benefit the space that we're in and so.

They'll have some correlation because if the price of crypto goes down the fees, we make in lots of our asset management projects and go down often volumes go down and so crypto is not.

Chris Ferraro: I'm looking at Chris and he's looking at me. These are tricky questions. We're not going to know until we get approval is the honest answer. We see lots of good signs that point to an optimistic outcome. Predicting the date is probably a fool's game because if we're wrong, we're going to look foolish. If you're right, you're going to be like, someone already told us that. Texas got a little overwhelmed in the last 12 months with how many people have put in for approval. There were stats out today that are kind of shocking at how many applications went in. A lot of those applications didn't have studies and didn't have, they weren't really threats to short-term approval. I'd say that in the near future, you can define that however you want. I wish I could give you a better answer, but that's where we're at.

I guess.

Yes.

The real just straight up honest answer.

We try every quarter to make this business better and we're going to keep grinding away at that.

Mature enough yet.

Is that you'll have.

The S&P up or down it doesn't really stop.

That's great. Thanks, Mike.

If I can give you one more.

Morgan Stanley or Goldman Sachs from having good quarters or bad quarters, we're still going to be a little bit correlated to crypto.

Do you think you can do GPU as a service or <unk>.

Our goal of course is to break that correlation and with each quarter, we're doing better at it and so looking at things like assets on platform.

Some of the capacity and are you thinking about it.

Sure. So I think technically the answer is yes, we could do that.

Much more assets on platform more stable our business is going to be.

Are we thinking about it the answer is no.

And the two reasons why our one.

And so that's.

That is a north star for Chris Tony Aaron all of Us here.

I think there are really good companies like our partner <unk>, who have built layers and layers of technology and Nvidia themselves were built layers and layers of technology on top of.

Jason <unk>.

Yes.

Our senior management constantly looks at that okay. How do we get more assets on platform, how do we stack more assets on platform.

Just owning raw chips that are really value add and really get the most out of what are increasingly complex GPU clusters that debt that expertise we have not invested in yet we don't have in house and I think it would be naive to think we would just start doing that by buying Gpus.

And we're getting there we're not there yet and so.

Unfortunately, I don't think you should annualize unless you really think we're going to continue to have this kind of great inflow.

The crypto markets quarter after quarter, we still are bullish over the medium term.

The other thing given that the other just just.

Tony Paquette: Yeah, a couple of things I'd add. What gives us higher confidence these days is all of the major constituents and stakeholders who we are partnered with down there in terms of getting approval but implementing interconnect. It's not just ERCOT, it's WET, it's also AEP, our utility partner there. All three are extremely active with us specifically today, approving, finalizing the studies that have been in place for us for over 18 months now. Things are progressing at a faster pace today than they had been earlier in the year. Those are the data points that give us some pretty good comfort. As Mike said, you know, ERCOT and Texas are going to take the requisite time to make sure that they're not taking on loads that are going to destabilize the grid.

I still think.

Math lesson for us is that we're not.

Given the SaaS.

Sad state of fiscal affairs in the world that bitcoin out $1 million is going to make sense one day.

We're not company and what useful life of Gpus are ultimately going to be in the cycles of GPU.

<unk> are pretty nascent still and so we like very much investing in long lived infrastructure that that we understand useful life of an we don't quite yet understand what the useful life of Gpus are and so the business model around return on capital on <unk>.

I've always said this publicly I hope it doesn't happen next year, because some real <expletive> at that happened in the U S economy.

That wouldn't be good for any of us.

But I think we're going to see a slow debasement of Fiat currencies, which is going to benefit the space that we're in.

<unk>, particularly if you're not you haven't added real expertise and real value add I think it's a really challenging thing to decide to do so we're not thinking about it.

So.

I guess.

Yes.

The real just straight up honest answer.

Oh, great. Thanks for taking the question.

We try every quarter to make this business better and we're going to keep grinding away at that.

That concludes our.

Thank you. This concludes our question and answer session I would like to turn the conference back over to Mike Novogratz founder and CEO of Galaxy digital for any closing remarks.

That's great. Thanks, Mike.

If I can give you one more.

Do you think you can do GPU as a service or <unk>.

Tony Paquette: Frankly, there's a really, really large number of ill-thought-out, not-planned, not-studied loads that have tried to get into the queue. The good thing is they're very focused on weeding that out and working with the folks who have demonstrated that they actually are going to deliver capacity when they say they're going to deliver, that's operating and at a load that they say they're going to. To hit your other question really quickly, what do we see on the demand side? I would say positive traction on that front. There are increasing proactive reach-outs to us from very large customers in addition to our current partner, CoreWeave, who all want to know when are we getting approval for how much and over what time period.

Some of the capacity and are you thinking about it.

Thanks for spending an hour with us this morning.

Sure. So I think technically the answer is yes, we could do that.

You hear from the talent, we are excited about the opportunity ahead of us.

We're charged up about our third quarter, but we're already a month into the fourth and so.

Are we thinking about it the answer is no.

The two reasons why our one.

We understand our job here and we.

We're going to.

I think there are really good companies like our partner <unk>, who have built layers and layers of technology and Nvidia themselves were built layers and layers of technology on top of.

Work hard for you guys so stay tuned.

The conference has now concluded. Thank you for attending today's presentation you may now disconnect.

Just owning raw chips that are really value add and really get the most out of what our increasingly complex GPU clusters that debt that expertise and we have not invested in yet we don't have in house and I think it would be nice to think we would just start doing that by buying Gpus.

Tony Paquette: That is a very helpful thing to see when thinking about very long-term big project decisions on potential incremental capacity that would be coming on in 2028 and 2029 and forward. I think that the demand profile for our power has continued to remain there and grow, which is a really good sign as we're getting towards the point where we feel like something's really going to happen.

The other thing given that the other just just.

Math lesson for us is that we're not.

We're not company and what useful life of Gpus are ultimately going to be in the cycles of GPU.

<unk> are pretty nascent still and so we like very much investing in long lived infrastructure that that we understand useful life of an we don't quite yet to understand what the useful life of Gpus are and so the business model around return on capital on <unk>.

[Analyst]: OK, thanks. That's great, Claire. Chris, you mentioned the plans to eventually refinance, and that would unlock some capital. Any idea how much capital the refinance could unlock that could potentially go to future build-outs? Just wondering how to think about that in our model.

<unk>, particularly if you're not you haven't added real expertise and real value add I think it's a really challenging thing to decide to do so we're not thinking about it.

Oh, great. Thanks for taking the question.

That concludes our.

Tony Paquette: Yeah. We do have a pretty strong expectation that there will be opportunities once we hit stabilization, stabilization meaning we've delivered 100% of the data halls ready for service and they're up and running and CoreWeave is paying rent. We do believe there's going to be opportunities to relook at the financing structure at that subsidiary for phase one and do something kind of cool. The way to think about it today, and look, the specifics on what that's going to look like on the forward here, so think about that Q3, Q4 of 2026, is it's a little unknown because the market is pretty dynamic and changing, right? The views of the AI boom and its sustainability are changing every day.

Thank you. This concludes our question and answer session I would like to turn the conference back over to Mike Novogratz founder and CEO of Galaxy digital for any closing remarks.

Thanks for spending an hour with us this morning.

You hear from the talent, we're excited about the opportunity ahead of us.

We're charged up about our third quarter, but we're already a month into the fourth and so.

We understand our job here and we're going to.

Work hard for you guys so stay tuned.

The conference has now concluded. Thank you for attending today's presentation you may now disconnect.

Tony Paquette: The views of CoreWeave's credit profile, which lenders are very focused on in addition to Galaxy's credit profile, are changing and getting better by the day on both fronts. The ultimate outcome is really going to be a function of where we in CoreWeave and the markets are then. The framework to think about is on a stabilized basis, there are a bunch of different examples of stabilized cap rates that one could look at and apply to come up with what sort of phase one value would be in a stabilized basis. We think about that today in the high single digits. I don't want to be too specific because I think if we in CoreWeave continue to be successful, my guess is that number is going to trend lower, not higher, depending on where long-term interest rates are.

Tony Paquette: If you think about a high single-digit cap rate as value, which is different than cost significantly in our case, given the economics associated with the lease, then we think about applying a loan to value as opposed to a loan to cost in that refinancing situation. That will imply a pretty significant opportunity to refinance at bigger numbers, which should unlock multi-hundreds of millions of dollars of equity.

[Analyst]: OK, great. Thanks for that. Congrats on the strong quarter.

Tony Paquette: Thank you.

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

Michael Novogratz: Oh, great. Thanks. Maybe just stick with some data center questions. The $1.4 billion construction financing, can you give us some guidance on kind of the cadence of when you'll pull that down? I don't think you pulled it all down at once, right?

Tony Paquette: Yeah, no, we are not pulling it down all at once. We actually pre-funded the equity on our end because as we were bringing the financing together, the project needed to continue, which is how we think about capitalizing Galaxy. Just to step back real quick, is ensuring that we have adequate capitalization to not only support the projects at their stabilization, but adequate capitalization early so that we can lean in, build on time, on budget, and use that to get the best kind of financing. We pre-funded equity. At closing, we had a relatively small draw to reset our equity back to the intended 20% equity versus 80% debt on a lend-to-cost basis. The cadence of draw really follows the project budget, but I would think about it as a relatively straight line on a twice-monthly basis through the construction project.

Tony Paquette: As you can imagine, since we closed in August, now sitting here in October, we've had a number of semi-monthly draws. We're drawing pretty regularly and we're drawing on a pretty straight line basis.

Michael Novogratz: OK, John, I'll just add, go ahead.

Tony Paquette: Yeah, I'll just add, at the end of the quarter, John, we've drawn about $430 million from the $1.4 billion loan facility. You'll see in total notes payable on the balance sheet about $1.15 billion. That comprises both the draw in that construction finance as well as our outstanding convertibles.

Michael Novogratz: OK, great. That's helpful. I was curious if you had just some thoughts on your competitive positioning in the market from a data center perspective. You probably saw the IPO of Fermi recently that's building in Amarillo, which isn't too far away from the Helios campus. They're also talking about building many gigawatts. How do you think about the competitive nature of that region? I guess more thoughts on that overall.

Chris Ferraro: It's a great question. Listen, there's multiple facets to it, right? There's the market. I think probably two earnings calls ago, we talked about a pipeline of things we were looking at to potentially buy or develop. That's all gotten far more expensive than it was, right? Markets for some of these companies, without contracts, without customers, the market is pricing in a tremendous amount of optimism. That feeds through to the price of projects. In the short run, I don't think you're going to see us reaching out and buying a whole lot more power at these prices. What's unique about the Helios campus is it's an application process. We already own the land and all the infrastructure is built close. We'll see. There's a lot of speculative, like I said, a lot of speculative money in this stuff.

Chris Ferraro: I'm sure some of those projects will get built, but many won't. We're really just laser-focused on getting our project built, financed, and getting the new land and new power approved so we can do that same process again. We're in the market every day looking at things, talking to people, trying to understand the landscape. There's a gold rush going on. You've got to be very careful during gold rushes that you build in smart places at the right price.

Tony Paquette: The other thing I'll add is I think the thing that's underrated heavily in the market today or undervalued is actual execution, right? It's relatively easy to sign and pass pieces of paper with big numbers on them and sign deals with big numbers on them. I think the most important thing for us and for long-term actual customer demand is not only can you acquire access to power and acquire land, but can you actually build on time and on budget? I think that's pretty underrated and pretty underappreciated today in the market.

Tony Paquette: As we think about the future, as companies like CoreWeave and also Microsoft and Meta and Google and you name them, their emphasis on can you actually do what you say you're going to do because we need the power when we think we're going to have it leads us to focus squarely on do we have an excellent team, do we have excellent partners in the construction side, and are we delivering on time and on budget so that we prove the right to win the next contract? I think that we're pretty far ahead of the pack when it comes to that relative to the competitors.

Michael Novogratz: Great. Very helpful. Thank you very much.

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

[Analyst]: Hey, thanks for taking the question. Congrats on a great quarter. Two questions. The first was on Helios. Other one's on more kind of operating the crypto business. On Helios, you talked about that being potentially a multi-tenant site. Just kind of curious how you're thinking about the puts and takes for financing when it comes to partnering with a neocloud like CoreWeave or maybe even a hyperscaler. Thanks.

Tony Paquette: Yep. We're not sure long-term what the composition of tenant base is going to be as we build the Helios campus. We've been, as we've said before, over and over again, and we mean it, like the partnership with CoreWeave has been excellent. They are a great partner up and down, not just on signing a commercial agreement, but in design, in understanding the difficulties that come along with procuring equipment, timelines, teams, et cetera. They're going through a transition period, and everyone should talk to them on their earnings call. They're going through a period where the market's trying to understand what CoreWeave's credit quality is today and what it should be on the forward. That's going to be a big, big determinant of their ability to get better lease rates, their ability to get financing, ability for us as the landlord to finance our projects.

Tony Paquette: Where that goes, how the market evolves its thinking on CoreWeave is something we're very focused on and something that's a little unknown today. As we think about the trade-offs for capacity not yet leased, for us, there's a real decision to be made as to whether, on a net economic basis, a lower yielding lease from a higher credit quality tenant net balances out to a better economic equation for us as we think about broadening the portfolio. As we are as investors, we're big believers generally in diversity and risk management. Economics aside, as we build the data center business over time, diversifying the customer base is just something that's like a core sensibility for us as capital allocators and investors. I think we're biased to want to do that over time anyway, economics aside.

Tony Paquette: Whether the economics pan out obviously better or not, it's really going to be a function of where the markets are at a point in time and where CoreWeave's perceived credit risk is relative to some of the investment-grade tenants.

[Analyst]: Great. Thanks for the color. Just kind of a bit more of a bigger question. In the past few months, we've seen Galaxy get more involved in the equity space, whether it's the DATS, investment banking advisory, or even now the Galaxy One for retail. How do you think about the opportunities within institutional equities now that blockchain and Wall Street are converging more?

Chris Ferraro: Yeah, listen, if you ask me my five-year view, and Chris alluded to this early, you're going to see so much tokenization of real-world assets, of equities, of fixed income, of commodities that wallets and companies that are engaging, you're going to see this blending of what we call digital assets, or we call crypto right now, and we call real-world traditional finance. As that blending happens, I think you're going to see crypto customers who traditionally have all wanted to shoot the moon as they mature slowly look for more conservative product. The big buyers of conservative product, if it's tokenized credit, will most likely be people that were buyers of credit just in the traditional finance side. What does that mean? It means if you're a traditional finance company, bank or finance company, you know this is coming.

Chris Ferraro: You're trying to figure out, A, how to develop your own domain expertise, how to partner with people, how to buy it to get ahead of some of that. I think both from our advisory business, but our core business is partnering. We've got a real good three-year highway of working with the big financial institutions as partners, as advisors. I just don't see that slowing down. We see that every day. Steve Kerr literally has a meeting a day, it seems, with somebody who's looking at a way to partner with us. Hopefully we're going to announce some of those soon. I'm really kind of bullish. What does that mean for equity prices in some of these companies? Like in anything, I mean, it's hard to determine, is our equity market overvalued, fairly valued, or undervalued? Multiples are relatively high.

Chris Ferraro: In general, there's lots of liquidity that's driving this thing up. There are the beginnings of some AI bubble. How long it goes is everyone's guess, and everything gets pulled up with that. I think you're going to see more and more crypto companies that are public. There's going to be more differentiation between companies that actually make money and companies that are just a story, or companies that are a story that are going to make money versus companies that are a story that aren't going to make money. You're going to see a consolidation. There are a lot of subscale crypto companies that have OK businesses that might do $75 million, $100 million in revenue, and $20 million in EBITDA that don't have the capacity to go public but might be takeout candidates. Right now, everyone seems to think they're worth too much because we have this euphoria.

Chris Ferraro: You probably don't really see the shares reshuffle until there's a setback. This is going to be an ongoing story for the next three years, this merging of the crypto infrastructure with traditional finance.

Operator: Was there a follow-up, Mr. Engel?

[Analyst]: Yes, thank you.

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

[Analyst]: Hey, thanks so much. Good morning, everyone. I appreciate you taking the questions here. I just want to touch on the digital asset treasury opportunity. Galaxy Digital Holdings Ltd. is uniquely positioned here with both a combination of your expertise, but also the breadth of services across capital raising, asset management, and trading. I'd love to get a little bit more sense of the demand you're seeing right now from groups that want to launch a strategy, how much you want to be a part of that. I suspect you're still being very selective here. I also appreciate it's going to be lumpy, but I want to get a sense of how sustainable you think this trajectory is.

[Analyst]: As you think about the bigger picture for Galaxy Digital Holdings Ltd., how much larger could it be as some of these digital asset treasury activities probably raise tens of billions of dollars of capital potentially in the coming years? Thanks.

Chris Ferraro: Listen, I think we're on the tail end of issuance. There's a few more coming down the pipeline, but you know, most of the bigger ecosystems have established themselves, right? You've got a few big Solana decentralized application (dApp) treasuries. You've got a few big Ethereum decentralized application (dApp) treasuries. You've got a bunch of Bitcoin decentralized application (dApp) treasuries. There doesn't seem to be a lot more room in those, at least in those three tokens, which are the three biggest tokens in the ecosystem for more. There's a Hyperliquid decentralized application (dApp) treasury that hasn't officially started trading yet, but has been raised. I think we're on the tail end. The large question is how big can some of these things grow, right? We saw MicroStrategy, and hats off to Michael Saylor, grow far, far bigger than everyone ever expected.

Chris Ferraro: Bitminer right now, the Ethereum decentralized application (dApp) treasury that Tom Lee spearheads, is having that same kind of excitement and growth. I think I looked at it this morning. It was still 145% premium, raising equity every day, buying Ethereum. We'll see. Some of these are going to trade at discounts, and there'll be some consolidation. Net-net, they're very good for the ecosystem in general. They brought a whole lot of new investors into crypto. I think they will evolve to be big investors, you know, if it's staking assets or even investing in venture platform companies around their major token. In some ways, they're a supplement or even replacement of the traditional foundation, which got set up over in Switzerland because of regulatory reasons. It's a little too early to see exactly what they become, but I think that's the optimistic view.

[Analyst]: Got it. Thank you. Just a quick follow-up here on the lending book. As you mentioned, it's on the move, $1.8 billion now. I know it's important for a number of your clients. Can you talk about where the demand is coming from right now and just how you think about capacity for growing that from here?

Tony Paquette: Yeah. The demand, I would say, is pretty broad-based and pretty similar to what it's been historically. For us, we sit in the middle of the institutional market. We have both end customers who are borrowing cash and crypto largely to make their positions more capital efficient, putting on reasonable leverage into their positions. We also sit facing what we'll call market makers, participants who borrow coin and cash for working capital effectively to make markets. Finally, there's an inter-dealer market where the dealers borrow from one another to fulfill their customer demand. That one is a steady-state piece of business, but less interesting to us.

Tony Paquette: We have always been focused on, and what we just have started nailing with lower cost of capital and therefore ability to provide better structures for clients, is really delivering lend, borrow, and locate of assets for our institutional trading clients of the firm who want to augment their trading on what has historically been really a fully funded basis in crypto. That's the prime focus of the business. That's where I think it goes. We have been focused on, and the market is still lacking, a more automated margin-based financing sort of prime brokerage system that allows institutions to, in a more automated fashion, access capital as they trade with leverage constraints, etc. We have been building that. We have actually rolled it out on a preliminary basis to a small number of clients.

Tony Paquette: We're going to do that very slowly because inherent in that is a ton of risk on the system side, on the price action side that we're just not going to take in size until we're comfortable with it, until the market is ready to have it. That's what I think longer term we're building on. That will be a big driver of very fast growth of the loan book, assuming the financing is there for it. That's how we think about the lending business today. The one area that I didn't hit on and you don't really see in the numbers at all today that we think is very interesting, though, is our business historically has really been off-chain with clients. There are nascent pools being built on-chain for financing, secured financing, and in some cases, under-secured or unsecured financing on-chain. We take that market as very nascent.

Tony Paquette: We take that opportunity very seriously, though. I could see a future where our financing and lending presence doesn't manifest itself purely in our loan book growth, but also manifests itself in our infrastructure and technology building where we provide access to a much broader base of on-chain financing that we'll be a pretty serious player in. We're very focused on that as an opportunity.

[Analyst]: That's great. Thanks for all the color. Appreciate it.

Operator: The final question will come from Martin Toner with ATB Capital Markets. Please go ahead.

Tony Paquette: Thanks so much. Good morning, everyone. If I take your performance in digital assets this quarter, I annualize it, I put a multiple on it, it implies it's worth a lot. How sustainable are these results in your view?

Michael Novogratz: Listen, crypto is a really volatile asset class, and I think you're going to continue to see, at least part of our results trade with that volatility. Our balance sheet, we try to maneuver our balance sheet, have less of it when we think the market's going down and more of it when the market's going up. That's a difficult game. We do it better than most, but we're certainly not perfect at it. I think you'll see a correlation of our treasury or our balance sheet assets with the market itself. The digital assets business side, the enterprise business, still has some correlation because if the price of crypto goes down, the fees we make in lots of our asset management projects go down, often volumes go down.

Michael Novogratz: Crypto's not mature enough yet that you'll have a, you know, if it's the S&P up or down, it doesn't really stop Morgan Stanley or Goldman Sachs from having good quarters or bad quarters. We're still going to be a little bit correlated to crypto. Our goal, of course, is to break that correlation. With each quarter, we're doing better at it. Looking at things like assets on platform, much more, the more assets on platform, the more stable our business is going to be. That is a North Star for Chris, Tony, Aaron, all of us here, Jason, Steve, our senior management constantly looks at that. Okay, how do we get more assets on platform? How do we stack more assets on platform? We're getting there. We're not there yet.

Michael Novogratz: Unfortunately, I don't think you should annualize, unless you really think you're going to continue to have this kind of great inflow into the crypto markets quarter after quarter. We still are bullish over the medium term. I still think given the sad state of fiscal affairs in the world, that Bitcoin at $1 million is going to make sense one day. I've always said this publicly. I hope it doesn't happen next year because some real shit had been happening to the U.S. economy. That wouldn't be good for any of us. I think we're going to see a slow debasement of fiat currencies, which is going to benefit this space that we're in. I guess that's the real just straight up honest answer. We try every quarter to make this business better, and we're going to keep grinding away at that.

Tony Paquette: That's great. Thanks, Mike. If I can give you one more, do you think you can do GPU as a service at Helios with some of the capacity, and are you thinking about it?

Michael Novogratz: Sure. I think technically the answer is yes, we could do that. Are we thinking about it? The answer is no. The two reasons why are, one, I think there are really good companies like our partner CoreWeave who have built layers and layers of technology, and Nvidia themselves who have built layers and layers of technology on top of just owning raw chips that are really value-add and really get the most out of what are increasingly complex GPU clusters. That expertise, we have not invested in yet. We don't have in-house. I think it would be naive to think we would just start doing that by buying GPUs. The other thing, just a math lesson for us, is we're not confident in what useful life of GPUs are ultimately going to be. The cycles of GPU efficiency are pretty nascent still.

Michael Novogratz: We like very much investing in long-lived infrastructure that we understand useful life of, and we don't quite yet understand what useful life of GPUs are. The business model around return on capital on GPUs, particularly if you haven't added real expertise and real value-add, I think is a really challenging thing to decide to do. We're not thinking about it.

Tony Paquette: Great, thanks for taking the question.

Operator: Thank you. This concludes our question and answer session. I would like to turn the conference back over to Michael Novogratz, Founder and CEO of Galaxy Digital Holdings Ltd., for any closing remarks.

Michael Novogratz: Guys, thanks for spending an hour with us this morning. I hope you hear from the tone. We're excited about the opportunity ahead of us. We're charged up about our third quarter, but we're already a month into the fourth. We understand our job here, and we're going to work hard for you guys. Stay tuned.

Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.