Galaxy Digital Q4 2025 Galaxy Digital Holdings Ltd Earnings Call | AllMind AI Earnings | AllMind AI
Q4 2025 Galaxy Digital Holdings Ltd Earnings Call
After today's presentation, there will be an opportunity to ask questions.
To ask a question, you may press star then 1 on your telephone keypad and to withdraw your question, please press star 2.
At this time, I would like to turn the conference over to Jonathan gdowski head of investor relations. Please go ahead sir.
Good morning and welcome to galaxies fourth quarter and full year 2025 earnings call.
Before we begin, please note that our remarks including answers to your questions. May include forward-looking statements.
actual results could differ materially from those described in these statements as a result of various factors, including those identified in the disclaimers, in our earnings release or other filings, which have been filed with the US Securities and Exchange Commission and on Cedar Plus
Forward-looking statements speak only as of today and will not be updated.
Additionally, we may discuss references to non-gaap metrics, the reconciliations of which can also be found in our earnings release.
Finally, none of the information on this call constitutes a recommendation solicitation or offer by Galaxy, or its Affiliates to buy or sell any Securities with that. I'll turn it over to Mike. Novar, founder, and CEO of galaxies. And good morning, everybody. We're uh New York City. We've got ice in the Hudson.
Uh still chilly out here. Listen, I I think about this quarter in our year a lot, uh, and I thought in a perfect dick dick in San dickon way that this is a tale of 3 cities uh not 2 cities. Uh and so I'm going to start with the shiny 1. Uh listen, our data center business, I couldn't be more excited for it. Uh we're now over 1.6, gigawatts of approved capacity, uh, if you haven't
Followed our, our stock is closely. As I think you have, uh, we got 830 megawatts of additional power approved. Recently, I want to give a shout out to the state of Texas. They've proven to be great to do business with, uh,
I literally have got an extra set of cowboy boots every month. Um and so we're excited. Listen, there is not a lot of 830 megawatt, new sites of power uh being granted in the United States. Uh,
We are engaging with.
Uh, potential tenants and and, you know, hopefully in the next.
You know, period of time, have have news on who's going to occupy that site?
At the same time, we've got over a thousand employees are thousand workers. I should say, they're not employees building out uh,
Speaker #1: Christopher 1.6 gigawatts improved capacity if you haven't followed our stock as closely as I think you have. We got 830 megawatts of additional power approved recently.
The site for coreweave uh, we hope to have or we will have our first data Halls. Delivered by the end of q1. Uh, and so
The data center business will start cash flowing uh, you know, quite quickly.
Speaker #1: I want to give a shout-out to the state of Texas. They've proven to be great to do business with. I literally have got an extra set of cowboy boots every month.
Speaker #1: And so, we're excited. Listen, there are not a lot of 830-megawatt new sites of power being granted in the United States. We are engaging with potential tenants and hopefully, in the next period of time, have news on who's going to occupy that site.
Uh, on top of that, you know, we're engaged in conversations with other sites, both in Texas and in other states. And so the data center business is growing. Uh, it is
A macro environment, still, where the demand for power is strong. Uh, you see that in
Speaker #1: At the same time, we've got over 1,000 workers—or I should say, they're not employees—building out the site for CoreWeave. We hope to have, or we will have, our first data halls delivered by the end of Q1.
In uh, everywhere. You're, you're, you're reading and looking, it's, it's usually the same 5 or 6 major players, uh, but underneath that, there are a whole lot of other players that are, you know, building out, data, centers themselves. And so, couldn't be more bullish on the data center business.
You know, the crypto business or the digital assets business.
that itself is a tale of 2 cities, uh,
You know, both internally at galaxies and and and broadly macro so macro wise.
Speaker #1: And so the data center business will start cash flowing quite quickly. On top of that, we're engaged in conversations with other sites, both in Texas and in another state.
You have.
The crypto coins Bitcoin and ethereum salana, you name them.
Speaker #1: And so the data center business is growing. It is a macro environment still where the demand for power is strong. You see that everywhere you're reading and looking.
Speaker #1: It's usually the same five or six major players. But underneath that, there are a whole lot of other players that are building out data centers themselves.
Have been in a bare Market. Uh, when we cracked 100 in Bitcoin. There was a lot of price action above that ever. Since then I thought it's been a, you know, 75 to 100 range. We're at the lower end of that range right now. Uh if you had told me a year ago with gold at the highs and NASDAQ at the highs and a very friendly Administration that we would be lower, I'd have said no way and so when that happens you got to think through what what's going on.
uh,
Speaker #1: And so the crypto business or the digital assets business, that itself is a tale of two cities. Both internally at Galaxy and broadly macro.
And I think there's a lot that's gone on. I think people got excited over 100,000 and felt like, ah, the race was 1, you know, all the hard work, over 15 years to get there. Uh,
Speaker #1: So macro-wise, you have the crypto coins, Bitcoin, Ethereum, Solana, you name them, have been in a bear market. When we cracked 100 in Bitcoin, there was a lot of price action above that.
Felt like some relief that the community had done something so amazing and that somehow allowed people to, to, to take profit and then that profit taking became a bit of a virus.
And so, we are Distributing a lot of those huddled coins into new buyers.
Speaker #1: Ever since then, I've thought it's been in a 75 to 100 range, where at the lower end of that range right now. If you had told me a year ago, with gold at the highs and Nasdaq at the highs, and a very friendly administration, that we would be lower, I'd have said no way.
More sellers than buyers. And the question just says, 1 to stop.
You know, do we do? We find sellers exhaustion at 1 Point. Uh, and what are the Catalyst to turn it around? I do think we're at the lower end of the range and what I would say is we've been here before, uh,
Speaker #1: And so when that happens, you've got to think through what's gone on. And I think there's a lot that's gone on. I think people got excited over 100,000 and felt like, the race was won.
anyone who's been in crypto for more than 5 years realized that part of the ethos of this whole industry is paying and that
Speaker #1: All the hard work over 15 years to get there, felt like some relief that the community had done something so amazing. And that somehow allowed people to take profit.
Often when things feel worse, it's time to be very focused and, and potentially accumulating or at least getting prepared to, uh, because when a change when, when the the type turns it turns quick.
um,
Speaker #1: And then that profit-taking became a bit of a virus. And so we are distributing a lot of those huddled coins into new buyers.
Potential catalysts are if we finally pass this. Uh, crypto legislation here in the US. Uh, we just got a new fed Governor. Uh, we can talk about that later. Um,
Speaker #1: And I learned early on as a trader, prices are set at the margin. Obviously, there have been more sellers than buyers. And the question just is when to stop.
Speaker #1: Do we find sellers exhaustion at one point? And what are the catalysts to turn it around? I do think we're at the lower end of the range.
Speaker #1: And what I would say is we've been here before. Anyone who's been in crypto for more than five years realizes that part of the ethos of this whole industry is pain.
He is not as devish as people at hoped, right? You were hoping that you were going to get someone who would do to do the president's bidding. And I think the market reaction both in precious metals and and and crypto uh, was telling and was a was a knot of recognition to Kevin warsh as a man of integrity. That said the budget deficit is still 6 and a half percent. Our debt is 40 trillion and the broad story that brought people into Bitcoin as a as a
Speaker #1: And that often when things feel worse, it's time to be very focused and potentially accumulating or at least getting prepared to. Because when the tide turns and turns quick, potential catalysts are if we finally pass this crypto legislation here in the US, we just got a new Fed governor.
Michael Novogratz: We're now over 1.6 gigawatts of improved capacity. If you haven't followed our stock as closely as I think you have, we got 830 megawatts of additional power approved recently. I wanna give a shout-out to the state of Texas. They've proven to be great to do business with. I literally have got an extra set of cowboy boots every month. And so we're excited. Listen, there is not a lot of 830-megawatt new sites of power being granted in the United States. We are engaging with potential tenants and, you know, hopefully in the next, you know, period of time, have news on who's gonna occupy that site.
Michael Novogratz: We're now over 1.6 gigawatts of improved capacity. If you haven't followed our stock as closely as I think you have, we got 830 megawatts of additional power approved recently. I wanna give a shout-out to the state of Texas. They've proven to be great to do business with. I literally have got an extra set of cowboy boots every month. And so we're excited. Listen, there is not a lot of 830-megawatt new sites of power being granted in the United States. We are engaging with potential tenants and, you know, hopefully in the next, you know, period of time, have news on who's gonna occupy that site.
Store of value as a digital gold is intact.
And so we certainly haven't given up on on our bullishness around the long-term prospects of crypto.
Um, so our balance sheet took a hit in the fourth quarter uh in some ways.
it was, unfortunately, the the mirror of the third quarter, where we had a great balance sheet and and gave a lot of that back, um,
Speaker #1: We can talk about that later. He is not as dovish as people had hoped, right? You were hoping that you were going to get someone who would do the president's bidding.
Our underlying business. However, again, back to my
Speaker #1: And I think the market reaction, both in precious metals and in crypto, was telling. And it was a nod of recognition to Kevin Warsh as a man of integrity.
Speaker #1: That said, the budget deficit is still 6.5%. Our debt is $40 trillion. And the broad story that brought people into Bitcoin as a store of value, as a digital gold, is intact.
Michael Novogratz: At the same time, we've got over 1,000 employees or 1,000 workers, I should say, they're not employees, building out the site for CoreWeave. We hope to have... We will have our first data halls delivered by the end of Q1. And so the data center business will start cash flowing, you know, quite quickly. On top of that, you know, we're engaged in conversations with other sites, both in Texas and in other states. And so the data center business is growing. It is a macro environment still where the demand for power is strong. You see that in everywhere you're reading and looking.
At the same time, we've got over 1,000 employees or 1,000 workers, I should say, they're not employees, building out the site for CoreWeave. We hope to have... We will have our first data halls delivered by the end of Q1. And so the data center business will start cash flowing, you know, quite quickly. On top of that, you know, we're engaged in conversations with other sites, both in Texas and in other states. And so the data center business is growing. It is a macro environment still where the demand for power is strong. You see that in everywhere you're reading and looking.
Speaker #1: And so we certainly haven't given up on our bullishness around the long-term prospects of crypto. So our balance sheet took a hit in the fourth quarter.
Tale of 2 cities within crypto. Uh has had a great year, right? We did over 500 million dollars in operating revenue and so I can strip out the balance sheet galaxies digital assets. Business is a big business, it's got a great brand. Uh, we've got great relationships with a lot of institutional customers. Uh, we had record trading volumes, our loan book has grown immensely 12 billion dollars of assets on our platform. Uh, and so I feel really good about our overall business. And, you know, I would say neutral, uh, to getting ready to, to, to hopefully feel bullish about the overall crypto Market.
Speaker #1: In some ways, it was unfortunately the mirror of the third quarter where we had a great balance sheet and gave a lot of that back.
The last thing I say is there's a very big and exciting bull market in what I call.
Blockchain Plumbing, our digital asset Plumbing, right?
Speaker #1: Our underlying business, however, again, back to my tale of two cities within crypto, has had a great year, right? We did over $500 million in operating revenue.
Even before the passage of this Market structure bill,
Speaker #1: And so again, strip out the balance sheet, Galaxy's digital assets business is a big business. It's got a great brand. We've got great relationships with a lot of institutional customers.
Michael Novogratz: It's usually the same 5 or 6 major players, but underneath that, there are a whole lot of other players that are, you know, building out data centers themselves. So couldn't be more bullish on the data center business. You know, the crypto business or the digital assets business, that itself is a tale of two cities. You know, both internally at Galaxy and broadly macro. So macro-wise, you have the crypto coins, Bitcoin, Ethereum, Solana, you name them, have been in a bear market. When we cracked 100 in Bitcoin, there was a lot of price action above that. Ever since then, I thought it's been in a, you know, 75 to a 100 range. We're at the lower end of that range right now.
It's usually the same 5 or 6 major players, but underneath that, there are a whole lot of other players that are, you know, building out data centers themselves. So couldn't be more bullish on the data center business. You know, the crypto business or the digital assets business, that itself is a tale of two cities. You know, both internally at Galaxy and broadly macro. So macro-wise, you have the crypto coins, Bitcoin, Ethereum, Solana, you name them, have been in a bear market. When we cracked 100 in Bitcoin, there was a lot of price action above that. Ever since then, I thought it's been in a, you know, 75 to a 100 range. We're at the lower end of that range right now.
Every trade by institution that were in touch with is figuring out in a much, much quicker Pace. How they're going to participate in this transition to a digital world.
Uh, where wallets replace?
Uh accounts.
Speaker #1: We had record trading volumes. Our loan book has grown immensely. $12 billion of assets on our platform. And so I feel really good about our overall business.
Um, and so you read about the kind of the stable coin debates that are going on in DC, uh, hopefully in the next.
Speaker #1: And I always say neutral to getting ready to hopefully feel bullish about the overall crypto market. The last thing I'd say is there's a very big and exciting bull market in what I call blockchain plumbing.
Speaker #1: Our digital asset plumbing, right? Even before the passage of this market structure bill, every trade by institution that we're in touch with is figuring out, at a much, much quicker pace, how they're going to participate in this transition to a digital world.
Michael Novogratz: If you had told me a year ago, with gold at the highs and Nasdaq at the highs and a very friendly administration, that we would be lower, I'd have said, "No way." And so when that happens, you gotta think through what, what's gone on. And I think there's a lot that's gone on. I think people got excited over 100,000 and felt like, ah, the race was won. You know, about all the hard work over 15 years to get there, felt like some relief that the community had done something so amazing, and that somehow allowed people to, to, to take profit, and then that profit-taking became a bit of a virus. And so we are distributing a lot of those HODLed coins into new buyers. And I learned early on, as a trader, prices are set at the margin.
If you had told me a year ago, with gold at the highs and Nasdaq at the highs and a very friendly administration, that we would be lower, I'd have said, "No way." And so when that happens, you gotta think through what, what's gone on. And I think there's a lot that's gone on. I think people got excited over 100,000 and felt like, ah, the race was won. You know, about all the hard work over 15 years to get there, felt like some relief that the community had done something so amazing, and that somehow allowed people to, to, to take profit, and then that profit-taking became a bit of a virus. And so we are distributing a lot of those HODLed coins into new buyers. And I learned early on, as a trader, prices are set at the margin.
Speaker #1: Where wallets replace accounts. And so, you read about the kind of stablecoin debates that are going on in D.C. Hopefully, in the next period of time, we're going to have some big announcements about different endeavors we're taking with trade-by companies.
You know, period of time. We're going to have some big announcements about, you know, different Endeavors. We're we're taking with trade by companies but Galaxy sees ourselves as a, as a partner, for lots of these people, we're going to, we're going to partner with some. We sit in our office, we're like, are they a collaborator or a competitor or a client, right? Uh, they're a little bit of all of them. And so, that's a bull market, uh, for us and it feels that way. Uh, and so, you know, we could go into a period where the old business doesn't do as well, but you're building into the new business and what is that new business? That new business is going to be more on Shane's stuff, but it's going to be traditional assets that use crypto rails you already see it. There's a
There's a protocol called XYZ which trades on the hyper liquid platform and full disclosure. We we are long hyper liquid. Um
Speaker #1: But Galaxy sees ourselves as a partner for lots of these people. We're going to partner with some. We sit in our office and we're like, are they a collaborator, or a competitor, or a client, right?
That is doing 4 billion dollars of of Revenue already. It did 4% of the, the CME, the volume and silver. And so as we see assets that are traditionally not trading on blockchain Rails, shift to the blockchain. Uh, we think that's, you know, ripe opportunity for Galaxy and for the whole Space
so at that, I will say, uh,
Speaker #1: They're a little bit of all of them. And so that's a bull market for us. And it feels that way. And so we could go into a period where the old business doesn't do as well.
Michael Novogratz: Obviously, there have been more sellers than buyers, and the question just is when to stop. You know, do we find sellers' exhaustion at one point? And what are the catalysts to turn it around? I do think we're at the lower end of the range, and what I would say is, we've been here before. Anyone who's been in crypto for more than five years realize that part of the ethos of this whole industry is pain, and that often when things feel worst, it's time to be very focused and potentially accumulating, or at least getting prepared to. Because when the tide turns, it turns quick. Potential catalysts are if we finally pass this crypto legislation here in the US. We just got a new Fed governor.
Obviously, there have been more sellers than buyers, and the question just is when to stop. You know, do we find sellers' exhaustion at one point? And what are the catalysts to turn it around? I do think we're at the lower end of the range, and what I would say is, we've been here before. Anyone who's been in crypto for more than five years realize that part of the ethos of this whole industry is pain, and that often when things feel worst, it's time to be very focused and potentially accumulating, or at least getting prepared to. Because when the tide turns, it turns quick. Potential catalysts are if we finally pass this crypto legislation here in the US. We just got a new Fed governor.
I'm hoping uh that that Chris or Tony has a a literary metaphor for their piece and I'm going to pass, pass the ball.
Speaker #1: But you're building into the new business. And what is that new business? That new business is going to be more on-chain stuff, but it's going to be traditional assets that use crypto rails.
Thanks Mike. Uh and thanks everyone for joining us on the call today.
Speaker #1: You already see it. There's a protocol called XYZ, which trades on the hyperliquid platform and full disclosure, we are long hyperliquid. That is doing $4 billion of revenue already.
It's my pleasure to present the results for uh Q4 and full year 2025 before turning it over to Chris to provide a little more context on the data centers.
Reported a gaap, net loss of 241 million or 61 cents per share.
Speaker #1: It did 4% of the CME volume in silver. And so as we see assets that are traditionally not trading on blockchain rails shift to the blockchain, we think that's ripe opportunity for Galaxy and for the whole space.
Michael Novogratz: We can talk about that later. He is not as dovish as people had hoped, right? You were hoping that you were gonna get someone who would do the president's bidding, and I think the market reaction, both in precious metals and in crypto, was telling and was a nod of recognition to Kevin Warsh, as a man of integrity. That said, the budget deficit is still 6.5%, our debt is $40 trillion, and the broad story that brought people into Bitcoin as a store of value, as a digital gold, is intact. So we certainly haven't given up on our bullishness around the long-term prospects of crypto. So our balance sheet took a hit in Q4.
We can talk about that later. He is not as dovish as people had hoped, right? You were hoping that you were gonna get someone who would do the president's bidding, and I think the market reaction, both in precious metals and in crypto, was telling and was a nod of recognition to Kevin Warsh, as a man of integrity. That said, the budget deficit is still 6.5%, our debt is $40 trillion, and the broad story that brought people into Bitcoin as a store of value, as a digital gold, is intact. So we certainly haven't given up on our bullishness around the long-term prospects of crypto. So our balance sheet took a hit in Q4.
Speaker #1: So with that, I will say I'm hoping that Chris or Tony has a literary metaphor for their piece. And I'm going to pass the
These results were impacted by approximately 160 million in 1 time items that occurred early in the earlier in the year, including right down to another expenses, related to our Legacy Bitcoin mining infrastructure costs tied to our us listing and corporate reorganization and a negative mark-to-market adjustment on the embedded, derivative associated with our exchangeable notes, which no longer impacts results following our Q2 202025 reorganization.
Speaker #1: ball. Thanks, Mike.
Despite these non-recurring charges. Our business delivered, 34 million of adjusted ebit da in 2025.
Speaker #2: And thanks, everyone, for joining us on the call today. It's my pleasure to present the results for Q4 and full year 2025 before turning it over to Chris to provide a little more context on the data centers.
This performance came against the backdrop of a 10% decline in the total crypto market cap driven by a 24% drop in Q4.
Speaker #2: First, starting with our full year 2025, we reported a gap net loss of $241 million or 61 cents per share. These results were impacted by approximately $160 million in one-time items that occurred early in the year, our legacy Bitcoin mining including write-downs and other expenses related to infrastructure, costs tied to our US listing in corporate reorganization, and a negative mark-to-market adjustment on the embedded derivative associated with our exchangeable notes, which no longer impacts results following our Q2 2025 reorganization.
This profitable performance also underscores the growing scale of our business and the increasing contribution of recurring fee and transaction oriented Revenue within our earnings mix.
Michael Novogratz: In some ways, it was unfortunately the mirror of the third quarter, where we had a great balance sheet and gave a lot of that back. Our underlying business, however, again, back to my tale of two cities within crypto, has had a great year, right? We did over $500 million in operating revenue, and so again, strip out the balance sheet, Galaxy's digital assets business is a big business. It's got a great brand. We've got great relationships with a lot of institutional customers. We had record trading volumes. Our loan book has grown immensely, $12 billion of assets on our platform. And so I feel really good about our overall business, and, you know, I would say neutral to getting ready to hopefully feel bullish about the overall crypto market.
In some ways, it was unfortunately the mirror of the third quarter, where we had a great balance sheet and gave a lot of that back. Our underlying business, however, again, back to my tale of two cities within crypto, has had a great year, right? We did over $500 million in operating revenue, and so again, strip out the balance sheet, Galaxy's digital assets business is a big business. It's got a great brand. We've got great relationships with a lot of institutional customers. We had record trading volumes. Our loan book has grown immensely, $12 billion of assets on our platform. And so I feel really good about our overall business, and, you know, I would say neutral to getting ready to hopefully feel bullish about the overall crypto market.
In our digital assets operating segments, we generated wreck record. Adjusted growth profit of 505 million in the year up from 3003. In 2024 representing a 67% year-over-year growth and acceleration that reflects both operating leverage and the strength of our Diversified business model.
growth was broad-based with strong contributions across trading Investment, Banking lending, asset management and staking
Speaker #2: Despite these non-recurring charges, our business delivered $34 million of adjusted EBITDA in 2025. This performance came against the backdrop of a 10% decline in the total crypto market cap, driven by a 24% drop in Q4.
In Treasury and corporate. We reported an adjusted gross loss of 86 million. In 2025 primarily reflecting the unrealized losses in our uh digital asset and Investment Portfolio during during the year, as a result of lower digital asset prices.
Speaker #2: This profitable performance also underscores the growing scale of our business and the increasing contribution of recurring fee and transaction-oriented revenue within our earnings mix.
In data centers as we've discussed previously, we expect Financial results in this segment to remain diminished. And until we begin recognizing Revenue under Phase 1 of our core. We core weave lease agreement which we expect to start later in, q1.
Speaker #2: In our digital assets operating segment, we generated record adjusted gross profit of $505 million in the year, up from $303 million in 2024, representing a 67% year-over-year growth.
Michael Novogratz: The last thing I'd say is, there's a very big and exciting bull market in what I call blockchain plumbing or digital asset plumbing, right? Even before the passage of this market structure bill, every TradFi institution that we're in touch with is figuring out, in a much, much quicker pace, how they're gonna participate in this transition to a digital world, where wallets replace accounts. And so you read about the kind of the stablecoin debates that are going on in DC. Hopefully, in the next, you know, period of time, we're going to have some big announcements about, you know, different endeavors we're taking with TradFi companies. But Galaxy sees ourselves as a partner for lots of these people. We're gonna partner with some.
The last thing I'd say is, there's a very big and exciting bull market in what I call blockchain plumbing or digital asset plumbing, right? Even before the passage of this market structure bill, every TradFi institution that we're in touch with is figuring out, in a much, much quicker pace, how they're gonna participate in this transition to a digital world, where wallets replace accounts. And so you read about the kind of the stablecoin debates that are going on in DC. Hopefully, in the next, you know, period of time, we're going to have some big announcements about, you know, different endeavors we're taking with TradFi companies. But Galaxy sees ourselves as a partner for lots of these people. We're gonna partner with some.
Returning to the balance sheet, we ended the year with 11.3 billion in total assets and over 3 billion dollars in equity Capital with roughly 60% allocated to our operating businesses.
Speaker #2: An acceleration that reflects both operating leverage and the strength of our diversified business model. Growth was broad-based, with strong contributions across trading, investment banking, lending, asset management, and staking.
Speaker #2: In treasury and corporate, we reported an adjusted gross loss of $86 million in 2025, primarily reflecting the unrealized losses in our digital asset and investment portfolio during the year as a result of lower digital asset prices.
That mix will fluctuate quarter over quarter, with movements in our treasury portfolio. But as stated previously over time, we expect the percentage of alloc allocated to our operating businesses to increase as we scale across both digital assets and data centers.
Speaker #2: In data centers, as we've discussed previously, we expect financial results in this segment to remain de minimis, until we begin recognizing revenue under phase one of our CoreWeave lease agreement, which we expect to start later in Q1.
Within Treasury and corporate. We held the 1.7 billion dollars of net, digital assets and Investments at year, end down 22% quarter over quarter. That decline, primarily reflects Market depreciation as Mike discussed, which resulted in unrealized losses across our Investment Portfolio.
We also closed the year with 2.6 billion dollars of cash and stable coins on balance sheet up approximately 700 million from Q3.
Speaker #2: Turning to the balance sheet, we ended the year with $11.3 billion in total assets and over $3 billion in equity capital, with roughly 60% allocated to our operating businesses.
That increase reflects 2, strategic Capital raises in Q4.
Michael Novogratz: We sit in our office, we're like, are they a collaborator or a competitor or a client, right? They're a little bit of all of them, and so that's a bull market for us, and it feels that way. And so, you know, we could go into a period where the old business doesn't do as well, but you're building into the new business. And what is that new business? That new business is going to be more on-chain stuff, but it's going to be traditional assets that use crypto rails. You already see it. There's a protocol called XYZ, which trades on the Hyperliquid platform, and full disclosure, we are long Hyperliquid. That is doing $4 billion of revenue already. It did 4% of the CME volume in silver.
We sit in our office, we're like, are they a collaborator or a competitor or a client, right? They're a little bit of all of them, and so that's a bull market for us, and it feels that way. And so, you know, we could go into a period where the old business doesn't do as well, but you're building into the new business. And what is that new business? That new business is going to be more on-chain stuff, but it's going to be traditional assets that use crypto rails. You already see it. There's a protocol called XYZ, which trades on the Hyperliquid platform, and full disclosure, we are long Hyperliquid. That is doing $4 billion of revenue already. It did 4% of the CME volume in silver.
Speaker #2: That mix will fluctuate quarter over quarter with movements in our treasury portfolio, but as stated previously, over time, we expect the percentage allocated to our operating businesses to increase as we scale across both digital assets and data centers.
A 1.3 billion exchangeable note issuance and a 325 million Equity investment in Galaxy by 1 of the world's largest asset managers, which together resulted in approximately 1.6 billion dollars of net proceeds to the company.
Cash raised in Q4, went to 2 primary uses.
Speaker #2: Within Treasury and Corporate, we held approximately $1.7 billion of net digital assets and investments at year-end, down 22% quarter-over-quarter. That decline primarily reflects market depreciation, as Mike discussed, which resulted in unrealized losses across our investment portfolio.
continued investments in data center infrastructure to ensure, we stay on track for upcoming data Hall, deliveries and paying down short-term borrowings
Going forward, uses will be focused on continued data center, build.
As well as General Corporate purposes, including ensuring sufficient liquidity for the potential repayment of the 4445 million of exchangeable notes that mature and December 2026.
Speaker #2: We also closed the year with $2.6 billion of cash and stablecoins on balance sheet, up approximately $700 million from Q3. That increase reflects two strategic capital raises in Q4.
Maintaining discipline risk and balance sheet management focused on strong capital, and liquidity remains a critical priority. As we execute our multi-pronged growth strategy, across digital assets and data centers.
Michael Novogratz: So as we see assets that are traditionally not trading on blockchain rails shift to the blockchain, we think that's, you know, ripe opportunity for Galaxy and for the whole space. So with that, I will say, I'm hoping that that Chris or Tony has a literary metaphor for their piece, and I'm going to pass, pass the ball.
So as we see assets that are traditionally not trading on blockchain rails shift to the blockchain, we think that's, you know, ripe opportunity for Galaxy and for the whole space. So with that, I will say, I'm hoping that that Chris or Tony has a literary metaphor for their piece, and I'm going to pass, pass the ball.
Speaker #2: A $1.3 billion exchangeable note issuance and a $325 million equity investment in Galaxy by one of the world's largest asset managers, which together resulted in approximately $1.6 billion of net proceeds to the company.
now, shifting to our digital assets business,
Speaker #2: Cash raised in Q4 went to two primary uses. Continued investments in data center infrastructure to ensure we stay on track for upcoming data halt deliveries, and paying down short-term borrowings.
Q4. As, as Mike mentioned, Q4 reflected lower digital asset prices softer, sentiment, and reduced activity industrywide. Coming off a record, Q3 that shift was more pronounced but we maintain strong client engagement throughout the quarter.
Anthony Paquette: Thanks, Mike. And thanks, everyone, for joining us on the call today. It's my pleasure to present the results for Q4 and full year 2025, before turning it over to Chris to provide a little more context on the data centers. First, starting with our full year 2025, we reported a GAAP net loss of $241 million or $0.61 per share. These results were impacted by approximately $160 million in one-time items that occurred earlier in the year, including write-downs and other expenses related to our legacy Bitcoin mining infrastructure, costs tied to our US listing and corporate reorganization, and a negative mark-to-market adjustment on the embedded derivative associated with our exchangeable notes, which no longer impacts results following our Q2 2025 reorganization.
Anthony Paquette: Thanks, Mike. And thanks, everyone, for joining us on the call today. It's my pleasure to present the results for Q4 and full year 2025, before turning it over to Chris to provide a little more context on the data centers. First, starting with our full year 2025, we reported a GAAP net loss of $241 million or $0.61 per share. These results were impacted by approximately $160 million in one-time items that occurred earlier in the year, including write-downs and other expenses related to our legacy Bitcoin mining infrastructure, costs tied to our US listing and corporate reorganization, and a negative mark-to-market adjustment on the embedded derivative associated with our exchangeable notes, which no longer impacts results following our Q2 2025 reorganization.
Speaker #2: Going forward, uses will be focused on continued data center build, as well as general corporate purposes, including ensuring sufficient liquidity for the potential repayment of the $445 million of exchangeable notes that mature in December 2026.
In our Global markets business, we delivered adjusted gross profit of 30 million in Q4 bringing our full full year Global markets, adjusted gross profit to 423 million up 88% year-over-year.
Average loan book held steady at 1.8 billion dollars despite broader Market pressures, which is a strong indication of the business resilience and sustained client demand.
Speaker #2: Maintaining disciplined risk and balance sheet management, focused on strong capital and liquidity, remains a critical priority as we execute our multi-pronged growth strategy across digital assets and data centers.
Digital asset trading volumes declined approximately 40% quarter over quarter, largely reflecting software client activity on the back of a record Q3 and lower industrywide volumes.
Speaker #2: Now, shifting to our digital assets business. Q4, as Mike mentioned, reflected lower digital asset prices, softer sentiment, and reduced activity industry-wide. Coming off a record Q3, that shift was more pronounced, but we maintained strong client engagement throughout the quarter.
Trading and ETF create redeem workflows.
For a quick update on Galaxy 1 or continuing to make progress here as well.
Speaker #2: In our global markets business, we delivered adjusted gross profit of $30 million in Q4, bringing our full-year global markets adjusted gross profit to $423 million up 88% year over year.
Anthony Paquette: Despite these non-recurring charges, our business delivered $34 million of adjusted EBITDA in 2025. This performance came against the backdrop of a 10% decline in the total crypto market cap, driven by a 24% drop in Q4. This profitable performance also underscores the growing scale of our business and the increasing contribution of recurring fee and transaction-oriented revenue within our earnings mix. In our digital assets operating segment, we generated record adjusted gross profit of $505 million in the year, up from $303 million in 2024, representing a 67% year-over-year growth, an acceleration that reflects both operating leverage and the strength of our diversified business model. Growth was broad-based, with strong contributions across trading, investment banking, lending, asset management, and staking.
Despite these non-recurring charges, our business delivered $34 million of adjusted EBITDA in 2025. This performance came against the backdrop of a 10% decline in the total crypto market cap, driven by a 24% drop in Q4. This profitable performance also underscores the growing scale of our business and the increasing contribution of recurring fee and transaction-oriented revenue within our earnings mix. In our digital assets operating segment, we generated record adjusted gross profit of $505 million in the year, up from $303 million in 2024, representing a 67% year-over-year growth, an acceleration that reflects both operating leverage and the strength of our diversified business model. Growth was broad-based, with strong contributions across trading, investment banking, lending, asset management, and staking.
While it's still early days, we're by the momentum. We've seen over the first 4 months since our launch
Speaker #2: Our average loan book held steady at $1.8 billion, despite broader market pressures, which is a strong indication of the business resilience and sustained client demand.
We've seen strong adoption of our high yield products, which offer Market leading yield and serve as a compelling entry point into Galaxy 1.
We've also been listening closely to our user feedback on what they want from their accounts.
Speaker #2: Digital asset trading volumes declined approximately 40% quarter over quarter, largely reflecting softer client activity on the back of a record Q3 and lower industry-wide volumes.
That's already led to the launch of daily buys, more accessible account minimums and in-app staking and custody, which are coming soon.
Speaker #2: That said, we're starting to see capital formation migrate onto blockchain rails, and we're deeply engaged with some of the world's largest banks, asset managers, and hedge funds across everything from credit and on-chain markets to electronic trading and ETF redeem workflows.
Now turning to asset management and infrastructure Solutions. We delivered adjusted gross profit of 21 million in Q4 and 82 million in 2025 up roughly 5% year-over-year.
With 12 billion dollars in assets on platform down approximately 15% quarter over quarter reflecting the impact of digital asset price depreciation.
Speaker #2: For a quick update on Galaxy One, we're continuing to make progress here as well. While it's still early days, we're encouraged by the momentum we've seen over the first four months since our launch.
Anthony Paquette: In treasury and corporate, we reported an adjusted gross loss of $86 million in 2025, primarily reflecting the unrealized losses in our digital asset and investment portfolio during the year as a result of lower digital asset prices. In data centers, as we've discussed previously, we expect financial results in this segment to remain de minimis until we begin recognizing revenue under phase one of our CoreWeave lease agreement, which we expect to start later in Q1. Turning to the balance sheet. We ended the year with $11.3 billion in total assets and over $3 billion in equity capital, with roughly 60% allocated to our operating businesses.
In treasury and corporate, we reported an adjusted gross loss of $86 million in 2025, primarily reflecting the unrealized losses in our digital asset and investment portfolio during the year as a result of lower digital asset prices. In data centers, as we've discussed previously, we expect financial results in this segment to remain de minimis until we begin recognizing revenue under phase one of our CoreWeave lease agreement, which we expect to start later in Q1. Turning to the balance sheet. We ended the year with $11.3 billion in total assets and over $3 billion in equity capital, with roughly 60% allocated to our operating businesses.
While overall flows were more muted in Q4, we continue to expand our product Suite to meet the needs of our clients.
Speaker #2: We've seen strong adoption of our high-yield products, which offer market-leading yield and serve as a compelling entry point into Galaxy One. We've also been listening closely to our user feedback on what they want from their accounts.
We partnered with Invesco to launch the investco Galaxy Salon ATP. We collaborated with State Street Global advisors to tokenize a private liquidity fund, which is a step forward.
Speaker #2: That's already led to the launch of Daily Buys, more accessible account minimums, and in-app staking and custody, which are coming soon. Now turning to asset management and infrastructure solutions, we delivered adjusted gross profit of $21 million in Q4 and $82 million in 2025, up roughly 5% year over year.
Uh uh toward broader adoption of the tokenized investment vehicles and post quarter end. We announced the initial closing of our debut tokenized cllo, a major step towards building a tokenized credit platform.
And on the infrastructure solution side in Q4, we completed our fifth integration with a leading, custodian and closed the acquisition of aluvial Finance.
Speaker #2: Galaxy ended Q4 with $12 billion in assets on platform, down approximately 15% quarter over quarter, reflecting the impact of digital asset price depreciation. While overall flows were more muted in Q4, we continued to expand our product suite to meet the needs of our clients.
Anthony Paquette: That mix will fluctuate quarter-over-quarter with movements in our treasury portfolio, but as stated previously, over time, we expect the percentage of allocated to our operating businesses to increase as we scale across both digital assets and data centers. Within treasury and corporate, we held approximately $1.7 billion of net digital assets and investments at year-end, down 22% quarter-over-quarter. That decline primarily reflects market depreciation, as Mike discussed, which resulted in unrealized losses across our investment portfolio. We also closed the year with $2.6 billion of cash and stablecoins on balance sheet, up approximately $700 million from Q3.
That mix will fluctuate quarter-over-quarter with movements in our treasury portfolio, but as stated previously, over time, we expect the percentage of allocated to our operating businesses to increase as we scale across both digital assets and data centers. Within treasury and corporate, we held approximately $1.7 billion of net digital assets and investments at year-end, down 22% quarter-over-quarter. That decline primarily reflects market depreciation, as Mike discussed, which resulted in unrealized losses across our investment portfolio. We also closed the year with $2.6 billion of cash and stablecoins on balance sheet, up approximately $700 million from Q3.
This acquisition marks, a key Milestone, bringing us into liquid staking which we see as essential for institutional adoption given its capital efficiency and alignment with broader Defi and yield strategies.
In all galaxies digital asset business made significant strides in 2025 with momentum building both strategically and operationally.
Speaker #2: We partnered with Invesco to launch the Invesco Galaxy Solana ETP. We collaborated with State Street Global Advisors to tokenize a private liquidity fund, which is a step forward toward broader adoption of tokenized investment vehicles. Post-quarter-end, we announced the initial closing of our debut tokenized CLO, a major step towards building a tokenized credit platform.
In global markets, we delivered record trading volumes including executing 1 of the largest notional, Bitcoin transactions in digital asset history and a record average loan book size.
Speaker #2: And on the infrastructure solutions side, in Q4, we completed our fifth integration with a leading custodian and closed the acquisition of Alluvial Finance. This acquisition marks a key milestone, bringing us into liquid staking, which we see as essential for institutional adoption given its capital efficiency and alignment with broader DeFi and yield strategies.
Anthony Paquette: That increase reflects two strategic capital raises in Q4, a $1.3 billion exchangeable note issuance, and a $325 million equity investment in Galaxy by one of the world's largest asset managers, which together resulted in approximately $1.6 billion of net proceeds to the company. Cash raised in Q4 went to two primary uses: continued investments in data center infrastructure to ensure we stay on track for upcoming data hall deliveries and paying down short-term borrowings. Going forward, uses will be focused on continued data center build, as well as general corporate purposes, including ensuring sufficient liquidity for the potential repayment of the $445 million of exchangeable notes that mature in December 2026.
That increase reflects two strategic capital raises in Q4, a $1.3 billion exchangeable note issuance, and a $325 million equity investment in Galaxy by one of the world's largest asset managers, which together resulted in approximately $1.6 billion of net proceeds to the company. Cash raised in Q4 went to two primary uses: continued investments in data center infrastructure to ensure we stay on track for upcoming data hall deliveries and paying down short-term borrowings. Going forward, uses will be focused on continued data center build, as well as general corporate purposes, including ensuring sufficient liquidity for the potential repayment of the $445 million of exchangeable notes that mature in December 2026.
Asset Management rolled out several new ETF, and alternative investment products and delivered 2 billion of net inflows. During the year representing, a 30% organic growth and an infrastructure Solutions. We grew our assets under stake by 750 million and scaled our platform deepening access for clients and solidifying galaxies position in institutional workflows
As we head into 2026, we're building with a clear Focus, aligning, the momentum in digital assets with the long-term needs of our clients.
Speaker #2: In all, Galaxy's digital asset business made significant strides in 2025, with momentum building both strategically and operationally. In global markets, we delivered record trading volumes, including executing one of the largest notional Bitcoin transactions in digital asset history, and a record average loan book size.
Across our platform. We're seeing deeper engagement, not just access seeking, but demand for infrastructure product and partnership.
as Mike said, the line between traditional and digital Finance is disappearing and we're designing, for more institutional demand is going not where it's been
Speaker #2: Asset management rolled out several new ETF and alternative investment products and delivered $2 billion of net inflows during the year, representing 30% organic growth.
We're meeting that moment with the unified strategy. Scaling structure products like our tokenized Co launching targeted investment strategies such as our newly formed fintech fund and delivering onchain Solutions built for institutional scale.
Anthony Paquette: Maintaining disciplined risk and balance sheet management focused on strong capital and liquidity remains a critical priority as we execute our multi-pronged growth strategy across digital assets and data centers. Now, shifting to our digital assets business. Q4, as Mike mentioned, Q4 reflected lower digital asset prices, softer sentiment, and reduced activity industry-wide. Coming off a record Q3, that shift was more pronounced, but we maintained strong client engagement throughout the quarter. In our global markets business, we delivered adjusted gross profit of $30 million in Q4, bringing our full-year global markets adjusted gross profit to $423 million, up 88% year-over-year. Our average loan book held steady at $1.8 billion, despite broader market pressures, which is a strong indication of the business resilience and sustained client demand.
Maintaining disciplined risk and balance sheet management focused on strong capital and liquidity remains a critical priority as we execute our multi-pronged growth strategy across digital assets and data centers. Now, shifting to our digital assets business. Q4, as Mike mentioned, Q4 reflected lower digital asset prices, softer sentiment, and reduced activity industry-wide. Coming off a record Q3, that shift was more pronounced, but we maintained strong client engagement throughout the quarter. In our global markets business, we delivered adjusted gross profit of $30 million in Q4, bringing our full-year global markets adjusted gross profit to $423 million, up 88% year-over-year. Our average loan book held steady at $1.8 billion, despite broader market pressures, which is a strong indication of the business resilience and sustained client demand.
Speaker #2: And in infrastructure solutions, we grew our assets under stake by $750 million, and scaled our platform, deepening access for clients and solidifying Galaxy's position in institutional workflows.
We've also realized our leadership. And operating teams behind this strategy, enhancing coordination across product infrastructure, and go to market. As we serve increasingly, sophisticated institutional clients, who are looking for Integrated Solutions across our platform,
Speaker #2: As we head into 2026, we're building with a clear focus, aligning the momentum in digital assets with the long-term needs of our clients. Across our platform, we're seeing deeper engagement—not just access seeking, but demand for infrastructure, product, and partnership.
This is where galaxy galaxy stands apart investing ahead of the curve with technology foundation and operational strength to be a full stack partner through this transition.
Speaker #2: As Mike said, the line between traditional and digital finance is disappearing, and we're designing for where institutional demand is going, not where it's been.
Despite the recent pullback in crypto prices, we enter the year with conviction and the platform to lead with that. Let me turn it over to Chris to discuss the data center business.
Speaker #2: We're meeting that moment with a unified strategy, scaling structured products like our tokenized CLO, launching targeted investment strategies, such as our newly formed fintech fund, and delivering on-chain solutions built for institutional scale.
Speaker #2: We've also realigned our leadership and operating teams behind this strategy, enhancing coordination across product, infrastructure, and go-to-market as we serve increasingly sophisticated institutional clients who are looking for integrated solutions across our platform.
Anthony Paquette: Digital asset trading volumes declined approximately 40% quarter-over-quarter, largely reflecting softer client activity on the back of a record Q3 and lower industry-wide volumes. That said, we're starting to see capital formation migrate onto blockchain rails, and we're deeply engaged with some of the world's largest banks, asset managers, and hedge funds across everything from credit and on-chain markets to electronic trading and ETF create-redeem workflows. For a quick update on Galaxy One, we're continuing to make progress here as well. While it's still early days, we're encouraged by the momentum we've seen over the first 4 months since our launch. We've seen strong adoption of our high-yield products, which offer market-leading yield and serve as a compelling entry point into Galaxy One. We've also been listening closely to our user feedback on what they want from our, their accounts.
Digital asset trading volumes declined approximately 40% quarter-over-quarter, largely reflecting softer client activity on the back of a record Q3 and lower industry-wide volumes. That said, we're starting to see capital formation migrate onto blockchain rails, and we're deeply engaged with some of the world's largest banks, asset managers, and hedge funds across everything from credit and on-chain markets to electronic trading and ETF create-redeem workflows. For a quick update on Galaxy One, we're continuing to make progress here as well. While it's still early days, we're encouraged by the momentum we've seen over the first 4 months since our launch. We've seen strong adoption of our high-yield products, which offer market-leading yield and serve as a compelling entry point into Galaxy One. We've also been listening closely to our user feedback on what they want from our, their accounts.
Thanks, Tony, and and Mike um I would normally go with we are John G, but I think today we're gonna go with um uh Go West Young man and grow with the country. Um, I could not be more pleased to share that subsequent to quarter end. We completed a large load, interconnect study and received approval from Ott for an additional 830 megawatts of power capacity at the Helios campus.
This approval more than doubles, helios's footprint of approved, power capacity, and represents a significant milestone in the long term expansion of our Flagship campus.
Speaker #2: This is where Galaxy stands apart. Investing ahead of the curve with technology, foundation, and operational strength to be a full-stack partner through this transition.
Speaker #2: Despite the recent pullback in crypto prices, we enter the year with conviction and the platform to lead. With that, let me turn it over to Chris to discuss the data center business.
With 800 megawatts, now contracted under our lease agreement with core weave. This recent approval of incremental capacity expands our leasing optionality providing additional power that can be allocated to existing, or new tenants during a period of intense demand for large-scale AI Data Center capacity.
Speaker #2: Thanks, Tony. And Mike, I would normally go with 'We are John Galt,' but I think today we're going to go with 'Go west, young man, and grow with the country.'
The timeline to energize the next 830 megawatts of capacity, will depend on will depend on several factors including the completion of certain approved? Transmission infrastructure, including a private substation.
Speaker #2: I could not be more pleased to share that subsequent to quarter end, we completed a large load interconnect study and received approval from ERCOT for an additional $830 megawatts of power capacity at the Helios campus.
Anthony Paquette: That's already led to the launch of daily buys, more accessible account minimums, and in-app staking and custody, which are coming soon. Now, turning to asset management and infrastructure solutions, we delivered adjusted gross profit of $21 million in Q4 and $82 million in 2025, up roughly 5% year over year. Galaxy ended Q4 with $12 billion in assets on platform, down approximately 15% quarter over quarter, reflecting the impact of digital asset price depreciation. While overall flows were more muted in Q4, we continued to expand our product suite to meet the needs of our clients. We partnered with Invesco to launch the Invesco Galaxy Solana ETP.
That's already led to the launch of daily buys, more accessible account minimums, and in-app staking and custody, which are coming soon. Now, turning to asset management and infrastructure solutions, we delivered adjusted gross profit of $21 million in Q4 and $82 million in 2025, up roughly 5% year over year. Galaxy ended Q4 with $12 billion in assets on platform, down approximately 15% quarter over quarter, reflecting the impact of digital asset price depreciation. While overall flows were more muted in Q4, we continued to expand our product suite to meet the needs of our clients. We partnered with Invesco to launch the Invesco Galaxy Solana ETP.
Speaker #2: This approval more than doubles Helios' footprint of approved power capacity and represents a significant milestone in the long-term expansion of our flagship campus. With 800 megawatts now contracted under our lease agreement with CoreWeave, this recent approval of incremental capacity expands our leasing optionality providing additional power that can be allocated to existing or new tenants during a period of intense demand for large-scale AI data center capacity.
With more than 1.6 gigawatts of approved, power capacity Helios is among the largest AI data center campuses currently under development and is projected to be the largest known 100% front of the meter data center campus.
We continue to pursue ambitious expansion plans beyond the capacity already approved. We have 2 applications totaling approximately 1.8 gigawatts of incremental requests progressing through various stages of the load study process
Speaker #2: The timeline to energize the next 830 megawatts of capacity will depend on several factors, including the completion of certain approved transmission infrastructure, including a private substation.
We are actively engaged with OT and closely following guidance on the timeline and requirements under the new batch process. And we're encouraged by the continued Evolution and increased Clarity of those procedures.
Turning to Construction.
Anthony Paquette: We collaborated with State Street Global Advisors to tokenize a private liquidity fund, which is a step forward toward broader adoption of tokenized investment vehicles, and post-quarter end, we announced the initial closing of our debut tokenized CLO, a major step towards building a tokenized credit platform. On the infrastructure solution side, in Q4, we completed our fifth integration with a leading custodian and closed the acquisition of Alluvial Finance. This acquisition marks a key milestone, bringing us into liquid staking, which we see as essential for institutional adoption, given its capital efficiency and alignment with broader DeFi and yield strategies. In all, Galaxy's digital asset business made significant strides in 2025, with momentum building both strategically and operationally.
We collaborated with State Street Global Advisors to tokenize a private liquidity fund, which is a step forward toward broader adoption of tokenized investment vehicles, and post-quarter end, we announced the initial closing of our debut tokenized CLO, a major step towards building a tokenized credit platform. On the infrastructure solution side, in Q4, we completed our fifth integration with a leading custodian and closed the acquisition of Alluvial Finance. This acquisition marks a key milestone, bringing us into liquid staking, which we see as essential for institutional adoption, given its capital efficiency and alignment with broader DeFi and yield strategies. In all, Galaxy's digital asset business made significant strides in 2025, with momentum building both strategically and operationally.
Speaker #2: Based on current procurement and construction schedules, we expect to begin energizing this additional capacity in late 2028 through early 2029. With more than 1.6 gigawatts of approved power capacity, Helios is among the largest AI data center campuses currently under development and is projected to be the largest known 100% front-of-the-meter data center campus.
We're prepared to deliver the First Data Hall to core. We've later in q1 as part of our Phase 1 project and remain on track to deliver the remaining data Halls representing the full 133 megawatts of critical it for Phase 1. Within the first half of the year
In order to make this possible, the team has been incredibly busy.
In the fourth quarter, the building was completely dried in meaning, the structure was fully enclosed and protected from the elements allowing us to proceed efficiently with interior work. Regardless of weather conditions.
Speaker #2: We continue to pursue ambitious expansion plans. Beyond the capacity already approved, we have two applications totaling approximately $1.8 gigawatts of incremental requests progressing through various stages of the load study process.
All generators in e-house's to support the First Data Hall are fully set in place. And importantly, every major component required to energize that First Data Hall is on-site and install.
With materials and position. We transition into commissioning.
Speaker #2: We are actively engaged with ERCOT and closely following guidance on the timelines and requirements under the new batch process, and we're encouraged by the continued evolution and increased clarity of those procedures.
As a reminder, commissioning is a multi-level process that validates the electrical and mechanical infrastructure is installed configured and operating correctly.
We began commissioning activities in the fourth quarter and have continued moving through the process.
Speaker #2: Turning to construction, we're prepared to deliver the first data hall to CoreWeave later in Q1 as part of our phase one project, and remain on track to deliver the remaining data halls, representing the full 133 megawatts of critical IT for phase one, within the first half of the year.
Anthony Paquette: In global markets, we delivered record trading volumes, including executing one of the largest notional Bitcoin transactions in digital asset history and a record average loan book size. Asset Management rolled out several new ETF and alternative investment products and delivered $2 billion of net inflows during the year, representing a 30% organic growth. In infrastructure solutions, we grew our assets under stake by $750 million and scaled our platform, deepening access for clients and solidifying Galaxy's position in institutional workflows. As we head into 2026, we're building with a clear focus, aligning the momentum in digital assets with the long-term needs of our clients. Across our platform, we're seeing deeper engagement, not just access seeking, but demand for infrastructure, product, and partnership.
In global markets, we delivered record trading volumes, including executing one of the largest notional Bitcoin transactions in digital asset history and a record average loan book size. Asset Management rolled out several new ETF and alternative investment products and delivered $2 billion of net inflows during the year, representing a 30% organic growth. In infrastructure solutions, we grew our assets under stake by $750 million and scaled our platform, deepening access for clients and solidifying Galaxy's position in institutional workflows. As we head into 2026, we're building with a clear focus, aligning the momentum in digital assets with the long-term needs of our clients. Across our platform, we're seeing deeper engagement, not just access seeking, but demand for infrastructure, product, and partnership.
Recently, severe winter weather swept across much of the country including Texas, as winter storm, Fern and heavy snow and ice move through the region.
During that period construction was temporarily, paused at several inches of snow and ice accumulated across the campus.
Speaker #2: In order to make this possible, the team has been incredibly busy. In the fourth quarter, the building was completely dried in, meaning the structure was fully enclosed and protected from the elements, allowing us to proceed efficiently with interior work regardless of weather conditions.
Even so the team responded quickly and decisively protecting critical mechanical equipment and preparing, the site for Rapid restart.
Within 5 days of the storm more than 1,000 subcontractors were back on site and construction resumed.
Speaker #2: All generators and E-houses to support the first data hall are fully set in place, and importantly, every major component required to energize that first data hall is on site and installed.
We remain on track to turn over the first day to Halt on the first quarter with the remaining data Halls, coming online by the end of the second quarter.
Speaker #2: With materials in position, we transition into commissioning. As a reminder, commissioning is a multi-level process that validates the electrical and mechanical infrastructure is installed, configured, and operating correctly.
Looking ahead, we've kicked off Earth concrete and steel, work associated, with our Phase 2 development of the Helios campus.
Speaker #2: We began commissioning activities in the fourth quarter and have continued moving through the process. Recently, severe winter weather swept across much of the country, including Texas, as Winter Storm Fern and heavy snow and ice moved through the region.
We've issued purchase orders to secure critical long lead equipment to support the additional Building Development that will house the 260 megawatts of incremental critical. It capacity for Phase 2.
Anthony Paquette: As Mike said, the line between traditional and digital finance is disappearing, and we're designing for where institutional demand is going, not where it's been. We're meeting that moment with a unified strategy, scaling structured products like our tokenized CLO, launching targeted investment strategies, such as our newly formed Fintech fund, and delivering on-chain solutions built for institutional scale. We've also realigned our leadership and operating teams behind this strategy, enhancing coordination across product, infrastructure, and go-to-market as we serve increasingly sophisticated institutional clients who are looking for integrated solutions across our platform. This is where Galaxy, Galaxy stands apart, investing ahead of the curve with technology, foundation, and operational strength to be a full-stack partner through this transition. Despite the recent pullback in crypto prices, we enter the year with conviction and the platform to lead.
As Mike said, the line between traditional and digital finance is disappearing, and we're designing for where institutional demand is going, not where it's been. We're meeting that moment with a unified strategy, scaling structured products like our tokenized CLO, launching targeted investment strategies, such as our newly formed Fintech fund, and delivering on-chain solutions built for institutional scale. We've also realigned our leadership and operating teams behind this strategy, enhancing coordination across product, infrastructure, and go-to-market as we serve increasingly sophisticated institutional clients who are looking for integrated solutions across our platform. This is where Galaxy, Galaxy stands apart, investing ahead of the curve with technology, foundation, and operational strength to be a full-stack partner through this transition. Despite the recent pullback in crypto prices, we enter the year with conviction and the platform to lead.
Speaker #2: During that period, construction was temporarily paused as several inches of snow and ice accumulated across the campus. Even so, the team responded quickly and decisively.
overall execution remains, strong constructions tracking well and Helios continues to transition from a large-scale construction project into an operational, AI data center campus positioning us to be recognized as 1 of the few companies that has proven its ability to execute in a hypers scale, AI data center development,
Turning briefly to phase 2 financing.
Speaker #2: Protecting critical mechanical equipment and preparing the site for rapid restart. Within five days of the storm, more than 1,000 subcontractors were back on site, and construction resumed.
We're continuing to evaluate various debt financing structures and are having productive conversations with a select number of potential Partners. Our focus is on maintaining a disciplined capital structure that supports long-term scalability at Helios.
Speaker #2: We remain on track to turn over the first data hall in the first quarter with the remaining data halls coming online by the end of the second quarter.
Speaker #2: Looking ahead, we've kicked off earth, concrete, and steel work associated with our phase two development of the Helios campus. We've issued purchase orders to secure critical long-lead equipment to support the additional building development that will house the 260 megawatts of incremental critical IT capacity for phase two.
Scaling Helios is just the first step in our vision of building galaxies Data Center business, into a multi gigawatt multi-tenant, multi-campus platform.
Beyond Helios. We continue to evaluate a robust pipeline of expansion opportunities across a range of possible developments.
Anthony Paquette: With that, let me turn it over to Chris to discuss the data center business.
With that, let me turn it over to Chris to discuss the data center business.
Speaker #2: Overall, execution remains strong, construction is tracking well, and Helios continues to transition from a large-scale construction project into an operational AI data center campus, positioning us to be recognized as one of the few companies that has proven its ability to execute in a hyperscale AI data center development.
We've evaluated more than 100 campuses across the us, including many in Texas. Giving our deep familiarity with erat and existing development footprint.
Christopher Ferraro: Thanks, Tony and Mike. I would normally go with, "We are John Galt," but I think today we're gonna go with, "Go west, young man, and grow with the country." I could not be more pleased to share that subsequent to quarter end, we completed a large Load Interconnect Study and received approval from ERCOT for an additional 830 megawatts of power capacity at the Helios campus. This approval more than doubles Helios' footprint of approved power capacity and represents a significant milestone in the long-term expansion of our flagship campus. With 800 megawatts now contracted under our lease agreement with CoreWeave, this recent approval of incremental capacity expands our leasing optionality, providing additional power that can be allocated to existing or new tenants during a period of intense demand for large-scale AI data center capacity.
Christopher Ferraro: Thanks, Tony and Mike. I would normally go with, "We are John Galt," but I think today we're gonna go with, "Go west, young man, and grow with the country." I could not be more pleased to share that subsequent to quarter end, we completed a large Load Interconnect Study and received approval from ERCOT for an additional 830 megawatts of power capacity at the Helios campus. This approval more than doubles Helios' footprint of approved power capacity and represents a significant milestone in the long-term expansion of our flagship campus. With 800 megawatts now contracted under our lease agreement with CoreWeave, this recent approval of incremental capacity expands our leasing optionality, providing additional power that can be allocated to existing or new tenants during a period of intense demand for large-scale AI data center capacity.
At the same time, we are actively exploring additional markets where power, availability, permitting timelines, and grid Dynamics, may offer more attractive paths to accelerate time to power.
We're seeing tremendous opportunities to scale the business and will be focused on that growth, in a measured and disciplined manner.
Speaker #2: Turning briefly to phase two financing, we're continuing to evaluate various debt financing structures and are having productive conversations with a select number of potential partners.
Speaker #2: Our focus is on maintaining a disciplined capital structure that supports long-term scalability at Helios. Scaling Helios is just the first step in our vision of building Galaxy's data center business into a multi-gigawatt, multi-tenant, multi-campus platform.
We're entering 2026 now, from a position of strength, we've laid the foundation, physically, operationally and organizationally to transition Helios from construction into an operating campus.
The work over the past year has been about preparation and precision.
The work ahead is about execution and scale.
Speaker #2: Beyond Helios, we continue to evaluate a robust pipeline of expansion opportunities across a range of possible developments. We've evaluated more than 100 campuses across the US, including many in Texas, giving our deep familiarity with ERCOT and existing development footprint.
In starting off 2026 by doubling the approved, capacity, power capacity at Helios campus and preparing to power on our First Data Center development. We expect this year will be a pivotal 1 as we continue to relentlessly execute on our plans.
Christopher Ferraro: The timeline to energize the next 830 megawatts of capacity will depend on several factors, including the completion of certain approved transmission infrastructure, including a private substation. Based on current procurement and construction schedules, we expect to begin energizing this additional capacity in late 2028 through early 2029. With more than 1.6 gigawatts of approved power capacity, Helios is among the largest AI data center campuses currently under development and is projected to be the largest known 100% front-of-the-meter data center campus. We continue to pursue ambitious expansion plans. Beyond the capacity already approved, we have two applications totaling approximately 1.8 gigawatts of incremental requests progressing through various stages of the load study process.
The timeline to energize the next 830 megawatts of capacity will depend on several factors, including the completion of certain approved transmission infrastructure, including a private substation. Based on current procurement and construction schedules, we expect to begin energizing this additional capacity in late 2028 through early 2029. With more than 1.6 gigawatts of approved power capacity, Helios is among the largest AI data center campuses currently under development and is projected to be the largest known 100% front-of-the-meter data center campus. We continue to pursue ambitious expansion plans. Beyond the capacity already approved, we have two applications totaling approximately 1.8 gigawatts of incremental requests progressing through various stages of the load study process.
We are confident in the team, the strategy and the progress we've made, and we're excited about what 2026 will bring for Helios and for Galaxy. Now back to the operator for questions. Thank you. All.
Speaker #2: At the same time, we are actively exploring additional markets where power availability, permitting timelines, and grid dynamics may offer more attractive paths to accelerate time to power.
Thank you. We will now begin the question and answer session.
to ask a question, you may press star then 1 on your touchtone phone,
Speaker #2: We're seeing tremendous opportunities to scale the business, and we'll be focused on that growth in a measured and disciplined manner. We're entering 2026 now from a position of strength.
If you are using a speaker-phone, please pick up your handset before pressing the keys.
Speaker #2: We've laid the foundation, physically, operationally, and organizationally, to transition Helios from construction into an operating campus. The work over the past year has been about preparation and precision.
If at any time your question has been addressed. You like to enjoy your question, please. Press star then 2
Please note, once your question has been addressed, we will be moving on to the next caller. If you have more than 1 question, please, rejoin, the question queue as needed.
Speaker #2: The work ahead is about execution and scale. In starting off 2026 by doubling the approved capacity, power capacity at Helios campus, and preparing to power on our first data center development, we expect this year will be a pivotal one as we continue to relentlessly execute on our plans.
At this time, we will pause momentarily to assemble our roster.
With Piper Sandler, please go ahead.
Christopher Ferraro: We are actively engaged with ERCOT and closely following guidance on the timelines and requirements under the new Batch Process, and we're encouraged by the continued evolution and increased clarity of those procedures. Turning to construction. We're prepared to deliver the first data hall to CoreWeave later in Q1 as part of our phase one project, and remain on track to deliver the remaining data halls, representing the full 133MW of Critical IT for phase one, within the first half of the year. In order to make this possible, the team has been incredibly busy. In Q4, the building was completely dried in, meaning the structure was fully enclosed and protected from the elements, allowing us to proceed efficiently with interior work regardless of weather conditions.
We are actively engaged with ERCOT and closely following guidance on the timelines and requirements under the new Batch Process, and we're encouraged by the continued evolution and increased clarity of those procedures. Turning to construction. We're prepared to deliver the first data hall to CoreWeave later in Q1 as part of our phase one project, and remain on track to deliver the remaining data halls, representing the full 133MW of Critical IT for phase one, within the first half of the year. In order to make this possible, the team has been incredibly busy. In Q4, the building was completely dried in, meaning the structure was fully enclosed and protected from the elements, allowing us to proceed efficiently with interior work regardless of weather conditions.
Speaker #2: We are confident in the team, the strategy, and the progress we've made, and we're excited about what 2026 will bring for Helios and for Galaxy.
Speaker #2: Now, back to the operator for questions. Thank you
Speaker #2: all. Thank you.
Speaker #1: We will now begin the question and answer session. To ask a question, you may press star then one on your touchstone phone. If you're using a speakerphone, please pick up your handset before pressing the keys.
Yes, good morning. Uh thanks for making the question, Mike maybe to start things off. Would love to get your thoughts on everything that's been going on in Washington around the crypto Market structure Bill. What are you hearing about the chances that bill passes? Is this a bill that you think is necessary to kind of advance that uh you know, transformation of the digital asset Plumbing this year. Um and then as as you look at the bill as it as it sits today, what aspects are you most excited for as it relates to to galaxies business. Thanks.
Speaker #1: If at any time your question has been addressed and you'd like to withdraw your question, please press star then two. Please note, once your question has been addressed, we will be moving on to the next caller.
Speaker #1: If you have more than one question, please rejoin the question queue as needed. At this time, we will pause momentarily to assemble our roster.
Christopher Ferraro: All generators and E-houses to support the first data hall are fully set in place, and importantly, every major component required to energize that first data hall is on-site and installed. With materials in position, we transition into commissioning. As a reminder, commissioning is a multilevel process that validates the electrical and mechanical infrastructure is installed, configured, and operating correctly. We began commissioning activities in Q4 and have continued moving through the process. Recently, severe winter weather swept across much of the country, including Texas, as Winter Storm Fern and heavy snow and ice moved through the region. During that period, construction was temporarily paused as several inches of snow and ice accumulated across the campus. Even so, the team responded quickly and decisively, protecting critical mechanical equipment and preparing the site for rapid restart.
All generators and E-houses to support the first data hall are fully set in place, and importantly, every major component required to energize that first data hall is on-site and installed. With materials in position, we transition into commissioning. As a reminder, commissioning is a multilevel process that validates the electrical and mechanical infrastructure is installed, configured, and operating correctly. We began commissioning activities in Q4 and have continued moving through the process. Recently, severe winter weather swept across much of the country, including Texas, as Winter Storm Fern and heavy snow and ice moved through the region. During that period, construction was temporarily paused as several inches of snow and ice accumulated across the campus. Even so, the team responded quickly and decisively, protecting critical mechanical equipment and preparing the site for rapid restart.
Yeah, great question. Um, first I would say we have spent a lot of time on this. Uh, we've got a great team in DC. Uh, I have been down myself a bunch and have literally spent more time with Senators, both on the left and the right in the last
8 weeks that I have in my life combined. Um,
Speaker #1: And today's first question comes from Patrick Moley with Piper Sandler. Please go ahead.
I guess the the top line is I think a deal gets done.
Speaker #1: ahead. Yes, good
Speaker #2: morning. Thanks for making the question. Mike, maybe to start things off, would love to get your thoughts on everything that's been going on in Washington around the crypto market structure bill.
Speaker #2: What are you hearing about the chances that bill passes? Is this a bill that you think is necessary to kind of advance that transformation of the digital asset plumbing this year?
Uh, if you had to put a percentage on it, I would say it's 75.80% right now. Uh, and that's for a bunch of reasons. Both parties feel a necessity to get it done, right? The Republicans is kind of took all this crypto money and ran that they were going to be the
Speaker #2: And then, as you look at the bill as it sits today, what aspects are you most excited for as it relates to Galaxy's business?
Speaker #2: Thanks.
The party of crypto and get stuff done. And so, they have a tremendous amount of pressure on their side. And quite frankly, Democrats realized last election cycle that being anti crypto was a, a really dumb.
Speaker #3: Yeah, great question. First, I would say we have a lot of time on this. We've got a great team in DC. I have been down myself a bunch and have literally spent more time with senators both on the left and the right in the last eight weeks than I have in my life combined.
Christopher Ferraro: Within 5 days of the storm, more than 1,000 subcontractors were back on site and construction resumed. We remain on track to turn over the first data hall in Q1, with the remaining data halls coming online by the end of Q2. Looking ahead, we've kicked off earth, concrete, and steel work associated with our phase two development of the Helios campus. We've issued purchase orders to secure critical long lead equipment to support the additional building development that will house the 260MW of incremental critical IT capacity for phase two. Overall, execution remains strong, construction is tracking well, and Helios continues to transition from a large-scale construction project into an operational AI data center campus, positioning us to be recognized as one of the few companies that has proven its ability to execute on a hyperscale AI data center development.
Within 5 days of the storm, more than 1,000 subcontractors were back on site and construction resumed. We remain on track to turn over the first data hall in Q1, with the remaining data halls coming online by the end of Q2. Looking ahead, we've kicked off earth, concrete, and steel work associated with our phase two development of the Helios campus. We've issued purchase orders to secure critical long lead equipment to support the additional building development that will house the 260MW of incremental critical IT capacity for phase two. Overall, execution remains strong, construction is tracking well, and Helios continues to transition from a large-scale construction project into an operational AI data center campus, positioning us to be recognized as one of the few companies that has proven its ability to execute on a hyperscale AI data center development.
Political strategy and you know the whole party didn't have enough knowledge about crypto. It was really being driven by a small faction led by Elizabeth Warren, Gary Gensler. You know, you've heard that story but broadly the moderates in the party now say, hey, this should be a bipartisan issue and we want it off the table politically.
Speaker #3: I guess the top line is, I think a deal gets done. If you had to put a percentage on it, I would say it's 75%, 80% right now.
And so, the politics lines up.
Speaker #3: And that's for a bunch of reasons. Both parties feel the necessity to get it done. The Republicans kind of took all this crypto money and ran that they were going to be the party of crypto.
Speaker #3: And get stuff done. And so they have a tremendous amount of pressure on their side. And, quite frankly, the Democrats realized last election cycle that being anti-crypto was a really dumb political strategy.
Uh, I would say, you know, we're on the putting green, uh, between the, the Republican version and the Democratic version. Uh, there have been a couple really controversial pieces to it. I think there's there's a agreement now on most of those, the last 1 being interest on stable coins and there was a meeting in DC yesterday.
Both sides laid out their cases again.
Christopher Ferraro: Turning briefly to phase two financing. We're continuing to evaluate various debt financing structures and are having productive conversations with a select number of potential partners. Our focus is on maintaining a disciplined capital structure that supports long-term scalability at Helios. Scaling Helios is just the first step in our vision of building Galaxy's data center business into a multi-gigawatt, multi-tenant, multi-campus platform. Beyond Helios, we continue to evaluate a robust pipeline of expansion opportunities across a range of possible developments. We've evaluated more than 100 campuses across the US, including many in Texas, giving our deep familiarity with ERCOT an existing development footprint. At the same time, we are actively exploring additional markets where power availability, permitting timelines, and grid dynamics may offer more attractive paths to accelerate time to power.
Turning briefly to phase two financing. We're continuing to evaluate various debt financing structures and are having productive conversations with a select number of potential partners. Our focus is on maintaining a disciplined capital structure that supports long-term scalability at Helios. Scaling Helios is just the first step in our vision of building Galaxy's data center business into a multi-gigawatt, multi-tenant, multi-campus platform. Beyond Helios, we continue to evaluate a robust pipeline of expansion opportunities across a range of possible developments. We've evaluated more than 100 campuses across the US, including many in Texas, giving our deep familiarity with ERCOT an existing development footprint. At the same time, we are actively exploring additional markets where power availability, permitting timelines, and grid dynamics may offer more attractive paths to accelerate time to power.
Uh, the White House is putting pressure and say guys, you're going to come up with a solution yourselves. Uh, and I do think
The crypto industry.
Speaker #3: And the whole party didn't have enough knowledge about crypto. It was really being driven by a small faction led by Elizabeth Warren, Gary Gensler, you've heard that story.
you know, when you think about it the Revolutionary uh,
Speaker #3: But broadly, the moderates in the party now say, "Hey, this should be a bipartisan issue." And we want it off the table politically. And so the politics lines up.
Trans transformative technology would be an interest-bearing stable coin, that's not going to happen, some version of that and no interest is going to be the compromise. And so I do think we'll get to a compromise in the next, you know, 2 to 6 weeks and you'll get a bill passed.
Speaker #3: I would say we're on the putting green. Between the Republican version and the Democratic version, there have been a couple of really controversial pieces to it.
It's important for a lot of reasons.
Speaker #3: I think there's agreement now on most of those. The last one being interest on stablecoins. And there was a meeting in DC yesterday. Both sides laid out their cases again.
I said earlier all the trade by companies are already working working on their transition right to where I mean listen black and says I want every Market you know on chain
and,
Christopher Ferraro: We're seeing tremendous opportunities to scale the business, and we'll be focused on that growth in a measured and disciplined manner. We're entering 2026 now from a position of strength. We've laid the foundation, physically, operationally, and organizationally, to transition Helios from construction into an operating campus. The work over the past year has been about preparation and precision. The work ahead is about execution and scale. In starting off 2026 by doubling the approved capacity, power capacity at Helios campus and preparing to power on our first data center development, we expect this year will be a pivotal one as we continue to relentlessly execute on our plans. We are confident in the team, the strategy, and the progress we've made, and we're excited about what 2026 will bring for Helios and for Galaxy. Now back to the operator for questions. Thank you all.
We're seeing tremendous opportunities to scale the business, and we'll be focused on that growth in a measured and disciplined manner. We're entering 2026 now from a position of strength. We've laid the foundation, physically, operationally, and organizationally, to transition Helios from construction into an operating campus. The work over the past year has been about preparation and precision. The work ahead is about execution and scale. In starting off 2026 by doubling the approved capacity, power capacity at Helios campus and preparing to power on our first data center development, we expect this year will be a pivotal one as we continue to relentlessly execute on our plans. We are confident in the team, the strategy, and the progress we've made, and we're excited about what 2026 will bring for Helios and for Galaxy. Now back to the operator for questions. Thank you all.
Speaker #3: The White House is putting pressure and saying, "Guys, you're going to come up with a solution yourselves." And I do think the crypto industry when you think about it, the revolutionary transformative technology would be an interest-bearing stablecoin.
You're seeing a bunch of on-chain activity uh both both in in Sam, Sam boxes and actually on public chains. Uh, that's going to wildly accelerate post the clarity that comes with the clarity bill.
and so,
Speaker #3: That's not going to happen. Some version of that and no interest is going to be the compromise. And so I do think we'll get to a compromise in the next two to six weeks, and you'll get a bill passed.
you know, a defi is a space to watch, right? Uh, how defi impacts the traditional exchanges, I already talked about both hyper liquid and XYZ and just the the explosive growth. Those things have, uh,
a, there's a regulatory arm in that um,
Right? They have less overhead. Uh, if they have
Speaker #3: It's important for a lot of reasons. I said earlier, all the trade flight companies are already working on their transition to where—I mean, listen, Falcon says, 'I want every market on chain.' And you're seeing a bunch of on-chain activity, both in sandboxes and actually on public chains.
A different uh regulatory environment very similar quite frankly to what we're seeing with prediction markets and traditional gambling uh in sports betting.
And so I I do think that's that's like the flag The Checkered Flag going down. I think there's a lot of
Operator: Thank you. We will now begin the question and answer session. To ask a question, you may press star then one on your touchtone phone. If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you'd like to withdraw your question, please press star then two. Please note, once your question has been addressed, we will be moving on to the next caller. If you have more than one question, please rejoin the question queue as needed. At this time, we will pause momentarily to assemble our roster. And today's first question comes from Patrick Mulvey with Piper Sandler. Please go ahead.
Operator: Thank you. We will now begin the question and answer session. To ask a question, you may press star then one on your touchtone phone. If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you'd like to withdraw your question, please press star then two. Please note, once your question has been addressed, we will be moving on to the next caller. If you have more than one question, please rejoin the question queue as needed. At this time, we will pause momentarily to assemble our roster. And today's first question comes from Patrick Mulvey with Piper Sandler. Please go ahead.
trade by companies that
Probably feel short. And so you'll see a pickup at m&a post post that
that, um,
Speaker #3: That's going to wildly accelerate post the clarity that comes with the Clarity Bill. And so, DeFi is a space to watch. How DeFi impacts the traditional exchanges.
That bill passed it.
Thank you. And our next question today comes from Brett and I block a cancer for Gerald. Please go ahead.
Speaker #3: I already talked about both Hyperliquid and XYZ, and just the explosive growth those things have. A, there's a regulatory arm in that. They have less overhead if they have a different regulatory environment.
[Analyst] (Piper Sandler): Yes, good morning. Thanks for taking the question. Mike, maybe to start things off, would love to get your thoughts on everything that's been going on in Washington around the crypto market structure bill. What are you hearing about the chances that bill passes? Is this a bill that you think is necessary to kinda advance that, you know, transformation of the digital asset plumbing this year? And then as you look at the bill as it sits today, what aspects are you most excited for as it relates to Galaxy's business? Thanks.
Patrick Moley: Yes, good morning. Thanks for taking the question. Mike, maybe to start things off, would love to get your thoughts on everything that's been going on in Washington around the crypto market structure bill. What are you hearing about the chances that bill passes? Is this a bill that you think is necessary to kinda advance that, you know, transformation of the digital asset plumbing this year? And then as you look at the bill as it sits today, what aspects are you most excited for as it relates to Galaxy's business? Thanks.
Speaker #3: Very similar, quite frankly, to what we're seeing with prediction markets and traditional gambling and sports betting. And so I do think that's like the flag—the checkered flag—going down.
Speaker #3: I think there's a lot of trade flight companies that probably fell short. And so you'll see a pickup in M&A post that bill passing.
Hi guys, this is Gareth on for Brett. I was just wondering if you could go into kind of the future potential buildout at Helios. So I know you guys uh recently talked about the incremental 830 megawatts with Urgot, we were wondering if throughout that study you could provide kind of how it went and if there were any glaring constraints. And also I know you talked about kind of 2 applications, totaling, 1.8, gigawatts and process. Maybe if you could kind of touch on if you think that process to go similarly with this incremental, 830 you just received
I will, uh, yeah, I'll, I'll, I'll take the first crack at that. So, um, you know, we we have had, uh, between the um,
Christopher Ferraro: Yeah, great question. First, I would say we have spent a lot of time on this. We've got a great team in DC. I have been down myself a bunch, and have literally spent more time with senators, both on the left and the right, in the last eight weeks than I have in my life combined. I guess the top line is, I think a deal gets done. If you had to put a percentage on it, I would say it's 75-80% right now. And that's for a bunch of reasons. Both parties feel a necessity to get it done, right? The Republicans kind of took all this crypto money and ran, that they were gonna be the party of crypto and get stuff done, and so they have a tremendous amount of pressure on their side.
Christopher Ferraro: Yeah, great question. First, I would say we have spent a lot of time on this. We've got a great team in DC. I have been down myself a bunch, and have literally spent more time with senators, both on the left and the right, in the last eight weeks than I have in my life combined. I guess the top line is, I think a deal gets done. If you had to put a percentage on it, I would say it's 75-80% right now. And that's for a bunch of reasons. Both parties feel a necessity to get it done, right? The Republicans kind of took all this crypto money and ran, that they were gonna be the party of crypto and get stuff done, and so they have a tremendous amount of pressure on their side.
Speaker #1: Thank you. And our next. Thank you for sharing. Please go ahead.
Speaker #2: Hi, guys. This is Garethon for Brett. I was just wondering if you could go into kind of the future potential buildout at Helios? So I know you guys recently talked about the incremental $830 megawatts with ERCOT.
Speaker #2: We were wondering if throughout that study, you could provide kind of how it went and if there were any glaring constraints. And also, I know you talked about kind of two applications totaling $1.8 gigawatts in process.
Speaker #2: Maybe if you could kind of touch on if you think that process to go similarly with this incremental $830 you just received.
Speaker #4: Sure, I will—yeah, I'll take the first crack at that. So, we have had, between the prior interconnect requests put in from the Helios campus that we purchased from Argo...
Christopher Ferraro: Quite frankly, Democrats realized last election cycle that being anti-crypto was a really dumb-
Quite frankly, Democrats realized last election cycle that being anti-crypto was a really dumb-
Michael Novogratz: ... political strategy. You know, the whole party didn't have enough knowledge about crypto. It was really being driven by a small faction led by Elizabeth Warren, Gary Gensler. You've heard that story. But broadly, the moderates in the party now say, "Hey, this should be a bipartisan issue, and we want it off the table politically." So the politics lines up. I would say, you know, we're on the putting green between the Republican version and the Democratic version. There have been a couple of really controversial pieces to it. I think there's agreement now on most of those, the last one being interest on stablecoins. There was a meeting in DC yesterday. Both sides laid out their cases again.
Michael Novogratz: ... political strategy. You know, the whole party didn't have enough knowledge about crypto. It was really being driven by a small faction led by Elizabeth Warren, Gary Gensler. You've heard that story. But broadly, the moderates in the party now say, "Hey, this should be a bipartisan issue, and we want it off the table politically." So the politics lines up. I would say, you know, we're on the putting green between the Republican version and the Democratic version. There have been a couple of really controversial pieces to it. I think there's agreement now on most of those, the last one being interest on stablecoins. There was a meeting in DC yesterday. Both sides laid out their cases again.
Prior um interconnect requests put in from the Helios campus that that we purchased um from Argo uh back in 2022. Plus some incremental um, interconnect requests that we've accumulated through, um, through land, Acquisitions adjacent to Helios. We've had, we've had north of 3.5 gigawatts in total, our 800 approved plus, the remaining amount, um, with our kott at various stages, of either internal, study on our side or, um, or study with erat and wet, um, to get done the, um, uh, the 830 that we received a firm approval, for, for OT. Um, was part of actually a, a larger request that ultimately Urgot in looking at, where we were in the queue and the the the current grid capacity at the time concluded um through various stages of study that um the the grid could accept an additional in 830 megawatts. Um, today which is which is what we got from approval for um,
Speaker #4: Back in 2022, plus some interconnect requests that we've accumulated through land acquisitions adjacent to Helios, we've had north of 3.5 gigawatts in total, or 800 approved, plus the remaining amounts with ERCOT at various stages of either internal study on our side or study with ERCOT.
We as we said in my comments um we currently have uh various different studies um and requests into Ott for an incremental, 1.8 gigawatt on top of. Now our 1.6 that is that is already approved over 1.6. It's already approved. Um that 1.8 gigawatts of incremental load,
Speaker #4: To get done. The $830 million that we received from approval for ERCOT was actually part of a larger request that, ultimately, ERCOT, in looking at where we were in the queue and the current grid capacity at the time, concluded through various stages of study that the grid could accept an additional 830 megawatts today, which is what we got approval for.
Michael Novogratz: The White House is putting pressure and say, "Guys, you're gonna come up with a solution yourselves." And I do think the crypto industry, you know, when you think about it, the revolutionary transformative technology would be an interest-bearing stablecoin. That's not gonna happen. Some version of that and no interest is gonna be the compromise. And so I do think we'll get to a compromise in the next, you know, 2 to 6 weeks, and you'll get a bill passed. It's important for a lot of reasons. I said earlier, all the trade buy companies are already working on their transition, right? To where - I mean, listen, Paul Ackert says, "I want every market, you know, on-chain." And you're seeing a bunch of on-chain activity, both in sandboxes and actually on public chains.
The White House is putting pressure and say, "Guys, you're gonna come up with a solution yourselves." And I do think the crypto industry, you know, when you think about it, the revolutionary transformative technology would be an interest-bearing stablecoin. That's not gonna happen. Some version of that and no interest is gonna be the compromise. And so I do think we'll get to a compromise in the next, you know, 2 to 6 weeks, and you'll get a bill passed. It's important for a lot of reasons. I said earlier, all the trade buy companies are already working on their transition, right? To where - I mean, listen, Paul Ackert says, "I want every market, you know, on-chain." And you're seeing a bunch of on-chain activity, both in sandboxes and actually on public chains.
Speaker #4: As we said in my comments, we currently have various different studies and requests into ERCOT for an incremental $1.8 gigawatts on top of now our $1.6 that is already over $1.6 that's already approved.
Speaker #4: That $1.8 gigawatts of incremental load is now very clearly, which is different than our $830 that we just received, is now very clearly going to be part of a new set of frameworks that ERCOT has worked out and is still sort of working through.
Um, is now very clearly, um, which is different than our 8:30 that that we just received is now very clearly going to be part of, um, a new set of, uh, Frameworks that Ott has worked out and is still sort of working through, um, which is this batch processing where they're they're going to look at, um, various batches of requests. Given the how, how large the queue has grown in our cot for requests and sort of look at, um, groups of requests together. And, um, and in each group look at what the what, what the grid Can, it can, uh, absorb today, where that where those requests are coming, what infrastructure upgrades need to be made and then sort of pro rat a part out um uh new approvals um in a step-by-step process. And so it's a little un the timing on uh on the next incremental load approvals for us or anyone else in the queue is still is still a little unknown and and we think is going to take a lot of time for ot to really sort out the process on
Speaker #4: Which is this batch processing where they're going to look at various batches of requests given how large the queue has grown in ERCOT for requests.
Michael Novogratz: That's gonna wildly accelerate post the clarity that comes with the clarity bill. And so, you know, DeFi is a space to watch, right? How DeFi impacts the traditional exchanges. I already talked about both Hyperliquid and XYZ, and just the explosive growth those things have. There's a regulatory arm in that, right? They have less overhead, if they have a different regulatory environment. Very similar, quite frankly, to what we're seeing with prediction markets and traditional gambling, and sports betting. And so I do think that's like the checkered flag going down. I think there's a lot of trade buy companies that probably feel short, and so you'll see a pickup in M&A post that bill passing.
That's gonna wildly accelerate post the clarity that comes with the clarity bill. And so, you know, DeFi is a space to watch, right? How DeFi impacts the traditional exchanges. I already talked about both Hyperliquid and XYZ, and just the explosive growth those things have. There's a regulatory arm in that, right? They have less overhead, if they have a different regulatory environment. Very similar, quite frankly, to what we're seeing with prediction markets and traditional gambling, and sports betting. And so I do think that's like the checkered flag going down. I think there's a lot of trade buy companies that probably feel short, and so you'll see a pickup in M&A post that bill passing.
Speaker #4: And sort of look at groups of requests together, and in each group look at what the grid can absorb today, where those requests are coming from, what infrastructure upgrades need to be made, and then sort of pro rata part out new approvals in a step-by-step process.
And so you know, from our seat getting the 830 in 1 large chunk fully approved from us before. The new batch process is in place was sort of um, uh, uh, worth worth worth worth its weight for us. And so, we're very excited about that. I think I got to go forward basis us and everyone else in the queue are going to have, um, uh, a number of the new processes to go through. And so, we're, we're, we're very focused on now. Working through an understanding, what is important to Urgot and, uh, and where those stand in the in the queue, let me just add, you know, given those Dynamics, uh,
Speaker #4: And so, it's a little—the timing on the next incremental load approvals for us or anyone else in the queue is still a little unknown, and we think it's going to take a lot of time for ERCOT to really sort out the process on.
Shout out to our whole mining uh team data center team both here in New York and Texas because uh, you know, in lots of ways we got in under the line and that was because we were prepared way ahead and we were, we were very diligent, the whole process and so could it be more thrilled?
Speaker #4: And so, from our seat, getting the $830 in one large chunk, fully approved from us before the new batch process is in place, was sort of worth its weight for us.
You know, it makes that power more valuable. There are not a lot of 830 megawatt chunks of power available in Texas or the United States. You know, there's a lot of people building from the future behind behind the meter or uh, and so I think um,
Speaker #4: And so we're very excited about that. I think, on a go-forward basis, we and everyone else in the queue are going to have a number of new processes to go through.
you know, we'll see how the negotiations go with our next group of tenants but it it leaves me pretty bullish.
Speaker #4: And so we're very focused on now working through and understanding what is important to ERCOT and where those stand in the queue.
Thank you. And our next question. Today comes from James yarrow at Goldman Sachs. Please go ahead.
Operator: Thank you. Our next question today comes from Brett Knoblauch at Cantor Fitzgerald. Please go ahead.
Operator: Thank you. Our next question today comes from Brett Knoblauch at Cantor Fitzgerald. Please go ahead.
Speaker #3: Let me just add, given those dynamics, first, shout out to our whole mining team. Data center team, both here in New York and Texas, because in lots of ways, we got in under the line.
[Analyst] (Cantor Fitzgerald): Hi, guys. This is Gareth on for Brett. I was just wondering if you could go into kinda the future potential build-out at Helios. So I know you guys recently talked about the incremental 830MW with ERCOT. We were wondering if throughout that study, you could provide kinda how it went and if there were any glaring constraints. And also, I know you talked about kind of two applications totaling 1.8GW in process. Maybe if you could kind of touch on if you think that process to go similarly with this incremental 830 you just received.
Brett Knoblauch: Hi, guys. This is Gareth on for Brett. I was just wondering if you could go into kinda the future potential build-out at Helios. So I know you guys recently talked about the incremental 830MW with ERCOT. We were wondering if throughout that study, you could provide kinda how it went and if there were any glaring constraints. And also, I know you talked about kind of two applications totaling 1.8GW in process. Maybe if you could kind of touch on if you think that process to go similarly with this incremental 830 you just received.
Speaker #3: And that was because we were prepared way ahead and we were very diligent the whole process. And so, couldn't be more thrilled. It makes that power more valuable.
Speaker #3: There are not a lot of 830-megawatt chunks of power available in Texas or the United States. There's a lot of people building for the future behind the meter.
Good morning and thanks for taking the question. Mike, I really appreciate your comments on the crypto backdrop. I just wanted to expand on on 1 element of what you you you touched on in your prepared remarks. Um, you've been through a lot of Cycles here. Are we heading into another crypto winter or not? How long until the cycle could begin to recover and then you know you're a Trader. You you look for these signals. So what should we be paying attention to to mark this cycle either continuing to deteriorate or or potentially inflecting?
Speaker #3: And so I think we'll see how the negotiations go with our next group of tenants, but it leaves me pretty bullish.
Christopher Ferraro: Sure. I will... Yeah, I'll take the first crack at that. So, you know, we have had, between the prior interconnect request put in from the Helios campus that we purchased from Argo back in 2022, plus some incremental interconnect requests that we've accumulated through land acquisitions adjacent to Helios. We've had north of 3.5GW in total, 800 approved, plus the remaining amounts with ERCOT at various stages of either internal study on our side or study with ERCOT and what to get done.
Christopher Ferraro: Sure. I will... Yeah, I'll take the first crack at that. So, you know, we have had, between the prior interconnect request put in from the Helios campus that we purchased from Argo back in 2022, plus some incremental interconnect requests that we've accumulated through land acquisitions adjacent to Helios. We've had north of 3.5GW in total, 800 approved, plus the remaining amounts with ERCOT at various stages of either internal study on our side or study with ERCOT and what to get done.
Yeah, that's a great question. I mean, listen, it feels pretty chilly right now given that we were at 10. What was the high 130? And we're we're currently, I I haven't seen the market in the last 2 minutes, you know, 7880 or or or something. Um,
It looks when you look on the charts. Uh,
Speaker #1: Thank you. And our next question today comes from James Yarrow at Goldman Sachs. Please
it, it feels to me, we're kind of a 70, a 70 to 100 range until we take out a 100 uh,
Speaker #1: go ahead. Good morning.
Speaker #5: And thanks for taking the question. Mike, I really appreciate your comments on the crypto backdrop. I just wanted to expand on one element of what you touched on in your prepared remarks.
Speaker #5: You've been through a lot of cycles here. Are we heading into another crypto winter or not? How long until the cycle could begin to recover?
Own it that I bought into it. That's believe in it. That have institutions, uh,
Built around it and so this is not going away.
Speaker #5: And then, you're a trader, you look for these signals. So what should we be paying attention to, to mark the cycle either continuing to deteriorate or potentially—
Speaker #5: And then you're a trader, you look for these signals. So, what should we be paying attention to, to mark the cycle either continuing to deteriorate or potentially inflecting?
You are having a supply demand in balance.
and,
you know, when I think about potential catalyst,
You think about?
Christopher Ferraro: The 830 that we received firm approval for, for ERCOT, was part of actually a larger request that ultimately ERCOT, in looking at where we were in the queue and the current grid capacity at the time, concluded through various stages of study, that the grid could accept an additional 830MW today, which is what we got firm approval for. We, as I said in my comments, currently have various different studies and requests into ERCOT for an incremental 1.8GW on top of now our 1.6, that is over 1.6, that's already approved.
Speaker #3: Yeah, that's a great question. I mean, listen, it feels pretty chilly right now given that we were at 100 and what was the high, 130, and we're currently I haven't seen the market in the last two minutes.
The 830 that we received firm approval for, for ERCOT, was part of actually a larger request that ultimately ERCOT, in looking at where we were in the queue and the current grid capacity at the time, concluded through various stages of study, that the grid could accept an additional 830MW today, which is what we got firm approval for. We, as I said in my comments, currently have various different studies and requests into ERCOT for an incremental 1.8GW on top of now our 1.6, that is over 1.6, that's already approved.
Speaker #3: Seventy-eight, eighty, or something. Listen, when you look on the charts, it feels to me we're kind of in a $70 to $100 range until we take out $100.
Speaker #3: There is the idea that Bitcoin is now a macro asset. I think it's solidified, right? There are too many people that have owned it, that have bought into it, that believe in it, that have institutions built around it.
This Market structure Bill and really turning on Wall Street. And I said this before, Wall Street is a selling machine. Uh, that's what wall Street's built to do. If it's more mortgages or Equity, or government bonds. The the structure is set up to sell and as you start, putting crypto through the traditional Wall Street selling machine. You're just going to see demand pick up from Pockets that we haven't seen yet. And again, that is what has kept
Speaker #3: And so this is not going away. You're having a supply-demand imbalance. And when I think about potential catalysts, you think about this market structure bill and really turning on Wall Street.
Christopher Ferraro: That 1.8GW of incremental load is now very clearly, which is different than our 830 that we just received, is now very clearly gonna be part of a new set of frameworks that ERCOT has worked out and is still sort of working through. Which is this batch processing, where they're gonna look at various batches of requests, given how large the queue has grown in ERCOT for requests, and sort of look at groups of requests together. And in each group, look at what the grid can absorb today, where those requests are coming, what infrastructure upgrades need to be made, and then sort of pro rata part out new approvals in a step-by-step process.
That 1.8GW of incremental load is now very clearly, which is different than our 830 that we just received, is now very clearly gonna be part of a new set of frameworks that ERCOT has worked out and is still sort of working through. Which is this batch processing, where they're gonna look at various batches of requests, given how large the queue has grown in ERCOT for requests, and sort of look at groups of requests together. And in each group, look at what the grid can absorb today, where those requests are coming, what infrastructure upgrades need to be made, and then sort of pro rata part out new approvals in a step-by-step process.
You know, crypto the the 2-way price action, you've seen because it has been in 1 Direction. Directional move has been more broader distribution coming in against big chunky positions, big whales getting out of out of their long Health positions and so again I I
My instinct is we're we're closer to the bottom of the range than the beginning of a bare Market. I think we, we've had a bare Market.
Speaker #3: And I said this before, Wall Street is a selling machine. That's what Wall Street's built to do. If it's mortgages or equities or government bonds, the structure is set up to sell.
Could things go lower? Of course, they could. Uh, but what I learned about
you know, painfully and recycles now is
you know, you don't necessarily have to pick the bottom but you've got to sense when it turns and like pornography you know it when you see it uh
Speaker #3: And as you start putting crypto through the traditional Wall Street selling machine, you're just going to see demand pick up from pockets that we haven't seen yet.
Right? That there will be a catalytic event. Uh,
and so,
That's Judge learned at hand for you guys. Uh,
Speaker #3: And again, that is what has kept crypto the two-way price action you've seen because it has been a one-directional move, has been more broader distribution coming in against big chunky positions, big whales getting out of their long-held positions.
Who think I made that quote up?
and so yeah, I like I said, I think we're we're closer to the bottom
I'm not sure we've reached it yet.
But we'll tell you what, we think we have.
Christopher Ferraro: And so the timing on the next incremental load approvals for us or anyone else in the queue is still a little unknown, and we think is gonna take a lot of time for ERCOT to really sort out the process on. And so, you know, from our seat, getting the 830 in one large chunk fully approved from us before the new batch process-
And so the timing on the next incremental load approvals for us or anyone else in the queue is still a little unknown, and we think is gonna take a lot of time for ERCOT to really sort out the process on. And so, you know, from our seat, getting the 830 in one large chunk fully approved from us before the new batch process-
Speaker #3: And so again, my instinct is we're closer to the bottom of the range than the beginning of a bear market. I think we've had a bear market.
Thank you. And our next question. Today comes from Devin Ryan. With Citizen Bank, please go ahead.
Speaker #3: Could things go lower? Of course, they could. But what I learned about, painfully, in three cycles now is you don't necessarily have to pick the bottom, but you've got a sense of when it turns, and like pornography, you know it when you see it.
[Analyst] (Citizens Bank): ... is in place, was sort of worth its weight for us. And so we're very excited about that. I think on a go-forward basis, us and everyone else in the queue are gonna have a number of new processes to go through. And so we're very focused on now working through and understanding what is important to ERCOT and where those stand in the queue.
Brett Knoblauch: ... is in place, was sort of worth its weight for us. And so we're very excited about that. I think on a go-forward basis, us and everyone else in the queue are gonna have a number of new processes to go through. And so we're very focused on now working through and understanding what is important to ERCOT and where those stand in the queue.
Uh great, thank you, good morning. Um question just on kind of Market structure Clarity. Um, you talked about that Mike. I mean as uh as we try to map this out and we're getting questions from investors, trying to understand kind of where Galaxy fits
Speaker #3: Right? There will be a catalytic event. And so that's judged learned at hand for you guys who think I made that quote up. And so again, like I said, I think we're closer to the bottom.
Michael Novogratz: Let me just add, you know, given those dynamics, first, a shout-out to our whole mining team, data center team, both here in New York and in Texas, because, you know, in lots of ways, we got in under the line, and that was because we were prepared way ahead, and we were very diligent the whole process, and so couldn't be more thrilled. You know, it makes that power more valuable. There are not a lot of 830-MW chunks of power available in Texas or the United States. You know, there's a lot of people building for the future behind the meter, or... And so I think, you know, we'll see how the negotiations go with our next group of tenants, but it leaves me pretty bullish.
Michael Novogratz: Let me just add, you know, given those dynamics, first, a shout-out to our whole mining team, data center team, both here in New York and in Texas, because, you know, in lots of ways, we got in under the line, and that was because we were prepared way ahead, and we were very diligent the whole process, and so couldn't be more thrilled. You know, it makes that power more valuable. There are not a lot of 830-MW chunks of power available in Texas or the United States. You know, there's a lot of people building for the future behind the meter, or... And so I think, you know, we'll see how the negotiations go with our next group of tenants, but it leaves me pretty bullish.
Speaker #3: I'm not sure we've reached it yet, but we'll tell you when we think we have.
Blur between crypto and kind of tried fee over time and you know, obviously the large banks are going to need to participate in this world of tokenizing markets and they'll probably bring them closer to trading the tokens themselves on the flip side, you know, it's a very technical space. So uh it's not going to be easy for many of them to just enter. Um, and so curious kind of how you think about galaxies position in that, you know, the Moes and then kind of what role you want to see galaxies play as we move to a market where more
Tokenized and you probably have more of the large Banks involved. Um, in the same space as you, thanks.
Speaker #1: Thank you. And our next question today comes from Devin Ryan with Citizens Bank. Please go ahead.
Speaker #6: Great, thank you. Good morning. Question just on kind of market structure clarity—you talked about that, Mike. I mean, as we try to map this out and we're getting questions from investors, trying to understand kind of where Galaxy fits—the blur between crypto and kind of TradFi over time.
Yeah, it's a great question. We think about it a ton. Um, I think the a couple areas where we think we need to win and have a right to to be significant players. 1 is credit. Uh, right. We've got a great credit business and you're going to see an on-chain Credit World. Uh,
Speaker #6: And obviously, the large banks are going to need to participate in this world of tokenizing markets, and they'll probably bring them closer to trading the tokens themselves.
explode right there already isn't on Trade, Credit World, the more participating but I think in the next 3 years, it could be 1 of the big growth areas for both the market and for Galaxy, you know, 1 of the complaints in DC with well, if we
Operator: Thank you. Our next question today comes from James Yarrow at Goldman Sachs. Please go ahead.
Operator: Thank you. Our next question today comes from James Yarrow at Goldman Sachs. Please go ahead.
Speaker #6: On the flip side, it's a very technical space. So it's not going to be easy for many of them to just enter, and so I'm curious, kind of, how you think about Galaxy's position in that—the moats—and then, kind of, what role you want to see Galaxy play as we move to a market where more assets are tokenized, and you probably have more of the large banks involved in the same space as you.
[Analyst] (Goldman Sachs): Good morning, and thanks for taking the question. Mike, I really appreciate your comments on the crypto backdrop. I just wanted to expand on one element of what you touched on in your prepared remarks. You've been through a lot of cycles here. Are we heading into another crypto winter or not? How long until the cycle could begin to recover? And then, you know, you're a trader, you look for these signals. So what should we be paying attention to, to mark this cycle, either continuing to deteriorate or potentially inflecting?
James Yaro: Good morning, and thanks for taking the question. Mike, I really appreciate your comments on the crypto backdrop. I just wanted to expand on one element of what you touched on in your prepared remarks. You've been through a lot of cycles here. Are we heading into another crypto winter or not? How long until the cycle could begin to recover? And then, you know, you're a trader, you look for these signals. So what should we be paying attention to, to mark this cycle, either continuing to deteriorate or potentially inflecting?
Speaker #6: Thanks.
Speaker #3: Yeah, it's a great question. We think about it a ton. I think a couple of areas where we think we need to win and have a right to be significant players.
You know, allow interest-bearing stable coins and you get deposits flight. What does it do for credit creation? And I'm like, I credit creation is already starting on chain and it's going to explode on Shane and so I could see a future not in the next few years, but in the next 10 years where on your cell phone, you've got your bank account, IE a stable coin, that pays some kind of interest and you've got your lending account right? Where you're
Speaker #3: One is credit, right? We've got a great credit business, and you're going to see an on-chain credit world explode, right? There already is an on-chain credit world.
Michael Novogratz: Yeah, that's a great question. I mean, listen, it feels pretty chilly right now, given that we were at 100 and, what was the high? 130, and we're currently, I haven't seen the market in the last two minutes, you know, 78, 80 or something. You know, listen, when you look on the charts, it feels to me we're kind of a 70, a 70 to 100 range until we take out 100. There is, like, the idea that Bitcoin is now a macro asset, I think is solidified, right? There are too many people that own it, that have bought into it, that believe in it, that have institutions built around it, and so this is not going away. You are having a supply-demand imbalance.
Michael Novogratz: Yeah, that's a great question. I mean, listen, it feels pretty chilly right now, given that we were at 100 and, what was the high? 130, and we're currently, I haven't seen the market in the last two minutes, you know, 78, 80 or something. You know, listen, when you look on the charts, it feels to me we're kind of a 70, a 70 to 100 range until we take out 100. There is, like, the idea that Bitcoin is now a macro asset, I think is solidified, right? There are too many people that own it, that have bought into it, that believe in it, that have institutions built around it, and so this is not going away. You are having a supply-demand imbalance.
picking your from a menu of potential places to lend money and that that's already in existence in a in what I'll call like a, a beta stage in the market. But that's going to be a big part of it. And the second piece is really
Infrastructure, right? All of these.
Speaker #3: The more participating. But I think in the next three years, it could be one of the big growth areas for both the market and for Galaxy.
Speaker #3: One of the complaints in DC was, well, if we allow interest-bearing stablecoins and you get deposits light, what does it do for credit creation?
Financial Market players, Banks, Finos, uh, Neo Banks need staking, they need wallet infrastructure.
Speaker #3: And I'm like, guys, credit creation is already starting on-chain. And it's going to explode on-chain. And so I could see a future—not in the next few years, but in the next ten years—where on your cell phone, you've got your bank account (i.e., a stablecoin that pays some kind of interest), and you've got your lending account.
And our info info team is growing. We're adding to it and we're engaged in conversation around. How do we help? And like I said, hopefully we get some announcements publicly in the next, you know, period of time but that that has to be a big business for us and we we are really focused on it.
Because that they're coming. Listen at 1 Point.
Speaker #3: Right? Or you're picking from a menu of potential places to lend money. And that's already in existence in what I'll call a beta stage.
Michael Novogratz: You know, when I think about potential catalysts, you think about this market structure bill and really turning on Wall Street. And I said this before, Wall Street is a selling machine. That's what Wall Street's built to do. If it's mortgages, equities, or government bonds, the structure is set up to sell. And as you start putting crypto through the traditional Wall Street selling machine, you're just gonna see demand pick up from pockets that we haven't seen yet. And again, that is what has kept, you know, crypto the two-way price action you've seen, because it has been a one-directional move, has been a more broader distribution coming in against big, chunky positions, big whales getting out of their long-held positions. And so, again, I, I...
You know, when I think about potential catalysts, you think about this market structure bill and really turning on Wall Street. And I said this before, Wall Street is a selling machine. That's what Wall Street's built to do. If it's mortgages, equities, or government bonds, the structure is set up to sell. And as you start putting crypto through the traditional Wall Street selling machine, you're just gonna see demand pick up from pockets that we haven't seen yet. And again, that is what has kept, you know, crypto the two-way price action you've seen, because it has been a one-directional move, has been a more broader distribution coming in against big, chunky positions, big whales getting out of their long-held positions. And so, again, I, I...
Speaker #3: In the market, but that's going to be a big part of it. And the second piece is really infrastructure, right? All of these financial market players—banks, FinCos, neobanks—need staking; they need wallet infrastructure.
Edges. Where those guys aren't we use our domain expertise to to help those players into the market.
Thank you. And our next question. Today comes from James fset, with Morgan Stanley. Please go ahead.
Speaker #3: And our infra team is growing; we're adding to it, and we're engaged in conversation around how do we help? And like I said, hopefully we get some announcements publicly in the next period of time.
Thank you so much, thanks for for all the comments this morning. I wanted to to follow up on kind of what's Happening uh Beyond just the the allocation and approvals of power. I really appreciate the the color there and certainly, uh, you guys have done good work.
Speaker #3: But that has to be a big business for us. And we're really focused on it. Because they're coming. Listen, at one point, JP Morgan will trade Bitcoin derivatives and Bitcoin, and that's going to make our Bitcoin derivative and Bitcoin business—it's going to be competition for it, and it's going to be more difficult.
Wondering if you can give more um color on how we should be thinking about the engagements with potential.
Michael Novogratz: My instinct is we're closer to the bottom of the range than the beginning of a bear market. I think we've had a bear market. Could things go lower? Of course, they could. But what I learned about, you know, painfully in three cycles now is, you know, you don't necessarily have to pick the bottom, but you've got a sense when it turns, and like pornography, you know it when you see it. Right? There will be a catalytic event. And so that's Judge Learned Hand for you guys who think I made that quote up. And so, again, like I said, I think we're closer to the bottom. I'm not sure we've reached it yet, but we'll tell you when we think we have.
My instinct is we're closer to the bottom of the range than the beginning of a bear market. I think we've had a bear market. Could things go lower? Of course, they could. But what I learned about, you know, painfully in three cycles now is, you know, you don't necessarily have to pick the bottom, but you've got a sense when it turns, and like pornography, you know it when you see it. Right? There will be a catalytic event. And so that's Judge Learned Hand for you guys who think I made that quote up. And so, again, like I said, I think we're closer to the bottom. I'm not sure we've reached it yet, but we'll tell you when we think we have.
Speaker #3: And so we're hoping the pie expands, but that we're skating into the edges where those guys aren't. We use our domain expertise to help those players into the market.
Tenants and, um, kind of how they're looking at it. I, I I get the sense that they want to do bigger pieces if they can particularly the hyperscalers, but just love to hear any more details. You can provide around that and and how you're thinking about potential um Partners Etc. And and timing
Speaker #1: Thank you. And our next question today comes from James Foster with Morgan Stanley. Please go
Speaker #1: Thank you. And our next question today comes from James Foster with Morgan Stanley. Please go ahead. Thank you so much.
Speaker #7: Thanks for all the comments this morning. I wanted to follow up on what's happening beyond just the allocation and approvals of power.
Speaker #7: I really appreciate the color there, and certainly you guys have done good work. I'm wondering if you can give more color on how we should be thinking about the engagements with potential tenants, and kind of how they're looking at it.
Sure. Um, uh, thanks for joining James as well. The, um, uh, I, I think you're you're right. Um, that, uh, a for us, the major um, tenant, um, category. We are focused on, uh, I'll call, I'll call them hyperscalers, but I think that that that term is actually broadening out a little further as it relates to traditional hyperscalers. Now, what Neo clouds? You're getting larger and larger, maybe the direct model Builders themselves. Etc. Like, that's the universe of of tenants.
Operator: Thank you. And our next question today comes from Devin Ryan with Citizens Bank. Please go ahead.
Operator: Thank you. And our next question today comes from Devin Ryan with Citizens Bank. Please go ahead.
Speaker #7: I get the sense that they want to do bigger pieces if they can, particularly the hyperscalers, but I'd just love to hear any more details you can provide around that and how you're thinking about potential partners, etc.
[Analyst] (Citizens Bank): Great, thank you. Good morning. Question just on kind of market structure clarity. You talked about that, Mike. I mean, as, as we try to map this out, and we're getting questions from investors, trying to understand kind of where Galaxy fits blur between crypto and kind of TradFi over time. And, you know, obviously, the large banks are gonna need to participate in this world of tokenizing markets, and that'll probably bring them closer to trading the tokens themselves. On the flip side, you know, it's a very technical space, so, it's not gonna be easy for many of them to just enter.
Devin Ryan: Great, thank you. Good morning. Question just on kind of market structure clarity. You talked about that, Mike. I mean, as, as we try to map this out, and we're getting questions from investors, trying to understand kind of where Galaxy fits blur between crypto and kind of TradFi over time. And, you know, obviously, the large banks are gonna need to participate in this world of tokenizing markets, and that'll probably bring them closer to trading the tokens themselves. On the flip side, you know, it's a very technical space, so, it's not gonna be easy for many of them to just enter.
Um, uh, and perhaps even some equipment manufacturers. Um, that's the, uh, the universe of tenant that that is out there who we are talking to and looking at, who are looking for, um,
Speaker #7: and timing.
Speaker #8: Sure. Thanks for joining, James, as well. The I think you're right. That A, for us, the major tenant category we are focused on, I'll call them hyperscalers, but I think that that term is actually broadening out a little further, as it relates to traditional hyperscalers, now neoclouds who are getting larger and larger, maybe the direct model builders themselves etc.
[Analyst] (Citizens Bank): And so curious kind of how you think about Galaxy's position in that, you know, the moats, and then kind of what role you want to see Galaxy play as we move to a market where more assets are tokenized, and you probably have more of the large banks involved, in the same space as you. Thanks.
And so curious kind of how you think about Galaxy's position in that, you know, the moats, and then kind of what role you want to see Galaxy play as we move to a market where more assets are tokenized, and you probably have more of the large banks involved, in the same space as you. Thanks.
Speaker #8: That's the universe of tenants, and perhaps even some equipment manufacturers. That's the universe of tenants that is out there who we are talking to and looking at, who are looking for large chunks of power capacity that they can put to work in the billions and billions and billions of dollars, and gigawatts of size.
Large chunks of power capacity that they can put to work in the billions and billions and billions of dollars and gigawatts of size. Um, because this truly is a, um, a the new modern Space Race for control of, um, who's going to have the most Frontier, uh, model and the smartest brain offering to power the sort of the future of automated everything. Um, and so the, the Ambitions have not shrunk at all. In fact, they've grown on on the tenant client side. Um, and we've seen reiterated and elevated capex expectations. Um, from uh, a lot of companies already sort of supporting that um that data.
Michael Novogratz: Yeah, it's a great question. We think about it a ton. I think a couple areas where we think we need to win and have a right to, to be significant players, one is credit. Right, we've got a great credit business, and you're gonna see an on-chain credit world explode, right? There already is an on-chain credit world, and we're participating. But I think in the next three years, it could be one of the big growth areas for both the market and for Galaxy. You know, one of the complaints in DC was, well, if we, you know, allow interest-bearing stablecoins and you get deposit flight, what does it do for credit creation? And I'm like, guys, credit creation is already starting on-chain, and it's gonna explode on-chain.
Michael Novogratz: Yeah, it's a great question. We think about it a ton. I think a couple areas where we think we need to win and have a right to, to be significant players, one is credit. Right, we've got a great credit business, and you're gonna see an on-chain credit world explode, right? There already is an on-chain credit world, and we're participating. But I think in the next three years, it could be one of the big growth areas for both the market and for Galaxy. You know, one of the complaints in DC was, well, if we, you know, allow interest-bearing stablecoins and you get deposit flight, what does it do for credit creation? And I'm like, guys, credit creation is already starting on-chain, and it's gonna explode on-chain.
Speaker #8: Because this truly is the new modern space race for control of who's going to have the most frontier model and the smartest brain offering to power sort of the future of automated everything.
For us. Um, uh, We've, we've talked over and over again about our decision-making on the first 800 megawatts to partner with core weave, who themselves? I think have emerged, um, sort of, uh, uh, without debate as a, a 1 of 1 partner, for an most of the large model, Builders and hyperscalers themselves. Um, as an expert in automating and running, uh, ever more complex, large GPU clusters for those end end clients, um, uh, for for the next 830 megawatts. I I think,
Speaker #8: And so the ambitions have not shrunk at all. In fact, they've grown on the tenant client side and we've seen reiterated and elevated CapEx expectations from a lot of companies already sort of supporting that.
Michael Novogratz: And so I could see a future, not in the next few years, but in the next 10 years, where on your cell phone, you've got your bank account, i.e., a stablecoin that pays some kind of interest, and you've got your lending account, right? Where you're picking your, from a menu of potential places to lend money, and that, that's already in existence in a, in what I'll call, like, a beta stage in the market, but that's gonna be a big part of it. And the second piece is really infrastructure, right? All of these financial market players, banks, fincos, neobanks, need staking, they need wallet infrastructure, and our infra team is growing. We're adding to it, and we're engaged in conversation around how do we help?
And so I could see a future, not in the next few years, but in the next 10 years, where on your cell phone, you've got your bank account, i.e., a stablecoin that pays some kind of interest, and you've got your lending account, right? Where you're picking your, from a menu of potential places to lend money, and that, that's already in existence in a, in what I'll call, like, a beta stage in the market, but that's gonna be a big part of it. And the second piece is really infrastructure, right? All of these financial market players, banks, fincos, neobanks, need staking, they need wallet infrastructure, and our infra team is growing. We're adding to it, and we're engaged in conversation around how do we help?
Speaker #8: That data. For us, we've talked over and over again about our decision-making on the first 800 megawatts to partner with CoreWeave, who themselves, I think, have emerged sort of without debate as a one-of-one partner for most of the large model builders and hyperscalers themselves.
Speaker #8: As an expert in arranging and automating and running ever more complex large GPU clusters for those end clients. For the next 830 megawatts, I think all potential tenants are on the table.
Speaker #8: We do recognize with extreme clarity that availability of capital and credit on economically attractive terms is paramount to being able to develop a multi-billion dollar data center campus on time, on budget, etc.
Um, all potential, tenants are on the table. Um, we do recognize um with with extreme Clarity that um availability of capital and credit on um, on a tra on economically attractive terms is Paramount um to being able to develop um, a multi-billion dollar data center campus on time on budget Etc. And the credit markets have had have had a little bit of a tough go in 2025 um absorbing the the sheer amount of this first wave of capital that's coming to the markets. Um and you've seen a real Divergence, you know, first in in non-ige although there's there's been some some Led up recently and and I think their continued partnership with Nvidia and the large investment in Nvidia made helps a lot on that front. Um but you've also seen, you've also seen it creep into IG concerns um uh initially in 2025 with Oracle. Um and yet, you know, I think just last night overnight uh
Michael Novogratz: And like I said, hopefully, we get some announcements publicly in the next, you know, period of time. But that, that has to be a big business for us, and we're, we're really focused on it. Because that—they're coming. Listen, at one point, you know, JPMorgan will trade Bitcoin derivatives and Bitcoin, and that's gonna make our Bitcoin derivative and Bitcoin business, you know, it's gonna be competition for it, and it's gonna be more difficult. And so we're hoping the pie expands, but that we're skating into the edges where those guys aren't. We use our domain expertise to, to help those players into the market.
And like I said, hopefully, we get some announcements publicly in the next, you know, period of time. But that, that has to be a big business for us, and we're, we're really focused on it. Because that—they're coming. Listen, at one point, you know, JPMorgan will trade Bitcoin derivatives and Bitcoin, and that's gonna make our Bitcoin derivative and Bitcoin business, you know, it's gonna be competition for it, and it's gonna be more difficult. And so we're hoping the pie expands, but that we're skating into the edges where those guys aren't. We use our domain expertise to, to help those players into the market.
Speaker #8: And the credit markets have had a little bit of a tough go in 2025 absorbing the sheer amount of this first wave of capital that's come into the markets.
After the close Oracle successfully, punched out close to 30 billion dollars of, uh, of new bonds and preferred equity and pretty attractive rates. And so for us, um, already having such a large exposure to core weave. Um, uh means a natural focus on higher credit quality, tenants on the go forward. Um, and I, and I think that that's not a comment at all about about about, uh, Corey and their position. And I think they, they would be happy with, um, with us working with directly with, um, IGT Tech. Uh,
Speaker #8: And you've seen a real divergence. First in non-IG credit with CoreWeave, although there's been some let up recently. And I think they're continued partnership with NVIDIA and the large investment NVIDIA made helps a lot on that front.
Tenant counterparties. Um, which also offers them an opportunity to be an orchestration agent and a GPU cluster management, uh, partner as well. Which we, we we value a lot on going forward so that that's how we're thinking about the landscape.
Operator: Thank you. Our next question today comes from James Faucette with Morgan Stanley. Please go ahead.
Operator: Thank you. Our next question today comes from James Faucette with Morgan Stanley. Please go ahead.
Speaker #8: But you've also seen it creep into IG concerns. Initially in 2025 with Oracle, and yet I think just last night, overnight after the close, Oracle successfully punched out close to $30 billion of new bonds and preferred equity at pretty attractive rates.
[Analyst] (Morgan Stanley): Thank you so much. Thanks for all the comments this morning. I wanted to follow up on kind of what's happening beyond just the allocation and approvals of power. I really appreciate the color there, and certainly, you guys have done good work. Wondering if you can give more color on how we should be thinking about the engagements with potential tenants and kind of how they're looking at it. I get the sense that they wanna do bigger pieces if they can, particularly the hyperscalers, but just love to hear any more details you can provide around that, and how you're thinking about potential partners, et cetera, and timing.
James Faucette: Thank you so much. Thanks for all the comments this morning. I wanted to follow up on kind of what's happening beyond just the allocation and approvals of power. I really appreciate the color there, and certainly, you guys have done good work. Wondering if you can give more color on how we should be thinking about the engagements with potential tenants and kind of how they're looking at it. I get the sense that they wanna do bigger pieces if they can, particularly the hyperscalers, but just love to hear any more details you can provide around that, and how you're thinking about potential partners, et cetera, and timing.
Thank you. And our next question. Today comes from Martin toner with ATV Capital markets. Please go ahead.
and um,
Speaker #8: And so for us, already having such a large exposure to CoreWeave means a natural focus forward. And I think that that's not a comment at all about CoreWeave and their position.
Speaker #8: I think they would be happy with us working with directly with IG tenant counterparties. Which also offers them an opportunity to be an orchestration agent and a GPU cluster management partner as well, which we value a lot.
Christopher Ferraro: Sure. Thanks for joining, James, as well. I think you're right that for us, the major tenant category we are focused on, I'll call them hyperscalers, but I think that term is actually broadening out a little further as it relates to traditional hyperscalers. Now, what neoclouds are getting larger and larger, maybe the direct model builders themselves, et cetera. Like, that's the universe of tenant and perhaps even some equipment manufacturers. That's the universe of tenant that is out there, who we are talking to and looking at, who are looking for large chunks of power capacity that they can put to work in the billions and billions and billions of dollars and gigawatts of size.
Christopher Ferraro: Sure. Thanks for joining, James, as well. I think you're right that for us, the major tenant category we are focused on, I'll call them hyperscalers, but I think that term is actually broadening out a little further as it relates to traditional hyperscalers. Now, what neoclouds are getting larger and larger, maybe the direct model builders themselves, et cetera. Like, that's the universe of tenant and perhaps even some equipment manufacturers. That's the universe of tenant that is out there, who we are talking to and looking at, who are looking for large chunks of power capacity that they can put to work in the billions and billions and billions of dollars and gigawatts of size.
Speaker #8: And going forward, so that's how we're thinking about the landscape.
So it, you know, and we the last deal we saw I believe was from Cypher was on the best terms we've seen yet and we hadn't uh, we haven't yet got into a stage where each successive, um, HPC deal is on improved terms. Um, the terms of really vary depending on partners and uh, uh, and customers, uh, but if data centers in space makes sense, then data centers in Texas, must make a lot of sense. And so she core weave. Uh, sorry should Galaxy, uh, be driving a harder. Bargain on new HBC deals.
Speaker #1: Thank you. And our next question today comes from Martin Toner with ATB Capital Markets. Please go ahead.
answer this 1, because
The Market's got.
Speaker #9: Hi guys, thank you very much for taking my questions. So, the last deal we saw—I believe it was from Cipher—was on the best terms we've seen yet.
first and foremost listen the Market's going to dictate uh,
We want.
strong partners that we have a long-term partnership with, uh,
Speaker #9: And we hadn't yet gotten to a stage where each successive HPC deal is on improved terms. The terms have really varied depending on partners and customers.
people that feel comfortable working with us and that we feel comfortable working with. And we're going to balance that first, the best price. Uh, we watched the market like Hawks and, and, and certainly, you know, it's not all Apples to Apples. And so Chris has this very elaborate spreadsheet with his team where he tries to make it Apples to Apples. Uh, and
You know, we listen on core. We we took a risk, the first
Speaker #9: But if data centers and space make sense, then data centers in Texas must make a lot of sense. And so should CoreWeave sorry, should Galaxy be driving a harder bargain on new HPC
Christopher Ferraro: Because this truly is the new modern space race for control of who's gonna have the most frontier model and the smartest brain offering to power sort of the future of automated everything. And so the ambitions have not shrunk at all. In fact, they've grown on the tenant client side, and we've seen reiterated and elevated CapEx expectations from a lot of companies already sort of supporting that data. For us, we've talked over and over again about our decision-making on the first 800MW to partner with CoreWeave, who themselves, I think, have emerged sort of without debate as a one-of-one partner for...
Because this truly is the new modern space race for control of who's gonna have the most frontier model and the smartest brain offering to power sort of the future of automated everything. And so the ambitions have not shrunk at all. In fact, they've grown on the tenant client side, and we've seen reiterated and elevated CapEx expectations from a lot of companies already sort of supporting that data. For us, we've talked over and over again about our decision-making on the first 800MW to partner with CoreWeave, who themselves, I think, have emerged sort of without debate as a one-of-one partner for...
Speaker #9: deals? I'll
Speaker #2: answer this one because you foremost, listen, the market's going to dictate. We want strong partners that we have a long-term partnership with. People that feel comfortable working with us and that we feel comfortable working with.
The first train, I think it's gonna be a great risk that we got paid extra because we took credit risk with Corey, right? They were at a time of their development and we were that, we thought it was a the right bet to make. And I think we're going to be proven out to, to be a winner on that bet. Um, and so we'll we'll look at, you know, rate plus counterparty and, uh, and get the best price. Uh,
You know, there, there are enough players around the table that there's attention.
You know, if, if there was 1, it's a very different story but and you don't need 10.
Speaker #2: And we're going to balance that first and the best price. We watch the market like hawks. And certainly, it's not all apples to apples.
Speaker #2: And so Chris has this very elaborate spreadsheet with his team where he tries to make it apples to apples. And listen, on CoreWeave, we took a risk the first trade, I think it's going to be a great risk, that we got paid extra because we took credit risk with CoreWeave.
Christopher Ferraro: and most of the large model builders and hyperscalers themselves, as an expert in arranging and automating and running, ever more complex, large GPU clusters for those end-to-end clients. For the next 830 megawatts, I think, all potential tenants are on the table. We do recognize, with extreme clarity, that availability of capital and credit, on economically attractive terms, is paramount, to being able to develop, a multibillion-dollar data center campus on time, on budget, et cetera. And the credit markets have had a little bit of a tough go in 2025, absorbing the sheer amount of this first wave of capital that's come into the markets.
and most of the large model builders and hyperscalers themselves, as an expert in arranging and automating and running, ever more complex, large GPU clusters for those end-to-end clients. For the next 830 megawatts, I think, all potential tenants are on the table. We do recognize, with extreme clarity, that availability of capital and credit, on economically attractive terms, is paramount, to being able to develop, a multibillion-dollar data center campus on time, on budget, et cetera. And the credit markets have had a little bit of a tough go in 2025, absorbing the sheer amount of this first wave of capital that's come into the markets.
Speaker #2: Right? They were at a time of their development, and we were at a time that we thought it was the right bet to make. And I think we're going to be proved out to be a winner on that bet.
Speaker #2: And so we'll look at rate plus counterparty and get the best price. There are enough players around the table that there's attention. If there was one, it's a very different story.
Speaker #2: But you don't need 10.
And I, the only thing I'll add is I, I think, I think you did you did rightly point out a dynamic, which, um, probably probably has surprised us a little to the upside, which we're happy about which is, um, initial Instinct way back. When was, um, you know, the, the, the dollar per kilowatt rental per month, rental price, um, was would start out high and then over time, sort of, uh, go down and normalize to a market clearing level at bigger and bigger. Um, potential clients come in. But as you pointed out, the, the there isn't actually a very good downward Trend. And, in fact, um, given that the there's, there's a real choke point in available future capacity for electricity at scale. Um, we've actually seen, uh, seen base rental prices go up in a lot of cases and and, and, and with Cypher as well. And so that's a dynamic that I think actually, uh, plays very far.
Speaker #9: Yeah. And the only thing I'll add is I think you did rightly point out a dynamic which probably has surprised us a little to the upside, which we're happy about, which is initial instinct way back when was the dollar per kilowatt rental per month rental price would start out high and then over time sort of go down and normalize to a market clearing level at bigger and bigger potential clients come in.
Favorably to what we would initially underwritten. Um, way back when, when we started this journey,
Thank you. And our next question comes from Ed Engel.
Please go ahead.
Christopher Ferraro: And you've seen a real divergence, you know, first in non-IG credit, with CoreWeave, although there's been some letup recently, and I think their continued partnership with NVIDIA and the large investment NVIDIA made helps a lot on that front. But you've also seen it creep into IG concerns, initially in 2025 with Oracle. And yet, you know, I think just last night, overnight, after the close, Oracle successfully punched out close to $30 billion of new bonds and preferred equity at pretty attractive rates. And so for us, already having such a large exposure to CoreWeave, means a natural focus on higher credit quality tenants on the go-forward.
And you've seen a real divergence, you know, first in non-IG credit, with CoreWeave, although there's been some letup recently, and I think their continued partnership with NVIDIA and the large investment NVIDIA made helps a lot on that front. But you've also seen it creep into IG concerns, initially in 2025 with Oracle. And yet, you know, I think just last night, overnight, after the close, Oracle successfully punched out close to $30 billion of new bonds and preferred equity at pretty attractive rates. And so for us, already having such a large exposure to CoreWeave, means a natural focus on higher credit quality tenants on the go-forward.
Speaker #9: But as you pointed out, there isn't actually a very good downward trend. And in fact, given that there's a real chokepoint in available future capacity for electricity at scale, we've actually seen base rental prices go up in a lot of cases.
Um hi thanks for taking the question. Um just another follow-up on Helios. I guess if you were to secure a new tenant there, could construction be done concurrently with Corey's existing build outs, or do you think you kind of need to complete phases 1, 2, and 3 before. Um, really starting any new developments. Um, thanks.
Speaker #9: And what Cipher as well. And so that's a dynamic that I think actually plays very favorably to what we were initially underwritten. Way back when when we started this journey.
Speaker #1: Thank you. And our next question today comes from Ed Engel with Compass Point. Please go ahead.
Speaker #1: Go ahead. Hi, thanks for taking the question.
Christopher Ferraro: I think that's not a comment at all about CoreWeave and their position. I think they would be happy with us working directly with tenant counterparties, which also offers them an opportunity to be an orchestration agent and a GPU cluster management partner as well, which we value a lot in going forward. So that's how we're thinking about the landscape.
I think that's not a comment at all about CoreWeave and their position. I think they would be happy with us working directly with tenant counterparties, which also offers them an opportunity to be an orchestration agent and a GPU cluster management partner as well, which we value a lot in going forward. So that's how we're thinking about the landscape.
Speaker #10: Just another follow-up on Helios. I guess if you were to secure a new tenant there, could construction be done concurrently with CoreWeave's existing buildouts?
Speaker #10: Or do you think you kind of need to complete phases one, two, and three before really starting any new developments? Thanks.
Speaker #3: Yeah, so there’s a couple of different dimensions to the answer to that question. So, one, the new 830-plus megawatts that were approved require infrastructure build—not just on the Galaxy side, but also on the grid side as well.
Yeah. Um, so there, there there's a couple different dimensions to the, to the answer to that question. So 1 the the new 830 uh plus megawatts that were approved. Um require infrastructure. Build not just on the Galaxy side but also on the on the the grid side as well. Um, and so the availability of that of that power. Um, regardless of, you know, if we could if we could snap our fingers and move mountains, ourselves still cannot can't won't come online until late 2028 on the earliest. And so, you know, we're we will, we will be doing everything we can along the way to parallelize the, you know, the, the, the site work and the and the, the concrete and the and the the ground clearing and development for all of the adjacent land that we've acquired over the over the last few years, that allows us to actually execute on this, but the Practical reality is we will be. Uh, we will be
Operator: Thank you. Our next question today comes from Martin Toner with ATB Capital Markets. Please go ahead.
Operator: Thank you. Our next question today comes from Martin Toner with ATB Capital Markets. Please go ahead.
Michael Novogratz: Hi, guys. Thank you very much for taking my questions.
Martin Toner: Hi, guys. Thank you very much for taking my questions.
[Analyst] (BTIG): ... So, you know, the last deal we saw, I believe, was from Cipher, was on the best terms we've seen yet, and we haven't yet got into a stage where each successive HBC deal is on improved terms. The terms have really varied depending on partners and customers. But if data centers in space make sense, then data centers in Texas must make a lot of sense. And so should CoreWeave, sorry, should Galaxy be driving a harder bargain on new HBC deals?
... So, you know, the last deal we saw, I believe, was from Cipher, was on the best terms we've seen yet, and we haven't yet got into a stage where each successive HBC deal is on improved terms. The terms have really varied depending on partners and customers. But if data centers in space make sense, then data centers in Texas must make a lot of sense. And so should CoreWeave, sorry, should Galaxy be driving a harder bargain on new HBC deals?
Speaker #3: And so the availability of that power, regardless of if we could snap our fingers and move mountains ourselves, still cannot—won't—come online until late 2028 at the earliest.
Be fully developed and delivered on the core weave, Helios 1 side. Um uh largely in advance of the Practical ability to come online for the next 830 megawatt. So we will parallelize um but it will come at like I'll call it sort of the the back end of the of the core we Phase 1 project um
Anyway.
So so so yes, we can have multiple tests.
Speaker #3: And so we will be doing everything we can along the way to parallelize the site work, and the concrete, and the ground clearing and development for all of the adjacent land that we've acquired over the last few years that allows us to actually execute on this.
Trying to talk about. Um, if you could the, um, you know, the step up in the loan book, um, you know, I guess kind of curious, you know. Maybe if you could provide any color around, maybe what was driving that? Um, you know?
Speaker #3: But the practical reality is we will be fully developed and delivered on the CoreWeave Helios one side. Largely in advance of the practical ability to come online for the next 830 megawatts.
Michael Novogratz: Well, I'll, I'll answer this one 'cause, you know, a markets guy, first and foremost. Listen, the market's gonna dictate. We want strong partners that we have a long-term partnership with, people that feel comfortable working with us and that we feel comfortable working with, and we're gonna balance that versus the best price. We watch the market like hawks, and certainly, you know, it's not all apples to apples, and so Chris has this very elaborate spreadsheet with his team, where he tries to make it apples to apples. And, you know, we, listen, on CoreWeave, we took a risk, the first, the first train, I think, it's gonna be a great risk. That we got paid extra because we took credit risk with CoreWeave, right?
Michael Novogratz: Well, I'll, I'll answer this one 'cause, you know, a markets guy, first and foremost. Listen, the market's gonna dictate. We want strong partners that we have a long-term partnership with, people that feel comfortable working with us and that we feel comfortable working with, and we're gonna balance that versus the best price. We watch the market like hawks, and certainly, you know, it's not all apples to apples, and so Chris has this very elaborate spreadsheet with his team, where he tries to make it apples to apples. And, you know, we, listen, on CoreWeave, we took a risk, the first, the first train, I think, it's gonna be a great risk. That we got paid extra because we took credit risk with CoreWeave, right?
How that might have looked if, if in a, in a recovery in the market, um, are we is it largely with incremental customers? Are we adding any new customers, any any kind of color? You're comfortable sharing around? The loan book would be helpful.
Speaker #3: So we will parallelize, but it will come at—I'll call it sort of the back end of the CoreWeave phase one project anyway.
Yeah Greg, it's Tony thanks. I'll I'll take that 1. Um
I mean, the, as, as we mentioned, the loan book group, pretty healthily throughout the course of 2025, um,
Speaker #2: So, yes, we can have multiple tenants.
Speaker #1: Thank you.
Speaker #1: Thank you. BTIG. Please go ahead. And our next question today comes from Greg Lewis with Yeah.
Speaker #11: Hey, thank you. Good morning. Thanks for taking my questions. I did want you to kind of talk about, if you could, the step up in the loan book.
Speaker #11: I guess I'm kind of curious, maybe if you could provide any color around what was driving that, and how that might have looked if we were in a recovery in the market.
Michael Novogratz: They were at a time of their development that we thought it was the right bet to make, and I think we're gonna prove it out to be a winner on that bet. And so we'll look at, you know, rate plus counterparty and get the best price. You know, there are enough players around the table that there's a tension. You know, if there was one, it's a very different story, but. And you don't need ten.
They were at a time of their development that we thought it was the right bet to make, and I think we're gonna prove it out to be a winner on that bet. And so we'll look at, you know, rate plus counterparty and get the best price. You know, there are enough players around the table that there's a tension. You know, if there was one, it's a very different story, but. And you don't need ten.
Speaker #11: Is it largely with incremental customers? Are we adding any new customers? Any kind of color you're comfortable sharing around the loan book would be helpful.
Speaker #3: Yeah, Greg, it's Tony. Thanks. I'll take that one. I mean, as we mentioned, the loan book grew pretty healthily throughout the course of 2025.
We ended the year at, you know, 1.8 billion a little over 1.8 billion in average, uh total for Q4 that was up slightly from Q3. And I guess the way to contextualize that is in in a market where the underlying asset class was down 24 25% on average. Uh, it tells you that the loan originations and Loan quantums were were up to offset, um, that value because, you know, these are obviously backed um, backed by crypto, uh, there wasn't a ton of change underneath the surface, I would say the, the net interest margins. Um, you know, as we mentioned, I think last quarter did compress a little bit earlier in the year. Um, they have roughly held steady, um, over the last, you know, kind of period of time. Uh, we have continued to grow our client base. Uh, the loan loan originations were up. Um, and overall, you know, we see it as a, as a
Speaker #3: We ended the year at $1.8 billion, a little over $1.8 billion in average total for Q4. That was up slightly from Q3. And I guess the way to contextualize that is, in a market where the underlying asset class was down 24, 25% on average, it tells you that the loan originations and loan quantums were up to offset that value, because these are obviously backed by crypto.
Christopher Ferraro: Yeah, and the only thing I'll add is I think you did rightly point out a dynamic which probably has surprised us a little to the upside, which we're happy about, which is initial instinct, way back when, was you know, the $ per kW rental per month, rental price would start out high and then over time, sort of go down and normalize to a market clearing level as bigger and bigger potential clients come in.
Christopher Ferraro: Yeah, and the only thing I'll add is I think you did rightly point out a dynamic which probably has surprised us a little to the upside, which we're happy about, which is initial instinct, way back when, was you know, the $ per kW rental per month, rental price would start out high and then over time, sort of go down and normalize to a market clearing level as bigger and bigger potential clients come in.
Speaker #3: There wasn't a ton of change underneath the surface. I would say the net interest margins, as we mentioned—I think last quarter—did compress a little bit earlier in the year.
Christopher Ferraro: But as you pointed out, there isn't actually a very good downward trend, and in fact, given that there's a real choke point in available future capacity for electricity at scale, we've actually seen base rental prices go up in a lot of cases, and with Cipher as well. And so that's a dynamic that I think actually plays very favorably to what we were initially underwritten way back when, when we started this journey.
Christopher Ferraro: But as you pointed out, there isn't actually a very good downward trend, and in fact, given that there's a real choke point in available future capacity for electricity at scale, we've actually seen base rental prices go up in a lot of cases, and with Cipher as well. And so that's a dynamic that I think actually plays very favorably to what we were initially underwritten way back when, when we started this journey.
Is a, is a healthy business. Um, you know, we've talked about the collateralization on the, on the book being somewhere, you know, 1 130% or north of that that has all been fairly consistent. So I, you know, it it it can be a, a fluctuating business as a function of, you know, the underlying market cap or crypto, but but I would say our demand in that space is um has remained pretty healthy which, you know, lends to the point. Mike made around our confidence in onchain credit, you know, continuing to be become a more more stable and and more um, you know, visible path forward for the industry.
Yeah.
Speaker #3: They have roughly held steady over the last period of time. We have continued to grow our client base. The loan originations were up.
Speaker #3: And overall, we see it as a healthy business. We've talked about the collateralization on the book being somewhere 130% or north of that. That has all been fairly consistent.
Operator: Thank you. And our next question today comes from Ed Engel at Compass Point. Please go ahead.
Operator: Thank you. And our next question today comes from Ed Engel at Compass Point. Please go ahead.
Speaker #3: So it can be a fluctuating business as a function of the underlying market cap for crypto. But I would say our demand in that space is remained pretty healthy, which lends to the point Mike made around our confidence in on-chain credit, continuing to be become a more stable and more visible path forward for the industry.
[Analyst] (Compass Point Research): Hi, thanks for taking my question. Just another follow-up on Helios. I guess, if you were to secure a new tenant there, could construction be done concurrently with CoreWeave's existing build-outs, or do you think you kind of need to complete phases 1, 2, and 3 before really starting any new developments? Thanks.
Ed Engel: Hi, thanks for taking my question. Just another follow-up on Helios. I guess, if you were to secure a new tenant there, could construction be done concurrently with CoreWeave's existing build-outs, or do you think you kind of need to complete phases 1, 2, and 3 before really starting any new developments? Thanks.
The other thing I, I'll, I'll add to what Tony said. Um, uh, being a lender, uh, at my core by background is, you know, grow growing the loan book. Um, as a kpi is, is a real double-edged sword. For, for most companies like, giving money away to grow. Your loan book is actually pretty easy thing to do. Growing your loan book uh, while maintaining the right, the right overclass and and risk waiting. Um, uh, so that you don't lose the money, you give away is is the most important thing. And so like that, that's at the core of our, of our DNA. From when we started this business, um uh we are very focused on growing the loan book, we're very focused on growing the loan book um without taking uh any incremental net risk uh along the way because it's just it's just it's not worth it uh at the end of the day. So that's um
Speaker #11: Yeah. The other thing I'll add to what Tony said being a lender at my core by background is growing the loan book as a KPI is a real double-edged sword for most companies.
Christopher Ferraro: Yeah, so there, there's a couple different dimensions to the answer to that question. So one, the new 830+ MW that were approved require infrastructure build, not just on the Galaxy side, but also on the grid side as well. And so the availability of that power, regardless of, you know, if we could snap our fingers and move mountains ourselves, still won't come online until late 2028, at the earliest.
Christopher Ferraro: Yeah, so there, there's a couple different dimensions to the answer to that question. So one, the new 830+ MW that were approved require infrastructure build, not just on the Galaxy side, but also on the grid side as well. And so the availability of that power, regardless of, you know, if we could snap our fingers and move mountains ourselves, still won't come online until late 2028, at the earliest.
That has never that we've never wavered from that. That hasn't changed. Yeah. If if you guys uh if this was on video you would look at both Tony and Chris's outfits and you'd realize that this is a pretty conservative firm.
Thank you know, comment on Mike's outfit.
Speaker #11: Giving money away to grow your loan book is actually a pretty easy thing to do. Growing your loan book while maintaining the right over-collateralization and risk weighting so that you don't lose the money you give away is the most important thing.
Thank you. And the next question, today goes from Joseph, AI with Ka cord. Please go ahead.
Speaker #11: And so that's at the core of our DNA from when we started this business. We are very focused on growing the loan book, but we're very focused on growing the loan book without taking any incremental net risk along the way, because it's just not worth it at the end of the day.
Christopher Ferraro: And so, you know, we will be doing everything we can along the way to parallelize the, you know, the site work, the concrete, the ground clearing, and development for all the adjacent land that we've acquired over the last few years, that allows us to actually execute on this. But the practical reality is, we will be fully developed and delivered on the CoreWeave Helios One side, largely in advance of, you know, the practical ability to come online for the next 830MW. So we will parallelize, but it will come at like, I'll call it sort of the back end of the CoreWeave phase one project, anyway.
And so, you know, we will be doing everything we can along the way to parallelize the, you know, the site work, the concrete, the ground clearing, and development for all the adjacent land that we've acquired over the last few years, that allows us to actually execute on this. But the practical reality is, we will be fully developed and delivered on the CoreWeave Helios One side, largely in advance of, you know, the practical ability to come online for the next 830MW. So we will parallelize, but it will come at like, I'll call it sort of the back end of the CoreWeave phase one project, anyway.
Uh, Hey guys. Uh, good morning, congrats on. Um, the new Helios announcement. Just I just maybe we go back to price action here and Bitcoin and some of the other coins real quick. Um, I I know Mike, you know, that you had the big OG profit taking, you know, we've heard things about, um, you know, maybe a little over leveraging and and the system you know, is Bitcoin a risk asset is a store of value. Is it trying to be both?
Speaker #11: So that has never we've
Speaker #11: never wavered from that, and that hasn't changed. Yeah.
Speaker #2: If you guys if this was on video, you would look at both Tony and Chris's outfits, and you'd realize that this is a pretty conservative firm.
Speaker #2: If you guys—if this was on video, you would look at both Tony and Chris's outfits, and you'd realize that this is a pretty conservative firm.
Speaker #1: Thank you. And our next
Speaker #1: question. I'm going to come on a Mike's
Speaker #1: Thank you. And our next question today comes from Joseph Vathi with Canaccord. Please go ahead.
Um just you know it it was a little surprising to see and I think it was surprising to everyone to see, you know, that price action, you know, it maybe just some more color on, you know, where maybe you were seeing selling was a broad-based across all these groups or you know, was it, you know, was it over leveraged, you know Roots really kind of you know maybe profit taking a little more than we thought just whatever you might want to add. Thanks.
Speaker #4: Hey, guys. Good morning. Congrats on the new Helios announcement. Just maybe we go back to price action here, and Bitcoin and some of the other coins real quick.
Michael Novogratz: So yes, we can have multiple tenants.
Michael Novogratz: So yes, we can have multiple tenants.
Operator: Thank you. Our next question today comes from Greg Lewis at BTIG. Please go ahead.
Operator: Thank you. Our next question today comes from Greg Lewis at BTIG. Please go ahead.
I I I think the the OG profit taking more than we thought is a real thing. And, you know, I think the psychology is
you know, I if you've ever been a
[Analyst] (BTIG): Yeah. Hey, thank you. Good morning. Thanks for taking my questions. I did want you to kind of talk about, if you could, you know, the step-up in the loan book. You know, I guess kind of curious, you know, so maybe if you could provide any color around maybe what was driving that? You know, how that might have looked if in a recovery in the market, is it largely with incremental customers? Are we adding any new customers? Any kind of color you're comfortable sharing around the loan book would be helpful.
Greg Lewis: Yeah. Hey, thank you. Good morning. Thanks for taking my questions. I did want you to kind of talk about, if you could, you know, the step-up in the loan book. You know, I guess kind of curious, you know, so maybe if you could provide any color around maybe what was driving that? You know, how that might have looked if in a recovery in the market, is it largely with incremental customers? Are we adding any new customers? Any kind of color you're comfortable sharing around the loan book would be helpful.
Speaker #4: I know Mike, that you had the big OG profit taking we've heard things about maybe a little overleverage in the system. Is Bitcoin a risk asset?
Like a Speculator.
Once you start selling, it becomes like a
Speaker #4: Is it a store of value? Is it trying to be both? It was just a little surprising to see, and I think it was surprising to everyone to see that price action. Maybe just some more color on where you were seeing selling—was it broad-based across all these groups, or was it overleverage?
Christopher Ferraro: Yeah, Greg, it's Tony. Thanks. I'll take that one. I mean, as we mentioned, the loan book grew pretty healthily throughout the course of 2025. We ended the year at, you know, $1.8 billion, a little over $1.8 billion in average total for Q4. That was up slightly from Q3, and I guess the way to contextualize that is, in a market where the underlying asset class was down 24-25% on average, it tells you that the loan originations and loan quantums were up to offset that value because, you know, these are obviously backed by crypto. There wasn't a ton of change underneath the surface.
Christopher Ferraro: Yeah, Greg, it's Tony. Thanks. I'll take that one. I mean, as we mentioned, the loan book grew pretty healthily throughout the course of 2025. We ended the year at, you know, $1.8 billion, a little over $1.8 billion in average total for Q4. That was up slightly from Q3, and I guess the way to contextualize that is, in a market where the underlying asset class was down 24-25% on average, it tells you that the loan originations and loan quantums were up to offset that value because, you know, these are obviously backed by crypto. There wasn't a ton of change underneath the surface.
Speaker #4: Are OGs really kind of maybe profit-taking a little more than we thought? Just, whatever you might want to add. Thanks.
Somehow that virus or that fever broke and you started seeing some selling Quantum has been the big excuse for people now.
Speaker #2: I think the OG profit-taking more than we thought is a real thing. And I think the psychology is, if you've ever been a speculator, once you start selling, it becomes like a reaction function.
Speaker #2: Then you sell a little more, you sell a little more, and it is so hard to huddle. It's literally hold a position and ride it for a long, long trend.
Speaker #2: And there were a tremendous amount of kind of religious believers in this concept of huddling, of holding and not letting go of your Bitcoin.
Christopher Ferraro: I would say the net interest margins, you know, as we mentioned, I think last quarter, did compress a little bit earlier in the year.
I would say the net interest margins, you know, as we mentioned, I think last quarter, did compress a little bit earlier in the year.
Speaker #2: And somehow that virus or that fever broke, and you started seeing some selling. Quantum has been the big excuse for people. Now, you're seeing some reaction function.
Anthony Paquette: ... They have roughly held steady, over the last, you know, kind of period of time. We have continued to grow our client base. The loan originations were up. And overall, you know, we see it as a healthy business. You know, we've talked about the collateralization on the book being somewhere, you know, 130% or north of that. That has all been fairly consistent.
Anthony Paquette: ... They have roughly held steady, over the last, you know, kind of period of time. We have continued to grow our client base. The loan originations were up. And overall, you know, we see it as a healthy business. You know, we've talked about the collateralization on the book being somewhere, you know, 130% or north of that. That has all been fairly consistent.
I, you know, you're you're seeing some reaction function, uh, from the industry. And I think the industry has been slow to kind of like fun. The quantum institutes to say, hey, this is the real, this is the real story, right? The story in layman's terms, which has always been told to me by the, the, the quote smart guys, who, who in and around the Bitcoin core developers is, as we get closer to Quantum, we're going to get closer to Quantum resistant and you will have the Bitcoin code changed in time. Um, so the risk of course, to the Bitcoin ecosystem is the developers all get obstinate, and they fight amongst each other and they don't, uh, and they nihilistic blow themselves up. I just don't see that happening. And so I think in the long run, Quantum will not be a huge issue for crypto. It'll be a big issue for the world but crypto Bitcoin, especially will be able to handle it.
um,
Speaker #2: From the industry, I think the industry has been slow to kind of fund the quantum institutes, to say, 'Hey, this is the real story.' The story in layman's terms, which has always been told to me by the 'smart guys,' who in and around the Bitcoin core developers is, as we get closer to quantum, we're going to get closer to quantum resistant.
Anthony Paquette: So, you know, it can be a fluctuating business as a function of, you know, the underlying market cap for crypto, but I would say our demand in that space has remained pretty healthy, which, you know, lends to the point Mike made around our confidence in on-chain credit, you know, continuing to become a more stable and more, you know, visible path forward for the industry.
So, you know, it can be a fluctuating business as a function of, you know, the underlying market cap for crypto, but I would say our demand in that space has remained pretty healthy, which, you know, lends to the point Mike made around our confidence in on-chain credit, you know, continuing to become a more stable and more, you know, visible path forward for the industry.
Speaker #2: And you will have the Bitcoin code changed in time. So the risk, of course, to the Bitcoin ecosystem is the developers all get obstinate, and they fight amongst each other, and they don't and they nihilistically blow themselves up.
but that's been the excuse and, and I think that selling half and listen, we had 1 customer alone Who Sold 9 billion dollars worth. And to put that in context, that was 1 quarter or 1/3 of all of iit's inflows last year, right? You know, the biggest player in this market and so these big chunky positions, take a while to work their way through. You know, someone wrote an article that's like Distributing an IPO price usually goes down then.
The distribution ends and it goes back up. And I think that's the
Christopher Ferraro: Yeah. The only other thing I'll add to what Tony said, being a lender at my core by background is, you know, growing the loan book as a KPI is a real double-edged sword for most companies. Like, giving money away to grow your loan book is actually a pretty easy thing to do. Growing your loan book while maintaining the right overcollateralization and risk weighting so that you don't lose the money you give away is the most important thing. And so, like, that's at the core of our DNA from when we started this business.
Christopher Ferraro: Yeah. The only other thing I'll add to what Tony said, being a lender at my core by background is, you know, growing the loan book as a KPI is a real double-edged sword for most companies. Like, giving money away to grow your loan book is actually a pretty easy thing to do. Growing your loan book while maintaining the right overcollateralization and risk weighting so that you don't lose the money you give away is the most important thing. And so, like, that's at the core of our DNA from when we started this business.
Speaker #2: I just don't see that happening. And so, I think in the long run, quantum will not be a huge issue for crypto. It'll be a big issue for the world, but crypto—Bitcoin especially—will be able to handle it.
That's the part of the cycle we're in right now and I said earlier, I don't know when the sellers exhaustion happens. There is not a leverage, a lot of Leverage in the system anymore.
and so,
Speaker #2: But that's been the excuse. And I think that selling has—and listen, we had one customer alone who sold $9 billion worth. And to put that in context, that was one quarter or one third of all of IBIT's inflows last year.
Bitcoin specifically in crypto in general, always need a new story, a new Catalyst, something that happens and it's always hard to predict what it's going to be and it shows up. And then all of a sudden like like a wildfire, everyone kind of gets excited again.
and,
I'm I'm Blowin Smoke On The Embers, hoping the Wildfire, you know, picks up. I you know, it's not here yet obviously by the price action.
Speaker #2: The biggest player in this market. And so these big, chunky positions take a while to work their way through. Someone wrote an article—it's like distributing an IPO.
Thank you. And our final question today comes from Chris brendler at rosenblad security. Please go ahead.
Christopher Ferraro: We are very focused on growing the loan book, but we're very focused on growing the loan book, without taking any incremental net risk along the way, because it's just, it's just, it's not worth it, at the end of the day. So that's, that has never, that... We've never wavered from that, and that hasn't changed.
We are very focused on growing the loan book, but we're very focused on growing the loan book, without taking any incremental net risk along the way, because it's just, it's just, it's not worth it, at the end of the day. So that's, that has never, that... We've never wavered from that, and that hasn't changed.
Speaker #2: Price usually goes down, then the distribution ends, and it goes back up. And I think that's the part of the cycle we're in right now.
Speaker #2: And I said earlier, I don't know when the sellers' exhaustion happens. There is not a lot of leverage in the system anymore. And so Bitcoin specifically, and crypto in general, always need a new story, a new catalyst, something that happens.
Hey thanks. Good morning, and thanks for speaking with me and I'm actually going to ask 2 quick ones, if that's okay. Um, the first 1 is on the new 830 megawatts of power. Does the timeline of late 28th early 29th?
Michael Novogratz: Yeah, if you guys, if this was on video, you would look at both Tony and Chris's outfits, and you'd realize that this is a pretty conservative firm.
Michael Novogratz: Yeah, if you guys, if this was on video, you would look at both Tony and Chris's outfits, and you'd realize that this is a pretty conservative firm.
Speaker #2: And it's always hard to predict what it's going to be, and it shows up. And then, all of a sudden, like a wildfire, everyone kind of gets excited again.
Operator: Thank you. And the next question-
Operator: Thank you. And the next question-
Anthony Paquette: No comment on Mike's outfit.
Anthony Paquette: No comment on Mike's outfit.
Operator: Thank you. The next question today goes from Joseph Vafi with Canaccord. Please go ahead.
Operator: Thank you. The next question today goes from Joseph Vafi with Canaccord. Please go ahead.
Speaker #2: And I'm blowing smoke on the embers, hoping the wildfire picks up. It's not here yet, obviously, by the price action.
You know, sort of slow the pace of current negotiations. Like, this is something that could take place, you know that over the course of a year or do you expect it to be shorter than that? Just given the, the operations demand out there for power? And the second question that I wanted to ask was on Galaxy 1, the um, the 8% yield that that product is offering is that in any way at risk from The Clarity Act of the compromise on stable coin rewards. Thanks.
[Analyst] (Canaccord): Hey, guys, good morning. Congrats on the new Helios announcement. Just maybe go back to price action here and Bitcoin and some of the other coins real quick. I know, Mike, you know that you had the big OG profit-taking. You know, we've heard things about, you know, maybe a little over-leverage in the system. You know, is Bitcoin a risk asset? Is it store value? Is it trying to be both? Just, you know, it was a little surprising to see, and I think it was surprising to everyone to see, you know, that price action. You know, maybe just some more color on, you know, where maybe you were seeing selling. Was it broad-based across all these groups or, you know, was it over-leverage?
Joseph Vafi: Hey, guys, good morning. Congrats on the new Helios announcement. Just maybe go back to price action here and Bitcoin and some of the other coins real quick. I know, Mike, you know that you had the big OG profit-taking. You know, we've heard things about, you know, maybe a little over-leverage in the system. You know, is Bitcoin a risk asset? Is it store value? Is it trying to be both? Just, you know, it was a little surprising to see, and I think it was surprising to everyone to see, you know, that price action. You know, maybe just some more color on, you know, where maybe you were seeing selling. Was it broad-based across all these groups or, you know, was it over-leverage?
Speaker #1: Thank you. And our final question today comes from Chris Brundler at Rosenblatt Securities. Please go ahead.
Speaker #1: ahead. Hey,
Speaker #4: Thanks. Good morning, and thanks for squeezing me in. I'm actually going to ask two quick ones, if that's okay. The first one is on the new 830 megawatts of power.
Sure, um, I, I'll take the first 1, at least, on the, on the 830 megawatts. If if the, the negotiations of the tenant goes a year, uh, I'll be somewhere between fired and or, uh, and or tied up in a closet by Mike. I think, um, the the, uh, we, we, we do have a lot of time. And I, and we want to be prudent and thoughtful about who our our next partner or partners,
Speaker #4: Does the timeline of late '28, early '29 sort of slow the pace of current negotiations? Is this something that could take place over the course of a year, or do you expect it to be shorter than that, just given the voracious demand out there for power?
Speaker #4: And the second question I wanted to ask was on Galaxy One, the 8% yield that that product is offering, is that in any way at risk from the clarity act and the compromise on stablecoin rewards?
[Analyst] (Canaccord): You know, are OGs really kind of, you know, maybe profit-taking a little more than we thought? Just whatever you might want to add. Thanks.
You know, are OGs really kind of, you know, maybe profit-taking a little more than we thought? Just whatever you might want to add. Thanks.
Speaker #4: Thanks.
Michael Novogratz: I think the OG profit-taking more than we thought is a real thing. And, you know, I think the psychology is, you know, if you've ever been a, like, a speculator, once you start selling, it becomes like a, an idea, a reaction function. Then you sell a little more, you sell a little more, and it is so hard to HODL, to literally hold a position and ride it for a long, long trend. And there were a tremendous amount of kind of religious believers in this concept of HODLing, of holding, you know, and not letting go of your Bitcoin. And somehow that virus or that fever broke, and you started seeing some selling. Quantum has been the big excuse for people. Now, you know, you're seeing some reaction function from the industry.
Michael Novogratz: I think the OG profit-taking more than we thought is a real thing. And, you know, I think the psychology is, you know, if you've ever been a, like, a speculator, once you start selling, it becomes like a, an idea, a reaction function. Then you sell a little more, you sell a little more, and it is so hard to HODL, to literally hold a position and ride it for a long, long trend. And there were a tremendous amount of kind of religious believers in this concept of HODLing, of holding, you know, and not letting go of your Bitcoin. And somehow that virus or that fever broke, and you started seeing some selling. Quantum has been the big excuse for people. Now, you know, you're seeing some reaction function from the industry.
Speaker #3: Sure. I'll take the first one at least. On the $830 million, if the negotiations with the tenant go a year, I'll be somewhere between fired and/or tied up in a closet by Mike, I think.
Speaker #3: We do have a lot of time, and we want to be prudent and thoughtful about who our next partner or partners will be.
Speaker #3: And the economics associated with that— that being said, it is clear that all the market participants have the capital available today, and are in a race to secure future capacity.
Uh, will be and the economics, assoc associated with that, with that. That being said, um, it is, it is clear that um, all the market participants um, have the capital available today and are in a race to secure future capacity and the timelines that we were originally looking at when we started with Helios and people looking at, you know, uh, very focused on what 26 and 27 power have very quickly moved to 282930 power in terms of um uh all the major players looking to lock that up for themselves and so um you know we're going to balance that that very strong voracious demand that we see with a little bit of prudence and making sure we make the right decision. But but I think we're, we're we're in. No way is looking to uh, watch the market for the next next year or a couple years to see how it develops in terms of uh um uh in terms of partnering in particular because the reality is 28, 29 power. Given the lead times for, uh, the large electrical infrastructure that need to get built, you know,
Speaker #3: And the timelines that we were originally looking at when we started with Helios, and people looking at—very focused on—well, '26 and '27 power, have very quickly moved to '28, '29, '30 power in terms of all the major players looking to lock that up for themselves.
Michael Novogratz: I think the industry has been slow to kind of, like, fund the quantum institutes to say, "Hey, this is the real, this is the real story," right? The story in layman's terms, which has always been told to me by the "smart guys" who in and around the Bitcoin core developers, is, as we get closer to quantum, we're gonna get closer to quantum resistance, and you will have the Bitcoin code changed in time. So the risk, of course, to the Bitcoin ecosystem is the developers all get obstinate, and they fight amongst each other, and they don't, and they nihilistically blow themselves up. I just don't see that happening. And so I think in the long run, quantum will not be a huge issue for crypto.
I think the industry has been slow to kind of, like, fund the quantum institutes to say, "Hey, this is the real, this is the real story," right? The story in layman's terms, which has always been told to me by the "smart guys" who in and around the Bitcoin core developers, is, as we get closer to quantum, we're gonna get closer to quantum resistance, and you will have the Bitcoin code changed in time. So the risk, of course, to the Bitcoin ecosystem is the developers all get obstinate, and they fight amongst each other, and they don't, and they nihilistically blow themselves up. I just don't see that happening. And so I think in the long run, quantum will not be a huge issue for crypto.
Speaker #3: And so, we're going to balance that very strong, voracious demand that we see with a little bit of prudence and making sure we make the right decision. But I think we're in no way looking to watch the market for the next year or a couple of years to see how it develops in terms of partnering.
Speaker #3: In particular, because the reality is '28, '29 power given the lead times for the large electrical infrastructure that need to get built, those lead times today sort of push you up into early '28 at a minimum anyway.
Speaker #3: And so you got to pick your partner quick. You got to make your decisions on what you're going to do, and you got to start locking up supply chain so that you can actually deliver that far out.
Michael Novogratz: It'll be a big issue for the world, but crypto, Bitcoin especially, will be able to handle it. But that's been the excuse, and I think that selling. Listen, we had one customer alone who sold $9 billion worth. To put that in context, that was 1/4 or 1/3 of all of iBit's inflows last year, right? You know, the biggest player in this market. So these big, chunky positions take a while to work their way through. You know, someone wrote an article, it's like distributing an IPO. Price usually goes down, then the distribution ends, and it goes back up. I think that's the part of the cycle we're in right now. I said earlier, I don't know when the seller's exhaustion happens.
It'll be a big issue for the world, but crypto, Bitcoin especially, will be able to handle it. But that's been the excuse, and I think that selling. Listen, we had one customer alone who sold $9 billion worth. To put that in context, that was 1/4 or 1/3 of all of iBit's inflows last year, right? You know, the biggest player in this market. So these big, chunky positions take a while to work their way through. You know, someone wrote an article, it's like distributing an IPO. Price usually goes down, then the distribution ends, and it goes back up. I think that's the part of the cycle we're in right now. I said earlier, I don't know when the seller's exhaustion happens.
Speaker #3: And so, that's how we're thinking about prosecuting that opportunity. On the Galaxy One side, I'll pitch it to Tony, and I'll kick in if I can be helpful.
Speaker #2: Yeah, Chris. So the short answer is, you're talking about the premium yield—8%—that we're offering on the Galaxy One platform right now. Short answer is no.
Speaker #2: That is not at risk from the Clarity Act, at least as our understanding, the way that anything in the Clarity Act is proposed. That is—it's an offering that is available to accredited investors only.
That is not at risk from The Clarity Act. At least is our understanding the way that anything in The Clarity Act is, uh, is proposed. Um, that is a, it's, it's an offering, um, that is available. Uh, to accredited investors only, um, we have, uh, you know, certain customer limits and a total portfolio limit on on how much we're offering there, but it is really in the interest of, uh, you know, growing our overall, um, you know, client, uh, you know, base as as that as that business gets off the ground, uh, that rate is, is obviously subject to change with, you know, a period of notice. And that'll be driven by sort of broad supply and demand. But we also think about it more more generally, as diversifying, our, our funding sources for, uh, the Market's business. More broadly, obviously, within within a box of, you know, disciplined asset liability management. But but it's not it's a rate that we control and it's not subject to, uh, to The Clarity Act at all. Hopefully that answers your question.
Thank you.
and that concludes
your answer session.
Speaker #2: We have certain customer limits and a total portfolio limit on how much we're offering there. But it is really in the interest of growing our overall client base as that business gets off the ground.
All right, thanks a lot. Uh, we appreciate all the insightful questions and your support. Uh,
Michael Novogratz: There is not a lot of leverage in the system anymore. And so Bitcoin specifically, and crypto in general, always need a new story, a new catalyst, something that happens, and it's always hard to predict what it's gonna be, and it shows up, and then all of a sudden, like, like a wildfire, everyone kind of gets excited again. And I'm blowing smoke on the embers, hoping the wildfire, you know, picks up. You know, it, it's not here yet, obviously, by the price action.
There is not a lot of leverage in the system anymore. And so Bitcoin specifically, and crypto in general, always need a new story, a new catalyst, something that happens, and it's always hard to predict what it's gonna be, and it shows up, and then all of a sudden, like, like a wildfire, everyone kind of gets excited again. And I'm blowing smoke on the embers, hoping the wildfire, you know, picks up. You know, it, it's not here yet, obviously, by the price action.
I just want you all to know that we are, uh, we're working our tails off here, and, uh, you know, our eye is certainly on the prize. Uh, and so hopefully come back next quarter, with, with better numbers and, and a better story.
Speaker #2: That rate is obviously subject to change with a period of notice. And that'll be driven by sort of broad supply and demand. But we also think about it more generally as diversifying our funding sources for the markets business more broadly.
Have a great day. Thank you, sir. This. Concludes today's conference call. We thank you all for attending today's presentation. You may now disconnect your lines and have a wonderful day.
Speaker #2: Obviously, within a box of disciplined asset liability management. But it's a rate that we control, and it's not subject to the Clarity Act at all.
Speaker #2: Hopefully, that answers your question.
Operator: Thank you. And our final question today comes from Chris Grendler at Rosenblatt Securities. Please go ahead.
Operator: Thank you. And our final question today comes from Chris Grendler at Rosenblatt Securities. Please go ahead.
Speaker #1: Thank you. And that concludes the question and answer session. I'd like to turn the conference back over to Mike Novogratz, Founder and CEO of Galaxy Digital Holdings.
Christopher Ferraro: Hey, thanks. Good morning, and thanks for squeezing me in. I'm actually gonna ask two quick ones, if that's okay. The first one is on the new 830 megawatts of power. Does the timeline of late 2028, early 2029-
Chris Brendler: Hey, thanks. Good morning, and thanks for squeezing me in. I'm actually gonna ask two quick ones, if that's okay. The first one is on the new 830 megawatts of power. Does the timeline of late 2028, early 2029-
Speaker #3: Guys, thanks a lot. We appreciate all the insightful questions and your support. I just want you all to know that we are working our tails off here, and our eye is certainly on the prize.
[Analyst] (Rosenblatt Securities): ... you know, sort of slow the pace of current negotiations? Like, is this something that could take place, you know, over the course of a year? Or do you expect it to be shorter than that, just given the voracious demand out there for power? And the second question I wanted to ask was on Galaxy One, the 8% yield that that product is offering, is that in any way at risk from the Clarity Act and a compromise on stablecoin rewards? Thanks.
... you know, sort of slow the pace of current negotiations? Like, is this something that could take place, you know, over the course of a year? Or do you expect it to be shorter than that, just given the voracious demand out there for power? And the second question I wanted to ask was on Galaxy One, the 8% yield that that product is offering, is that in any way at risk from the Clarity Act and a compromise on stablecoin rewards? Thanks.
Speaker #3: And so hopefully, come back next quarter with better numbers and a better
Speaker #3: story. Have a great day.
Speaker #1: Thank
Speaker #1: Thank you, sir. This concludes today's conference call. We thank you all for attending today's presentation. You may now disconnect your lines and have a wonderful day.
Speaker #1: day. Buenas ya para la
Christopher Ferraro: Sure. I'll take the first one, at least. On the 830 megawatts, if the negotiations with the tenant goes a year, I'll be somewhere between fired and/or tied up in a closet by Mike, I think. We do have a lot of time, and we want to be prudent and thoughtful about who our next partner or partners will be and the economics associated with that. That being said, it is clear that all the market participants have the capital available today and are in a race to secure future capacity.
Christopher Ferraro: Sure. I'll take the first one, at least. On the 830 megawatts, if the negotiations with the tenant goes a year, I'll be somewhere between fired and/or tied up in a closet by Mike, I think. We do have a lot of time, and we want to be prudent and thoughtful about who our next partner or partners will be and the economics associated with that. That being said, it is clear that all the market participants have the capital available today and are in a race to secure future capacity.
Speaker #5: CFE. Donde hay una muestra muy importante de aceptación de la estrategia de la política económica de la administración de la presidenta Schembach. Hemos tenido muy buenos resultados en las emisiones internacionales.
Speaker #5: Entonces, todo este paquete y distintas estructuras van a gozar seguramente de un financiamiento en condiciones muy ventajosas para el país.
Speaker #6: La perspectiva de crecimiento secretario, ¿con qué partiríamos?
Speaker #5: A ver, estamos añadiendo 722,000 millones. Es casi 2. Adicionales del PIB al crecimiento esperado. Entonces, nuestra perspectiva de crecimiento podría estar entre 2.5 y 3% para el ejercicio en caso y la intención es empezar desde muy temprano para que pueda tener un impacto durante el año calendario.
Christopher Ferraro: The timelines that we were originally looking at when we started with Helios and people looking at, you know, very focused on, well, 2026 and 2027 power, have very quickly moved to 2028, 2029, 2030 power in terms of all the major players looking to lock that up for themselves. And so, you know, we're going to balance that very strong, voracious demand that we see with a little bit of prudence in making sure we make the right decision. But I think we're in no way looking to watch the market for the next year or couple years to see how it develops in terms of partnering.
The timelines that we were originally looking at when we started with Helios and people looking at, you know, very focused on, well, 2026 and 2027 power, have very quickly moved to 2028, 2029, 2030 power in terms of all the major players looking to lock that up for themselves. And so, you know, we're going to balance that very strong, voracious demand that we see with a little bit of prudence in making sure we make the right decision. But I think we're in no way looking to watch the market for the next year or couple years to see how it develops in terms of partnering.
Speaker #6: Secretario, igual aprovechando, supimos que hubo un incremento en el IEPS. Quisiera ver si usted ya tiene algún reporte una vez que finalizó el primer mes del año.
Christopher Ferraro: In particular, because the reality is, to 28, 29 power, given the lead times for the large electrical infrastructure that need to get built, you know, those, those lead times today sort of push you up into, into early 2028 at a minimum anyway. And so you got to pick your partner quick, you got to make your decisions on what you're going to do, and you got to start locking up supply chain so that you can actually deliver that far out. And so that's how we're thinking about prosecuting that opportunity. On the Galaxy One, I'll pitch it to Tony, and I'll kick in if I can be helpful.
In particular, because the reality is, to 28, 29 power, given the lead times for the large electrical infrastructure that need to get built, you know, those, those lead times today sort of push you up into, into early 2028 at a minimum anyway. And so you got to pick your partner quick, you got to make your decisions on what you're going to do, and you got to start locking up supply chain so that you can actually deliver that far out. And so that's how we're thinking about prosecuting that opportunity. On the Galaxy One, I'll pitch it to Tony, and I'll kick in if I can be helpful.
Speaker #6: ¿Cuánto ha generado?
Anthony Paquette: Yeah, Chris, so the short answer is, you're talking about the premium yield, 8%, that we're offering on the Galaxy One platform right now. Short answer is no, that is not at risk from the Clarity Act, at least as our understanding, the way that anything in the Clarity Act is proposed. That is a... It's an offering that is available to accredited investors only. We have, you know, certain customer limits and a total portfolio limit on how much we're offering there. But it is really in the interest of, you know, growing our overall, you know, client, you know, base as that business gets off the ground.
Anthony Paquette: Yeah, Chris, so the short answer is, you're talking about the premium yield, 8%, that we're offering on the Galaxy One platform right now. Short answer is no, that is not at risk from the Clarity Act, at least as our understanding, the way that anything in the Clarity Act is proposed. That is a... It's an offering that is available to accredited investors only. We have, you know, certain customer limits and a total portfolio limit on how much we're offering there. But it is really in the interest of, you know, growing our overall, you know, client, you know, base as that business gets off the ground.
Anthony Paquette: That rate is obviously subject to change with, you know, a period of notice, and that'll be driven by sort of broad supply and demand. But we also think about it more generally as diversifying our funding sources for the markets business more broadly, obviously within a box of, you know, disciplined asset liability management. But it's not. It's a rate that we control, and it's not subject to the Clarity Act at all. Hopefully, that answers your question.
That rate is obviously subject to change with, you know, a period of notice, and that'll be driven by sort of broad supply and demand. But we also think about it more generally as diversifying our funding sources for the markets business more broadly, obviously within a box of, you know, disciplined asset liability management. But it's not. It's a rate that we control, and it's not subject to the Clarity Act at all. Hopefully, that answers your question.
Operator: Thank you. And that concludes the question and answer session. I'd like to turn the conference back over to Mike Novogratz, founder and CEO, for any closing remarks.
Operator: Thank you. And that concludes the question and answer session. I'd like to turn the conference back over to Mike Novogratz, founder and CEO, for any closing remarks.
Michael Novogratz: Guys, thanks a lot. We appreciate all the insightful questions and your support. I just want you all to know that we are, we're working our tails off here, and, you know, our eye is certainly on the prize. And so hopefully come back next quarter with, with better numbers and a, and a better story. Have a great day.
Michael Novogratz: Guys, thanks a lot. We appreciate all the insightful questions and your support. I just want you all to know that we are, we're working our tails off here, and, you know, our eye is certainly on the prize. And so hopefully come back next quarter with, with better numbers and a, and a better story. Have a great day.
Operator: Thank you, sir. This concludes today's conference call. We thank you all for attending today's presentation. You may now disconnect your lines and have a wonderful day.
Operator: Thank you, sir. This concludes today's conference call. We thank you all for attending today's presentation. You may now disconnect your lines and have a wonderful day.
[Analyst]: ... Una ya para la CFE, donde hay una muestra muy importante de aceptación de la estrategia de la política económica de la administración de la presidenta Sheinbaum. Hemos tenido muy buenos resultados en las emisiones internacionales. Entonces, todo este paquete, y distintas estructuras van a gozar seguramente de un financiamiento de condiciones muy ventajosas para el país.
Christopher Ferraro: Y la perspectiva de crecimiento, secretario, ¿con cuánto partiríamos?
Anthony Paquette: A ver, estamos añadiendo MXN 722 mil millones. Es casi 2 puntos adicionales del PIB al crecimiento esperado. Entonces, nuestra perspectiva de crecimiento podría estar entre 2.5 y 3% para este ejercicio, digamos, en caso... Y la intención es empezar desde muy temprano, para que pueda tener un impacto durante el año calendario.
Christopher Ferraro: Secretario, igual aprovechando, supimos que hubo un incremento en el IEPS. Quisiera ver si usted ya tiene algún reporte, ya una vez que finalizó el primer mes del año, ¿cuánto ha generado?
Anthony Paquette: Interesante. Si ves los datos de el INEGI, de la inflación de la primera quincena.
