0xResearch is back, today with a deep dive into Galaxy’s evolving investment case across institutional crypto rails and AI data centers. Let’s take a look:

Galaxy Digital ($GLXY) Investment Case 

Galaxy Digital (“Galaxy”) is turning into one of the cleanest listed ways to own the institutional build out of crypto markets, while also getting exposure to AI compute infrastructure demand. Here we take a closer look at its business segments in light of the recent selloff. The market still mostly files it as a volatile trading shop, but the mix is shifting toward more durable revenue being at the center of institutional crypto flows and contracted infrastructure income, which should support a more stable earnings profile through the cycle.

Recent results show what the model can earn when conditions are favorable, with the latest quarter delivering about $505 million of net income against $3.2 billion of balance sheet equity. In Q3, earnings mix translated into about $250 million of EBITDA from Digital Assets and $376 million from Treasury and Corporate with Data Centers still negligible. Investors are buying a scaling digital asset platform with significant crypto and equity holdings, and essentially a call option on AI infrastructure. Earnings will still swing with asset prices and volumes, but Q3 2025 nearly matching full year 2024 net income underlines Galaxy’s earnings leverage to a growing digital asset market.

Galaxy has three key segments. About 40% of equity capital sits in Digital Assets, which encompasses Global Markets and Asset Management & Infrastructure Solutions. Global Markets drives most of the earnings here, with its sell-side trading desk (spot and derivative OTC, lending, structured products), coupled with the investment banking arm adding M&A advisory and equity and debt capital markets fees. Asset Management and Infrastructure Solutions earns fee income from active and passive investment products, crypto services, and staking and custody solutions that offer clients customized exposure and stronger security. 35% of equity capital sits in Treasury and Corporate, which manages Galaxy’s own portfolio of digital assets and strategic equity stakes, so Q3’s profit reflects mark to market gains of those holdings. The remaining 25% is tied to Data Centers, mainly the Helios build in Texas, which is effectively pre-revenue today but is expected to generate contracted rent from 2026 with CoreWeave its anchor tenant. Phase I targets delivery of 133 MW of contracted critical IT load by 1H26, with capacity rising to 526 MW when Phase III is completed in 2028.

GalaxyOne is Galaxy’s consumer platform for US individual investors, bundling high yield cash, premium yield notes and simple crypto and US equity trading in one app. If it scales, it can grow fee and spread income on client balances, provide cheaper and stickier funding for the trading and lending book, and create a direct funnel into Galaxy asset management and staking products. In big picture terms, it is a way for Galaxy to capture more of the economics of retail flows instead of relying only on institutional clients.

Galaxy is also putting its Class A common shares onchain on Solana in partnership with Superstate, creating fully SEC registered tokenized stock that trades and settles on a blockchain. That is less about near-term earnings and more about proving out tokenized capital markets, giving them a live case study to sell to issuers, funds and banks who want to bring other securities onchain. Supply of onchain GLXY can be tracked with this Dune dashboard. 

Galaxy is still a high beta way to express a bullish crypto view, with trading and principal investing a big swing factor, but it offers a cleaner way to play the broader adoption theme than a single coin. There is regulatory risk with the evolving political environment, meaningful execution risk around Helios delivering its planned AI leasing economics, and GalaxyOne gaining real traction in a competitive consumer market.

— Sam Schubert

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