Shares surged +8.4% to $17.00 Tuesday morning after Galaxy Digital reported third-quarter earnings that demolished expectations, swinging from a loss last quarter to a $0.66 diluted EPS — roughly 22 times the $0.03 consensus estimate . The beat reframes a central investor question: is Galaxy still a crypto proxy, or something more durable?

Earnings Crushed a Low Bar, but the Turnaround Is Real

Galaxy posted Q3 net income of $323 million, reversing a $85 million loss the prior quarter, with adjusted EBITDA reaching $455 million versus negative $77 million . The swing was powered by rising crypto prices and, crucially, the first full quarter of data center rent. Cash, stablecoins, and U.S. Treasuries nearly doubled to $4.9 billion , giving the company a liquidity buffer few peers can match.

The Helios Lease Hit Its Stride — and That Changes the Revenue Mix

Data Centers generated $79 million in adjusted gross profit and $69 million in adjusted EBITDA, up 293% and 498% quarter-over-quarter, respectively . That aligns almost exactly with Galaxy's prior forecast of roughly $80 million in quarterly leasing revenue from Phase I, at project-level profit margins exceeding 90% . Under a 15-year lease with CoreWeave for 133 MW of computing power in West Texas , this revenue is contractually locked in — a rare source of predictability for a company historically tied to volatile crypto markets.

$3.5 Billion in Debt to Fund the Next Phase Raises the Stakes

Galaxy completed a $3.5 billion senior secured notes offering to fund construction of Helios Phase II , which targets 260 MW of additional capacity with deliveries beginning in the first half of 2027 . The notes carry a 9.875% interest rate and mature in 2031 . That is expensive financing. If AI infrastructure demand cools or CoreWeave stumbles, Galaxy is left servicing a massive debt load from a still-volatile crypto base.

Buybacks Signal Confidence, but the Stock Sits Near Its 52-Week Low

Galaxy repurchased 9.8 million shares year-to-date and the board approved an additional $200 million repurchase authorization . Yet at $17.00, the stock remains far below its 52-week high of $45.92 . The discount reflects investor unease with the company's dual identity — part crypto merchant bank, part AI landlord — and the leverage required to grow the latter. Tuesday's pop rewards execution, but the bigger question is whether Wall Street will value Galaxy's data center cash flows on their own merits or keep discounting the whole business as a crypto bet.