Galaxy Digital Holdings Ltd. (BRPHF) Q4 2025 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call summary and Q&A session reveal positive aspects: a 5% YoY increase in asset management gross profit, strategic developments like the Helios expansion, and anticipated growth in the digital asset business. The management's optimistic outlook on crypto legislation and infrastructure expansion supports a positive sentiment. Despite some uncertainties, such as crypto market conditions and quantum computing concerns, the overall strategic developments and strong institutional support for Bitcoin suggest a positive stock price movement within the 2% to 8% range.
Key Financial Performance
GAAP net loss $241 million or $0.61 per share for the full year 2025, impacted by approximately $160 million in onetime items including write-downs, costs tied to U.S. listing and corporate reorganization, and a negative mark-to-market adjustment on exchangeable notes.
Adjusted EBITDA $34 million in 2025, achieved despite a 10% decline in the total crypto market cap and a 24% drop in Q4, highlighting the growing scale of the business and increasing contribution of recurring fee and transaction-oriented revenue.
Digital Assets operating segment adjusted gross profit $505 million in 2025, up from $303 million in 2024, representing a 67% year-over-year growth due to operating leverage and a diversified business model.
Treasury & Corporate adjusted gross loss $86 million in 2025, primarily due to unrealized losses in the digital asset and investment portfolio caused by lower digital asset prices.
Total assets and equity capital $11.3 billion in total assets and over $3 billion in equity capital at year-end 2025, with 60% allocated to operating businesses.
Net digital assets and investments $1.7 billion at year-end 2025, down 22% quarter-over-quarter due to market depreciation.
Cash and stablecoins $2.6 billion at year-end 2025, up $700 million from Q3, driven by a $1.3 billion exchangeable note issuance and a $325 million equity investment.
Global Markets adjusted gross profit $423 million for the full year 2025, up 88% year-over-year, despite a 40% quarter-over-quarter decline in digital asset trading volumes in Q4.
Assets on platform $12 billion at the end of Q4 2025, down 15% quarter-over-quarter due to digital asset price depreciation.
Asset Management adjusted gross profit $82 million in 2025, up 5% year-over-year, with $2 billion of net inflows during the year, representing 34% organic growth.
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Operating Highlights
Data Center Business: Expanded to over 1.6 gigawatts of approved capacity, including 830 megawatts recently approved in Texas. First data halls for CoreWeave to be delivered by end of Q1 2026. Engaged in discussions for additional sites in Texas and other states.
Digital Asset Products: Launched new products like tokenized CLOs, high-yield products, and collaborated with partners like Invesco and State Street Global Advisors to tokenize investment vehicles.
Market Expansion in Data Centers: Helios campus approved for an additional 830 megawatts of power capacity, making it one of the largest AI data center campuses under development. Exploring expansion opportunities across the U.S., including Texas and other markets.
Institutional Engagement in Digital Assets: Increased engagement with institutional clients, including banks and asset managers, for blockchain-based solutions and tokenized assets.
Financial Performance: Reported $34 million in adjusted EBITDA for 2025 despite a GAAP net loss of $241 million. Digital Assets segment generated $505 million in operating revenue, a 67% year-over-year growth.
Data Center Construction: Phase 1 of Helios campus on track with first data hall delivery in Q1 2026. Phase 2 development initiated with critical equipment secured.
Strategic Shift to Blockchain and Tokenization: Focused on transitioning traditional assets to blockchain rails and developing tokenized investment products. Positioned as a partner for institutions in the digital finance space.
Scaling Data Center Business: Aiming to build a multi-gigawatt, multi-tenant, multi-campus platform with disciplined capital structure and measured growth.
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Risk or Challenges
Digital Asset Prices: The company experienced a 10% decline in the total crypto market cap, driven by a 24% drop in Q4. This led to unrealized losses in their digital asset and investment portfolio, impacting financial performance.
Regulatory Environment: Uncertainty around the passage of crypto legislation in the U.S. and ongoing debates about stablecoins create challenges for the company's strategic planning and market positioning.
Market Sentiment and Activity: Softer sentiment and reduced activity industry-wide led to a 40% decline in digital asset trading volumes quarter-over-quarter, impacting revenue generation.
Balance Sheet Volatility: The company's balance sheet took a hit in Q4, reversing gains from Q3, due to market depreciation and unrealized losses in digital assets.
Data Center Construction Risks: Severe winter weather temporarily paused construction at the Helios campus, highlighting potential risks to project timelines and operational execution.
Debt Financing for Expansion: The company is evaluating debt financing structures for Phase 2 of the Helios campus, which could impact financial stability if not managed prudently.
Economic and Market Conditions: Broader economic uncertainties, including a 6.5% budget deficit and $40 trillion in U.S. debt, could affect the company's operations and the attractiveness of digital assets as a store of value.
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Guidance & Outlook
Data Center Business: Galaxy Digital is expanding its data center business with over 1.6 gigawatts of approved capacity, including a recent approval of 830 megawatts in Texas. The first data halls are expected to be delivered by the end of Q1 2026, with additional halls coming online by the end of Q2. The company is also pursuing further expansion with 1.8 gigawatts of incremental requests in progress and plans to energize additional capacity by late 2028 to early 2029.
Digital Assets Business: Galaxy Digital remains optimistic about the long-term prospects of the crypto market despite current bearish trends. The company is focusing on blockchain infrastructure and tokenized assets, with plans to expand its offerings in tokenized credit platforms and on-chain solutions for institutional clients. The company is also seeing increased engagement from traditional financial institutions transitioning to digital finance.
Financial Projections and Capital Allocation: Galaxy Digital plans to continue investing in data center infrastructure and scaling its digital assets business. The company raised $1.6 billion in Q4 2025 for these purposes and aims to maintain disciplined risk and balance sheet management. The focus will be on scaling structured products, launching targeted investment strategies, and delivering institutional-grade on-chain solutions.
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Shareholder Return Plan
The selected topic was not discussed during the call.
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Key Q&A
Q:What are your thoughts on the crypto market structure bill in Washington?
A:Michael Novogratz believes there is a 75%-80% chance the bill will pass due to bipartisan support. He highlighted the importance of the bill for advancing digital asset infrastructure and its potential to accelerate on-chain activity and M&A in the crypto industry.
Q:Can you provide details on the future potential build-out at Helios and the incremental 830 megawatts with ERCOT?
A:Christopher Ferraro explained that they have over 3.5 gigawatts in total requests with ERCOT, with 830 megawatts recently approved. The approval was based on current grid capacity, and future requests will go through ERCOT's new batch processing framework. The timing for additional approvals is uncertain, but the 830 megawatts approval was a significant achievement.
Q:Are we heading into another crypto winter, and what signals should we watch for recovery?
A:Michael Novogratz stated that the market feels chilly but believes Bitcoin is in a $70,000 to $100,000 range. He emphasized that Bitcoin is now a macro asset with institutional support. He suggested watching for new catalysts, such as the market structure bill, to signal recovery.
Q:How does Galaxy view its position in the evolving market structure between crypto and traditional finance (TradFi)?
A:Michael Novogratz highlighted Galaxy's focus on credit and infrastructure as key areas for growth. He mentioned the potential for on-chain credit to expand significantly and the need for staking and wallet infrastructure for financial market players. Galaxy aims to leverage its expertise to support traditional players entering the crypto market.
Q:Can you provide more color on engagements with potential tenants for Helios and their expectations?
A:Christopher Ferraro stated that they are focused on hyperscalers and other large-scale tenants. He noted that ambitions for power capacity have grown, and they are prioritizing high-credit-quality tenants for future developments. The demand for large-scale power capacity remains strong.
Q:Should Galaxy be driving a harder bargain on new HPC deals?
A:Michael Novogratz explained that market dynamics dictate pricing and that they balance securing strong partners with achieving the best price. Christopher Ferraro added that rental prices for power capacity have been increasing, which is favorable for Galaxy.
Q:Could construction for new tenants at Helios be done concurrently with CoreWeave's existing build-outs?
A:Christopher Ferraro explained that the new 830 megawatts require infrastructure build-out on both Galaxy's and the grid's side, with power availability expected by late 2028. Construction for new tenants will be parallelized but will align with the completion of CoreWeave's project.
Q:What drove the step-up in the loan book, and are there any risks?
A:Anthony Paquette noted that the loan book grew to over $1.8 billion despite a 24%-25% decline in the underlying asset class. He emphasized maintaining over-collateralization and risk management. Christopher Ferraro added that they focus on growing the loan book without taking incremental net risk.
Q:What caused the recent price action in Bitcoin, and is it a risk asset or a store of value?
A:Michael Novogratz attributed the price action to profit-taking by long-term holders and concerns about quantum computing. He believes Bitcoin is both a risk asset and a store of value, with institutional support ensuring its longevity. He expects selling to subside and new catalysts to emerge.
Q:Does the timeline for the new 830 megawatts of power slow negotiations with tenants?
A:Christopher Ferraro stated that while there is time to be prudent, the strong demand for future power capacity means negotiations will not be delayed significantly. Decisions need to be made quickly to secure supply chains and meet timelines.
Q:Is the 8% yield on GalaxyOne at risk from the Clarity Act?
A:Anthony Paquette clarified that the 8% yield is not at risk from the Clarity Act as it is offered to accredited investors and is subject to change based on supply and demand. It is part of their strategy to diversify funding sources.
Q:Review of Unclear Management Responses
A:Management avoided directly addressing the specific timing and details of when the crypto market structure bill will pass, as well as the exact timeline for additional ERCOT approvals beyond the 830 megawatts. They also did not provide clear specifics on the potential impact of quantum computing on Bitcoin or the exact catalysts needed for market recovery.
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Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
CLO
Center
Digital Assets
Galaxy Digital
Global Markets
Infrastructure Solutions
Invesco
acquisition
adoption
asset price
asset rail
bull market
catalyst
chain
crypto
decline market
depreciation
fund
loan book
loss
momentum
need client
note
plumbing
portfolio
record
seller
site
staking
statement
tale city
trading volume
us
workflow
GLXY Transcript
Galaxy Digital Holdings Ltd. (BRPHF) Q4 2025 Earnings Call Transcript
Positive2-3
The earnings call summary and Q&A session reveal positive aspects: a 5% YoY increase in asset management gross profit, strategic developments like the Helios expansion, and anticipated growth in the digital asset business. The management's optimistic outlook on crypto legislation and infrastructure expansion supports a positive sentiment. Despite some uncertainties, such as crypto market conditions and quantum computing concerns, the overall strategic developments and strong institutional support for Bitcoin suggest a positive stock price movement within the 2% to 8% range.
Galaxy Digital Inc. (GLXY) Q3 2025 Earnings Call Transcript
Positive10-21
The earnings call highlights strong strategic initiatives, such as significant asset management growth and data center expansion, which are positive indicators. The Q&A section reveals a stable approach to risk management and asset evaluation. Despite some broad responses, the overall sentiment from management is optimistic, focusing on growth opportunities and strong market positioning. The lack of explicit financial details does not overshadow the positive outlook and strategic partnerships, suggesting a likely positive stock price movement.
Galaxy Digital Inc. (GLXY) Q3 2025 Earnings Call Transcript
Positive10-21
The earnings call shows strong financial performance, with record crypto trading volumes and significant AUM and AUS growth. The Q&A highlights effective management during market challenges and strategic initiatives like GalaxyOne and data center expansion. Despite some uncertainties in approvals and refinancing, the company's strategic partnerships and market positioning are strong. The overall sentiment is positive, suggesting a stock price increase in the next two weeks.
Galaxy Digital Inc. (GLXY) Q2 2025 Earnings Call Transcript
Positive8-5
The earnings call summary presents a positive outlook with strong demand and growth opportunities, particularly in digital currencies and data centers. Despite some uncertainties, such as financing costs and limited capacity for hyperscalers, the company's strategic focus on partnerships, tokenization, and onchain capital markets suggests potential for stock price appreciation.
GLXY Slides
GLXY Report
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