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Good morning, welcome to the Galaxy Digital first quarter 2026 earnings call. Today's call is being recorded. After today's presentation, there will be an opportunity to ask questions. At this time, I would like to turn the conference over to Jonathan Goldowsky, Head of Investor Relations. Please go ahead, sir.

Good morning, and welcome to Galaxy's first quarter 2026 earnings call. Before we begin, please note that our remarks, including answers to your questions, may include forward-looking statements. Actual results could differ materially from those described in these statements as a result of various factors, including those identified in the disclaimers in our earnings release or other filings, which have been filed with the U.S. Securities and Exchange Commission and on SEDAR+. 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 Novogratz, Founder and CEO of Galaxy.

Yeah. Good morning, everyone. Listen, you know, first quarter, crypto prices down on average of 25%. You can, you know, see our headline number certainly isn't what we'd like to be delivering quarter after quarter. All that said, I feel pretty good about the business right now. You know, you come into this earnings call, and I thought, well, let's break it down data centers and then crypto and give you just how I'm seeing it from the CEO perspective, right? Every Monday morning, I look at my to-do list in the data center business, and it has four buckets, right? Are we delivering on time and on cost? That's not an easy feat, but so far, our team is doing an awesome job. We delivered our first data halls. We're on schedule.

You know, more than half of the data centers around the country, you know, can't say that. We feel pretty good about the team down in Texas, and the hard work they're doing. That's a check, right? The second is we've got to finance Phase 2 and then Phase 3. The financing markets are open. I was hoping we would have the definitive deal details today. Trust me, that will come in a very short order. We will have, you know, Phase 2 financed. You know, our partner, CoreWeave, their credit spreads have come in. The financing markets are pretty robust right now, and we're looking at a few different options.

Part three is, we have this 830 MW that we were granted recently, tenant for that. Right? That would take a lot of stress off of me and de-risk this company even further. We're in conversations with a lot of big people. You can guess who they are. That process, Chris will get to the dynamics of it later. My sense is that's probably gonna be a second half of the year process as we get closer to 2027. The stress around 2028 power will pick up. Right now, most of the hyperscalers are focused on this year and next year and just getting the power they need. And finally, new projects that we've been looking at, circling around.

Same answer. Hopefully, in the not-too-distant future, we're announcing a pretty cool one. Stay tuned. Don't have anything specific to tell you today. In each of those buckets, like I'm not sweating. I feel good about where we are. I feel good about the progress we're making. I feel good about, you know, the future after that even. I can give a big check on the data center box. I flip to digital assets. You know, as I said early in the year, I think this is a transition year for the crypto business at large, not just at Galaxy, but globally.

What I mean by that is we are going from a very speculative business where if you were being brash, you would say it was the crypto casino, to a technology that is gonna be used in industry all over the world. You're seeing that pick up in an accelerating fashion, right? Every TradFi organization is working on their version of that infrastructure. They need a wallet, they need custody. We have a infrastructure business that's doing great stuff right now, is engaged in all kinds of conversations. Again, I'm not gonna announce anything today, but stay tuned. We will, you know, we've got some announcements that are coming soon. Deals that roughly are done just aren't at the announcement stage. That business is gonna keep on growing. For the world it's important, right?

When you wanna understand what's really happening as we're tokenizing equities, tokenizing privates, tokenizing mortgages, tokenizing currencies, right? This is the way that the United States projects its power around the world. If you wanna think about the real use case of crypto, it has always been the rest of the world, more so than the United States. Right here, we've got great financial services accessible to most Americans. But there are $5.5 billion people that that's not true for. You're going to see the big brands being sold to, you know, places like Paraguay, and Bhutan and Cambodia all over the world where people have access to our financial services. Part of what needs to happen is the infrastructure bill in D.C., the CLARITY Act.

That's got a really important six weeks. I still believe it gets passed. There's a few obstacles, right? Thom Tillis, who's a friend of mine, is a tough son of a gun. He has been digging in. Him and the President are not on the best of terms, and so he's pushing pretty hard on the ethics piece of this thing. I do think they'll get through that. It's important for both the Republicans who campaigned on it to get this bill done, and for the Democrats who don't wanna have to campaign on it to get it done. It's important for America. I think once that gets done, you're gonna see further acceleration in that build-out, and it's also gonna help crypto prices.

You know, Bitcoin, which is the bellwether, you know, for first quarter, we had a pretty severe sell-off all the way to 60K. It feels like that will be a tradable bottom for this part of the move. You know, we bounced up to 80 now. I think we're trading 76, 77. I don't see Bitcoin exploding in the near term, but it might. I think you're gonna have some wood to chop through 80, 85. Once you get through that, the next stop is 100. If you break that, you know, then it's all price discovery. It's not my prediction that we break that 100 this year. You're gonna need a few things to happen. Mostly that will be an easing central bank.

You know, given the war in Iraq, we've got some pretty ugly inflation prints that are gonna come through the pipeline. I'm sorry, the war in Iran. Pretty bad inflation points that'll come through the pipeline. I don't think the Fed does anything but sits and watches. I know Kevin Warsh is a real believer in the productivity miracle that is coming from AI. You know, one thing I was pointing out to the guys here is all of this wild acceleration we're seeing in AI is mostly being done on the infrastructure that already existed. You know, campuses like Helios, where we're delivering the data centers.

You know, we deliver the data center to CoreWeave, they then take another, you know, 2-3 months to build out the inside for a final customer to use. It's really not till this time next year when the next phase of power comes into powering AI. The AI revolution is just starting, and its impact on inflation, its impact on productivity, its impact on how the world changes. You know, listen, I think the Fed will be cutting rates by the end of the year. I think that will be very supportive of broad crypto prices. One thing I'd point out is that, you know, crypto prices were down 20%, volumes in trading markets were roughly down 20%, and here at Galaxy, our volumes were flat.

It's the first time we've really started to see a decoupling of our business from the price, and that's very promising. I mean, if I could see that fourth quarters in a row, I'd have a big grin on my face. You know, the balance sheet lost money because crypto prices were down, but we way outperformed what we would have done if we had not cut some positions and also shifted a lot of our level two exposure into Hyperliquid, which is one of the tokens I've talked about. We've been a supporter mostly because it's got an economic model, unlike many of the other tokens, which were more association tokens. I think Hyperliquid is a good way to look at what the future of crypto is gonna look at.

Again, you know, to headline numbers weren't what I want, but I feel really good about the two businesses, both how we're doing and the macro over, you know, backdrop for both of them. With that, I'll pass it on.

Great. Thanks, Mike Novogratz. Thank you everyone for joining the call today. I'll start by walking through the consolidated financials and the balance sheet, then dive into the digital asset operating businesses in more detail before turning it over to Christopher Ferraro for an update on data centers. As Mike Novogratz mentioned, Q1 was a challenging quarter for digital asset prices, with total crypto market cap declining roughly 20%. While that impacted our reported results, our operating businesses continued to perform, we reached an inflection point at Helios as we've started to come online. For the first quarter, we reported GAAP net loss of $216 million, or a loss of $0.49 per share, firmwide adjusted EBITDA of negative $188 million.

These results were driven primarily by unrealized mark-to-market losses on our balance sheet digital asset holdings, with the treasury and corporate segment reporting an adjusted gross loss of $140 million in the quarter. Firmwide operating expenses, excluding grossed-up transaction costs and the impairment of digital assets, were approximately $147 million in Q1, down 7% quarter-over-quarter, driven by lower professional fees and a decrease in compensation expense. On the operating business side, our digital asset segment generated $49 million of adjusted gross profit, roughly in line with Q4 results, despite broader market weakness in Q1, as Mike mentioned. I'll provide more detail on this performance in a few moments. In data centers, our financial results remained de minimis in Q1 as we worked through the final stages of construction and commissioning for Phase 1 at Helios.

As mentioned previously, revenue will begin ramping in Q2 as we deliver data halls under our CoreWeave lease agreement. As a reminder, these are 15-year contracted cash flows at approximately 90% average lease level EBITDA margins, entirely uncorrelated to digital asset prices. As that revenue comes online, it will begin to meaningfully diversify our revenue and earnings profile in the coming quarters. Turning to the balance sheet, we ended Q1 with approximately $10 billion in total assets, down from $11 billion at year-end, driven by the decline in digital asset prices. Total equity capital was $2.8 billion, with roughly 60% allocated to our operating businesses. This mix will fluctuate quarter to quarter, but as previously noted, we expect the share of capital allocated to our operating businesses to continue increasing in the coming quarters, driven primarily by the ongoing build-out at Helios.

Within Treasury and Corporate, we held approximately $1.4 billion of net digital assets and investments, down 19% quarter-over-quarter, primarily reflecting market depreciation. During Q1, we repurchased 3.2 million shares of our Class A common stock for $65 million under our previously announced $200 million share repurchase authorization. This amount more than offsets dilution from equity-based compensation awarded in 2025 and brought our quarter-end share count to approximately 390 million basic shares outstanding. We view share buybacks as an attractive use of capital when we see meaningful disconnect between the stock price and the intrinsic value of the company, and we'll continue to use them in a disciplined manner consistent with this philosophy going forward. Cash and stablecoin balances were approximately $2.6 billion at quarter-end, roughly flat from year-end.

We will continue to manage our balance sheet with discipline, balancing investments while maintaining sufficient capital and liquidity, including for the potential repayment of $445 million of exchangeable notes maturing in December of this year. Now turning to our operating results, starting with digital assets. Q1 reflected a more challenging market backdrop, as we talked about, with digital asset prices down quarter-over-quarter and a corresponding softening trading volumes and on-chain activity. Against that backdrop, our digital asset segment delivered $49 million of adjusted gross profit, roughly flat quarter-over-quarter. In a sequentially weaker environment, this stability reflects how the composition of the business has begun to shift. Recurring fee revenue and transaction income continue to scale across the platform, and this pace will hold up better in quarters where volumes and prices do not.

We also tightened operating expenses during the quarter, narrowing the adjusted EBITDA loss by roughly a third from Q4. In a volatile industry, how we manage the business in challenging environments matters just as much as how we perform in strong ones. The global markets business delivered adjusted gross profit of $31 million, up 3% quarter-over-quarter, with digital asset trading volumes holding steady, as Mike mentioned, even as the industry-wide activity declined more than 25%. We're adding new trading clients at a steady pace, and the mix is shifting, with a growing share coming from traditional asset managers and hedge funds, reflecting the ongoing convergence of digital assets in traditional finance. On the lending side, our average loan book declined approximately 20% quarter-over-quarter, driven by digital asset price depreciation, modest client deleveraging, and the roll-off of two larger loans.

Since then, we've added new clients and originated new loans while further diversifying our counterparty base, which will continue to support a more durable loan book going forward. A quick update on GalaxyOne, where we're quietly continuing to build momentum. We recently launched Solana Staking at 0% commission and will be opening the platform to business accounts in the coming months, expanding the user base and addressable market. GalaxyOne is still early, but we see a meaningful opportunity to continue layering in capabilities that integrates trading, yield, and asset management into a single unified experience. Turning to asset management. We delivered adjusted gross profit of $18 million and ended the quarter with approximately $8 billion in assets on platform. In asset management, we generated $69 million of net inflows during the quarter, underscoring the durability of our platform against the soft market backdrop.

Flows were broad-based across both our ETF platform and alternatives suite, reflecting continued institutional demand for access to digital asset ecosystem and confidence in our ability to manage through volatility. Subsequent to quarter end, we secured a new $75 million investment mandate, one of the largest single client inflows in our history. Our SMA and managed account business continues to grow as an increasingly important part of our overall platform. We see a clear path to further expansion through 2026 as client appetite for bespoke mandates remains strong. In addition, on May first, we will be launching a new fintech hedge fund focused on the convergence of traditional financial services, blockchain infrastructure, and emerging technologies. This is a thematic we've been operating within at Galaxy for nearly a decade. One we believe gives us a differentiated edge as investors. We've seen this space evolve firsthand.

We understand how these businesses are built, and we're able to underwrite opportunities with a level of conviction that comes from being both operators and longtime participants in the ecosystem. Onto digital infrastructure solutions. As Mike mentioned, we spent the past eight years building institutional-grade infrastructure to support our own operating businesses, and what we're seeing now is a shift where the largest financial institutions are preparing to move onto blockchain-based rails, and they're coming to Galaxy as a partner in that transition. Institutions need foundational infrastructure to operate in a tokenized financial system.

That includes wallet and custody technology that enable secure 24/7 movement of digital assets, as well as the ability to deliver financial products in a way that integrates with their existing systems. This isn't limited to banks or traditional asset managers. It's every institution that touches a digital asset that's now trying to determine what infrastructure they need in a tokenized world. Whether it's trade settlement and clearing, collateral management, corporate treasury, or fund administration, all of that has to be re-architected for a digital native environment. When we think about the total addressable market, it is not niche. It's the entirety of the capital markets across the front, middle, and back office, all of which ultimately needs to be rewired.

Against that backdrop, institutions are looking for partners with the technical capabilities, infrastructure, and expertise to support that transition, capabilities we at Galaxy have been building for nearly a decade. We are now taking those learnings and productizing our digital infrastructure platform into a B2B model through white-labeled solutions, bespoke integrations, and custom infrastructure to meet institutions where they are in their adoption cycle. This span powering staking infrastructure for leading asset managers to developing wallet, custody, and private key architecture for financial institutions and service providers. Once we're embedded at the infrastructure layer, we're able to provide a set of services where we have real competitive strength. That includes acting as a liquidity provider to enable their clients access to crypto markets, delivering fund and investment products, and providing lending and financing solutions.

As we expand this business and deepen those integrations, we expect a continued shift in the composition of our revenue. Over time, our results should become less correlated to the underlying price of digital assets and increasingly driven by the pace of institutional adoption and utilization of the infrastructure itself. These are not short-cycle engagements. Winning and growing these mandates requires time, integration, and a high degree of trust. We've been investing in these relationships for a long time, and we're seeing that begin to translate into tangible opportunities, which we're excited to build on in the quarters and years ahead. Stepping back, the regulatory environment is continuing to develop, institutional adoption is accelerating, and the pipeline of opportunity across our digital asset businesses is extremely robust.

Q1 was a difficult quarter from a market standpoint. The most consequential developments in digital assets don't happen in price, they happen in infrastructure regulation and institutional adoption. Before I turn it over to Christopher Ferraro, I want to touch on our Q2 preliminary performance. So far in Q2, we have seen an improvement in digital asset prices and overall activity. This has translated into a strong start to the quarter for Galaxy Digital, with second quarter to date adjusted EBITDA estimated at approximately $90 million through last Friday. With that, let me turn it over to Chris.

Thanks, Tony. The lights are on at the Helios campus. We've delivered the first data hall to CoreWeave, and I would call that the most significant milestone this business has hit since the day we signed the lease. Not long ago, this was a Bitcoin mining facility.

Today, it is a live operational AI data center with power distribution, cooling, and network connectivity. That's a credit to the team on the ground in Texas and here in New York. This is the single most important de-risking event this business has experienced. We now have a track record of delivering on time and on budget, not a projection. That distinction matters when you're sitting across the table from a prospective customer or capital partner. We've proven we can take a site from concept to operational data center at hyperscale, and that credibility is opening doors. We remain on track to deliver substantially all of the 133 MW of critical IT capacity for Phase 1 by the end of Q2.

Our client, CoreWeave, has indicated that it expects a $multi-trillion investment-grade public company to be the end user for their GPUs at our Phase 1 Helios facility once the clusters are operational. Turning to Phase 2, we've made meaningful progress on the greenfield construction for the 260 MW of incremental critical IT capacity. Site work, concrete, and steel are advancing on the new data center buildings, and Phase 2 data hall deliveries are on track to commence in the first half of 2027. On Phase 2 financing, we're seeing strong demand for financing the build. Our focus is on maintaining a capital structure that gives us the flexibility to scale without over-leveraging the platform, and we expect to have more to share on Phase 2 financing in the near term.

Turning to leasing the available 830 MW, the demand environment for large-scale HPC capacity remains very strong. Every major participant in this market has capital available and is racing to lock up future capacity, and we're seeing that firsthand in the quality of the conversations we're having. We are in active discussions with a select group of potential customers. A lease of this scale, multiple years and $ billions of contracted revenues, requires extensive diligence, bespoke structuring, and careful negotiation. We've been through this process before, and we know what it takes to get it right. The compounding value of picking the right partner and the right structure is enormous, and that is worth us being deliberate about.

From our seat, 830 MW of approved front-of-the-meter power in ERCOT is a one-of-one asset, and the responses from potential customers evaluating the opportunity reinforces this view. Importantly, though, we are not waiting on commercial structure to be finalized to proceed on development. Consistent with our approach throughout the initial Helios build, we've begun procuring critical infrastructure for the 830 MW de-development. Specifically, we have placed deposits and issued purchase orders on main power transformers and circuit breakers for the first phase of that development and have secured capacity for the balance of long-lead electrical infrastructure. Lead times for this equipment stretch to multiple years, and securing supply early has been core to our development thesis and schedule forecasts.

A brief update on the evolving ERCOT regulatory framework. In mid-March, ERCOT published a draft rule, PGRR145, which establishes a base load category for projects with a 2028 energization date. Projects in that category are not subject to re-study in Batch 0. Eligibility requires two things: valid completed interconnect studies and assigned interconnection agreement with the utility. Our interconnection studies were completed on January 15, and our service agreement is already executed. We satisfy both requirements to be eligible for base load within Batch 0 based on the current draft. I will note that PGRR145 is still in draft form and could change. We're tracking it closely and are in active dialogue with ERCOT and our advisors. As we read it today, nothing in the current draft indicates a deferral, and we are certainly not treating this capacity as speculative.

There is still a lot to develop at the Helios campus, but scaling beyond Helios is a priority. We continue to evaluate a deep pipeline of opportunities across the U.S. We're being highly selective. Not every megawatt is worth pursuing, and we're only going to transact on sites where we have conviction in power availability, land suitability, development timeline, and customer demand. Several of those sites have progressed to LOIs, and we expect we will be discussing our multi-campus portfolio within this year. The Helios campus is the foundation, but the vision is a multi-campus, multi-customer platform built the same way, one disciplined step at a time. We spent the better part of two years building this business, and now that foundation is operational. Phase 1 is delivering. Phase 2 is under construction. We have 830 MW of approved incremental capacity with active customer conversations underway.

We have an additional 1.8 GW progressing through the ERCOT study process and a growing pipeline beyond that. We've proven that we can execute. What lies ahead at the Helios campus and beyond is an opportunity of extraordinary scale, and we're just getting started. I'll turn it over to the operator for questions now. Thank you, everybody.

We will now begin the question-and-answer session. To ask a question, you may press star then one on your touch tone phone. If you're using a speaker phone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw your question, please press star then two. In the interest of time, please limit yourself to one question. Your line will be muted after asking your question. You can rejoin the queue to ask another question. At this time, we will pause momentarily to assemble our roster. The first question comes from Peter Christiansen, with Citi. Please go ahead.

Thank you. Good morning. Great to be a part of the call. I'm curious on the financing side on, as it relates to data centers here. I mean, you know, fully stabilized lease hyperscale deals are seeing tightening spreads, but I guess the rating agency has been calling out syndicate financing for large deals being potentially getting strained. Just curious if you're seeing the same and how are you thinking about that on your go-forward financing strategy. Thank you.

Sure. I'll take it. Good morning, Peter. How are you, sir? Yeah. I would agree with the comment that financing for stabilized assets in this space has started to tighten. That's definitely true. What I would say is, prior to maybe 6 months ago, the market was split and/or pretty heavy towards bank syndicates financing, more traditional project finance style financings.

The high yield bond market has definitely stepped in in a big way over the last few months and has taken a lot of the market share from the larger bank syndicates, which is good because it's a much more distributed base of investors with much more flexible pools of capital rather than a traditional bank that's looking to either hold and syndicate a sort of prescriptive project financing. We've pretty much seen, you know, things could change, but we've pretty much seen spreads tighten across the board, and that's come from a peak of sort of concern around buildouts, CapEx budgets, credit quality, and spreads have come in pretty significantly.

The rating agencies have come through, and they've started to rate a number of issues that have come out either at or above the underlying credit levels, which sort of takes into account the fact that folks like us are actually building long-lived, durable infrastructure. Even though we have a tenant who has their own credit quality, those assets live beyond any tenant deal and are repurposable, et cetera. We're pretty constructive right now about the opportunities for financing for two and beyond relative to where the market even was a few months ago.

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

Yes, good morning. Thanks for taking the question. On the additional 830 MW at Helios, Mike, you mentioned that there was maybe some deals that were getting done, but nothing ready for an announcement yet. Just to kind of level set, you know, is it safe to say that this is not an extension of the current agreement with CoreWeave, but in fact, you know, separate tenants? Is there anything you can add on?

Either I misspoke or you misheard me. What I was saying is on the eight thirty, we're engaged in lots of conversations. On new projects outside of Helios, we are, as Christopher Ferraro said in his remarks, we're LOI stage, and hopefully, in the distant future, we'll have things to announce where we've got actual locked up projects. That's separate from Helios. Which has always been our goal to have a multi-campus business. Hopefully by the time we're on next quarter, we're talking about that with much more detail.

Just to add on to what Mike said, Patrick, to get a different angle of the question you're asking. In addition to a multi-campus strategy, we are very focused on a multi-tenant strategy as well. I think it's very fair to assume that we're always talking to CoreWeave because they're our biggest partner in the business today. The customer conversations we're having extends pretty far beyond just CoreWeave. I would expect our decision-making around the 830 is going to take into consideration the importance of having a diversified exposure client base across all our assets.

The next question comes from James Yaro with Goldman Sachs. Please go ahead.

Good morning, all. Divyam here. I'm speaking on behalf of James Yaro. My question is, what is the risk appetite among your crypto trading clients, and when do you expect it to stabilize or inflect as crypto prices have appreciated now?

That's a good question. Listen, you know, like I said on my remarks, volumes across all of crypto trading was down, call it 25% on average last quarter. We felt good that we were flat. You know, I think you need a few catalysts. What was nice is that what you saw broadly selling from old school, old holders of crypto that drove the prices down and who came in was retail. Retail through ETFs and retail through buying MicroStrategy, you know, equity, which then translates into Bitcoin buying another crypto. You know, when Bitcoin stabilizes and trades up, the rest of crypto does better.

You've got places like Morgan Stanley who have moved into the space in an aggressive way and have their whole sales force now, you know, pitching a fairly large allocation to Bitcoin as part of their portfolio. I think what we're seeing is this transition from people that had held crypto for, you know, 5, 10, 15 years, taking some profits, selling some of theirs, and that being replaced by a broader retail buying base. We've seen a couple sovereign funds come in and buy as well or add to positions. You know, I would be lying here say if it's more muted than it had been in previous years. There's more excitement in, you know, AI equities, in crude oil around the war.

What we're seeing is crypto infrastructure is now being used to also trade those. You're seeing perpetuals, which was a crypto innovation being brought to equity markets. The broad big picture theme is this infrastructure, what goes along with it will be very supportive to the whole space. It's not necessarily short-term demand for you name the token. If it's Solana or Polkadot or Ethereum, right? That demand is less exciting right now, a little bit more muted. Again, cutting rates and the Clarity Act passing probably gives that a, you know, a kick. What we've always seen in crypto is what really drives crypto is price. Again, we're basing, you know, once we get moving, people will find all kinds of reasons to get excited.

The next question comes from James Faucette with Morgan Stanley. Please go ahead.

Thank you very much. I wanted to delve in quickly to the approval process in ERCOT and the batch process that, as I understand it, will be starting this summer. Can you just touch on two things? First, any clarification to make sure that the recently approved 830 MW isn't subject to any part of that batch process or review of the batch process? Can you give us an assessment of where you think you are or what you may need to do to gain incremental approvals as part of that process for additional capacity, and what that timeframe may look like? Thanks.

Sure. Let's start with, we have two pieces right today at Galaxy. Our originally 100 MW that's already leased. Let's focus on that first. There's nothing in the current regulatory landscape that we see that puts that capacity at risk. We have a fully executed service agreement, complete interconnect studies, Phase 1 live, and we're delivering power to it. Next, the 830 MW approved earlier this year, we're equally confident in that. I think in my comments, we talked a little about the draft PGRR 145 rule, which sets baseload category for projects that are not subject to re-study, not subject to looking at.

It's very clear to us, and it has been communicated as such, that the 830 MW that was approved is part of that baseload capacity to be for Batch 0, meaning it's the base case for all new power being studied. We had our studies approved in January. We had an interconnect agreement with the utility. That as it's drafted today, and as far as we can see any potential reiterations of that draft is covered. That leaves us with today what we expect could be up to an additional 1.8 GW. That 1.8 GW for us is what's in question from a timing perspective.

I think, the best I can give you on that today is, you know, ERCOT is still working through the specifics on what they think the new batch process is gonna be, and therefore, which parts of our 1.8 GW would fit into potentially being looked at as new studies in Batch 0 or new studies beyond Batch 0. So, that's probably the best I can give you today.

The next question comes from Bill Papanastasiou with Chardan Capital Markets. Please go ahead.

Good morning, gentlemen. Thanks for taking my questions, and congrats on the recent progress at Helios. I just wanted to dig a bit deeper on potential lease economics. How could they look for the uncontracted capacity relative to the CoreWeave deal? Should we expect similar headline metrics, or do you think it would be more aligned with other deals that we've seen by some of your peers? Thanks.

Yeah. Hey, Bill, good morning. That is a very good question, and it's hard to answer it directly because there's a bunch of different factors, right? When we originally signed the CoreWeave deal, CoreWeave was still a private company, and was a very different credit quality then, at least at the headline, than when we signed it today. Credit quality is a very important element to any economics to get signed with any counterparty. And the way we think about it is, while a headline dollars per kW per month rent rate is an important metric, sort of the net after financing cost spread capture of any deal we signed for us is more important.

You have this balancing act between headline, monthly rent, revenue versus that minus financing costs, which are gonna very clearly be tied to what kind of tenant we have. Now, in the interim, a number of deals have gotten done. While the headline numbers with regards to their rent versus ours are lagging, meaning like our headline rent number with CoreWeave is a standout in the market, we're pretty constructive that on an after-financing cost basis, the economics to us, both on a dollar and on an RR basis to build for this next capacity is gonna be equally attractive. That's just a framework for the way we think about the opportunity set and how we would strike a deal, and the things we consider.

Does that make sense?

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

Thanks. Good morning. Thanks for taking the question. Question just on trading activity. If we were to just assume the Clarity Act passes, love to just get some thoughts around what you think will happen with trading volumes. Mike, I heard obviously the comments around price and trading kind of going together. As we think about just the demand for some of the kind of the further out layer ones and layer twos beyond the top 10 or 20, seems like demand is dried up quite a bit. I'm just curious whether you feel like that's cyclical just 'cause risk appetite's not there, or maybe secular because there's just not a lot of activity happening on those blockchains.

Maybe we consolidate activity to a smaller number of large blockchains and that's good for, you know, maybe institutions, but maybe not as good for kind of the speculative retail piece. Just curious kinda how you see things playing out post-Clarity-?

Yeah.

assuming it does pass. Thanks.

I think, you know, my answer is gonna tend towards the latter, you know, setup that you had. Listen, I think Clarity will bring more and more institutions in, and those institutions will come in some set of direct trading, you know, desks to compete with us in Bitcoin, Ethereum, and some of the other big majors. People getting more comfortable with the neobank that will have a broader selection as a neobank wallet structure that people are pushing, a broader selection of tokens. I think the bigger idea here is that as you turn Wall Street on, you turn a selling machine on, and it starts with Bitcoin and Ethereum, and those things have generally propped up the whole industry.

The big transition we're seeing as we move to using crypto infrastructure, it's happening at the same time where there are so many other avenues for people to speculate, right? The explosion of sports betting, you know, online gambling, sports betting, prediction markets, even meme coin trading. You know, in some ways, I don't think you'd ever saturate people's desire to gamble. There's a lot more on offer than just, you know, Polkadot tokens. Those ecosystems need to find a way to be more relevant. We've seen it with Hyperliquid. It's a perfect example of great technology, a tight team, but mostly an economic model in the token that lets people feel like they're participating in the economics of the underlying ecosystem, not just having association with the ecosystem.

We have an entire, you know, hundreds of tokens that really were mostly association tokens, and that was mostly because of the regulatory environment. I think those tokens are gonna either have to restructure or they're gonna slowly have less and less participation from both retail and the broad community. It doesn't mean they all will die, because if, you know, there's a community that cares about it, they'll keep, you know, pouring in resources and trying to bring in more people. We're gonna go through this transition where I would hope and think in five years, most tokens that are out there are more than just community tokens.

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

Hi. Thanks for taking my question. Appreciate all the clarity on comments on ERCOT's new load approval process. I know this is still being finalized by them. I guess from a timing perspective, I mean, when do you think you're gonna have more clarity on where some of your pipeline stands within either Batch 0 or one or beyond that?

Yeah. Right now, the best visibility we have is around June, which is what indications are, that both ERCOT will start to narrow in on their process for the batch interconnection study framework, at which point we're sort of doing all the background work and ready to engage with that post-haste once that comes through. You know, a couple more months from now towards the middle of the year.

The next question comes from Ben Soergers with BTIG. Please go ahead.

Hey, thanks for taking my questions. I know you guys mentioned a little bit about expanding, you know, the total addressable market for GalaxyOne. I guess just kinda curious, I know it's still early days, but what's kinda been, you know, the most, I guess, used features of this platform and what's kind of drawn, you know, what do you think has gotten most investors drawn to this platform so far?

There's a decent amount going on there. I think we have been surprised. Actually, crypto trading has been the largest use case so far, which is a little counterintuitive because there are a lot of existing crypto trading platforms out there today. Our capabilities on that front are lagging today, although we're working very hard to both expand coin coverage, adding staking, which we just did in the last quarter, for Solana, and we'll follow up with the rest of those stakeable assets very soon. Crypto trading use case has outperformed expectations. Cash products are performing okay, lagging a little behind.

The next step we're focused on, we're exciting about, is tying it all together by offering financing solutions for individual consumer users that allow consumers to basically leverage their entire portfolio together to increase buying power in a thoughtful and safe way. Our product deliveries today, outside of the moonshot stuff, which we're very focused on iterating on, is around creating an entire wallet effectively that a consumer can own all of their assets, cash, equities, crypto, and beyond, and thoughtfully increase their buying power without taking outsized risk. That's where GalaxyOne stands today.

The next question comes from Martin Toner with ATB Capital Markets. Please go ahead.

Good morning. Thanks for taking my question. The revenue number was a nice one, given how difficult crypto markets were in Q1. Is the business becoming less cyclical? Is Galaxy going to be able to do better in some of these weaker crypto markets?

You know, your lips to God's ears. If we can do that three quarters in a row, I'll have more confidence to say it's less cyclical. This was a promising quarter in that the trading desk stayed flat quarter on quarter when overall revenue went down 25%, and our balance sheet was well-positioned. You know, again, we were in Hyperliquid and had less of other L2s. We had a little less Bitcoin than we normally have, et cetera. If you're just looking at the digital assets business, that's our goal, is to make it less cyclical.

What you're gonna see in the second half of the year is we'll make some announcements about the infrastructure business, which is certainly gonna be less cyclical and help in that, relative to crypto trading. If you take digital assets and you combine it with the data center business.

I try to keep those things separate in my head so we don't, you know, take hard-earned money in one and fun stuff willy-nilly in the other, right? We're gonna try to be very, very thoughtful in both businesses on where we deploy capital. Overall, Galaxy will be less cyclical to crypto in a big way just because of data center earnings, you know, 12 months from now. Even within the digital assets business, our goal is to become less cyclical, and I think that's gonna happen. I'm not gonna declare any kind of victory for at least two to three more quarters.

The next question comes from Joseph Vafi with Canaccord. Please go ahead.

Hey, guys. Good morning. Maybe we could touch a little bit more on the real-world asset tokenization strategy. I know you mentioned, you know, both the wallet custody, and Mike was just kind of touching on infrastructure themes. From my seat, at least, this is kind of a bigger trend than pretty much anything else in the ecosystem right now. Just, you know, just a little more color on, you know, how it evolves, how you exploit the strategy. Thank you.

Sure. Good morning, Joe. We, we would agree with you around the size of the direction of the trend line and the size of the total addressable market, now being up into the right and larger than we've actually ever seen in our existence. Historically, Galaxy has been building technology products and services that we've been offering to largely institutional clients for most of our, directly to largely institutional clients, end buyers, with a more recent step into, more consumer-focused product offerings. What we're seeing on the tokenization, I'll say tokenization writ large, but really, it's digital infrastructure to support their instrument tokenized assets, is a demand from the business side. What people would have considered to be the biggest looming concern for Galaxy's institutional business being bank competitors.

We've seen the demand for those theoretical bank competitors be limit up for partnering with Galaxy to either buy or implement and use as a vendor Galaxy's technology so that the financial system itself can build out the digital infrastructure and stitch it all together so it actually works so that end users can seamlessly store value, transfer value, et cetera. The tokenization opportunity, you know, we have been obviously tracking very closely, our purchase of GK8 back in late 2022, early 2023, was one big step. A handful of smaller acquisitions we've made with great talent, engineers, technology on staking, liquid staking, other digital infrastructure, has been a sign of us seeing it coming.

We didn't really know in our heart of hearts where the market was gonna land in terms of our market opportunity. It's crystallizing pretty fast now, the market opportunity for us to build infrastructure for what everyone would have thought was gonna be our biggest competitors might now become our biggest customers. We're very excited about that. That's where the real opportunity we see sits today. I think Galaxy is best positioned to actually be the partner that these large financial legacy companies need versus some of our other competitors who are either highly undercapitalized, don't have the brand, don't have the trust in their staying capacity, or have chosen to really be a vertical stack that's competing directly with those institutions.

The landscape for our opportunity to really take advantage of the opportunity is pretty attractive. We've sort of retooled the team, retooled our go-to-market to take advantage of that now.

The next question comes from Chris Brendler with Rosenblatt. Please go ahead.

Hey, thanks. Good morning, and thanks for taking my question. I thought the digital asset business was pretty resilient given market conditions. The one area that I thought was a little weaker than I was expecting was lending. Does it reflect decreased risk appetite? Is it asset price sensitive? Just a little color on the decline in lending. Just would love to see, you know, how that's being managed in this environment. Thanks.

Good morning, Chris. Look, I think we have a pretty consistent and strong trend line in the lending business overall throughout our entire history. I think the number one KPI is that we don't lose money. We don't lose our money. We don't lose shareholder money. We don't lose client money, counterparty money. This was one of the first times in a while we saw a pullback. I think it's pretty natural given that a large percentage of our book is always denominated in crypto prices.

You know, we've either lent or borrowed crypto assets, that when you see a couple repeated quarters in terms of, including the last quarter with crypto prices down mid-20s for your notional USD balance of your lending book to see some impact. While we'd love to keep the book growing all the time, when prices are down and clients themselves are de-risking, it's probably also smart to follow that trend, see a little bit of pullback, de-risk your book, and then rebuild. There was a couple things. Crypto prices down. When a percentage of your book is exposed means your USD notional by definition should follow that.

We also had a handful of large, very low-risk loans that were in the book that rolled off, which is just natural roll-off. You know, when you're sort of picking a period quarter-end number and pegging it and looking at the health of the business, like having those roll-off and then subsequent to quarter rebuilding the book and adding more diverse client base is a pretty natural progression. From my perspective, there's nothing to read into that other than other than we are continuing to grab market share.

We're very happy to, for periods of time, sort of allow the de-leveraging and the de-risking to happen naturally, with our number one goal of building a bigger, larger, resilient borrowing pool of clients while being pretty aggressive on limiting downside risk. We're very constructive in the business. That's one of our specialties. I think the opportunity set, not of just building a bilateral lending book with institutions but expanding that to pretty nascent early markets on chain, for example, is a wide-open opportunity set for us. Where we can grow the book smartly is the cone of that opportunity is a lot wider than what we worry about on the downside from a shrinking of the business.

The final question will come from Jonathan Petersen with Jefferies. Please go ahead.

Oh, great. Thanks. On financing Phase 2 and maybe refinancing Phase 1, you know, I'm curious, one of your peers earlier this year was able to restructure their debt with CoreWeave with an kind of an ultimate parent guarantee from the IG-rated hyperscaler that was actually using the compute. Just curious if you have a sense, maybe that's something about restructuring Phase 1 when it's completed or construction financing on Phase 2 if, you know, that sort of solution is part of any of the negotiations that could help on debt pricing. If I could sneak in a follow-up, you know, do you guys have any updated thoughts on splitting the data center business from the rest of the company?

Sure. Good morning. I'll take the first one to start. I would answer that pretty succinctly in that all options are on the table. The market has been pretty nascent, and the deck chairs of the largest companies in the world are shifting always pretty fast but in the direction of own more compute, reduce the cost of owning more compute. We don't observe what you observed lightly and ignore it. Our approach to that is going to be pretty firm in terms of we know the value of Helios. We have a very attractive economic deal with a great partner today. To the extent we do, there is an opportunity to do something along the lines you're suggesting.

We're gonna do it with a clear eye towards, net present value to shareholders being equal or better on a risk-adjusted basis with clients. For Phase 1, I'll just reiterate my comment today, that CoreWeave has stated that our end tenant in that facility is going to be a multi-trillion-dollar IG public company. Knowing that that's the anchor in our first facility gives us and should give investors, as well as our financing partners there, a lot of de-risking and a lot of comfort level there. On the second one, on splitting the business, no update on that. Our posture on that is the same as it's always been.

It is from a management time and focus perspective, myself, Mike, Tony, the whole crew are equally focused on building both businesses. We're involved in building both businesses. We do recognize the capital structure and the capital needs of both businesses, and the earnings potential and visibility are very different. Today, they aren't natural synergistic businesses, but we're not convinced that that's not true in the future. We're gonna continue to build both businesses and evaluate what the opportunities are when the time is right.

This concludes our question-.

Just to put an exclamation point on what Chris.

Oh, go ahead.

... Chris said, if you think about even the growth of where these businesses are, you know, end of the year, we have a convert that rolls off. Helios actually is, you know, Phase 1 at least is fully cash flowing and Phase 2 is getting started. You know, it's probably more of a debate for us around the end of the year than it is today, you know?

This concludes our question-and-answer session. I would like to turn the conference back over to Mike Novogratz, Founder and CEO of Galaxy Digital, for any closing remarks.

Yeah. Well, guys, we appreciate your time today. It is a beautiful day in New York. I usually give a weather update at the start. You know, just want to reiterate, like we're optimistic on both businesses. We've got 700 plus people here working very hard every day. We understand we're in an environment where AI is changing every company in ways that they hadn't dreamed of two years ago, and we are engaged with that trend as well. I think the world is in an AI revolution, and we plan on, you know, riding that wave and paddling our canoe as fast as possible in what will be choppy waters because this is a pretty disruptive technology. Like, hang on to your seats is the broader macro view. Thanks for your time.

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

Good morning. And welcome to the Galaxy Digital fourth quarter 2025 earnings call. Today's call is being recorded. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then 1 on your telephone keypad. At this time, I would like to turn the conference over to Jonathan Goldowsky, Head of Investor Relations. Please go ahead, sir.

Good morning, and welcome to Galaxy's 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 SEDAR 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 Novogratz, founder and CEO of Galaxy.

Good morning, everybody. We're in New York City. We've got ice in the Hudson. Still chilly out here. Listen. I think about this quarter and our year a lot. And I thought in a perfect Dickinsonian way that this is a tale of three cities. Not two cities. And so I'm gonna start with the shiny one. Listen. Our data center business, I couldn't be more excited for it. 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 want to give a shout out to the state of Texas. They've proven it'd be great to do business with. I literally 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 period of time have news on who's gonna occupy that site. At the same time, we've got over a thousand workers, 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 '1. 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. It's usually the same five or six major players. 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 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 75 to a 100 range. We're 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. So when that happens, you gotta think through what's going on. And I think there's a lot that's gone on. I think people got excited over a 100,000 and felt like, ugh, the race was won. You know? I've got all the hard work over fifteen years to get there. Felt like some relief that the community had done something so amazing, and that somehow allowed people 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. 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. 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 realizes 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. 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 in 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. And so 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. 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? 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. 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 trade by 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 period of time, we're gonna have some big announcements about different endeavors we're taking with trade by companies. But Galaxy sees ourselves as a partner for lots of these people. We're gonna partner with some in our office, we're like, 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 know, we could go into a period where the old business doesn't do as well but you're building it to the new business. And what is that new business? That new business is gonna be more on chain stuff, but it's gonna 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. 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. So with that, I will say I'm hoping that Chris or Tony has a literary metaphor for their piece and I'm gonna pass the ball.

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. Despite these nonrecurring 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 $5 million in the year, up from $3 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. 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. 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 increase reflects two strategic capital raises in Q4. A $1.3 billion exchangeable note issuance 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 haul 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. Maintaining disciplined risk and balance sheet management, focused on strong capital and liquidity remains a critical priority as we execute our multipronged growth strategy across digital assets and data centers. Now shifting to our digital assets business. As Mike mentioned, Q4 reflected lower digital asset prices, soft 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. 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, 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 four 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 their accounts. 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 continue to expand our product suite to meet the needs of our clients. We partnered with Invesco to launch the Invesco Galaxy Solana ETP, collaborated with State Street Global Advisors to tokenize a private liquidity fund 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. 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. 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. 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 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. 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 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 entered the year with conviction and the platform to lead. With that, let me turn it over to Chris to discuss the data center business.

Thanks, Tony. And Mike. I would normally go with we are John Gold. 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. 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 Helios is among the largest AI data center campuses currently under development 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, have two applications totaling approximately 1.8 gigawatts of incremental requests progressing through various stages of the load study process. 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 133 megawatts 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. 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. All generators and ehouses 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 the fourth quarter and 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. Within five 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 the first quarter with the remaining data halls coming online by the end of the second quarter. Looking ahead, we've kicked off earth, concrete and steel work associated with our phase two development at 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. 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 proven its ability to execute on a hyperscale AI data center development. Turning briefly to phase two financing. Continuing to evaluate various debt financing structures and are having 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. Evaluated more than 100 campuses across The US, including many in Texas, giving our deep familiarity with ERCOT and 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. 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 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.

Thank you. We will now begin the question and answer session. To ask a question, you may press star then 1 on your touch tone 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 2. 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 Moley with Piper Sandler. Please go ahead.

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 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 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.

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. 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 quite frankly, Democrats realized last election cycle that being anti-crypto was a really dumb 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'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. And 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 really controversial pieces to it. 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. 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 to 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, two to six weeks. You'll get a bill passed. It's important for a lot of reasons. I said earlier, all the trade flight companies are already working on their transition right, to where I mean, listen. Paul Atkins 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. 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 does that explosive growth those things have. A, 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 flag the checkered flag going down I think there's a lot of trade by companies that probably feel short. And so you'll see a pickup in M&A post that bill passing.

Thank you. And our next question today comes from Brett Knoblauch at Cantor Fitzgerald. Please go ahead.

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 830 megawatts 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 1.8 gigawatts 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.

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, through land acquisitions adjacent to Helios. We've had north of 3.5 gigawatts in total. Our 800 approved plus the remaining amount with ERCOT at various stages of either internal study on our side or, or study with ERCOT and wet. To get done. The 830 that we received a firm approval 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 830 megawatts today, which is what we got firm approval for. We as I said in my comments, we currently have various different studies, and request into ERCOT for an incremental 1.8 gigawatts on top of now our 1.6 that is already approved over one point that's already approved. 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 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 request and sort of look at groups of request together. And, 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. And so it's a little on 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 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 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, and where those stand in the queue. 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. 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 megawatt 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, 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.

Thank you. And our next question today comes from James Yaro at Goldman Sachs. Please go ahead.

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 what you touched on in your prepared remarks. You've 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?

Yeah. It's a great question. I mean, listen. It feels pretty chilly right now given that we were at a hundred and what was the high, a hundred and thirty, and we're currently I haven't seen the market in the last two minutes. You know? 78, 80 or something. Look. When you look on the charts, it feels to me we're kind of a 70 to a 100 range until we take out a 100. There is like, the idea that Bitcoin is now a macro asset, I think, is solidified. Right? There are too many people that have owned it, have bought into it, that believe in it, that have institutions built around it. And so this is not going away. You're having a supply-demand imbalance. And 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 or 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 more broader distribution coming in against big chunky positions, big whales getting out of their long-held positions. 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. 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's word at hand for you guys. Think I made that quote up? Yeah, like I said, I think we're closer to the bottom. I'm not sure we've reached it yet. We'll tell you what we think we have.

Thank you. And our next question today comes from Devin Ryan with Citizens Bank. Please go ahead.

Great. Thank you. Good morning. Question just on kind of market structure clarity. You talked about that, Mike. I mean, we try to map this out and we're getting questions from investors, trying to understand kind of where Galaxy fits into blur between crypto and kind TradFi over time. And, you know, obviously, the large banks are gonna need to participate in this world of tokenizing markets, and that will 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. And so curious kinda how you think about Galaxy's position in that, you know, the moats, then kinda what role you wanna 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.

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 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 allow interest-bearing stablecoins and you get deposits light, what does it do for credit creation? And I'm like, credit creation is already starting on chain, and it's gonna explode on chain. And so I could see a future in the next few years, but in the next ten years, where on your cell phone, you've got your bank account, i.e., 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's already in existence 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 like I said, hopefully, get some announcements publicly in the next period of time. 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, 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 a bit 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 help those players into the market.

Thank you. And our next question today comes from James Faucette with Morgan Stanley. Please go ahead.

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. Etcetera, and timing.

Sure. Thanks for joining, James, as well. I think you're right. That a, for us, the major tenant category we are focused on, I'll call them hyperscalers. I think that term is actually broadening out a little further as it relates to traditional hyperscalers. Now what neo clouds are getting larger and larger, maybe the direct model builders themselves, etcetera. 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. 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 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 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, etcetera. 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 you've seen a real divergence, you know, first in non-IG credit, with CoreWeave, although there's been some let up 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 $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 I think that's not a comment at all about CoreWeave and their position. I think they would be happy with us working with directly with IG tenant counterparties. Which also offers them an opportunity to be an agent and a GPU cluster management partner as well, which we value a lot. Going forward. So that's how we're thinking about the landscape.

Thank you. Our next question today comes from Martin Toner with ATB Capital Markets. Please go ahead.

Hi, guys. Thank you very much for taking my questions. So you know and we the last deal we saw believe, was from Cypher was on the best terms we've seen yet. And we haven't yet got into a stage where each successive HPC deal is on improved terms. The terms have really varied depending on partners and customers. But if data centers and space makes sense, then data centers in Texas must make a lot of sense. And so should Galaxy be driving a harder bargain on new HPC deals?

I'll answer this one because, you know, a market's guy. 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 first and best price. We watch the market like hawks. And certainly, 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 Core, we took a risk the first train. I think it's gonna be a great risk that we got paid extra because we took credit risk CoreWeave. Right? They were at a time of their development, and we were, that we thought it was the right bet to make, and I think we're gonna be proven out to be a winner on that bet. And so we'll look at rate plus counterparty and get the best price. You know, there are enough players around the table that there's attention. You know, if there was one, it's a very different story. But and you don't need 10.

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 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. 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 Cypher 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.

Thank you. And our next question today comes from Ed Engel with Compass Point. Please go ahead.

Hi, thanks for taking my question. Just another follow-up on Helios. I guess, if you were the security tenant there, could construction be done concurrently with CoreWeave's existing build outs? Or do you think you kind of need to complete Phases one, two and three before really starting any new developments? Thanks.

Yeah. So there's a couple different dimensions to the answer to that question. So one, the new 830 plus megawatts that were approved require infrastructure build, 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 cannot come online until late 2028. On the earliest. And so, you know, 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. 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 830 megawatts. So we will parallelize but it will come at, like, I'll call it sort of the back end of the Core phase one project. Anyway, so yes, we can have multiple tests.

Thank you. And our next question today comes from Greg Lewis with BTIG. Please go ahead.

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. I guess kind of curious, 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, are we is largely with incremental customers? Are we adding any new customers? Any kind of color comfortable sharing around the loan book would be helpful.

Yes, 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 $1.8 billion a little over $1.8 billion in average total for Q4. That was up slightly from Q3 and 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. 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. 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, 1130% or north of that. That has all been fairly consistent. 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 lends to the point Mike made around our confidence in on-chain credit continuing to become a more stable and more visible path forward for the industry.

Yeah. The only other thing I'll add to what Tony said, being a lender, 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 pretty easy thing to do. Growing your loan book while maintaining the right overclassization 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. We are very focused on growing the loan book. 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 is we've never wavered from that, and that hasn't changed. 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.

Thank you, man. And I appreciate Mike's outfit. Thank you. And the next question today comes from Joseph Vafi with 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 the 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, you know, was it over leveraged? You know, our OGs really kinda, you know, maybe profit taking a little more than we thought just whatever you might wanna add. Thanks.

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 of a reaction function. Then you sell a little more, you sell a little more, and it is so hard to huddle. 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. I think the industry has been slow to kinda 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, quote, smart guys who and around the Bitcoin core developers is, we get closer to quantum, we're gonna get closer to quantum resistant. 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. 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 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 IVET'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, it's like, distributing an IPO. 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. And I said earlier, I don't know when the seller's exhaustion happens. There is not a lever 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 kinda gets excited again. And I'm blowing smoke on the embers, hoping the wildfire picks up. I you know, it's not here yet, obviously, by the price action.

Thank you. And our final question today comes from Christopher Brendler at Rosenblatt Securities. Please go ahead.

Hey, thanks. Good morning and thanks 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 you know, sort of slow the pace of current negotiations? Like, 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? 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 Stable coin rewards? Thanks.

Sure. I'll take the first one at least. On the 830 megawatts, if the negotiations with 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 wanna 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. And the timelines that we were originally looking at when we started with Helios and people looking at very focused on, well, 2627 power have very quickly moved to '28, '29, '30 power in terms of all the major players looking to lock that up for themselves. And so know, we're gonna 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 ways looking to watch the market for the next year or couple years to see how it develops in terms of partnering. In particular, because the reality is 28, '29 power given the lead times for the large electrical infrastructure that need to get built, you know, those lead times today sort of push you up into early '28 at a minimum anyway. And so you gotta pick your partner quick. You gotta make your decisions on what you're gonna do, and you gotta start, locking up supply chain so that you can actually deliver that far out. And so that's how we're thinking about prosecuting an opportunity. On the Galaxy One side, I'll pitch it Tony, and I'll kick in if I can be helpful.

Yeah, Chris. So the short answer is you're talking about the premium yield 8% that we're offering on Galaxy One platform right now. Short answer is no, that is not at risk. From the Clarity Act, at least is our understanding the way that anything in the Clarity Act is proposed. That is 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. 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, obviously, within a box of disciplined asset liability management. But it's not it's a rate that we control, and it's not subject to, to the Clarity Act at all. Hopefully, it answers your question. 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.

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 better numbers and a better story. Have a great day.

Thank you, sir. This concludes today's conference call. We thank you all for attending today's presentation. May now disconnect your lines and have a wonderful day.

Good morning, and welcome to the Galaxy Digital Third Quarter 2025 Earnings Call. Today's call is being recorded. [Operator Instructions] At this time, I would like to turn the conference over to Jonathan Goldowsky, Head of Investor Relations. Please go ahead, sir.

Good morning, and welcome to Galaxy's Third Quarter 2025 Earnings Call. Before we begin, please note that our remarks, including answers to your questions, may include forward-looking statements. Actual results could differ materially from those described in these statements as a result of various factors, including those identified in the disclaimers in our earnings release or other filings which have been filed with the U.S. Securities and Exchange Commission and on SEDAR+. 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 Novogratz, Founder and CEO of Galaxy.

Well, good morning, everyone. Chris Ferraro would get upset with me if I didn't give you a New York weather report. It is a gorgeous day here in the Big Apple, a great fall day. I couldn't be more excited to be with you. I want to welcome our new friends who are logging in on YouTube. Last time in our conference call, we didn't have enough slots, which was a bit embarrassing. And so we wanted to make sure our story gets out there and anyone who wants to hear can hear. And so thanks for following us. Listen, quarter 3 was the best quarter in Galaxy's history. And so I show up today with a grin. Probably about running the company is that grin lasts probably for the length of this call, and then my face gets stern and we start grinding. What happened? Listen, we have for 8 years, been trying to build a brand of confidence and trust. And Q3, it felt like that all kind of came together, right? We did a gigantic spot crypto trade, which came to us because they're guys in the community that trusted us to move $9 billion of their Bitcoin into cash. That didn't come overnight. That comes from a long time of relationship building and liquidity building, quite frankly. We also help launch the largest Solana DApp again, raising $1.7 billion, $1.65 billion to invest in the Solana ecosystem and doing it quickly comes from having built up trust with lots of people. And so that's kind of the story that we've been working hard for 8 years. We didn't do a great job telling our story originally, and we're really focused on that. Part of that was not being here. We're 6 months now in the U.S. NASDAQ company gives us a lot more ability to tell our story. And so part of my job is out there making sure people understand what Galaxy is what we're doing, what we're thinking about. I'll just hit you with a few quick highlights, and I'm going to pass this to Tony and Chris. But one, we generated $500 million plus of net income. That's just a lot. Our assets on platform reached $17 billion. That's by far a record for us. That strong organic growth in asset management is staking. Asset management, we did a great job of understanding when all these treasury companies were starting that we could play a role in helping them manage those assets and stake. And so that was $4 billion plus of new assets added to the platform, and those are high fee-paying assets that will be with us for a long time. Trading side, outside of that 80,000 Bitcoin order, we saw record volumes. And that hopefully continues to grow each quarter. Those are the businesses that we keep investing in, thinking that, that will in the long run, give Galaxy great ballast. Our lending book, which had spent years roughly in that $900 million to $1.2 billion is on the move. We were $1.8 billion and growing. And so I talked a lot about credit needed to be a key part of the Galaxy growth story, and we are focused on making it so. Excitingly, we launched Galaxy One. It's our opening for to get individual investors into the Galaxy universe. We're going to take the knowledge and institutional profile that we've built at Galaxy and opened the window to more and more people. It's a new business. We're going to give you updates, but it's going to take us a little while to get that really up and running. And so let's think of that as a Q2 '26 big update. Data centers, which is I always think of we're half a data center company and half a digital assets company. We are grinding in the data center business. There are 2 sides to this. There's the 800 megawatts that we have in building that out for CoreWeave, that's building on time. It's building on cost, that's getting it financed. All of those things, Chris is going to talk on, I'm feeling great about. And then it's we're in queue with a bunch of people for more power in Texas. And we'll know a lot more about that in the foreseeable future, but we feel pretty good that 800 is not going to be our total footprint. And finally, listen, last week, we did a pipe deal, $460 million from a large institutional investor. I couldn't be more excited about having them as a partner and investor in us. That money is going to be used to help build out a world-class company and a world-class data center. And with that, guys, like I said, couldn't be more excited. I'm going to pass it to Tony.

Great. Thanks, Mike, and thank you, everyone, for joining the call today. As with last quarter, I'll provide a summary of Galaxy's overall performance in Q3, then I'll dive into some more of the details on the digital asset business and then turn it over to Chris to provide a more detailed update on data centers. As Mike mentioned, Q3 was a standout quarter for Galaxy with record performance across the Digital Asset segment and continued operational progress as we scale our core businesses. GAAP net income for the quarter came in at $505 million, on record adjusted gross profit of $728 million, underscoring the strength of our diversified model and ability to execute in a dynamic market environment. This performance was driven by outsized contributions from both our Digital Asset segment and our Treasury and Corporate investment portfolio. In Digital Assets, we delivered a record adjusted gross profit of $318 million, reflecting strong momentum across trading, investment banking, asset management and staking. Our platform continues to benefit from increased institutional engagement, broader client activity and rising demand for sophisticated investment and advisory solutions. In Treasury and Corporate, we delivered adjusted gross profit of $408 million primarily driven by gains across our digital asset and investment portfolios. Within our private investments book, we saw sizable unrealized gains from our investments in Ripple Labs and from Bullish, which went public during Q3. As a reminder, we've transitioned the majority of our venture investing activity from our balance sheet into our venture franchise within the asset management business, which allows our institutional LPs to invest alongside Galaxy while enabling us to generate long-term management fees for overseeing these investments. In data centers, as mentioned previously, we expect financial results in this segment to be de minimis until the first half of 2026 when we plan to begin recognizing revenue under Phase 1 of our CoreWeave lease agreement. Until then, all major capital expenditures associated with our data center build-out are being capitalized including the interest associated with the $1.4 billion project level loan we secured during the quarter. Firm-wide adjusted EBITDA came in at $629 million, up from $211 million in Q2, a clear reflection of the increased scale and profitability across the enterprise. Total operating expenses, excluding grossed-up transaction costs were $184 million in Q3. The increase from Q2 was driven by a $38 million onetime impairment related to our legacy mining infrastructure and an increase in compensation expense. Looking forward, we do not expect any material -- further material impairments to our remaining mining equipment, which is now held on our balance sheet at an aggregate value of less than $50 million. Turning to the balance sheet. We ended Q3 with $1.9 billion of cash and stablecoins, up roughly $700 million from Q2, primarily reflecting the net sale of certain digital assets and investments during the quarter as well as deposits received from CoreWeave following the exercise of their Phase 2 and 3 options. Within our Treasury and Corporate segment, we held approximately $2.1 billion in net digital assets and investments at quarter end, reflecting the continued strategic allocation of capital towards high conviction investment opportunities. We ended Q3 with $3.2 billion in equity capital, up more than 20% quarter-over-quarter with roughly 65% allocated to our operating businesses. Over time, we expect the amount of capital allocated to our operating businesses to continue to increase as we scale across both digital assets and data centers. As Mike mentioned, earlier this month, one of the world's largest and most respected names in Global Asset Management made a $460 million investment in Galaxy. The $325 million in net proceeds to the company will help drive the build-out of our Helios data center campus, which Chris will speak to shortly. We feel good about our overall capital position and we'll look to optimize our sources of funding as we continue building across 2 major growth businesses. As mentioned last quarter, we will continue to manage our balance sheet with fortress principles demonstrating disciplined risk management and maintaining sufficient capital and liquidity to support sustained growth over the long-term. Now turning to our operating results, starting with Digital Assets. On last quarter's earnings call, we highlighted that July marked the strongest monthly performance for our Digital Assets business, and that momentum carried through the remainder of Q3. We had record results in global markets generating approximately $295 million of adjusted gross profit, driven by healthy trading activity and continued growth across our client base. Industry-wide crypto trading volumes improved meaningfully during the quarter, reflecting higher prices, strong market sentiment and increased engagement and Galaxy outperformed that backdrop delivering record crypto trading volumes that were up 140% from Q2. As Mike mentioned, this included the sale of over $9 billion of Bitcoin on behalf of a single client and one of the largest notional Bitcoin transactions ever completed, underscoring our ability to deliver complex transactions at scale with limited market impact. In our lending business, as Mike mentioned, our average loan book grew to over $1.8 billion in Q3, driven by new clients and market appreciation. A shift in mix caused some net interest margin compression during the quarter. And as the crypto lending market evolves, we will continue to maintain prudent risk standards and explore strategies to efficiently fund this business with a focus on supporting long-term scalability. On the advisory front, Galaxy closed 2 deals during the quarter, including serving as a co-placement agent and financial adviser to Forward Industries on the $1.65 billion private placement. And this deal highlights the strength of our advisory franchise and our growing role as a trusted partner for institutional clients navigating this market. It also marks the first step in a broader partnership with Forward Industries that extends across our platform, which I'll speak to in a moment. Shifting to Asset Management and Infrastructure Solutions. We ended the quarter with more than $15 billion in total assets under management and assets under stake, nearly doubling from last quarter and generated $23 million in adjusted gross profit, reflecting strong growth across both businesses. Assets under management grew to approximately $9 billion this quarter, reflecting strong net inflows of roughly $2 billion across both ETF and alternative strategies. This momentum was driven by continued adoption of our digital asset treasury solutions which with Galaxy being selected as the manager of choice by several companies in this space. Winning these mandates reflects our deep experience managing across market cycles and navigating volatility to deliver strong risk-adjusted returns reinforcing our position as a trusted partner. These mandates also represent a meaningful shift in the profile of our asset management business to more strategic long-term capital that generates recurring durable revenue streams. The asset management business is now firmly run rate profitable, giving us a solid foundation to continue investing in order to expand the platform and broaden our reach. Turning to Infrastructure Solutions. Our assets under stake more than doubled quarter-over-quarter to approximately $7 billion, with growth being driven largely by digital asset treasuries and our custodian integration strategy. Through these integrations with leaders across the custody space, including the custodian for the majority of U.S. crypto ETFs, we positioned ourselves to serve institutional clients at scale and enable our staking services to reach a much broader audience. Stepping back, Q3 served as a sort of activation of the flywheel across our multiple digital asset businesses. This is an exciting development and notable marker of the continued maturation in Galaxy's business model. A clear example of this flywheel is our work with digital asset treasury companies. What began as an emerging opportunity earlier in the year has evolved into a multichannel business line with mandates across some of the largest publicly traded holders of digital assets. This includes supporting clients with initial capital raise through our advisory business, then leveraging our network to provide operational support and connectivity to key service providers to ensure a successful launch. It also includes working closely with treasury teams to implement institutional grade yield strategies aligned with their objectives, spanning staking, lending, trade execution, asset management and other on chain opportunities all within a disciplined risk-managed framework. Our partnership with Forward Industries is a case in point. In Q3, we announced a strategic investment alongside Multi-Coin Capital and Jump Crypto in forward Solana based treasury initiative, the largest of its time to date. We supported Forward's private placement through our advisory business, assisted them with execution and deployment of the proceeds, became the sole asset manager of all their treasury assets and helped launch their validator on the Solana blockchain. Collectively, our digital asset treasury mandates have added more than $4.5 billion in AUM and AUS to Galaxy. And at current market prices, we expect the annual recurring fee revenue associated with these mandates to be more than $40 million. This is exactly the kind of institutional-grade solution Galaxy is uniquely positioned to deliver, leveraging our expertise to build long-term partnerships and generate durable recurring revenue for the franchise. Shifting to innovation, a couple of things to highlight. As part of our broader mission to connect traditional finance with blockchain infrastructure, last quarter, we partnered with Superstate, one of our venture portfolio companies, to tokenize Galaxy's Class A common stock on the Solana blockchain. As noted in our press release from September, these on-change shares are not a synthetic representation of ownership. They're fully SEC-registered securities with the same legal and economic rights as our traditional shares. We believe this event marks a meaningful step towards modernizing capital markets, serves as a proof point for how traditional markets and on chain infrastructure can connect and positions Galaxy at the forefront of that evolution. We will continue to work with regulatory agencies and leading financial institutions to explore new opportunities to broaden and expand tokenization in the coming quarters. On artificial intelligence, we're not just building one of the newest, largest and most advanced data centers in the world, we have bought into the promise of AI and the impact it can have on our overall company. Over the past year, we've integrated AI across nearly every function at Galaxy from engineering and technology to finance and operations to trading and risk. Our employees are now using AI tools on a regular basis and productivity gains are materializing. In particular, areas like agentic coding are seeing step change improvements, giving us the confidence that continued investment in these tools will have compounding productivity benefits down the road. Looking forward, AI won't just streamline how we operate, it will redefine how we serve clients, innovate faster and compete at scale. Last but not least, as Mike mentioned, 2 weeks ago, we launched GalaxyOne, our first direct-to-consumer product offering with an exciting growth opportunity for the franchise. GalaxyOne gives U.S.-based individual investors access to high-yield cash, crypto and equities trading, all through one single unified platform. Unlike many mass market retail platforms, GalaxyOne offers clients a seamless way to manage assets across both traditional and digital finance, supported by Galaxy's institutional expertise, operational rigor and disciplined risk management. GalaxyOne also opens up new opportunities for cross-platform collaboration and integration across our trading, asset management and staking businesses. The premium yield product is a good example. Over time, we expect this product to broaden and diversify our sources of funding, which will help drive efficiency and profitability in our digital assets business overall. And while it's still early, we are encouraged by GalaxyOne's initial traction, we are already seeing adoption from clients who closely align with our target market, mass affluent investors who have historically been underserved by traditional platforms and this early engagement reinforces our conviction in the opportunity ahead. As Mike mentioned, we have an ambitious road map for this -- for GalaxyOne, and we look forward to updating you on progress in the coming quarters. Wrapping up, Q3 was a breakout quarter for Galaxy and our businesses are building momentum. We're heading into year-end with a strong foundation, clear priorities and a long-term vision. With that, I'll turn it over to Chris.

Thanks, Tony. Turning to our data center business. It was just one year ago on our third quarter earnings call that we announced the signing of a term sheet to support AI and HPC infrastructure at our Helios campus. In the 12 short months since the progress has been extraordinary. CoreWeave has now committed to the full 800 megawatts of approved capacity, we've secured project financing for Phase 1, and construction is advancing at an impressive pace. After laying the groundwork in the first half of the year, we carried significant momentum into the third quarter. We executed relentlessly and successfully, rapidly developing the Phase 1 portion of the Helios campus on budget and on schedule. Some updates on our construction progress. Approximately 70% of our civil and concrete work is now complete and equipment deliveries and installations are well underway. We are now placing chillers and putting together the piping system that will form the backbone of our advanced liquid cooling design, an essential component to support next-gen GPUs at industry-leading cabinet densities. Our e-houses, which contain the critical electrical infrastructure have started to ship from the integrators and medium-voltage switchgear and transformers are already being set on their pads. The building for Phase 1 is on track to be fully dried in or sealed from weather within the next few weeks, an important step that protects the mechanical and electrical equipment from inclement weather and allows interior trade work to proceed regardless of outdoor conditions. We've already logged more than 500,000 hours worked with over 700 construction team members on site daily, an extraordinary effort that underscores the efficiency, precision and discipline of the design and construction team supporting the project. The next major construction milestone for us is the powering on of the first data hall, which is scheduled in early December. Following that milestone, we'll begin commissioning activities with our third-party commissioning agent, vendors and contractors in preparation for making the first data hall ready for service. Importantly, we remain on schedule with construction, a testament to our growing data center team, the contractors and subcontractors working on the project and the thousands of hours of coordination required for complex projects like this one to be successful. At the same time, we're scaling the supporting infrastructure at Helios campus for both the first and second phase of construction. Our on-site workforce development hub constructed on 90 acres we own adjacent to the main Helios campus, has been open for nearly a month now in support of construction and operation activities. As we look ahead to our Phase 2 and 3 projects at the Helios campus, we're applying lessons learned from Phase 1 to optimize the design for scalability and constructability while also enhancing the efficiency of our power and cooling systems. We are proactively securing long lead time items like backup diesel generators and medium-voltage switchgear early, locking in cost certainty and delivery timelines. We've transitioned from planning and preparation to full-scale execution as the Helios campus rapidly evolves from a construction project into what we expect will become one of the largest AI and high-performance computing campuses in the world. On financing, we achieved a major milestone in August with the closing of a $1.4 billion project financing facility with Deutsche Bank for Phase 1 of Helios, covering 200 megawatts of utility power. This deal underscores our ability to execute on efficient capital structures and provides a signal of the market's confidence in our execution capabilities, the value of Helios and the long-term economics of our lease. The facility is structured at 80% loan to cost and Galaxy has already funded the equity for the Phase 1 development. It's a 3-year loan secured by all Helios Phase 1 assets priced at SOFR plus 475 basis points plus ancillary fees, bringing the all-in cost to approximately 10% to 11%, if held to maturity. As a reminder, once Phase 1 is stabilized and generating revenue, our plan is to refinance the construction loan at a lower cost of capital. Doing so will likely unlock equity, enabling us to recycle capital into future phases and additional developments, keeping our balance sheet flexible, our capital structure efficient and our growth momentum strong. The success of this financing validates our capital strategy, disciplined leverage, flexible terms, partnership with top-tier institutions and an unwavering focus on execution. Shifting to Power. As we spoke about last quarter, ERCOT's interim process and the level of scrutiny applied to large loads requesting to interconnect to the system has led to delays in additional capacity approvals across the state of Texas. Despite the longer-than-expected timeline, we remain convicted in our ability to work through the existing process and contract additional interconnection capacity at the Helios campus. Based on recent feedback, we believe that we are well positioned to receive approval for a portion of the requested capacity that we've studied and submitted for review. We view this additional capacity as a transformational long-term growth opportunity for the Helios campus as we prepare for the next phase of AI and high-performance compute demand. As we shared last quarter, during Q3, we acquired 160 acres of additional land along with an additional 1 gigawatt load interconnect study adjacent to the Helios campus. With this addition, the Helios campus spans over 1,500 contiguous acres under Galaxy's direct control. Our Helios campus is strategically positioned to become among the largest AI data center campuses in the world. In a power market with exponential generation and battery storage growth, Helios stands as a flagship development for both Galaxy and the AI data center industry writ large. We were also encouraged to see wet break ground on the new Pitchfork 345-kilovolt substation, which is expected to deliver an additional 3 gigawatts of power capacity with 2 synchronous condensers adjacent to the Helios campus starting in 2028. It's great to see both wet and ERCOT investing in critical infrastructure in the region, reinforcing their commitment to reliability and the long-term growth potential of Helios and the broader data center ecosystem. Across our data center business, we're continuing to thoughtfully and strategically add world-class talent with proven expertise in engineering, construction and operations to our data center business. In the last few months, we've made key hires from some of the largest hyperscalers in the world across the engineering, construction and operations verticals of the business. The caliber of this team gives me tremendous confidence in our ability to execute with precision across all 3 phases at Helios and to deliver on the ambitious long-term vision we have for the business. The Helios campus represents more than just a single project. It's the cornerstone of Galaxy's next-generation infrastructure strategy and the blueprint for a multicampus, multi-tenant, multi-gigawatt platform built to power the future of AI and high-performance computing. We continue to evaluate additional power and land opportunities across the region and nationally, leveraging the blueprint and expertise developed here to replicate the Helios model, efficient, scalable and AI-ready infrastructure built for the next generation of compute demand. It's been a transformative year for the business, and I couldn't be more proud of how our data center business continues to build momentum and strengthen its position with each passing quarter. Thank you all. Now back to the operator for questions.

[Operator Instructions] The first question comes from James Yaro with Goldman Sachs.

Congrats on a good quarter. I wanted to just touch first on the impacts of the forced liquidations we've seen across the crypto ecosystem. Has that had ramifications on market structure and your client franchise, maybe on which customers and maybe you could summarize what the overall ramifications could be?

Yes. So first of all, Galaxy did spectacularly well during that liquidation. And so I wanted to shout out our trading desk, we were quick to move. We didn't have any credit losses. We're all over our customer base. And it didn't hit us where it hits everybody else, right? So who got hurt in that? First and foremost, market makers. Market makers that were market making on DeFi platforms like hyper liquid or cross market makers that were market making on Binance plus others. And so some estimates as high as 25% of those guys got put out of business, which is significant. And so what does that mean? It means you have a little less liquidity, you have a little wider bid-out spreads, probably means there's lots of talent available to hire, but certainly not great for the ecosystem in the short run. Who else got hurt was retail. Lots of retail, especially overseas retail trades crypto very leveraged. And I always scratched my head. I was like, we got to the 40 to 80 vol asset. I'm not sure you really need 2x to 3x the leverage on it, let alone 30x of leverage. But part of the ethos of crypto is people want to make a lot of money on a little bit of money. And so there was a lot of leveraged accounts that got wiped out. Not just in crypto, but ever since I've been a trader, I've always said, when humpty dumpty breaks, he doesn't get fixed overnight. It takes days, weeks, months for markets to kind of regain that vitality. And they always do, right? People get wiped out, find new money and they participate again. But it's a short-term negative, no doubt. There's been lots written and we wrote a pretty interesting research piece on why this happened. There are lawsuits being filed. But when you have a significant deleveraging like that, there's both opportunity and they're short-term pain. And I think that's what we're going through. And you see the crypto price roughly trading sideways. Gold has outperformed Bitcoin significantly in the last 5 months. Bitcoin had outperformed gold for a long time. And so some of that's just rotation. But I think some of this recent the last 10 days of us going sideways is still the market digesting that deleveraging.

That's really helpful color, Mike. So maybe just turning to one other one here. You announced GalaxyOne earlier this month. Maybe you could just expand on your aspirations in the business and maybe what the right client base is? Is it existing customers? Or is this TAM expanding? And if so, what's the new customer TAM?

Sure. I'll take the first part, I'm going to pitch it to Chris. Listen, we are proud of what we launched. It's hard to get a product out, and we started with a pretty simple MDP that's got, we think, 2 unique pieces. One is -- it's the FDIC-insured checking account that pays a darn good, the highest interest that we can find in the market and then the 8% Galaxy offering. And so that's attracting clients. We're pretty excited to see the uptake. We also have stock trading and crypto trading. We have a really ambitious road map over the next 6 to 18 months to roll out and really turn that wallet into a one-stop serves all wallet. It's certainly not there yet, but it will get there. Our target audience is consumers. It's really the high-end consumers the people that want that same touch that Galaxy gives to our institutional clients the same knowledge. But we don't want to just limit it to that. And so we built it with the high-end consumer in mind but the crypto ethos is everyone should get the same access to investing. And so I would -- I'd kick myself if I didn't hope that at one point, we're serving a whole lot more customers than just the high-end consumer.

A couple of quick things I'll add. I mean the ethos behind launching GalaxyOne on the consumer side is meant to capture the entirety of a consumer's wallet from an investment portfolio perspective. And so what we're going to aim to do -- what we started to do, we're going to aim to do is add products that help broaden out where a high net worth consumer can invest their wealth hold it and store it, see it every day and as friction as possible, reallocate and move it around across traditional investments, equities, bonds, newer investments, digital assets and cash management. By the way, that's a long-term road map for us on the institutional side as well. And so when we think about where Galaxy's business writ large on the digital asset side is going to go, the plan is to little by little. So start with digital assets, but little by little encroach upon all attritional financial services, where we can, all in one place, give clients access to all the assets they own. The -- as Mike said, the target user base on GalaxyOne is definitely different than what we've served historically. So it's a TAM expanding opportunity for us. Early traction for us seems to be hitting the mark with the kind of customer that we want, some quick stats. The average net worth of Galaxy users onboarded today is a little over $2 million. Average annual income is about $340,000. And so we're not today targeting, what I'd say, low dollar balances, high leverage short duration option trading, short-term day trading. We're really trying to target a customer base that has historically been underserved, but has traditionally been the highest profitable customer segment of most consumer platforms, consumers that earn money, have wealth and want to store and allocate it.

The next question comes from Patrick Moley with Piper Sandler.

So shifting to the data center business, and the 2.7 gigawatts that's currently awaiting approval, you said that you expect to get approval for that somewhat soon, I think. Any update on the timing there? And how large any tranche that were to get approved would be? And then just generally curious what sort of inbound you've been getting on the potential for that incremental power? How has demand been there? What have those conversations been like?

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

Yes. A couple of things I'd add. The -- what gives us higher confidence these days is all the major constituents and stakeholders who we are partnered with down there in terms of getting approval, but implementing interconnect. And so it's not just ERCOT, it's wet, it's also AEP, our utility partner there. All 3 are extremely active with us specifically today, finalize -- approving, finalizing the studies that have been in place for us for over 18 months now and things are progressing at a faster pace today than they had been earlier in the year. So those are the data points that give us some pretty good comfort. But as Mike said, ERCOT and Texas are going to take the requisite time to make sure that they're not taking on loads that are going to destabilize the grid. And frankly, there's a really, really large number of ill-thought-out not planned, not studied loads that have tried to get into the queue that the good thing is they're very focused on weeding that out and working with the folks who have demonstrated that they actually are going to deliver capacity when they say they're going to deliver that's operating and at a load that they say they're going to. To hit your other question really quickly, what do we see on the demand side? I would say positive traction on that front. There are increasing proactive reach outs to us from very large customers in addition to our current partner, CoreWeave, who all want to know when are we getting approval for how much and over what time period. And that is a very helpful thing to see when thinking about very long-term big project decisions on potential incremental capacity that would be coming on in late -- in 2028, 2029 and forward. So I think the demand profile for our power has continued to remain there and grow, which is really a good sign as we're getting towards the point where we feel like something is really going to happen.

Okay. That's great color. And then just a follow-up. Chris, you mentioned the plans to eventually refinance and that would unlock some capital. Any idea how much capital, the refinance could unlock that could potentially go to future build-outs? Just wondering how to think about that in our model?

Yes. So we do have a pretty strong expectation that there will be opportunities once we hit stabilization. Stabilization, meaning we've delivered 100% of the data hall is ready for service, and they're up and running and CoreWeave just paying rent. We do believe there's going to be opportunities to relook at the financing structure at that subsidiary for Phase 1 and do something kind of cool. The way to think about it today. And look, the specifics on what that's going to look like on the forward here, so think about that Q3, Q4 of 2026. Is -- it's a little unknown because the market is pretty dynamic and changing, right? The views of the AI boom and its sustainability are changing every day. The views of CoreWeave's credit profile, which lenders are very focused on, in addition to Galaxy's credit profile are changing and getting better by the day on both fronts. And so the ultimate outcome is really going to be a function of where we and CoreWeave and the markets are then. But the framework to think about is on a stabilized basis, there are a bunch of different examples of stabilized cap rates that one could look at and apply to come up with what sort of Phase 1 the value would be on a stabilized basis. We think about that today in the high single digits. I don't want to be too specific because I think there's -- if we and CoreWeave continue to be successful, my guess is that number is going to trend lower, not higher, depending on where long-term interest rates are. But if you think about a high single-digit cap rate as value, which is different than cost significantly in our case, given the economics associated with the lease, then we think about applying like a loan to value as opposed to a loan to cost in that refinancing situation, and that will imply a pretty significant opportunity to refinance at bigger numbers, which should unlock multi-hundreds of millions of dollars of equity.

The next question comes from Jon Petersen with Jefferies.

Maybe to stick with some data center questions. So the $1.4 billion construction financing, can you give us some guidance on the kind of the cadence of when you'll pull that down? Because I don't think you pulled it all down at once, right?

Yes. No, we have not -- we're not pulling it down all at once. We actually prefunded the equity on our end because as we are bringing the financing together, the project needed to continue, which is how we think about capitalizing Galaxy, just to step back real quick, is ensuring that we have adequate capitalization to not only support the projects at their stabilization, but adequate capitalization early so that we can lean in, build on time, on budget and use that to get the best kind of financing. So we prefunded equity. At closing, we had a relatively small draw to reset our equity back to the intended 20% equity versus 80% debt on a cost basis. And then the cadence of draw it really follows the project budget, but I would think about it as like relatively straight line on a twice monthly basis through the construction project. And so as you can imagine, since we closed in August, now sitting here in October, we've had a number of semi monthly draws. And so we're drawing pretty regularly, and we're drawing a pretty straight line basis.

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

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

It's a great question. Listen, there's multiple facets to it, right? There's the market that is -- I think probably 2 earnings calls ago, we talked about a pipeline of things we were looking at to potentially buy or develop that's all gotten far more expensive than it was, right? Markets for some of these companies without contracts, without customers, the market is pricing in a tremendous amount of optimism. And so that feeds through to the price of projects. And so in the short run, I don't think you're going to see us reaching out and buying a whole lot more power at these prices. What's unique about the Helios site is like it's an application process. We already own the land and all the infrastructure is built close. We'll see. There's a lot of speculative -- like I said, a lot of speculative money in this stuff. I'm sure some of those projects will get built, but many won't. And so we're really just laser-focused on getting our project built, financed and getting the new land and new power approved so we can do that same process again. We're in the market every day looking at things, talking to people, trying to understand the landscape. But there's a gold rush going on. And so you got to be very careful during gold rushes that you build in smart places at the right price.

Yes. And the other thing I'll add is I think the thing that we think the thing that's underrated heavily in the market today are undervalued is actual execution, right? And so it's relatively easy to sign and pass pieces of paper with big numbers on them and sign deals with big numbers on them. I think the most important thing for us and for long-term actual customer demand is -- not only can you acquire access to power and acquire land, but can you actually build on time and on budget. And I think that, that's pretty underrated and pretty underappreciated today in the market. And as we think about the future as companies like CoreWeave and also Microsoft and Meta and Google, and you name them, like their emphasis on can you actually do what you say you're going to do because we need the power when we think we're going to have it leads us to -- like to focus squarely on do we have an excellent team, do we have excellent partners in the construction site? And are we delivering on time and on budget so that we prove the right to win the next contract. And I think that we're pretty far ahead of the pack when it comes to that relative to the competitors.

The next question comes from Ed Engel with Compass Point.

Two questions. The first was on Helios, other ones on more kind of operating the crypto business. On Helios, you talked about that being potentially a multi-tenant site. Just kind of curious how you're thinking about the puts and takes for financing when it comes to partnering with the new cloud like CoreWeave or maybe even a hyperscaler?

Yes. So we're not sure long-term what the composition of tenant base is going to be as we build the Helios campus. The -- we've been -- as we said before, over and over again, we mean it, like the partnership with CoreWeave has been excellent. They are a great partner up and down, not just on signing a commercial agreement, but in design, in understanding the difficulties that come along with procuring equipment, timelines, teams, et cetera. The -- they're going through a transition period, and everyone should be -- should talk to them on their earnings call. They're going through a period where the market is trying to understand what CoreWeave's credit quality is today and what it should be on the forward. And that's going to be a big, big determinant of their ability to get better lease rates, their ability to get financing ability for us as the landlord to finance our projects. And so where that goes, how the market evolves is thinking on CoreWeave is something we're very focused on and something that's a little unknown today. As we think about the trade-offs for capacity, not yet at least for us, there's a real decision to be made as to whether on a net economic basis, whether a lower-yielding lease from a higher credit quality tenant, net balances out to a better economic equation for us as we think about broadening the portfolio. Like we're -- as we are as investors, we're big believers generally in diversity and risk management. And so economics aside, as we build the data center business over time, diversifying the customer base is just something that's like is a core sensibility for us as capital allocators and investors. So I think we were biased to want to do that over time anyway, economics aside. Whether the economics pan out, obviously better or not, it's really going to be a function of like where the markets are at a point in time and where CoreWeave's credit risk -- perceived credit risk is relative to some of the investment-grade tenants.

Great. And then just kind of a bit more of a bigger picture question. But in the past few months, we've seen Galaxy get more involved in the equity space, whether it's the DApps, Investment Banking advisory or even now the GalaxyOne for retail. How do you think about the opportunities within institutional equities now that blockchain and Wall Street are converging more?

Yes. Listen, if you ask me my like 5-year view, and Chris alluded to this early or you're going to see so much tokenization of real-world assets of equities or fixed income of commodities that wallets and companies that are engaging, you're going to see this blending of what we call digital assets or crypto right now, and we call real-world traditional finance. And so as that blending happens, I think you're going to see crypto customers who traditionally have all wanted to shoot the moon as they mature, slowly look for more conservative product. But the big buyers of conservative product of if it's tokenized credit will most likely be people that were buyers of credit just in traditional finance side. And so like what does that mean? It means if you're a traditional finance company, bank or finance company. You know this is coming. And so you're trying to figure out, a, how to develop your own domain expertise, how to partner with people how to buy it to get ahead of some of that. And so I think both from our advisory business, but our core business is partnering. We've got a real good 3-year highway of working with the big financial institutions, as partners, as adviser, and I just don't see that slowing down. And we see that every day. Steve Kurz literally has a meeting a day, it seems with somebody who's looking at a way to partner with us. And so hopefully, we're going to announce some of those soon. But -- and so I'm really kind of bullish. What does that mean for equity prices in some of these companies? Listen, like in anything, I mean it's hard to determine is our equity market overvalued, fairly valued or undervalued. Multiples are relatively high. In general, there's lots of liquidity that's driving this thing up. There is the beginnings of some AI bubble, how long it goes is everyone's guess, and everything gets pulled up with that. I think you're going to see more and more crypto companies that are public. And so there's going to be more differentiation between companies that actually make money and companies that are just a story or companies that are a story that are going to make money versus companies that are a story that aren't going to make money. You're going to see a consolidation. There are a lot of subscale crypto companies that have okay businesses that might do $75 million, $100 million in revenue and $20 million of EBITDA that don't have the capacity to go public but might be takeout candidates. Right now, everyone seems to think they're worth too much because we have this euphoria and so you probably don't really see the shares reshuffle until there's a setback, but this is going to be an ongoing story for the next 3 years, this merging of the crypto infrastructure with traditional finance.

Was there a follow-up, Mr. Engel?

No, yes.

The next question comes from Devin Ryan with Citizens.

Appreciate you taking the questions here. I just want to touch on the digital asset treasury opportunity. Galaxy just is uniquely positioned here with both combination of your expertise, but also just the breadth of services across capital raising and asset management and trading. So I'd love to just get a little more sense of the demand you're seeing right now from groups that want to launch a strategy. How much do you want to be a part of that? I suspect you're being still very selective here. And then I also appreciate it's going to be lumpy, but just want to get a sense of how sustainable you think this trajectory is? And just as you think about kind of the bigger picture for Galaxy, how much larger could it be just as some of these DApps probably raise tens of billions of dollars of capital potentially in the coming years?

Listen, I think we're on the tail end of issuance. There's a few more coming down the pipeline, but most of the bigger ecosystems have established themselves, right? You've got a few big Solana DApps. You've got a few big Ethereum DApps. You've got a bunch of Bitcoin DApps. There doesn't seem to be a lot more room in those -- at least in those 3 tokens which are the 3 biggest tokens in the ecosystem for more, there's a hyper liquid DApp that hasn't officially started trading yet, but has been raised. And so I think we're on the tail end -- the large question is how big can some of these things grow, right? We saw MicroStrategy and hats off to Michael Saylor, grow far, far bigger than everyone ever expected. A Bit miner right now, the Ethereum DApp, that Tom Lee spearheads is having that same kind of excitement and growth and I think I looked at it this morning, it was still 145% premium, raising equity every day, buying Ethereum. And so we'll see -- some of these are going to trade at discounts and there'll be some consolidation. Net-net, they're very good for the ecosystem. In general, they brought a whole lot of new investors into crypto and I think they will evolve to be big investors if it's staking assets or even investing in venture platform companies around their major their major token. And so in some ways, they're a supplement or even a replacement of the traditional foundation, which got set up over in Switzerland because of regulatory reasons. And we'll -- it's a little too early to see exactly what they become, but I think that's the optimistic view.

Got it. Just a quick follow-up here on the lending book. As you mentioned, it's on the move of $1.8 billion now. And I know it's important for a number of your clients. Can you talk about where the demand is coming from right now? And then just how you think about capacity for growing that from here?

Yes. So the demand, I would say, is pretty broad-based and pretty similar to what it's been historically. Like for us, we sit in the middle of the institutional market -- we have both end customers who are borrowing cash and crypto largely to make their positions more capital efficient. So putting on reasonable leverage into their positions. We also sit -- face we'll call market makers. And so participants who borrow coin in cash for working capital effectively to make markets. And then finally, there's an interdealer market where the dealers borrow from one another to fill their customer demand. That one is a steady-state piece of business, but like less interesting to us. So what we have always been focused on and what we just have started nailing with lower cost of capital and therefore, ability to provide better structures for clients is really delivering lend borrow and locate assets for our institutional trading clients of the firm who want to augment their trading on what has historically been really a fully funded basis in crypto historically. So that's the primary focus of the business. That's where I think it goes. The -- we have been focused on and the market is still lacking a more automated margin-based financing sort of prime brokerage system that allows institutions to -- in a more automated fashion, access capital as they trade with leverage constraints, et cetera. We are -- we have been building that. We have actually rolled it out on a preliminary basis to a small number of clients. And we're going to do that very slowly because inherent in that is a ton of risk on the system side, on the price action side that we're just not going to take in size until we're comfortable with, until the market is ready to have it. And so that's what I think longer-term we're building at. That's a big -- will be a big driver of a very fast growth of the loan book, assuming the financing is there for it. But that's how we think about the lending business today. The one area that I didn't hit on and you don't really see in the numbers at all today that we think is very interesting, though, is our business historically has really been off chain with clients. And there are nascent pools being built on chain for financing, secured financing, and in some cases, under secured or unsecured financing on chain. We take that -- that market is very nascent. We take that opportunity very seriously, though. And so I could see a future where our financing and lending presence doesn't manifest itself purely in our loan book growth, but also manifest itself in our infrastructure and technology building, where we provide access to a much broader base of on chain financing that will be a pretty serious player. So we're very focused on that as an opportunity.

The final question will come from Martin Toner with ATB Capital Markets.

So if I take your performance in digital assets this quarter, I annualize it, I put a multiple on it, it implies it's worth a lot. How sustainable are these results in your view?

Listen, crypto is a really volatile asset class. And I think you're going to continue to see at least part of our results, trade with that volatility, right? Our balance sheet, we try to maneuver our balance sheet, have less of it when we think the market is going down and more of it when the market is going up, that's a difficult game. We do it better than most, but we're certainly not perfect at it. So I think you'll see a correlation of our treasury or our balance sheet assets with the market itself. And the digital assets business side, right, the enterprise business, still has some correlation because if the price of crypto goes down, the fees we make in lots of our asset management projects go down, often volumes go down. And so crypto is not mature enough yet that you'll have a -- if the S&P up or down, it doesn't really stop Morgan Stanley or Goldman Sachs from having good quarters or bad quarters. We're still going to be a little bit correlated to crypto. Our goal, of course, is to break that correlation. And with each quarter, we're doing better at it. And so looking at things like assets on platform, much -- the more assets on platform, the more stable our business is going to be. And so that is a north star for Chris, Tony, Aaron, all of us here, Jason, Steve. Our senior management constantly looks at that, okay, how do we get more assets on platform? How do we stack more assets on platform? And we're getting there. We're not there yet. And so, unfortunately, I don't think you should annualize unless you really think you're going to continue to have this kind of great inflow into the crypto markets quarter after quarter. We still are bullish over the medium term. I still think given the sad state of fiscal affairs in the world that Bitcoin at $1 million is going to make sense one day. I've always said this publicly. I hope it doesn't happen next year because some real s*** have then happened in the U.S. economy. That wouldn't be good for any of us. But I think we're going to see a slow debasement of fiat currencies, which is going to benefit the space that we're in. And so I guess that's the real -- just straight up honest answer. We try every quarter to make this business better, and we're going to keep grinding away at that.

That's great, Mike. Can I -- if I can give you one more. Do you think you can do GPU as a service at Helios with some of the capacity? And are you thinking about it?

Sure. So I think technically, the answer is yes, we could do that. Are we thinking about it? The answer is no. And the 2 reasons why are, one, I think there are really good companies, like our partner, CoreWeave, who have built layers and layers of technology and NVIDIA themselves who built layers and layers of technology on top of just owning raw chips that are really value-add and really get the most out of what are increasingly complex GPU clusters that expertise we have not invested in yet we don't have in-house. And I think it's -- it would be nice to think we would just start doing that by buying GPUs. The other thing, given that the other just math lesson for us is, we're not confident in what useful life of GPUs are ultimately going to be. And the cycles of GPU efficiency are pretty nascent still. And so we like very much investing in long-lived infrastructure that we understand useful life of, and we don't quite yet understand what the useful life of GPUs are. And so the business model around return on capital on GPUs, particularly if you're not -- you haven't added real expertise in real value add, I think is a really challenging thing to decide to do. So we're not thinking about it.

That concludes our -- thank you. This concludes our question-and-answer session. I would like to turn the conference back over to Mike Novogratz, Founder and CEO of Galaxy Digital for any closing remarks.

Guys, thanks for spending an hour with us this morning. I hope you hear from the tone we're excited about the opportunity ahead of us. We're charged up about our third quarter, but we're already a month into the fourth. And so we understand our job here, and we're going to work hard for you guys. So stay tuned.

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