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Author: Prathik Desai
Compiled by: Block unicorn
The bulldozer is idle in the scorching heat. The site is desolate, the contract uncertain, and the idea of a cryptocurrency trading company transforming into an electricity company seems like a pipe dream.
A year ago, the Helios data center in Texas was just a promise in the desert.
Today, the situation is very different. Although the turbine has not yet been operational, contracts have been signed and financing deals completed. The land has been leased, and transformers have been ordered. This company, which used to profit from volatility, is now investing in certainty.
Galaxy Digital's quarterly report as of September 30, 2025, may not directly reflect this situation, but a close examination of its data over the past year reveals a noticeable shift. Galaxy's trading department continues to handle billions of dollars in transactions, but the trends in the coming months are evident to anyone paying attention.
With one quarter after another, Galaxy is becoming less like a trader and more like a banker.
Key Points Overview
The trading volume of Galaxy has reached a historical high, but the profit share has declined compared to other business segments.
The enterprise finance authorization grew 4 times year-on-year, generating $40 million in annual recurring revenue, marking Galaxy's first predictable revenue source.
Revenue from the finance and corporate sector increased to $408 million, accounting for over 55% of the adjusted total gross profit.
The Helios project is scheduled to launch in the first half of 2026, having signed a 15-year CoreWeave leasing agreement (526MW) and a $1.4 billion project financing.
Despite strong profit growth, the stock price of Galaxy Digital Inc. fell by more than 10%.
DAT's banker
More than two months ago, I discussed how the noise in the Galaxy office has changed: from the clamor of traders to the gentle hum of clients storing idle funds. Galaxy started as a side project to help token issuers manage stablecoin reserves, and has now transformed into assisting businesses in managing their digital asset portfolio (DAT).
In the past few quarters, this business unit has created a reliable cash flow by providing a platform that integrates custody, yield, and liquidity for clients, including DAOs, exchanges, and startups. Galaxy helps these clients build their treasury and earn basis point fees at every layer.
In the past 12 months, the assets under management of this business have grown more than fourfold, increasing from approximately $1 billion to now over $4.5 billion. Although the revenue of this business in the third quarter of 2025 may be relatively modest compared to trading operations, it marks an important trend: a shift from a trading-based model to a subscription-based model. The enterprise funds management business generates approximately $40 million in recurring annual revenue, indicating that it represents a sustainable long-term income rather than sporadic trading profits.
However, capital management is not without risks and cannot be immune to market fluctuations. Galaxy CEO Mike Novogratz acknowledged that this business will fluctuate with the volatility of the cryptocurrency market.
Despite facing these challenges, the development trajectory is clearly visible. Galaxy is learning each quarter how to decouple revenue from volatility. Although this is still a gradual process, the company's financial situation indicates that it is on the right path.
Although this is not the most exciting source of income, it is reliable for a company that relies on the performance of traders to build its reputation, and it represents a strategic shift.
Profit issues that triggered the crisis
Most of Galaxy's revenue still relies on the old method, which is charging fees for transactions executed on behalf of clients. However, the profit margin of this fee structure remains very low, below 1%.
In the last quarter, I wrote an article discussing the company's “0.15% issue” — trading volume reached a historic high, but the price spread remained extremely low. This pattern still exists in the current quarter. Despite the fact that the spot and derivatives trading volume in the digital asset department grew by 140% year-on-year in the third quarter of 2025, a significant portion of this came from the sale of 80,000 BTC trades representing clients.
In the third quarter of 2025, Galaxy's adjusted EBITDA for over 97% of its digital asset sector was only $250 million, accounting for less than 45% of the total EBITDA (.
In contrast, the adjusted EBITDA for the treasury and corporate business units was $376 million, accounting for less than 2% of total revenue.
This is the crisis that Galaxy has decided to address: the more liquidity they provide, the less profit they earn from it.
So, how do they solve this problem? By finding a way to generate revenue. While other companies mint stablecoins or use stablecoins as collateral for loans, Galaxy focuses on building a corporate treasury management business. This model does not rely heavily on arbitrage or market timing like trading does; instead, it relies on long-term partnerships, custodianship, and recurring fees.
This strategic transformation indicates that Galaxy's future growth will come more from providing market consulting services for DAT rather than from market fluctuations itself. Although the revenue generated by DAT is not substantial but stable, the company's next major project—Helios—will bring more significant and sustainable tangible benefits.
Two major revenue engines
In western Texas, the scorching heat of the desert no longer signifies risk, but rather opportunity. This company, which once thrived due to perfect market timing, has now secured contracts, raised funds, and reached an agreement with one of America's leading artificial intelligence computing companies, CoreWeave. As a tenant, CoreWeave has committed to providing 15 years of rental guarantees.
Once fully launched, the Helios data center is expected to generate over $1 billion in annual revenue, with an EBITDA profit margin of up to 90%. The financial and data center businesses will gradually reduce Galaxy's dependence on market timing—an indulgence in the volatile cryptocurrency space.
This strategic transformation aims to establish a stable income base that is not affected by market fluctuations.
Summary
Investors should note that while trading remains Galaxy's flagship, fee income and future leasing are beginning to smooth out the volatility curve.
Every cryptocurrency company ultimately faces the same dilemma: “What will you build once the speculative enthusiasm fades?”
For Galaxy, this quarter marks a turning point. Creating earnings that appear on time every time may be the most boring idea in the company's history, but it could also be the most transformative.
This in-depth analysis ends here, see you in the next article.
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