Shares of Galaxy Digital Decline 8% Post-Earnings Amid Profit-Taking Pressure

Galaxy Digital Drops 8% Post-Earnings Despite Operational Strength and AI Expansion

Galaxy Digital (GLXY) shares slipped 8% on Tuesday after reporting second-quarter earnings, as investors opted to take profits following a strong run since its Nasdaq debut in May—even as the firm delivered robust growth and expanded its AI infrastructure footprint.

Led by CEO Mike Novogratz, Galaxy posted a 28% quarter-over-quarter increase in Global Markets revenue to $55.4 million, despite a 22% drop in trading volumes—demonstrating resilience relative to broader market trends, according to broker KBW. The firm’s average loan book rose to $1.1 billion, ahead of Coinbase’s $879 million for the same period.

Assets on Galaxy’s platform climbed 27% to $8.9 billion. However, adjusted gross profit in the asset management division declined 26%, impacted by a slowdown in on-chain activity.

On the infrastructure side, CoreWeave exercised its final option to secure an additional 133 megawatts (MW) of high-performance compute capacity at Galaxy’s Helios facility, bringing the total committed capacity to 800MW. In a move to further scale its ambitions, Galaxy also acquired 160 acres of adjacent land with a 1GW interconnection request, positioning Helios to potentially expand to 3.5 gigawatts (GW) of capacity.

As of June 30, Galaxy reported $2.5 billion in total liquidity, including $1.1 billion in cash and stablecoins, and $1.3 billion in net digital assets. Corporate debt was reported at $1.1 billion.

The company’s bitcoin holdings rose to 17,102 BTC valued at $1.8 billion, up from 13,704 BTC worth $1.3 billion six months earlier.

According to KBW, the third quarter has begun on a strong note, with record activity in July. Galaxy played a key role in facilitating the sale of over 80,000 BTC and finalized its AI compute buildout at Helios through its deal with CoreWeave (CRWV).

The stock’s decline mirrors broader weakness in crypto markets, with bitcoin down over 1% to $113,000. Nevertheless, Galaxy remains up 13% since it began trading on Nasdaq.