Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported August 5, 2026 · Beat 3 of last 4 quarters
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Galaxy's delivery of Phase I at Helios and the $3.5B financing for Phase II demonstrate the capital intensity and execution demands of the AI infrastructure buildout. The expansion of their development pipeline to 5.7 GW across Texas, coupled with the ERCOT batch process and governor's audit, highlights the growing importance of power interconnection and regulatory navigation. Their success in securing long-term contracted leases with CoreWeave and attracting institutional capital underscores the viability of data center development as a core component of AI infrastructure.
Galaxy reported a GAAP net loss of $85 million and firm-wide adjusted EBITDA of negative $77 million, driven by depreciation of digital asset prices. The Digital Asset segment generated $66 million of adjusted gross profit, up 34% quarter-over-quarter despite lower prices and volumes. Data centers delivered $20 million of adjusted gross profit and $11 million of adjusted EBITDA in their first quarter of operations. The company completed a $3.5 billion high-yield financing for Phase II of Helios and acquired three new data center sites in Texas, bringing total potential power capacity to over 5.7 GW. They also signed a multiyear infrastructure engagement with Bank of New York and launched several new digital asset products.
Management expressed confidence in the data center business, with Phase I now generating cash flow and Phase II fully funded. They expect Phase I to contribute ~$80M of leasing revenue in Q3 with over 90% project-level adjusted EBITDA margins. Phase II data hall deliveries are expected to begin in Q2 2027, with Phase III coming online through 2028. On the digital assets side, they highlighted continued market share gains and the launch of new products (GOFR, prediction markets, Galaxy Fintech Fund) as evidence of growing institutional adoption. They noted that regulatory clarity (CLARITY Act) is unlikely before the recess but remain hopeful for September. They expect data centers to represent a growing share of capital and are selectively pursuing Helios II leasing while monitoring market dynamics.
“The second quarter was transformational for Galaxy. Behind the numbers is a single idea. The economy is increasingly running on code. Finance is moving Onchain and AI is remaking every industry. Both run on infrastructure, the financial rails on one side, the power and compute on the other.”
on Strategic vision
“I'm proud to say that we delivered Phase I at Helios on schedule and on budget. In today's data center market, that's more than a construction milestone. It's proof that we can execute at scale and that credibility matters as we expand Helios, add new customers and partners and develop future campuses.”
on Helios execution
“Make no mistake, the team here is laser-focused on evaluating all the opportunities available for Helios II. We are just balancing that with our belief that an approved project at near gigawatt scale is not an asset that we should deploy lightly.”
on Helios II leasing
Can you update us on conversations with potential tenants for the 830 MW of approved capacity at Helios II, and what are the gating factors to signing a tenant?
We've had discussions with hyperscalers, neoclouds, labs, and new entrants. The main gating factor is that Helios II energization is slated for late 2028, while many tenants are focused on 2026 power. We're building long-term relationships and watching new guarantee/lease wrap structures emerge that could improve risk/reward.
Which products are key near-term growth priorities in the digital assets business, and where are you seeing strongest traction with infrastructure products?
We're focused on partnership-level engagements like BNY, where we help institutions build and own their own infrastructure. Products include staking, tokenization, wallet infrastructure, and vaults. We're being selective with limited resources but see these as deeper, longer-term relationships.
Walk us through the thought process behind financing Phase II and Phase III of Helios—was it done as one deal?
Phase II and III were not one deal. The $3.5B high-yield offering was specific to Phase II, which is now 100% funded. Phase III equity is already prefunded from prior capital planning and cash generation. We expect a separate debt financing for Phase III as we ramp up.