Galaxy’s Q3 earnings report—clickbait headlines would call it “Back in the black, with $323 million in net profit,” but it’s not so funny when you break it down.
Adjusted EBITDA was $455 million, of which $395 million came from “Treasury and Corporate.” Data centers contributed $69 million. The actual digital asset business—trading, lending, and asset management, the things that should be its bread and butter—lost money.
In plain English: most of this quarter’s profits came from the mark-to-market gains on the coins and investments on its books, plus renting out data center space to AI companies. Its core business didn’t make money.
It lost $85 million last quarter and made $323 million this quarter. That kind of volatility means it’s basically a leveraged crypto ETF wearing a Wall Street company’s suit. When crypto prices go its way, it looks like a genius; when they turn around, you can guess what next quarter’s report will look like.
Don’t let the words “back in the black” sway you. Looking at the business segments is a hundred times more useful than reading the headline.
#Galaxy #EarningsReport
Adjusted EBITDA was $455 million, of which $395 million came from “Treasury and Corporate.” Data centers contributed $69 million. The actual digital asset business—trading, lending, and asset management, the things that should be its bread and butter—lost money.
In plain English: most of this quarter’s profits came from the mark-to-market gains on the coins and investments on its books, plus renting out data center space to AI companies. Its core business didn’t make money.
It lost $85 million last quarter and made $323 million this quarter. That kind of volatility means it’s basically a leveraged crypto ETF wearing a Wall Street company’s suit. When crypto prices go its way, it looks like a genius; when they turn around, you can guess what next quarter’s report will look like.
Don’t let the words “back in the black” sway you. Looking at the business segments is a hundred times more useful than reading the headline.
#Galaxy #EarningsReport