Galaxy stock rallies 11% after annual report shows core business profitable despite $241 million net loss

Galaxy’s stock is up over 11% on the day following the publication of its annual report. This is despite posting a full-year 2025 net loss of $241 million.

In an intro letter, CEO Mike Novogratz argued Galaxy is poised to benefit from the growing interest in blockchain infrastructure, noting its Helios data center and existing crypto financial services operations will create durable revenue for the company.

“As we enter 2026, we are more clear-eyed about our opportunity than we have ever been,” Novogratz said. “The platform we have built, spanning institutional markets, asset management, onchain infrastructure, and AI data centers, is exactly what this moment requires. The digital economy is still in its early innings, and Galaxy intends to be at the center of it for decades to come.”

Founded in 2018, Galaxy has positioned itself as a “one stop shop” for institutional crypto needs, including derivatives and over-the-counter trading services, asset lending, as well as staking, tokenization, and custody support. It also has its fingers in crypto investment banking, venture capital, and, increasingly HPC/AI infrastructure.

Last year, the firm launched GalaxyOne, a retail fintech platform that offers FDIC-insured, yield-bearing deposit accounts via banking partner Cross River Bank. The firm has also made advancements on its Helios data center in West Texas, which received necessary ERCOT approval to expand to 1.6 gigawatts.

CoreWeave has already signed a contract to outsource 800 MW from Helios, locking in a long-term client.

Galaxy attributed its adjusted annual gross loss of $86 million and adjusted EBITDA of $216 million primarily to unrealized losses on its digital asset and investment positions. Still, its core operating business was profitable on an adjusted, non-GAAP basis.

In particular, the firm’s Digital Assets segment, housing its trading, lending, asset management, and staking services, generated $505 million in adjusted gross profit.

“The most consequential shift in this industry right now is the move from narrative to infrastructure. For years, digital assets ran on stories. Those stories were important. They attracted capital, talent, and attention. But stories alone don’t build an economy,” Novogratz wrote.

GLXY closed trading at $21.15 a share, up 11.3%, according to The Block’s data. That makes it the second-best performing crypto-related stock tracked on The Block’s crypto equities page.

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