Galaxy Digital Inc.

Good morning and welcome to the Galaxy Digital First Quarter 2026 earnings call. Today's call is being recorded. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. At this time, I would like to turn the conference over to Jonathan Goldowski, Head of Investor Relations. Please go ahead, sir.

Good morning and welcome to Galaxy's first quarter 2026 earnings call. Before we begin, please note that our remarks, including answers to your questions, may include forward-looking statements. Actual results could differ materially from those described in these statements as a result of various factors, including those identified in the disclaimers in our earnings release or other filings, which have been filed with the U.S. Securities and Exchange Commission and on CDAR+. Forward-looking statements speak only as of today and will not be updated. Additionally, we may discuss references to non-GAAP metrics, the reconciliations of which can also be found in our earnings release. Finally, none of the information on this call constitutes a recommendation, solicitation, or offer by Galaxy or its affiliates to buy or sell any securities. With that, I'll turn it over to Mike Novogratz, founder and CEO of Galaxy.

Yeah, good morning, everyone. Listen, you know, first quarter crypto prices down on average at 25%. You can see our headline number certainly isn't what we'd like to be delivering quarter after quarter. All that said, I feel pretty good about the business right now. And so. You know, you come into this earnings call and I thought, well, let's break it down, data centers and then crypto and give you just how I'm seeing it from the CEO perspective, right? Every Monday morning, I look at my to-do list in the data center business and it has four buckets, right? Are we delivering on time and on cost? That's not an easy feat, but so far our team is doing an awesome job. We delivered our first data hauls. We're on schedule. You know, more than half of the data centers around the country, you know, can't say that. And so we feel pretty good about the team down in Texas and the hard work they're doing. And so that's a check. The second is we've got to finance phase two and then phase three. The financing markets are open. I was hoping we would have the definitive details today. Trust me, that will come in a very short order. We will have phase two financed. Our partner, CoreWeave, their credit spreads have come in. The financing markets are pretty robust right now. And we're looking at a few different options. Part three is, you know, we have this 830 megawatts that we were granted recently, you know, tenant for that, right? That would take a lot of, you know, stress off of me and, you know, De-risk this company even further. We're in conversations with a lot of big people. You can guess who they are. That process, Chris will get to the dynamics of it later. My sense is that's probably going to be a second half of the year process as we get closer to 2027. The stress around 2028 power will pick up. Right now, most of the hyperscalers are focused on this year and next year and just getting the power they need. And finally, new projects that we've been looking at. Circling around, same answer. Hopefully in the not too distant future, we're announcing a pretty cool one. And so stay tuned. Don't have anything specific to tell you today. But in each of those buckets, I'm not sweating. I feel good about where we are. I feel good about the progress we're making. And I feel good about the future after that even. And so I can give a big check on the data center box. Then I flip to digital assets. You know, as I said earlier in the year, I think this is a transition year for the crypto business at large, not just at Galaxy, but globally. And what I mean by that is we are going from a very speculative business where if you were being crashed, you would say it was the crypto casino, to a technology that is going to be used in industry all over the world. And you're seeing that pick up in an accelerating fashion. Every TradeFi organization is working on their version of that infrastructure. They need a wallet. They need custody. We have an infrastructure business that's doing great stuff right now. It's engaged in all kinds of conversations. Again, I'm not going to announce anything today, but stay tuned. We've got some announcements that are coming soon. Deals at roughly are done, just aren't at the announcement stage. But that business is going to keep on growing. And for the world, it's important. When you want to understand what's really happening as we're tokenizing equities, tokenizing privates, tokenizing mortgages, tokenizing currencies, this is the way that the United States projects its power around the world. If you want to think about The real use case of crypto, it has always been the rest of the world, more so the United States. Right here, we've got great financial services accessible to most Americans. But there are five, five and a half billion people that that's not true for. And so you're going to see the big brands being sold to, you know. places like Paraguay and Bhutan and Cambodia, all over the world, where people have access to our financial services. And part of what needs to happen is the infrastructure bill in D.C., the Clarity Act. That's got a really important six weeks. I still believe it gets passed. There's a few obstacles, right? Tom Tillis, who's a friend of mine and is a tough son of a gun, he has been digging in. Him and the president are not on the best of terms. And so he's pushing pretty hard on the ethics piece of this thing. I do think they'll get through that. It's important for both the Republicans who campaigned on it to get this bill done and for the Democrats who don't want to have to campaign on it to get it done. And it's important for America. And so I think once that gets done, you're going to see a further acceleration in that build out. And it's also going to help crypto prices. You know, Bitcoin, which is the bellwether, you know, first quarter, we had a pretty severe sell off all the way to 60K. It feels like that will be a tradable bottom for this part of the move. You know, we bounced up to 80. Now I think we're trading 76, 77. I don't see Bitcoin exploding in the near term, but it might. And so I think you're going to have some wood to chop through 80-85. Once you get through that, the next stop is 100. And if you break that, then it's all price discovery. And so it's not my prediction that we break that 100 this year. You're going to need a few things to happen. Mostly, that will be an easing central bank. And given the war in Iraq, we've got some pretty ugly inflation prints that are going to come through the pipeline. I'm sorry. The one I ran. Pretty bad inflation points that will come through the pipeline. And so I don't think the Fed does anything but sits and watches. I know Kevin Warsh is a real believer in the productivity miracle that is coming from AI. You know, one thing I was pointing out to the guys here is all of this wild acceleration we're seeing in AI is mostly being done on the infrastructure that already existed. You know, campuses like Helios, where we're delivering the data centers, it's still not really, you know, we deliver the data center to Corweave, they then take another, you know, two to three months to build out the inside for final customer use. And so, it's really not until this time next year when the next phase of power comes into powering AI. And so, The AI revolution is just starting, and its impact on inflation, its impact on productivity, its impact on how the world changes. And so, you know, listen, I think the Fed will be cutting rates by the end of the year. I think that will be very supportive of broad crypto prices. One thing I'd point out is that, you know, crypto prices were down 20%, volumes in trading markets were roughly down 20%, and here at Galaxy, our volumes were flat. And so... It's the first time we've really started to see a decoupling of our business from the price. And that's very promising. If I could see that four quarters in a row, I'd have a big grin on my face. You know, the balance sheet lost money because crypto prices were down, but we way outperformed what we would have done if we had not, A, cut some positions and also shifted a lot of our level two exposure into hyperliquid. which is one of the tokens I've talked about. We've been a supporter mostly because it's got an economic model, unlike many of the other tokens, which were more association tokens. And I think hyperliquid is a good way to look at what the future of crypto is going to look at. And so, again, you know, the headline numbers weren't what I want, but I feel really good about the two businesses, both how we're doing and the macro over you know, backdrop for Bozal. And with that, I'll pass it on.