Galaxy Digital Inc.

Good morning, everyone, and welcome to the Galaxy Digital third 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 and then one on your telephone keypads. To withdraw your questions, you may press star and two. At this time, I'd like to turn the floor over to Taylor Reinhart, Head of Investor Relations. Please go ahead.

Good morning and welcome to Galaxy's third quarter 2026 earnings call. Before we begin, Please note that our remarks, including answers to your questions, may contain forward-looking statements. Actual results may 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 CDER+. 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, the information on this call does not constitute a recommendation, solicitation, or offer by Galaxy or its affiliates to buy or sell any securities. With that, I'll now turn the call over to Mike Novogratz, founder and CEO of Galaxy, to discuss our results.

Good morning, everyone, and welcome, Taylor, to the Galaxy team. You guys will get to know her well and will like her as much as we do. Listen, we had an awesome quarter. I'm really proud of what the team delivered. But what excites me more is what performance says about where Galaxy is headed. We spent years investing ahead of two enormous shifts. Finance moving on-chain and the build-out of AI infrastructure. And we're increasingly seeing those investments translate into results, with the strategy playing out in three important ways this quarter. First, we saw a strong rebound in crypto markets. Bitcoin was up more than 40%, with a meaningful improvement in sentiment and client activity. Our global markets business capitalized on that momentum, growing trading volumes and expanding client engagement. We also saw significant appreciation across our investment portfolio, reflecting the value of capital we've deployed across crypto and the broader technology ecosystem. Second, the opportunity in digital assets is getting bigger, and I think we're just scratching the surface of what's ahead. Crypto remains an important and growing asset class, but the opportunity extends well beyond that, with digital assets increasingly becoming the foundation for the future of finance. And increasingly, those two worlds are coming together. You can see it in the growing adoption of stablecoins, the tokenization of traditional financial assets, and the participation of major financial institutions. I have a tremendous amount of conviction that the financial architecture developed by the crypto industry will underpin much of how the financial system operates in the future. Galaxy has spent years investing in these capabilities, and we're still in early stages. I believe that that investment will translate into meaningful results over the next several years. Regulatory clarity will be an important part of that. While the Clarity Act has not become law, unfortunately, the SEC and the CFTC are working towards clearer frameworks. There's still a lot to sort out, but the direction is encouraging. And investing ahead of these shifts has always been part of our strategy. We did it early in crypto, investing in companies and technologies that help build the ecosystem. Now we're taking that same approach to AI, increasingly investing in the next generation of companies through our investment strategies and our balance sheet. Third is data centers, where we're building a very sizable business. Helios has come a long way in the past year. We're now generating approximately $80 million of leasing revenue per quarter from phase one. As Phase 2 comes online next year, we expect to exit 2027 at an annualized leasing revenue run rate of between $800 and $850 million, based on our current delivery schedules. That is a substantial business from the capacity we've already leased, and the momentum is building. We have significant additional approved power available to lease and a deep development pipeline beyond that. I want to address the timing of leasing announcement at Helios 2. Earlier this year, I spoke about the possibility of reaching agreement during the summer. We were in advanced discussions around a potential transaction, but as the market dynamic shifted material in late summer, we ultimately decided not to move forward on the terms being considered. The market for large-scale power via data centers has become increasingly constrained, while demand for capacity beginning in 2028 and beyond has strengthened. With more than 800 megawatts of secured power and supporting infrastructure, we believe Helios 2 is an even more valuable asset today than it was just a few months ago. And with a delivery plan for 2028, we have the flexibility to evaluate our opportunities and get the right deal. We've built Galaxy by adopting the changing markets and being disciplined about where we commit capital. These are large, long-term agreements, and we're not going to compromise on terms just to meet an announcement date. We continue to have productive and active discussions with prospective customers with a focus on maximizing long-term value for shareholders. And as the Helios Campus scales, we're fundamentally changing the earnings profile of Galaxy. We've established a digital asset franchise with significant earnings power, growing opportunities for recurring fee-based revenue, and a data center business that's adding long-term contracted cash flows. Together, these businesses give us multiple drivers of growth and more diversified earnings base that we believe will make Galaxy a stronger, more durable franchise over time. We also have the balance sheet to back that ambition. It's a competitive advantage that allows us to commit capital as a principle, invest in growth across our businesses, and take advantage of opportunities as they arise. We're focused on putting that capital to work where we see the most attractive long-term returns. That includes investing in our own shares when we believe they're trading at a meaningful discount. Thanks, Mike.