Galaxy Digital (GLXY) investor relations material

Macro environment and market outlook

• Crypto markets are in a bear phase, with Bitcoin trading below key moving averages and facing more sellers than buyers, but a bottom appears to be forming around $60,000, with expectations of stabilization in the $60,000–$80,000 range until a new narrative emerges.

• Anticipation of a dovish new Fed chair and potential passage of a market structure bill are seen as positives for Bitcoin and risk assets.

• Institutional adoption of Bitcoin is expected to increase as more traditional finance players enter the space, though allocations remain small.

• The company is optimistic about a new wave of entrants once market conditions settle, despite current competition from other speculative assets.

Data center and infrastructure business update

• Recently secured 830 MW of new power capacity in Texas, with plans to energize and ramp up over 2028–2030, and the first 800 MW expected to be fully online by 2028.

• Construction and grid connection for new data centers will proceed in parallel, with a focus on grid-connected solutions for reliability and scalability.

• The company has proactively secured key electrical infrastructure, including main power transformers, to mitigate supply chain risks for upcoming expansions.

• Actively seeking strategic tenants for the new capacity, with negotiations underway and expectations for announcements in the near term.

• The data center business is expected to grow significantly, with management committed to leveraging its strong balance sheet and capital markets expertise.

Capital allocation and financial position

• Ended the quarter with $3 billion in equity capital and $2.6 billion in cash and stablecoins, having raised over $2 billion in 2025 to support infrastructure growth.

• No current plans to raise additional capital; instead, a $200 million share repurchase program is underway, reflecting confidence in the stock's value.

• Capital raises were timed to ensure liquidity and support large-scale projects, with recent power awards adding significant value.

• The company is focused on maximizing after-tax value for shareholders, leveraging Opportunity Zone benefits and CapEx deductions.