This Crypto Platform’s Stock Jumps Sharply After Earnings. Here’s Why.

Galaxy Digital debuted on the Nasdaq earlier this year. (Nasdaq MarketSite)

Key Points

• Galaxy Digital’s third-quarter earnings of $1.01 a share exceed estimates of 38 cents.
• Net income for Galaxy Digital reaches $501 million, the highest since 2021.
• Record digital asset trading volumes, including a sale of over 80,000 Bitcoin, boosts earnings.

Shares of Galaxy Digital rose sharply Tuesday after the crypto investment company and data center developer posted strong quarterly earnings, buoyed by record digital asset trading volumes.

Galaxy Digital posted earnings of $1.01 a share for the third quarter, well ahead of analysts’ consensus estimates of 38 cents. Net income totaled $501 million, the company’s highest figure since 2021, according to FactSet.

Shares jumped 10% in premarket trading Tuesday. The stock, which listed on the Nasdaq in May having traded on the Toronto Stock Exchange since 2020, has more than doubled this year as of Monday’s close.

The third-quarter earnings beat was driven in part by record digital asset trading volumes, the company said. Galaxy Digital, whose crypto business works primarily with institutional clients, reported increased derivatives and spot-trading activity and the sale of more than 80,000 Bitcoin for one client.

Write to Nate Wolf at nate.wolf@barrons.com