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Galaxy’s Data Center Earnings Jump as Helios Leasing Revenue Ramps Up

ByTheEnergyMag AI

•1h ago•3 min read

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Galaxy’s Data Center Earnings Jump as Helios Leasing Revenue Ramps Up

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Key Takeaways

Galaxy Digital reported Q3 2026 net income of $323 million and adjusted EBITDA of $455 million.
Total assets increased to $16.4 billion, with a liquidity position of $4.9 billion in cash, stablecoins, and Treasuries.

Galaxy Digital’s data center business generated nearly six times as much adjusted EBITDA in the third quarter as in the previous three months, as its Helios campus recorded its first full quarter of leasing operations for CoreWeave (NASDAQ: CRWV).

Adjusted earnings before interest, taxes, depreciation and amortization rose to $68.7 million from $11.5 million, according to the company’s financial supplement. Leasing revenue more than quadrupled to $79.1 million from $18.9 million, broadly matching Galaxy’s earlier forecast of approximately $80 million a quarter.

The results show the growing contribution from Galaxy’s conversion of the West Texas site into infrastructure for artificial intelligence computing. All 133 megawatts of critical IT capacity in Helios I’s first phase had been delivered to CoreWeave by the end of June, so the third-quarter increase reflected a full period of rent rather than additional capacity coming online.

The improvement in adjusted earnings did not translate into a bottom-line profit for the segment. Data Centers reported a net loss of $435,000, compared with a $31.2 million profit in the second quarter, when a tax benefit supported results. Notes interest expense climbed to $75.4 million from $7.4 million, while depreciation and amortization increased to $17.3 million from $4.8 million.

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Construction spending also accelerated. Quarterly capital expenditure reached $757 million, up 69% from $448 million. That included $489.7 million in cash purchases of property and equipment and $267.2 million in noncash additions, according to the supplement.

Galaxy said Helios I’s second phase is fully financed and progressing on schedule and within budget, with data hall deliveries expected to begin in the second quarter of 2027. The expansion will provide another 260 MW of critical IT capacity to CoreWeave.

The investor presentation puts estimated construction costs for that phase at $4 billion and anticipated annual base revenue at $675 million once fully delivered. The first phase cost $1.8 billion and carries annual base revenue of $315 million.

Galaxy’s project subsidiary issued approximately $3.5 billion of senior secured notes in July to finance the second phase. The debt carries a 9.875% coupon and matures in 2031, according to its second-quarter regulatory filing.

CoreWeave has contracted for 526 MW of critical IT capacity across three phases, supported by 800 MW of gross power. The final 133 MW phase is scheduled to begin generating rent in 2028. Galaxy forecasts more than $1 billion in average annual revenue across the three phases over their 15-year base lease term, with average lease-level adjusted EBITDA margins above 90%. That margin excludes overhead expenses.

Beyond CoreWeave, Galaxy said it remains in discussions with prospective tenants for 830 MW of approved gross power capacity at Helios II that has yet to be leased.

The distinction matters for Galaxy’s broader expansion plans. Its presentation identifies 5.73 gigawatts of potential gross power capacity across Texas, including sites awaiting further grid approvals or capacity allocations. In September, the company said Helios I and II had already secured approvals, while Caspian, Selene and Helios III received conditional classifications that remain subject to allocation under Texas’s grid interconnection process.

Helios began as a bitcoin mining facility that Galaxy acquired from Argo Blockchain for $65 million in December 2022. Galaxy signed its initial CoreWeave lease in March 2025, shifting the site toward AI and high-performance computing infrastructure.