Mike Novogratz tweets Q2 results analysis and GLXY outlook with Tony Paquette and others on Spaces.

Mike Novogratz tweets Q2 results analysis and GLXY outlook with Tony Paquette and others on Spaces.

Galaxy Digital (NASDAQ: GLXY) reported a net income of $30.7 million for the second quarter of 2025, marking a significant turnaround from the $295 million net loss in the first quarter of the same year. However, the company's stock experienced a negative reaction, with shares dropping nearly 8% following the announcement [1].

The company's management highlighted July as the strongest monthly financial performance for its Digital Assets operating business in history. This was driven by positive results across its Global Markets, Asset Management, and Infrastructure Solutions business lines. Total assets grew by 43% quarter-over-quarter (QoQ) to $9.086 billion, while total equity expanded by 38% to $2.624 billion as of June 30, 2025 [1].

Galaxy's trading and lending desk grew over the quarter, with adjusted gross profit totaling $71.4 million, a 10% QoQ increase. Despite a 22% drop in trading volumes across the broader industry, Galaxy executed one of the largest USD-value bitcoin trades ever, selling over 80,000 BTC worth over $9 billion for a client [1].

The company's Global Markets' revenue rose 28% QoQ to $55.4 million, driven by a 27% increase in average loan book size to $1.107 billion. The Asset Management & Infrastructure Solutions business generated $16 million in adjusted gross profit, down 26% QoQ due to softer on-chain activity and lower staking rewards [1].

Galaxy's balance sheet also showed strong growth, with net digital assets rising to $1.274 billion, up 40% QoQ. The company's total liquidity stood at $2.5 billion, including $1.1 billion in cash and stablecoins, and $1.3 billion in net digital assets [2].

On its earnings call, Galaxy Digital's CEO Mike Novogratz discussed the company's outlook and the current crypto market. He emphasized that while the crypto treasury expansion has likely reached its peak, the focus is now shifting to identifying which existing firms will grow into industry giants [4]. Additionally, Novogratz expressed confidence in Ethereum's potential to break out to $4,000 by the end of 2025, despite recent bearish sentiment [3].

Despite the positive earnings report, Galaxy Digital's stock price dropped significantly following the announcement. This could be attributed to market sentiment or investor expectations that were not met. However, the company's strong financial performance and strategic expansions, such as the CoreWeave deal and the Helios data-center expansion, provide a solid foundation for future growth.

References:
[1] https://blockspace.media/insight/galaxy-digital-stock-slumps-despite-positive-q2-earnings-coreweave-deal-expansion/
[2] https://www.coindesk.com/markets/2025/08/05/galaxy-digital-slips-8-post-earnings-as-investors-take-profits-following-big-run-higher
[3] https://cryptodnes.bg/en/mike-novogratz-rejects-bearish-eth-calls-predicts-4000-by-year-end/
[4] https://www.cryptotimes.io/2025/08/06/crypto-treasury-surge-has-peaked-says-mike-novogratz/