Galaxy Digital Inc. Q4 FY2025 Earnings Call

Good morning. And welcome to the Galaxy Digital fourth quarter 2025 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 then 1 on your telephone keypad. At this time, I would like to turn the conference over to Jonathan Goldowsky, Head of Investor Relations. Please go ahead, sir.

Good morning, and welcome to Galaxy's fourth quarter and full Year 2025 Earnings Call. Before we begin, please note that our remarks, including answers to your questions, may include forward-looking statements. Actual results could 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 US Securities and Exchange Commission and on SEDAR plus. 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, none of the information on this call constitutes a recommendation solicitation or offer by Galaxy or its affiliates to buy or sell any securities. With that, I'll turn it over to Mike Novogratz, founder and CEO of Galaxy.

Good morning, everybody. We're in New York City. We've got ice in the Hudson. It's still chilly out here. Listen. I think about this quarter and our year a lot. And I thought in a perfect Dickinsonian way that this is a tale of three cities. Not two cities. So I'm going to start with the shiny one. Our data center business, I couldn't be more excited for it. We're now over 1.6 gigawatts of improved capacity. If you haven't followed our stock as closely as I think you have, we got 830 megawatts of additional power approved recently. I want to give a shout out to the state of Texas. They've proven it would be great to do business with. I literally got an extra set of cowboy boots every month. We're excited. There is not a lot of 830 megawatt new sites of power being granted in the United States. We are engaging with potential tenants and hopefully, in the next period of time, have news on who is going to occupy that site. At the same time, we've got over a thousand workers building out the site for CoreWeave. We hope to have or we will have our first data halls delivered by the '1. So the data center business will start cash flowing quite quickly. We're engaged in conversations with other sites both in Texas and in other states. The data center business is growing. It is a macro environment still where the demand for power is strong. You see that from everywhere you're reading and looking. It's usually the same five or six major players. Underneath that, there are a lot of other players that are building out data centers themselves. I couldn't be more bullish on the data center business. The crypto business or the digital assets business is a tale of two cities. Both internally at Galaxy and broadly macro-wise. You have the crypto coins, Bitcoin, Ethereum, Solana, you name it, in a bear market. When we cracked 100 in Bitcoin, there was a lot of price action above that ever since then. I thought it's been in a 75 to a 100 range, and we're at the lower end of that range right now. If you had told me a year ago with gold at the highs and Nasdaq at the highs and a very friendly administration that we would be lower, I'd have said no way. When that happens, you got to think through what's going on. I think a lot's gone on. People got excited over 100,000 and felt like the race was won. I've done all the hard work over fifteen years to get there. It felt like some relief that the community had done something so amazing. That somehow allowed people to take profit and then that profit-taking became a bit of a virus. We are distributing a lot of those huddled coins into new buyers. I learned early on as a trader that prices are set at the margin. Obviously, there have been more sellers than buyers. The question is when to stop. Do we find sellers exhaustion at one point? What are the catalysts to turn it around? I think we're at the lower end of the range, and I would say we've been here before. Anyone who's been in crypto for more than five years realizes that part of the ethos of this whole industry is pain. Often when things feel worst, it's time to be very focused and potentially accumulating or at least getting prepared to. When the tide turns, it turns quick. Potential catalysts could be if we finally pass this crypto legislation here in the U.S. We just got a new Fed governor. We can talk about that later. He is not as dovish as people had hoped. You were hoping that you were going to get someone who would do the president's bidding, and I think the market reaction both in precious metals and in crypto was telling. It's a nod to Kevin Warsh as a man of integrity. The budget deficit is still 6.5%. Our debt is $40 trillion. The broad story that brought people into Bitcoin as a store of value—digital gold—is intact. Certainly, we haven't given up on our bullishness around the long-term prospects of crypto. Our balance sheet took a hit in the fourth quarter, mirroring the third quarter where we had a great balance sheet. Our underlying business, however, has had a great year, doing over $500 million in operating revenue. Strip out the balance sheet; Galaxy's digital assets business is big and has a great brand with great relationships with institutional customers. We had record trading volumes, and our loan book has grown immensely to $12 billion of assets on our platform. I feel good about our overall business. I would say neutral, getting ready to hopefully feel bullish about the overall crypto market. Lastly, there's a very big and exciting bull market in what I call blockchain plumbing or digital asset plumbing. Even before the passage of this market structure bill, every trade by institutions we're in touch with is figuring out how they're going to participate in this transition to a digital world where wallets replace accounts. You read about the stablecoin debates going on in D.C., and hopefully, in the next period of time, we're going to have some big announcements about different endeavors we're taking. Galaxy sees ourselves as a partner for lots of these people. We're going to partner with some in our office; they're like collaborators, competitors, or clients. They're a little bit of all of them. That’s a bull market for us. It feels that way. We could enter a period where the old business doesn't do as well, but you're building for the new business. What is that new business? It's going to be more on-chain stuff, but it's going to be traditional assets that use crypto rails. You already see it. There's a protocol called XYZ that trades on the hyperliquid platform. Full disclosure, we are long hyperliquid. That is doing $4 billion of revenue already. It did 4% of the CME volume in silver. As we see assets traditionally not trading on blockchain rails shifting to the blockchain, we think that's a ripe opportunity for Galaxy and for the whole space. With that, I hope Chris or Tony has a literary metaphor for their piece, and I'll pass the ball.

Thanks, Mike, and thanks, everyone, for joining us on the call today. It's my pleasure to present the results for Q4 and full year 2025 before turning it over to Chris to provide a little more context on the data centers. First, starting with our full year 2025, we reported a GAAP net loss of $241 million, or $0.61 per share. These results were impacted by approximately $160 million in one-time items that occurred earlier in the year, including write-downs and other expenses related to our legacy Bitcoin mining infrastructure, costs tied to our US listing and corporate reorganization, and a negative mark-to-market adjustment on the embedded derivative associated with our exchangeable notes, which no longer impacts results following our Q2 2025 reorganization. Despite these nonrecurring charges, our business delivered $34 million of adjusted EBITDA in 2025. This performance came against the backdrop of a 10% decline in the total crypto market cap driven by a 24% drop in Q4. This profitable performance also underscores the growing scale of our business and the increasing contribution of recurring fee and transaction-oriented revenue within our earnings mix. In our digital assets operating segment, we generated record adjusted gross profit of $5 million in the year, up from $3 million in 2024, representing a 67% year-over-year growth. An acceleration that reflects both operating leverage and the strength of our diversified business model. Growth was broad-based, with strong contributions across trading, investment banking, lending, asset management, and staking. In treasury and corporate, we reported an adjusted gross loss of $86 million in 2025, primarily reflecting the unrealized losses in our digital asset and investment portfolio during the year as a result of lower digital asset prices. In data centers, as we've discussed previously, we expect financial results in this segment to remain de minimis until we begin recognizing revenue under Phase one of our CoreWeave lease agreement, which we expect to start later in Q1. Turning to the balance sheet. We ended the year with $11.3 billion in total assets and over $3 billion in equity capital, with roughly 60% allocated to our operating businesses. That mix will fluctuate quarter over quarter with movements in our treasury portfolio, but as stated previously, over time, we expect the percentage allocated to our operating businesses to increase as we scale across both digital assets and data centers. Within treasury and corporate, we held approximately $1.7 billion of net digital assets and investments at year-end, down 22% quarter over quarter, primarily reflecting market depreciation, as Mike discussed, which resulted in unrealized losses across our investment portfolio. We also closed the year with $2.6 billion of cash and stablecoins on balance sheet, up approximately $700 million from Q3. That increase reflects two strategic capital raises in Q4: a $1.3 billion exchangeable note issuance and a $325 million equity investment in Galaxy by one of the world's largest asset managers, which together resulted in approximately $1.6 billion of net proceeds to the company. Cash raised in Q4 went to two primary uses: continued investments in data center infrastructure to ensure we stay on track for upcoming data hall deliveries and paying down short-term borrowings. Going forward, uses will be focused on continued data center build as well as general corporate purposes, including ensuring sufficient liquidity for the potential repayment of the $445 million of exchangeable notes that mature in December 2026. Maintaining disciplined risk and balance sheet management, focused on strong capital and liquidity, remains a critical priority as we execute our multipronged growth strategy across digital assets and data centers. Now shifting to our digital assets business. As Mike mentioned, Q4 reflected lower digital asset prices, soft sentiment, and reduced activity industry-wide. Coming off a record Q3, that shift was more pronounced, but we maintained strong client engagement throughout the quarter. In our Global Markets business, we delivered adjusted gross profit of $30 million in Q4, bringing our full year Global Markets adjusted gross profit to $423 million, up 88% year over year. Our average loan book held steady at $1.8 billion despite broader market pressures, which is a strong indication of the business resilience and sustained client demand. Digital asset trading volumes declined approximately 40% quarter over quarter, largely reflecting softer client activity on the back of a record Q3 and lower industry-wide volumes. That said, we're starting to see capital formation migrate onto blockchain rails, and we're deeply engaged with some of the world's largest banks, asset managers, and hedge funds across everything from credit and on-chain markets to electronic trading and ETF creation and redemption workflows. For a quick update on Galaxy One, we're continuing to make progress here as well. While it's still early days, we're encouraged by the momentum we've seen over the first four months since our launch. We've seen strong adoption of our high-yield products, which offer market-leading yield and serve as a compelling entry point into Galaxy One. We've also been listening closely to our user feedback on what they want from their accounts. That's already led to the launch of daily buys, more accessible account minimums, and in-app staking and custody, which are coming soon. Now turning to asset management and infrastructure solutions, we delivered adjusted gross profit of $21 million in Q4 and $82 million in 2025, up roughly 5% year over year. Galaxy ended Q4 with $12 billion in assets on the platform, down approximately 15% quarter over quarter, reflecting the impact of digital asset price depreciation. While overall flows were more muted in Q4, we continue to expand our product suite to meet the needs of our clients. We partnered with Invesco to launch the Invesco Galaxy Solana ETP and collaborated with State Street Global Advisors to tokenize a private liquidity fund, which is a step forward toward broader adoption of tokenized investment vehicles. After the quarter ended, we announced the initial closing of our debut tokenized CLO, a significant step towards building a tokenized credit platform. On the infrastructure solutions side, in Q4, we completed our fifth integration with a leading custodian and closed the acquisition of Alluvial Finance. This acquisition marks a key milestone, bringing us into liquid staking, which we see as essential for institutional adoption given its capital efficiency and alignment with broader DeFi and yield strategies. Overall, Galaxy's digital asset business made significant strides in 2025 with momentum building both strategically and operationally. In Global Markets, we delivered record trading volumes, including executing one of the largest notional Bitcoin transactions in digital asset history and a record average loan book size. Asset management rolled out several new ETF and alternative investment products and delivered $2 billion of net inflows during the year, representing a 30% organic growth. In Infrastructure Solutions, we grew our assets under stake by $750 million and scaled our platform, deepening access for clients and solidifying Galaxy's position in institutional workflows. As we head into 2026, we're building with a clear focus aligning the momentum in digital assets with the long-term needs of our clients. Across our platform, we're seeing deeper engagement, not just access-seeking, but demand for infrastructure product and partnership. As Mike said, the line between traditional and digital finance is disappearing, and we're designing for where institutional demand is going, not where it's been. We're meeting that moment with a unified strategy, scaling structured products like our tokenized CLO, launching targeted investment strategies such as our newly formed FinTech fund, and delivering on-chain solutions built for institutional scale. We've also realigned our leadership and operating teams behind this strategy, enhancing coordination across product, infrastructure, and go-to-market as we serve increasingly sophisticated institutional clients looking for integrated solutions across our platform. This is where Galaxy stands apart, investing ahead of the curve, with technology, foundation, and operational strength to be a full-stack partner through this transition. Despite the recent pullback in crypto prices, we entered the year with conviction and the platform to lead.

Thanks, Tony. And Mike. I would normally go with we are John Gold, but I think today we're gonna go with go west young man and grow with the country. I could not be more pleased to share that subsequent to quarter end, we completed a large load interconnect study and received approval from ERCOT for an additional 830 megawatts of power capacity at the Helios campus. This approval more than doubles Helios’ footprint of approved power capacity and represents a significant milestone in the long-term expansion of our flagship campus. With 800 megawatts now contracted under our lease agreement with CoreWeave, this recent approval of incremental capacity expands our leasing optionality, providing additional power that can be allocated to existing or new tenants during a period of intense demand for large-scale AI data center capacity. The timeline to energize the next 830 megawatts of capacity will depend on several factors, including the completion of certain approved transmission infrastructure, including a private substation. Based on current procurement and construction schedules, we expect to begin energizing this additional capacity in late 2028 through early 2029. With more than 1.6 gigawatts of approved power, Helios is among the largest AI data center campuses currently under development, projected to be the largest known 100% front of the meter data center campus. We continue to pursue ambitious expansion plans. Beyond the capacity already approved, we have two applications totaling approximately 1.8 gigawatts of incremental requests progressing through various stages of the load study process. We are actively engaged with ERCOT and closely following guidance on the timelines and requirements under the new batch process, and we're encouraged by the continued evolution and increased clarity of those procedures. Turning to construction, we're prepared to deliver the first data hall to CoreWeave later in Q1 as part of our phase one project and remain on track to deliver the remaining data halls representing the full 133 megawatts of critical IT for phase one within the first half of the year. In order to make this possible, the team has been incredibly busy. The fourth quarter, the building was completely dried in, meaning the structure was fully enclosed and protected from the elements, allowing us to proceed efficiently with interior work regardless of weather conditions. All generators and e-houses to support the first data hall are fully set in place, and importantly, every major component required to energize that first data hall is on-site and installed. With materials in position, we transition into commissioning. As a reminder, commissioning is a multilevel process that validates the electrical and mechanical infrastructure is installed, configured, and operating correctly. We began commissioning activities in the fourth quarter and continued moving through the process. Recently, severe winter weather swept across much of the country, including Texas, as winter storm Fern and heavy snow and ice moved through the region. During that period, construction was temporarily paused as several inches of snow and ice accumulated across the campus. Even so, the team responded quickly and decisively—protecting critical mechanical equipment and preparing the site for rapid restart. Within five days of the storm, more than 1,000 subcontractors were back on-site and construction resumed. We remain on track to turn over the first data hall in the first quarter, with the remaining data halls coming online by the end of the second quarter. Looking ahead, we've kicked off earth, concrete, and steel work associated with our phase two development at the Helios campus. We've issued purchase orders to secure critical long lead equipment to support the additional building development that will house the 260 megawatts of incremental critical IT capacity for phase two. Overall, execution remains strong. Construction is tracking well. And Helios continues to transition from a large-scale construction project into an operational AI data center campus positioning us to be recognized as one of the few companies that have proven their ability to execute on a hyperscale AI data center development. Turning briefly to phase two financing, we are continuing to evaluate various debt financing structures and are having conversations with a select number of potential partners. Our focus is on maintaining a disciplined capital structure that supports long-term scalability at Helios. Scaling Helios is just the first step in our vision of building Galaxy's data center business into a multi-gigawatt, multi-tenant, multi-campus platform. Beyond Helios, we continue to evaluate a robust pipeline of expansion opportunities across a range of possible developments, evaluating more than 100 campuses across the U.S., including many in Texas, given our deep familiarity with ERCOT and existing development footprint. At the same time, we are actively exploring additional markets where power availability, permitting timelines, and grid dynamics may offer more attractive paths to accelerate time to power. We're seeing tremendous opportunities to scale the business, and we'll be focused on that growth in a measured and disciplined manner. We're entering 2026 now from a position of strength. We've laid the foundation physically, operationally, and organizationally to transition Helios from construction into an operating campus. The work over the past year has been about preparation and precision. The work ahead is about execution and scale. Starting off 2026 by doubling the approved capacity power at Helios campus and preparing to power on our first data center development, we expect this year will be pivotal as we continue to relentlessly execute on our plans. We're confident in the team, the strategy, and the progress we've made, and we're excited about what 2026 will bring for Helios and for Galaxy. Now back to the operator for questions. Thank you all.

We will now begin the question and answer session. To ask a question, you may press star then 1 on your touch tone phone. If you're using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you'd like to withdraw your question, please press star then 2. Please note, once your question has been addressed, we will be moving on to the next caller. If you have more than one question, please rejoin the question queue as needed. At this time, we will pause momentarily to assemble our roster. And today's first question comes from Patrick Moley with Piper Sandler. Please go ahead.

Yes. Good morning. Thanks for taking the question. Mike, maybe to start things off, would love to get your thoughts on everything that's been going on around the crypto market structure bill. What are you hearing about the chances that bill passes? Is this a bill that you think is necessary to kind of advance that transformation of the digital asset plumbing this year? And then as you look at the bill, as it sits today, what aspects are you most excited for as it relates to Galaxy's business? Thanks.

Yeah. Great question. First, I would say we have spent a lot of time on this. We've got a great team in D.C. I have been down myself a bunch and have literally spent more time with senators both on the left and the right in the last eight weeks than I have in my life combined. The top line is I think a deal gets done. If you had to put a percentage on it, I would say it's 75%, 80% right now. And that's for a bunch of reasons. Both parties feel a necessity to get it done. The Republicans took all this crypto money and ran that they were going to be the party of crypto and get stuff done. They have a tremendous amount of pressure on their side. Quite frankly, Democrats realized last election cycle that being anti-crypto was a really dumb political strategy. The whole party didn't have enough knowledge about crypto. It was really being driven by a small faction led by Elizabeth Warren and Gary Gensler. But broadly, the moderates in the party now say, hey, this should be a bipartisan issue. We want it off the table politically. The politics line up. I would say you know, we're on the putting green. Between the Republican version and the Democratic version. There have been a couple really controversial pieces to it. I think there's agreement now on most of those. The last one being interest on stablecoins. There was a meeting in D.C. yesterday, and both sides laid out their cases again. The White House is putting pressure and saying, guys, you're going to come up with a solution yourselves. I do think the crypto industry, when you think about it, the revolutionary transformative technology would be an interest-bearing stablecoin. That's not to happen. Some version of that and no interest is going to be the compromise. I do think we'll get to a compromise in the next two to six weeks. You'll get a bill passed. It's important for a lot of reasons. I said earlier, all the trade flight companies are already working on their transition. Paul Atkins says he wants every market on-chain. You're seeing a bunch of on-chain activity both in sandboxes and actually on public chains. That's going to wildly accelerate post the clarity that comes with the clarity bill. DeFi is a space to watch. How DeFi impacts the traditional exchanges, I already talked about both Hyperliquid and XYZ and does that explosive growth those things have. There's a regulatory arm in that. They have less overhead if they have a different regulatory environment. Very similar, quite frankly, to what we're seeing with prediction markets and traditional gambling and sports betting. I do think that's like the flag, the checkered flag going down. I think there's a lot of trade by companies that probably feel short, and you'll see a pickup in M&A post that bill passing.

Thank you. And our next question today comes from Brett Knoblauch at Cantor Fitzgerald. Please go ahead.

Hi, guys. This is Gareth on for Brett. I was just wondering if you could go into kind of the future potential build-out at Helios. I know you guys recently talked about the incremental 830 megawatts with ERCOT. We were wondering if throughout that study you could provide how it went and if there were any glaring constraints. I know you talked about two applications totaling 1.8 gigawatts in process. Maybe if you could kind of touch on if you think that process will go similarly with this incremental 830 you just received.

Sure. I will, yeah. I'll take the first crack at that. We have had, between the prior interconnect request put in from the Helios campus that we purchased from Argo back in 2022, plus some incremental interconnect requests that we've accumulated through land acquisitions adjacent to Helios. We've had north of 3.5 gigawatts in total: our 800 approved plus the remaining amount with ERCOT at various stages of either internal study on our side or study with ERCOT. The 830 that we received a firm approval for ERCOT was part of a larger request that ultimately ERCOT, in looking at where we were in the queue and the current grid capacity at the time, concluded through various stages of study that the grid could accept an additional 830 megawatts today, which is what we got firm approval for. As I said in my comments, we currently have various different studies and requests into ERCOT for an incremental 1.8 gigawatts on top of the 1.6 that is already approved. That 1.8 gigawatts of incremental load is now clearly going to be part of a new set of frameworks that ERCOT has worked out and is still working through, which is this batch processing where they're going to look at various batches of requests, given how large the queue has grown in ERCOT for requests, and look at groups of requests together. In each group, they will look at what the grid can absorb today, where those requests are coming, and what infrastructure upgrades need to be made, and then sort of pro-rata part out new approvals in a step-by-step process. The timing on the next incremental load approvals for us or anyone else in the queue is still a little unknown, and we think it’s going to take a lot of time for ERCOT to sort out the process. From our seat, getting the 830 in one large chunk fully approved for us before the new batch process is in place was worth its weight. We’re thrilled. That makes that power more valuable. There aren’t a lot of 830-megawatt chunks of power available, in Texas or the United States. There are many people building for the future behind the meter, and we'll see how the negotiations go with our next group of tenants, but it leaves me pretty bullish.

Thank you. And our next question today comes from James Yaro at Goldman Sachs. Please go ahead.

Good morning, and thanks for taking the question. Mike, I really appreciate your comments on the crypto backdrop. I just wanted to expand on one element you touched on in your prepared remarks. You’ve been through a lot of cycles here. Are we heading into another crypto winter or not? How long until the cycle could begin to recover, and you know, you’re a trader. You look for these signals. So what should we be paying attention to, to mark this cycle either continuing to deteriorate or potentially inflecting?

Yeah. It's a great question. I mean, listen. It feels pretty chilly right now given that we were at a high of what—130 or something. We're currently, I haven't seen the market in the last two minutes. When you look on the charts, it feels to me we're in a 70 to a 100 range until we take out 100. The idea that Bitcoin is now a macro asset is solidified. There are too many people that have owned it, who have bought into it, who believe in it, have institutions built around it. This is not going away. You're having a supply-demand imbalance. When I think about potential catalysts, you should think about this market structure bill turning on Wall Street. Wall Street is a selling machine; that's what it's built to do. Mortgages, equities, or government bonds—the structure is set up to sell. As you start putting crypto through the traditional Wall Street selling machine, demand is going to pick up from pockets that we haven't seen yet. That has kept crypto's two-way price action in check. What we've seen has been more broader distribution coming against big chunky positions—big whales getting out of their long-held positions. My instinct is we’re closer to the bottom of the range than at the beginning of a bear market. I think we've had a bear market. Could things go lower? Of course, they could. But what I learned, painfully, in three cycles now is you don’t necessarily have to pick the bottom, but you’ve got to have a sense when it turns—and like pornography, you know it when you see it. There will be a catalytic event, and that makes it hard to predict. It shows up and then suddenly, like a wildfire, everyone gets excited again. I’m blowing smoke on the embers, hoping the wildfire picks up. It’s not here yet, obviously, by the price action.

Thank you. And our next question today comes from Devin Ryan with Citizens Bank. Please go ahead.

Great. Thank you. Good morning. Question just on kind of market structure clarity. You talked about that, Mike. I mean, we try to map this out and we're getting questions from investors, trying to understand kind of where Galaxy fits into the blurred space between crypto and kind of traditional finance over time. Obviously, the large banks are going to need to participate in this world of tokenizing markets, and that will probably bring them closer to trading the tokens themselves. On the flip side, it's a very technical space, so it's not going to be easy for many of them to just enter. Curious how you think about Galaxy's position in that, you know, the moats, then kind of what role you want to see Galaxy play as we move to a market where more assets are tokenized and you probably have more of the large banks involved in the same space as you? Thanks.

Yeah. It's a great question. We think about it a ton. There are a couple of areas where we think we need to win and have a right to be significant players. One is credit. We’ve got a great credit business, and you’re going to see an on-chain credit world explode. There already is an on-chain credit world, and we’re participating. I think in the next three years, it could be one of the big growth areas for both the market and for Galaxy. One of the complaints in D.C. was, if we allow interest-bearing stablecoins and you get deposits, what does it do for credit creation? Credit creation is already starting on-chain and it’s going to explode. I could see a future in the next few years, but in the next ten years, where on your cell phone, you have your bank account—your stablecoin that pays some kind of interest—and your lending account, where you choose from a menu of potential places to lend money. That's already in existence in what I’ll call a beta stage. The second piece is really infrastructure. All of these financial market players, banks, FinTechs, and neobanks need staking; they need wallet infrastructure, and our infrastructure team is growing. We’re adding to it, and we’re engaged in conversation around how do we help. I hope to get some announcements publicly in the next period of time. That has to be a big business for us, and we're really focused on it. They’re coming. At one point, JPMorgan will trade Bitcoin derivatives and Bitcoin, and that’s going to make our Bitcoin derivative and Bitcoin business competition for it, which is going to be a bit more difficult. So we’re hoping the pie expands while we skate into the edges where those guys aren’t. We use our domain expertise to help those players into the market.

Thank you. And our next question today comes from James Faucette with Morgan Stanley. Please go ahead.

Thank you so much. Thanks for all the comments this morning. I wanted to follow-up on kind of what's happening beyond just the allocation and approvals of power. I really appreciate the color there, and certainly, you guys have done good work. Wondering if you can give more color on how we should be thinking about the engagements with potential tenants and how they're looking at it? I get the sense that they want to do bigger pieces if they can, particularly the hyperscalers. Just love to hear any more details you can provide around that and how you're thinking about potential partners, etc., and timing.

Sure. Thanks for joining, James, as well. I think you're right. For us, the major tenant category we are focused on—I’ll call them hyperscalers. I think that term is broadening out a little further as it relates to traditional hyperscalers. Now, neo-clouds are getting larger and larger, maybe the direct model builders themselves, etc. That’s the universe of tenant out there who we are talking to and looking at who are looking for large chunks of power capacity that they can put to work in the billions of dollars and gigawatts of size because this truly is the new modern space race for control of the most frontier model and the smartest brain offering to power the future of automated everything. The ambitions have not shrunk at all. In fact, we’ve seen reiterated and elevated CapEx expectations from a lot of companies already supporting that data. Our decision-making on the first 800 megawatts was to partner with CoreWeave, who has emerged as one of the top partners for most large model builders and hyperscalers, arranging and automating and running ever more complex large GPU clusters for those end-to-end clients. For the next 830 megawatts, I think all potential tenants are on the table. We do recognize that availability of capital and credit on economically attractive terms is paramount to developing a multibillion-dollar data center campus on time and on budget. The credit markets have had a tough go in 2025, absorbing the sheer amount of this first wave of capital that's come into the markets. You've seen a real divergence in non-IG credit with CoreWeave, although there's been some let up recently, and I think their continued partnership with NVIDIA helps that a lot. But you've also seen it creep into IG concerns initially in 2025 with Oracle. Yet, just last night, Oracle successfully closed $30 billion of new bonds and preferred equity at pretty attractive rates. For us, already having such a large exposure to CoreWeave means a natural focus on higher credit quality tenants going forward. That’s not a comment about CoreWeave and their position. I think they would be happy with us working directly with IG tenant counterparties, which also offers them an opportunity to be an agent and GPU cluster management partner, which we value a lot.

Thank you. Our next question today comes from Martin Toner with ATB Capital Markets. Please go ahead.

Hi, guys. Thank you very much for taking my questions. You know in the last deal we saw believe, was from Cypher was on the best terms we've seen yet. We haven't yet gotten to a stage where each successive HPC deal is on improved terms. The terms have varied depending on partners and customers. If data centers and space make sense, then data centers in Texas must make a lot of sense. Should Galaxy be driving a harder bargain on new HPC deals?

I'll answer this one because I'm a market guy first and foremost. Listen, the market's going to dictate. We want strong partners that we have a long-term partnership with—people that feel comfortable working with us and that we feel comfortable working with. We're going to balance that first and best price. We watch the market like hawks. Certainly, it's not all apples to apples. Chris has this very elaborate spreadsheet with his team where he tries to make it apples to apples. On Core, we took a risk the first train; I think it's going to be a great risk. We got paid extra for taking credit risk through CoreWeave. We were at a time of their development, and we thought it was the right bet to make. I think we’re going to be proven to be right on that bet. We’ll look at rate plus counterparty and get the best price. There are enough players around the table that there's attention—if there was one, it would be a very different story; you don’t need ten.

The only thing I’ll add is I think you rightly pointed out a dynamic that has surprised us a little to the upside, which we're happy about. The initial instinct way back when was that the dollar per kilowatt rental would start high and then over time normalize to a market-clearing level as bigger potential clients come in. As you pointed out, there isn't a good downward trend. We've seen base rental prices go up in a lot of cases—and with Cypher as well. So that's a dynamic that plays favorably to what we were initially underwritten when we started this journey.

Thank you. And our next question today comes from Ed Engel with Compass Point. Please go ahead.

Hi, thanks for taking my question. Just another follow-up on Helios. If you were the security tenant there, could construction be done concurrently with CoreWeave's existing build-outs? Do you think you kind of need to complete Phases one, two, and three before really starting any new developments?

Yeah. There are a couple of different dimensions to the answer to that question. So one, the new 830-megawatt capacity that was approved requires infrastructure build, both on the Galaxy side and on the grid side as well. The availability of that power cannot come online until late 2028 at the earliest. We will be doing everything we can along the way to parallelize the site work and the concrete and the ground clearing and development for all of the adjacent land that we've acquired over the years that allows us to execute on this. The practical reality is we will be fully developed and delivered on the CoreWeave Helios One side, largely in advance of the practical ability to come online for the next 830 megawatts. So we can parallelize, but it will come at the back end of the Core phase one project.

Thank you. And our next question today comes from Greg Lewis with BTIG. Please go ahead.

Hey, thank you. Good morning. Thanks for taking my questions. I did want you to kind of talk about the step-up in the loan book. I'm kind of curious if you could provide any color around what was driving that, you know, how that might have looked in a recovery in the market, are we largely with incremental customers? Are we adding any new customers? Any kind of color comfortable sharing around the loan book would be helpful.

Yes, Greg. It's Tony. Thanks. I’ll take that one. As we mentioned, the loan book grew pretty healthily throughout 2025. We ended the year at a little over $1.8 billion in average total for Q4. That was slightly up from Q3. To contextualize that in a market where the underlying asset class was down 24, 25% on average, it tells you that the loan originations and loan quantums were up to offset that value because these are backed by crypto. There wasn’t a ton of change underneath the surface. I would say the net interest margins, as we mentioned last quarter, did compress a little bit earlier in the year but have roughly held steady over the last period. We have continued to grow our client base. The loan originations were up. We see it as a healthy business. We've talked about the collateralization on the book being around 130% or north of that. That has been consistent. It can be a fluctuating business as a function of the underlying crypto market cap, but I would say our demand in that space has remained pretty healthy, which lends to the point Mike made around our confidence in on-chain credit continuing to become a more stable and visible path forward for the industry.

The only other thing I’ll add to what Tony said, being a lender by core background, is that growing the loan book as a KPI is a double-edged sword for most companies. Giving money away to grow your loan book is an easy thing to do. Growing your loan book while maintaining the right over-classification and risk weighting so that you don't lose the money you give away is the most important thing. That's at the core of our DNA from when we started this business. We're very focused on growing the loan book without taking any incremental net risk along the way.

Thank you, man. And I appreciate Mike's outfit. Thank you. And the next question today comes from Joseph Vafi with Canaccord.

Hey, guys. Good morning. Congrats on the new Helios announcement. Just maybe go back to price action here and Bitcoin and some of the other coins real quick. I know, Mike, that you had the big OG profit-taking. We’ve heard things about maybe a little over leverage in the system. Is Bitcoin a risk asset? Is it a store of value? Is it trying to be both? It was a little surprising to see, and I think it was surprising to everyone to see, that price action. Maybe just some more color on where you're seeing selling. Was it broad-based across all these groups? Or was it over-leveraged? Were OGs profit-taking a little more than we thought? Just whatever you might want to add. Thanks.

I think the OG profit-taking more than we thought is a real thing. The psychology is that once you start selling, it becomes a reaction function. You sell a little more, you sell a little more, and it’s hard to huddle—to hold a position and ride it for a long trend. There were many religious believers in the concept of hodling, but that virus or fever broke and you started seeing some selling. Quantum has been the big excuse for people. You’re seeing some reaction function from the industry. The industry has been slow to figure this out and fund the quantum institutes to say, ‘This is the real story.’ The risk of course to the Bitcoin ecosystem is that the developers get obstinate and fight amongst each other. I don’t see that happening. I think in the long run, quantum will not be a huge issue for crypto. A big issue for the world, but crypto, especially Bitcoin, will handle it. That has been the excuse. We had one customer alone who sold $9 billion worth. To put that in context, that was one quarter or one third of all of IVET's inflows last year—so the biggest player in this market. These big chunky positions take a while to work their way through. Someone wrote an article. Distributing an IPO: price usually goes down, then the distribution ends and it goes back up. I think that’s the part of the cycle we're in right now. I don’t know when the selling exhaustion happens. There isn’t a lot of leverage in the system anymore. Bitcoin specifically and crypto in general always need a new story, a new catalyst—something that happens, and it’s hard to predict what it'll be, and then shows up. Then suddenly, everyone gets excited again. I’m blowing smoke on the embers, hoping the wildfire picks up. It’s not here yet, obviously, by the price action.

Thank you. And our final question today comes from Christopher Brendler at Rosenblatt Securities. Please go ahead.

Hey, thanks. Good morning and thanks for squeezing me in. I'm actually going to ask two quick ones, if that's okay. The first one is on the new 830 megawatts of power. Does the timeline of late 2028 early 2029 slow the pace of current negotiations? Is this something that could take place over the course of a year, or do you expect it to be shorter than that just given the voracious demand out there for power? The second question I wanted to ask was about Galaxy One. The 8% yield that that product is offering—is that in any way at risk from the Clarity Act and the Compromise on Stablecoin rewards? Thanks.

Sure. I'll take the first one at least. On the 830 megawatts, if the negotiations for tenants go a year, I'll be somewhere between fired and tied up in a closet by Mike. We have a lot of time, and we want to be prudent and thoughtful about who our next partner or partners will be and the economics associated with that. It’s clear that market participants have the capital available today and are in a race to secure future capacity. The timelines we were originally looking at when we started with Helios were very focused on 2627 power. They have quickly moved to 2829 and 3030 power in terms of all major players looking to lock that up for themselves. We’re balancing that strong voracious demand we see with a little prudence and making sure we make the right decision. We’re in no ways looking to sit on the market for the next year or couple years and see how it develops. We have to start locking up the supply chain so we can deliver that far out. On the Galaxy One side, I'll pitch it to Tony, and I'll kick in if I can be helpful.

Yeah, Chris. The short answer is you're talking about the premium yield, the 8% that we're offering on Galaxy One right now. The short answer is no; that is not at risk from the Clarity Act. That's our understanding of how anything in the Clarity Act is proposed. This is an offering available to accredited investors only. We have certain customer limits and total portfolio limit on how much we're offering there. However, it is really in the interest of growing our overall client base as that business gets off the ground. That rate is subject to change with a period of notice, driven by broad supply and demand. We also think about it more generally as diversifying our funding sources for the markets business more broadly, obviously, within a box of disciplined asset liability management. But it’s a rate that we control, and it’s not subject to the Clarity Act at all. Hopefully, that answers your question. Thank you.

Guys, thanks a lot. We appreciate all the insightful questions and your support. I just want you all to know that we are working our tails off here, and our eye is certainly on the prize. Hopefully, come back next quarter with better numbers and a better story. Have a great day.

Thank you, sir. This concludes today's conference call. We thank you all for attending today's presentation. You may now disconnect your lines and have a wonderful day.