Galaxy Digital shares jumped on Tuesday after the institutional crypto firm reported $505 million in third-quarter profits amid an increasing amount of assets on its platform.
The New York-based firm, which debuted GalaxyOne this month, is positioning itself as a competitor to retail-focused platforms like Robinhood and Coinbase, and it said that its platform reached a record $17 billion in assets in the third quarter, up 70% quarter-over-quarter.
Galaxy shares surged to $46 when markets opened on Monday, according to Yahoo Finance. Shares were more recently changing hands around $43, an 8.3% increase on the day.
Galaxy disclosed $28.4 million in third-quarter revenue, a 231% increase from the same period a year ago. The firm also said that trading volumes increased 140% quarter-over-quarter, which includes a $9 billion notional Bitcoin sale that Galaxy facilitated earlier this year.
As crypto treasury firms have proliferated on Wall Street, Galaxy said that it’s benefiting, with those firms parking $4.5 billion in assets at Galaxy. The firm said, as a result of that activity, that Galaxy expects around $40 million in annual recurring fees.
Overall, Galaxy had $9 billion in assets under management by the end of the third quarter, as well as $7 billion in “assets under stake,” which were earning blockchain rewards. The firm said its average loan book size increased to $1.8 billion on increased client diversity.
GalaxyOne offers customers the ability to trade stocks and crypto in one place, mirroring services offered by Robinhood and Kraken. At the same time, Galaxy is targeting accredited investors with products like high-yield cash that aren’t universally available.
Although Galaxy’s business focuses on financial services and asset management, the company is also engaged in data center infrastructure. The firm said it remained on schedule to deliver power to AI cloud computing platform CoreWeave in the first half of next year.
In a Tuesday note, analysts at investment bank Compass Point noted that Galaxy’s earnings before interest and taxes came in 236% above Wall Street estimates. They added that the increase in assets on Galaxy’s platform will likely cause investors to adjust forecasts higher.