Galaxy Digital Cites Ripple Stake in $386.5M Q3 Investment Gain

Galaxy Digital booked $386.5 million in net investment gains for the third quarter of 2026, and its 10-Q filing with the U.S. SEC names Ripple Labs Inc. among the main drivers of the result. The gain covers the three months ended Sept. 30, 2026 and represents a 30% increase from the $297.8 million recorded in the same period last year.

The quarterly report breaks the number down: $411.9 million in unrealized gains across Galaxy's investment positions, partly offset by $25.4 million in realized losses. Alongside Ripple, the filing credits Etched.ai, Forward Industries Inc. and Bitcoin ETFs as the principal contributors to the unrealized gains.

For the nine months ended Sept. 30, 2026, Galaxy identified Ripple, Etched.ai and Galaxy Venture Fund as the leading private-investment contributors to unrealized gains. The firm recorded all of this activity inside its Treasury and Corporate segment, which generated $419 million in adjusted gross profit during the quarter.

How did Galaxy build its Ripple position?

Galaxy has held Ripple equity for several years, so the Q3 2026 gains extend a longer investment history. As of June 30, 2025, Galaxy held $97.3 million worth of Ripple shares — more than 5% of its total investment balance and one of just three individual positions that large in its portfolio.

The company added to that stake in 2026 through the bankruptcy of Linqto, the failed pre-IPO investment platform. A U.S. Bankruptcy Court approved the sale of roughly $130 million in Ripple shares to four institutional buyers, with Galaxy leading the group. Galaxy acquired $60 million of shares, the largest single purchase in the transaction. Arrington Capital followed with $50 million.

Galaxy holds its Ripple shares directly, not through an investment fund, which means the mark-up in Ripple's private valuation flows straight into Galaxy's reported unrealized gains.

Why is Ripple's valuation climbing?

Ripple's private valuation has risen sharply. In March 2026 the company reached a $50 billion valuation, up from $11.3 billion at its January 2024 share buyback — an increase of roughly 343% over 26 months.

On March 12, 2026, Ripple announced a tender offer to repurchase up to $750 million in shares from investors and employees at that $50 billion mark. The offer itself represented a 25% step up from the company's previous $40 billion valuation in November 2025.

Ripple reached that $40 billion figure after raising $500 million in its first external round since a $200 million Series C in December 2019. The re-rating has tracked two structural shifts: the resolution of Ripple's legal dispute with the SEC and the arrival of institutional capital.

Those investors include SBI Holdings, Google Ventures, Tetragon, Citadel Securities, Andreessen Horowitz, Fortress Investment Group and Brevan Howard.

What does this mean for Galaxy's books?

The operational consequence is straightforward. A concentrated, directly held private-equity position in a company whose valuation rose more than fourfold in two years now moves Galaxy's quarterly earnings with each mark. The Q3 2026 filing shows that sensitivity cuts both ways: unrealized gains drove the headline number, while realized losses of $25.4 million trimmed it.

The Linqto bankruptcy sale also signals how secondary liquidity in pre-IPO crypto equity is forming — court-supervised processes are now a working channel for institutional buyers to accumulate large blocks of Ripple shares.

With Ripple's $750 million tender offer running at a $50 billion valuation, Galaxy's next quarterly filing will show whether the private mark held or moved again.