Asset manager Galaxy Digital posted net investment income of $386.5 million in the third quarter of 2026.

On Nov. 10, blockchain outlet The Crypto Basic reported that Galaxy Digital said in a quarterly report filed with the U.S. Securities and Exchange Commission that gains in the value of its investment assets, including its stake in Ripple Labs Inc., contributed to improved results.

The net investment income covered the three months ended Sept. 30 and rose 30 percent from $297.8 million a year earlier. Galaxy Digital recorded $411.9 million in unrealised gains across its overall portfolio, but realised losses of $25.4 million reduced the final net profit.

Key contributors to third-quarter unrealised investment gains included Etched.ai, Forward Industries, spot bitcoin exchange-traded funds and Ripple Labs. As of Sept. 30, Ripple, Etched.ai and the Galaxy Venture Fund were also classified as major assets that led gains in the private investment segment on a cumulative nine-month basis.

These investment results were reflected in Galaxy Digital's finance and corporate segment. It was also notable that Galaxy Digital reflected Ripple investment gains as valuation gains on long-term holdings rather than one-off items.

Galaxy Digital has held a stake in Ripple Labs for several years. As of June 30, 2025, the value of its Ripple stake was $97.3 million and it was one of three core assets accounting for more than 5 percent of its total investment balance. In 2026, it increased its exposure by additionally buying unlisted Ripple shares held by Linqto, a pre-IPO investment platform that went bankrupt.

A U.S. bankruptcy court approved a transaction to sell about $130 million worth of Ripple shares to four institutional investors. In the transaction, Galaxy Digital bought $60 million worth to become the largest buyer, followed by Arrington Capital with $50 million. As the timing of Galaxy Digital's increased direct stake coincided with a rise in Ripple's private corporate valuation, Ripple was reflected as a major contributor to third-quarter unrealised gains.

Ripple's growth has also been steep. On March 12, 2026, Ripple announced a tender offer to buy back up to $750 million worth of shares held by investors and employees and presented a corporate valuation of $50 billion. That was an increase of 342 percent in about 26 months from $11.3 billion at the time of a share buyback in January 2024, and 25 percent higher than a valuation of $40 billion in November 2025.

Earlier, Ripple raised $500 million in its first external investment round since its Series C in December 2019. It said the resolution of a legal dispute with the Securities and Exchange Commission and an influx of institutional investors supported the rise in its corporate valuation.

The results show that the rise in the value of Galaxy Digital's Ripple stake was actually reflected in its quarterly investment income. It is meaningful in that the impact of unlisted equity investments and corporate valuation reappraisals on performance was confirmed in numbers.