Galaxy Digital reported a narrowed loss in the first quarter, driven by a change in its business mix and improved financial management, despite a decline in cryptocurrency prices. The company's loss was $216 million, or 49 cents per share, which was less than the estimated 59 cents by analysts.
Revenue declined to $10.2 billion from $12.9 billion in the same quarter last year. The company has been focusing on the growing demand for data centers and has delivered its first data hall at the Helios campus in Texas to CoreWeave, marking the beginning of revenue under a long-term lease for artificial intelligence workloads. According to the company, 'adjusted gross profit remained relatively stable due to the shift in business mix, with recurring fee revenue and transaction income continuing to grow, providing greater resilience in challenging market conditions.' The company also noted that 'disciplined expense management during the quarter helped reduce the adjusted EBITDA loss, highlighting a focus on operating efficiency in more difficult environments.' The Helios facility is expected to deliver 133 megawatts of computing power by the end of the second quarter, with a total capacity of over 1.6 gigawatts after securing approval for an additional 830 megawatts of power.
Despite this, GLXY shares fell for the second consecutive day, down 0.84% to $24.84.