Galaxy Digital reported a narrowed loss for the first quarter, driven by a strategic shift in its business mix and enhanced financial discipline, which offset the impact of declining cryptocurrency prices. The company's loss stood at $216 million, or 49 cents per share, surpassing analyst estimates of 59 cents. Revenue declined to $10.2 billion from $12.9 billion in the same quarter last year.
Galaxy Digital is increasingly focusing on the burgeoning demand for data centers, marked by the delivery of its first data hall at the Helios campus in Texas to CoreWeave, under a long-term lease tied to artificial intelligence workloads. The company noted that its adjusted gross profit remained relatively stable due to the scaling of recurring fee revenue and transaction income, which provided greater resilience in challenging market conditions. Disciplined expense management during the quarter contributed to a narrowed adjusted EBITDA loss, underscoring the company's emphasis on operational efficiency.
The Helios facility is poised to deliver 133 megawatts of computing power by the end of the second quarter, with an additional 830 megawatts of power approved, bringing the total capacity to over 1.6 gigawatts. Shares of Galaxy Digital fell for the second consecutive day, recently trading 0.84% lower at $24.84.