Galaxy Digital reported a narrowed loss for the first quarter, driven by a strategic shift in its business operations and enhanced financial management, which offset the impact of declining cryptocurrency prices. The company incurred a loss of $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 prior-year quarter. Galaxy Digital is increasingly focusing on meeting the growing demand for data centers and has delivered its inaugural data hall at the Helios campus in Texas to CoreWeave, marking the commencement of revenue generation under a long-term lease agreement tied to artificial intelligence workloads.
According to the company, "the stability of adjusted gross profit reflects a shift in the business mix, driven by the scaling of recurring fee revenue and transaction income, which provides greater resilience in challenging market conditions." The company also emphasized its disciplined approach to expense management, which contributed to the narrowing of the adjusted EBITDA loss. The Helios facility is expected 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. Despite this development, GLXY shares declined for the second consecutive day, falling 0.84% to $24.84.