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 posted a loss of $216 million, or 49 cents per share, which was less than the 59 cents predicted by analysts. Revenue decreased to $10.2 billion from $12.9 billion in the same quarter last year.
Galaxy Digital is increasingly 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 generation under a long-term lease for artificial intelligence workloads. The company stated, "Adjusted gross profit remained relatively stable due to a shift in the business mix, with recurring fee revenue and transaction income continuing to grow and provide greater resilience in challenging market conditions." The company also noted that disciplined expense management during the quarter contributed to a reduced adjusted EBITDA loss, highlighting its focus on operational efficiency in more difficult environments. The Helios facility is expected to deliver 133 megawatts of computing power by the end of the second quarter, and the company has secured approval for an additional 830 megawatts of power, bringing the total capacity to over 1.6 gigawatts.
Galaxy Digital's shares fell for the second consecutive day, down 0.84% to $24.84.