Galaxy Digital reported a reduced loss in the first quarter, attributed to a change in business operations and improved financial management, despite a decline in cryptocurrency prices. The company's loss of $216 million, or 49 cents per share, was less than the estimated 59 cents by analysts. Revenue decreased to $10.2 billion from $12.9 billion in the previous year's quarter. Galaxy Digital is shifting its focus towards 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's disciplined expense management during the quarter helped reduce the adjusted EBITDA loss, highlighting its focus on operational efficiency in difficult environments. 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.
Galaxy Digital's shares fell for the second consecutive day, down 0.84% to $24.84.