Galaxy Digital reported a narrowed loss in the first quarter, driven by a strategic shift in its business mix and improved financial management, 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 per share. Revenue declined to $10.2 billion from $12.9 billion in the same quarter last year.
Galaxy Digital is increasingly focusing on the rising demand for data centers and has delivered its first data hall at the Helios campus in Texas to CoreWeave, marking the commencement of revenue generation under a long-term lease tied to artificial intelligence workloads. According to the company, 'Adjusted gross profit remained relatively stable, reflecting a change in the business mix, with recurring fee revenue and transaction income continuing to grow and providing greater resilience in challenging market conditions.' The company highlighted its disciplined approach to expense management during the quarter, which contributed to a reduced adjusted EBITDA loss, demonstrating its focus on operational efficiency in more demanding environments. The Helios facility is expected to deliver 133 megawatts of computing power by the end of the second quarter, with the company securing approval for an additional 830 megawatts of power, bringing the total capacity to over 1.6 gigawatts. Shares of GLXY fell for the second consecutive day, recently trading 0.84% lower at $24.84.