Galaxy Digital reported a narrowed loss in the first quarter, driven by a change in its business mix and improved financial management, which offset the impact of declining cryptocurrency prices. The company's loss was $216 million, or 49 cents per share, which was less than the estimated 59 cents per share by analysts. Revenue decreased to $10.2 billion from $12.9 billion in the previous year's quarter.
Galaxy Digital has been shifting its focus towards the growing demand for data centers and has delivered the first data hall at its Helios campus in Texas to CoreWeave, marking the beginning of revenue generation under a long-term lease for artificial intelligence workloads. The company stated that its adjusted gross profit remained relatively stable due to the shift in its 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 contributed to a reduced 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 a total capacity of over 1.6 gigawatts following the approval of an additional 830 megawatts of power.
Despite this, GLXY shares declined for the second consecutive day, falling 0.84% to $24.84.