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, beating analysts' estimates of 59 cents per share. Revenue decreased to $10.2 billion from $12.9 billion in the same quarter last year. Galaxy Digital is increasingly focusing on meeting 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 agreement for artificial intelligence workloads.
The company stated, "Our adjusted gross profit remained relatively stable due to a shift in our business mix, with recurring fee revenue and transaction income continuing to grow and provide greater resilience in challenging market conditions. Our disciplined expense management during the quarter helped reduce the adjusted EBITDA loss, highlighting our focus on operating efficiency in difficult environments." The Helios facility is expected to provide 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.