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 of $216 million, or 49 cents per share, was lower than the estimated 59 cents per share by analysts.
Revenue declined to $10.2 billion from $12.9 billion in the same quarter last year. 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. According to the company, 'adjusted gross profit remained relatively stable, driven by the shift in business mix, with recurring fee revenue and transaction income continuing to grow and provide greater resilience in challenging market conditions.' The company also emphasized its disciplined expense management, which helped reduce the adjusted EBITDA loss and demonstrated a focus on operating efficiency. 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.
Despite this, GLXY shares fell for the second consecutive day, down 0.84% to $24.84.