Galaxy Digital posted a reduced loss for the first quarter, driven by an improved business mix and stringent cost management, which offset the impact of declining cryptocurrency prices. The company reported a loss of $216 million, or 49 cents per share, which was less than the anticipated 59 cents per share loss estimated by analysts.
Revenue declined to $10.2 billion from $12.9 billion in the prior year's quarter. Galaxy Digital has been increasingly focusing on the growing demand for data centers and has delivered its first data hall at the Helios campus in Texas to CoreWeave, marking the commencement of revenue under a long-term lease agreement tied to artificial intelligence workloads. According to the company, "the stability in adjusted gross profit reflects a shift in the business mix, driven by the scaling of recurring fee revenue and transaction income, which provides greater resilience in challenging market conditions." The company also emphasized that disciplined expense management during the quarter contributed to narrowing the adjusted EBITDA loss, underscoring a focus on operational efficiency.
The Helios facility is expected to deliver 133 megawatts of computing power by the end of the second quarter, and the company has secured approval for an additional 830 megawatts of power, increasing the total capacity to over 1.6 gigawatts. Shares of GLXY fell for the second consecutive day, declining 0.84% to $24.84.