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 decline in cryptocurrency prices. The company posted a loss of $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 shifting its focus towards the growing demand for data centers, having recently 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. The company noted that its adjusted gross profit remained relatively stable due to the growth of recurring fee revenue and transaction income, providing greater resilience in challenging market conditions. Additionally, disciplined expense management helped reduce the adjusted EBITDA loss, highlighting the company's focus on operational efficiency.
The Helios facility is expected to provide 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 fell for the second consecutive day, down 0.84% to $24.84.