Galaxy Digital posted a narrowed loss in the first quarter, driven by a change in its business mix and improved financial discipline, which offset the impact of declining cryptocurrency prices. The company reported a loss of $216 million, or 49 cents per share, beating analysts' estimates of 59 cents per share.
Revenue declined to $10.2 billion from $12.9 billion in the same period last year. Galaxy Digital has been shifting its focus towards the growing demand for data centers and 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 agreement tied to artificial intelligence workloads. According to the company, "the stability of adjusted gross profit reflects the changing business mix, with recurring fee revenue and transaction income continuing to grow and provide greater resilience in challenging market conditions." The company also highlighted its disciplined expense management during the quarter, which helped reduce the adjusted EBITDA loss and demonstrated its 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. Galaxy Digital's shares fell for the second consecutive day, down 0.84% to $24.84.