Galaxy Digital reported a narrowed loss for the first quarter, driven by a strategic shift in its business mix and improved financial discipline, which offset the impact of declining cryptocurrency prices. The company posted a loss of $216 million, or 49 cents per share, surpassing analyst estimates of 59 cents. Revenue for the quarter decreased to $10.2 billion from $12.9 billion in the same period last year. A key highlight of the quarter was the delivery of its first data hall at the Helios campus in Texas to CoreWeave, marking the commencement of revenue generation under a long-term lease agreement focused on artificial intelligence workloads.
According to the company, "The stability in adjusted gross profit reflects the evolving business mix, with recurring fee revenue and transaction income contributing to greater resilience during softer market conditions. Effective expense management during the quarter contributed to a reduced adjusted EBITDA loss, underscoring the company's commitment to operational efficiency in challenging environments." The Helios facility is on track to deliver 133 megawatts of computing power by the end of the second quarter, with approval secured for an additional 830 megawatts, bringing the total capacity to over 1.6 gigawatts.
Shares of GLXY experienced a second consecutive day of decline, recently trading 0.84% lower at $24.84.