Galaxy Digital reported a narrowed loss for 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 posted a loss of $216 million, or 49 cents per share, beating the analysts' estimate of 59 cents per share. Revenue declined to $10.2 billion from $12.9 billion in the same quarter last year. Galaxy Digital has been 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 tied to artificial intelligence workloads.
According to the company, 'adjusted gross profit remained relatively stable due to 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 contributed to narrowing the adjusted EBITDA loss and underscored 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 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.