Galaxy Digital posted a reduced first-quarter loss, driven by an improved business mix and effective cost management, 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 decreased to $10.2 billion from $12.9 billion in the previous year's quarter. Galaxy Digital is shifting its focus towards the increasing 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 agreement for artificial intelligence workloads.
The company stated, "Our adjusted gross profit remained relatively stable due to the growth of recurring fee revenue and transaction income, providing greater resilience in challenging market conditions. Our disciplined approach to expense management during the quarter contributed to a reduced adjusted EBITDA loss, highlighting our commitment to operational efficiency in more demanding environments." The Helios facility is expected to provide 133 megawatts of computing power by the end of the second quarter, with an additional 830 megawatts of power approved, increasing total capacity to over 1.6 gigawatts. Despite this, GLXY shares fell for the second consecutive day, down 0.84% to $24.84.