Galaxy Digital reported a narrowed loss for the first quarter, driven by a strategic shift in its business mix and more stringent financial controls, 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 per share. Despite a revenue decline to $10.2 billion from $12.9 billion in the prior year, the company is pivoting towards the burgeoning demand for data centers, with the recent delivery of its inaugural 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 of adjusted gross profit reflects the evolving business mix, with recurring fee revenue and transaction income driving growth and providing increased resilience in challenging market conditions." The company also highlighted its disciplined approach to expense management, which contributed to a reduced adjusted EBITDA loss, underscoring its commitment to operational efficiency in more demanding environments.
The Helios facility is poised 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. Shares of GLXY dipped for the second consecutive day, trading 0.84% lower at $24.84.