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, which was less than the analysts' estimate of 59 cents. Revenue for the quarter declined to $10.2 billion from $12.9 billion in the same period last year.
Galaxy Digital is increasingly focusing on 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, "the stability in adjusted gross profit reflects the shift in our 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 approach to expense management, which contributed to a reduction in the adjusted EBITDA loss. 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, Galaxy Digital's shares fell for a second consecutive day, down 0.84% to $24.84.