Galaxy Digital reported a narrowed loss in the first quarter, driven by a strategic shift in business operations and improved financial management, which offset the decline in cryptocurrency prices. The company posted a loss of $216 million, or 49 cents per share, surpassing analyst estimates of 59 cents. Revenue declined to $10.2 billion from $12.9 billion in the same quarter last year.
Galaxy Digital is increasingly focusing on meeting 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 agreement for artificial intelligence workloads. The company noted that "its adjusted gross profit remained relatively stable, reflecting a change in business mix with recurring fee revenue and transaction income continuing to grow, providing greater stability in challenging market conditions." The company also emphasized its disciplined approach to expense management, which helped reduce the adjusted EBITDA loss and highlighted its focus on operational efficiency in more difficult 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, bringing the total capacity to over 1.6 gigawatts. Following the announcement, GLXY shares experienced a second consecutive day of decline, falling 0.84% to $24.84.