Galaxy Digital reported a reduced loss in the first quarter, driven by a change in its business model and improved financial management, which offset the impact of declining cryptocurrency prices. The company's loss was $216 million, or 49 cents per share, which was lower than the 59 cents predicted by analysts.
Revenue decreased to $10.2 billion from $12.9 billion in the same quarter last year. Galaxy Digital is 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 agreement for artificial intelligence workloads. According to the company, 'adjusted gross profit remained relatively stable due to a shift in the business mix, with recurring fee revenue and transaction income continuing to grow and provide greater resilience in challenging market conditions.' The company also stated that 'disciplined expense management during the quarter contributed to a reduction in the adjusted EBITDA loss, demonstrating a focus on operational efficiency in more difficult environments.' The Helios facility is expected to deliver 133 megawatts of computing power by the end of the second quarter, and the company has secured approval for an additional 830 megawatts of power, bringing the total capacity to over 1.6 gigawatts. Galaxy Digital's shares fell for the second consecutive day, down 0.84% to $24.84.