Galaxy Digital reported a reduced loss in 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's loss of $216 million, or 49 cents per share, was less than the estimated 59 cents per share by analysts. Revenue decreased 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 stated, "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 providing greater resilience in challenging market conditions." The company's disciplined expense management during the quarter contributed to a reduced adjusted EBITDA loss, highlighting its focus on operational efficiency. 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.
Galaxy Digital's shares fell for the second consecutive day, down 0.84% at $24.84.