Galaxy Digital reported a narrowed loss in the first quarter, driven by a business mix shift and stringent financial management that 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 prior-year quarter. 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 commencement of revenue under a long-term lease tied to artificial intelligence workloads. According to the company, "Adjusted gross profit remained relatively stable, reflecting a shift in the business mix as recurring fee revenue and transaction income continue to scale, providing greater resilience in challenging market conditions." The company also emphasized disciplined expense management, which helped narrow the adjusted EBITDA loss, underscoring a focus on operating efficiency in more challenging environments. The Helios facility is expected 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.
Galaxy Digital's shares fell for the second consecutive day, recently trading 0.84% lower at $24.84.