Galaxy Digital (GLXY) experienced a reduction in its first-quarter loss, primarily due to a shift in its business operations and more stringent financial controls, which offset the decline in cryptocurrency prices. The company incurred a loss of $216 million, equivalent to 49 cents per share, which was less than the analysts' estimate of 59 cents. Revenue decreased to $10.2 billion from $12.9 billion in the same quarter of the previous year.
Galaxy Digital is increasingly focusing on the rising demand for data centers and has delivered its first data hall at the Helios campus in Texas to CoreWeave (CRWV), marking the beginning of revenue generation under a long-term lease agreement tied to artificial intelligence workloads. According to the company, 'the adjusted gross profit remained relatively stable, reflecting a change in the business mix, with recurring fee revenue and transaction income continuing to grow and providing greater resilience in challenging market conditions.' The company also stated that 'disciplined expense management during the quarter contributed to narrowing the adjusted EBITDA loss, highlighting 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 at the site, bringing the total capacity to over 1.6 gigawatts. GLXY shares have fallen for the second consecutive day, recently declining by 0.84% to $24.84.