Galaxy Digital posted a narrower loss in the first quarter, driven by improved business operations and stringent financial controls, despite a decline in cryptocurrency prices. The company reported a loss of $216 million, or 49 cents per share, beating the estimated 59 cents per share loss. Revenue declined 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, "the stability of adjusted gross profit reflects the changing business landscape, where recurring fees and transaction income are becoming more resilient in uncertain market conditions." The company also emphasized its disciplined approach to expense management, which contributed to a reduced adjusted EBITDA loss. 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 dropped for the second consecutive day, falling 0.84% to $24.84.