Galaxy Digital (GLXY) reported a narrowed 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 stood at $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 same quarter last year. Galaxy Digital is increasingly focusing on meeting the rising demand for data centers and has delivered its first data hall at the Helios campus in Texas to CoreWeave (CRWV), marking the commencement of revenue generation under a long-term lease tied to 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's disciplined expense management during the quarter contributed to a reduced adjusted EBITDA loss, underscoring its emphasis 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, with the company securing approval for an additional 830 megawatts of power, bringing the total capacity to over 1.6 gigawatts.
GLXY shares fell for the second consecutive day, down 0.84% at $24.84.