Galaxy Digital 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, beating analysts' estimates of 59 cents per share.
Revenue declined to $10.2 billion from $12.9 billion in the same quarter last year. The company has shifted its focus towards 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 tied to artificial intelligence workloads. According to the company, 'adjusted gross profit remained relatively stable due to the shift in business mix, with recurring fee revenue and transaction income continuing to grow and provide greater resilience in challenging market conditions.' The company also emphasized its disciplined approach to expense management, which helped reduce the adjusted EBITDA loss and demonstrated its focus on operational efficiency in difficult 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. Shares of GLXY fell for the second consecutive day, down 0.84% to $24.84.