Galaxy Digital reported a reduced loss in the first quarter, driven by a strategic shift in its business operations and improved financial management, despite a decline in cryptocurrency prices. The company's net loss stood at $216 million, or 49 cents per share, surpassing analyst estimates of 59 cents per share.
Revenue declined to $10.2 billion from $12.9 billion in the same quarter last year. 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 generation under a long-term lease agreement 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, providing greater resilience in challenging market conditions.' The company's disciplined approach to expense management during the quarter contributed to a narrowed adjusted EBITDA loss, underscoring its focus on operational efficiency.
The Helios facility is expected to deliver 133 megawatts of computing power by the end of the second quarter, with a total capacity of over 1.6 gigawatts after receiving approval for an additional 830 megawatts of power. Galaxy Digital's shares fell for the second consecutive day, trading 0.84% lower at $24.84.