Galaxy Digital reported a reduced first-quarter loss, driven by a strategic shift in its business mix 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.
Revenue declined to $10.2 billion from $12.9 billion in the prior-year quarter. 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 beginning of revenue generation under a long-term lease for artificial intelligence workloads. The company noted that its 'adjusted gross profit remained relatively stable, reflecting a shift in the business mix as recurring fee revenue and transaction income continue to grow and provide greater resilience in challenging market conditions.' Additionally, 'disciplined expense management during the quarter helped narrow the adjusted EBITDA loss, underscoring a focus on operating efficiency in more demanding environments.' The Helios facility is expected to deliver 133 megawatts of computing power by the end of the second quarter, with approval secured for an additional 830 megawatts, bringing the total capacity to over 1.6 gigawatts. Shares of GLXY fell for the second consecutive day, recently trading 0.84% lower at $24.84.