Galaxy Digital reported a reduced loss in the first quarter, driven by a change in its business mix and improved financial management, despite a decline in cryptocurrency prices. The company's loss was $216 million, or 49 cents per share, which was less than the estimated 59 cents per share by analysts.
Revenue declined to $10.2 billion from $12.9 billion in the previous year's quarter. The company has been 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 agreement for artificial intelligence workloads. The company stated that its adjusted gross profit remained relatively stable due to the shift in its business mix, with recurring fee revenue and transaction income providing greater resilience in challenging market conditions.
Disciplined expense management during the quarter helped narrow the adjusted EBITDA loss, highlighting the company's focus on operating efficiency. The Helios facility is expected to deliver 133 megawatts of computing power by the end of the second quarter, and the company has secured approval for an additional 830 megawatts of power, bringing the total capacity to over 1.6 gigawatts. Galaxy Digital's shares fell for the second consecutive day, down 0.84% at $24.84.