Galaxy Digital reported a narrowed loss in the first quarter, driven by a strategic shift in its business operations and stringent financial controls, which offset the decline in cryptocurrency prices. The company posted a loss of $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 has been increasing its focus on the burgeoning demand for data centers, and recently delivered its first data hall at the Helios campus in Texas to CoreWeave, 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, 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.' The company also noted that 'disciplined expense management during the quarter helped narrow the adjusted EBITDA loss, highlighting a focus on operating 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 an additional 830 megawatts of power approved, bringing the total capacity to over 1.6 gigawatts.
Shares of GLXY declined for the second consecutive day, falling 0.84% to $24.84.