Galaxy Digital (GLXY) has reported a narrowed loss for the first quarter, driven by a strategic shift in its business mix and improved financial management, despite a decline in cryptocurrency prices. The company's loss stood at $216 million, or 49 cents per share, which is lower than the anticipated 59 cents per share. Revenue decreased to $10.2 billion from $12.9 billion in the previous year's quarter. Galaxy Digital 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 (CRWV), marking the commencement of revenue under a long-term lease for artificial intelligence workloads.
According to the company, "the adjusted gross profit remained relatively stable, reflecting the shift in the business mix towards recurring fee revenue and transaction income, providing greater resilience in challenging market conditions." The company also highlighted its disciplined expense management, which helped reduce the adjusted EBITDA loss and emphasized 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 an additional 830 megawatts of power approved, bringing the total capacity to over 1.6 gigawatts. Following the announcement, GLXY shares fell for the second consecutive day, down 0.84% to $24.84.