Galaxy Digital reported a reduced loss for the first quarter, driven by a strategic shift in its business mix and enhanced financial discipline, despite a decline in cryptocurrency prices. The company's loss of $216 million, or 49 cents per share, was less than analysts' estimates of 59 cents. Revenue declined to $10.2 billion from $12.9 billion in the previous year's quarter. Galaxy Digital is increasingly focusing on meeting 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 tied to artificial intelligence workloads.
The company stated, "Our adjusted gross profit remained relatively stable due to a shift in our business mix, with recurring fee revenue and transaction income continuing to grow and providing greater resilience in challenging market conditions." The company also emphasized its disciplined expense management, which helped narrow the adjusted EBITDA loss and demonstrated a focus on operational 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 a total capacity of over 1.6 gigawatts following the approval for an additional 830 megawatts of power. Galaxy Digital's shares fell for the second consecutive day, declining 0.84% to $24.84.