Galaxy Digital reported a narrowed loss for the first quarter, driven by improved business operations and financial management, despite a decline in cryptocurrency prices. The company's loss of $216 million, or 49 cents per share, was less than the estimated 59 cents by analysts.
Revenue decreased to $10.2 billion from $12.9 billion in the same quarter last year. Galaxy Digital has been shifting its focus towards 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 for AI-related workloads. According to the company, 'adjusted gross profit remained relatively stable due to a shift in business mix, with recurring fee revenue and transaction income providing greater resilience in challenging market conditions.' The company also emphasized its disciplined expense management, which helped reduce the adjusted EBITDA loss. The Helios facility is expected to provide 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% at $24.84.