Galaxy Digital reported a narrowed loss for the first quarter, driven by a strategic shift in its business operations and enhanced financial management, despite a decline in cryptocurrency prices. The company's loss stood at $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 prior-year quarter. Galaxy Digital has been increasingly focusing on the rising demand for data centers and has delivered its first data hall at the Helios campus in Texas to CoreWeave, marking the commencement of revenue generation under a long-term lease agreement tied to artificial intelligence workloads.
According to the company, "the stability in adjusted gross profit reflects the evolving business mix, with recurring fee revenue and transaction income driving growth and providing increased resilience in challenging market conditions." The company also emphasized its disciplined approach to expense management, which contributed to a reduced adjusted EBITDA loss, highlighting its commitment to 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 experienced a second consecutive day of decline, recently trading 0.84% lower at $24.84.