Galaxy Digital reported a reduced loss in the first quarter, driven by a change in its business mix and improved financial management, despite a decline in cryptocurrency prices. The company's loss was $216 million, or 49 cents per share, which was lower than the estimated 59 cents per share. Revenue declined to $10.2 billion from $12.9 billion in the same quarter last year.
Galaxy Digital is shifting its focus towards the increasing demand for data centers and has delivered its first data hall at the Helios campus in Texas to CoreWeave, marking the start of revenue generation under a long-term lease for artificial intelligence workloads. The company stated that its adjusted gross profit remained relatively stable due to the growth of recurring fee revenue and transaction income, which provides greater resilience in challenging market conditions.
The company's disciplined expense management helped reduce the adjusted EBITDA loss, highlighting its focus on operating efficiency. The Helios facility is expected to deliver 133 megawatts of computing power by the end of the second quarter, and the company has secured approval for an additional 830 megawatts of power, increasing the total capacity to over 1.6 gigawatts. Galaxy Digital's shares fell for the second consecutive day, declining by 0.84% to $24.84.