Galaxy Digital (GLXY) has reported a narrowed loss for the first quarter, driven by a strategic shift in its business mix and enhanced financial management, which offset the impact of declining cryptocurrency prices. The company posted a loss of $216 million, or 49 cents per share, surpassing analyst estimates of 59 cents. However, revenue decreased to $10.2 billion from $12.9 billion in the same quarter of the previous year.
Galaxy Digital is increasingly focusing on meeting the growing demand for data centers, having recently delivered its first data hall at the Helios campus in Texas to CoreWeave (CRWV), marking the commencement of revenue generation under a long-term lease agreement tied to artificial intelligence workloads. According to the company, "the stability of adjusted gross profit reflects a shift in the business mix, driven by the scaling of recurring fee revenue and transaction income, which provides greater resilience in softer market conditions." The company also highlighted its disciplined expense management during the quarter, which contributed to a reduced adjusted EBITDA loss, underscoring its focus on operating efficiency in challenging environments. The Helios facility is expected to deliver 133 megawatts of computing power by the end of the second quarter, with the company having secured approval for an additional 830 megawatts of power, bringing the total capacity to over 1.6 gigawatts.
GLXY shares have fallen for the second consecutive day, recently trading 0.84% lower at $24.84.