Galaxy Digital reported a narrowed 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 less than the estimated 59 cents per share. Revenue decreased to $10.2 billion from $12.9 billion in the same quarter last year.
Galaxy Digital is shifting its focus towards 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 artificial intelligence workloads. The company stated that its adjusted gross profit remained 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 also 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, bringing the total capacity to over 1.6 gigawatts. Galaxy Digital's shares fell for the second consecutive day, down 0.84% to $24.84.