Galaxy Digital reported a narrowed loss in the first quarter, driven by a change in business operations and improved financial management, despite a decline in cryptocurrency prices. The company posted a loss of $216 million, or 49 cents per share, surpassing analyst estimates of 59 cents.
Revenue decreased to $10.2 billion from $12.9 billion in the same quarter last year. Galaxy Digital is shifting 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 under a long-term lease for artificial intelligence workloads. The company stated, "Adjusted gross profit remained relatively stable due to the shift in business mix, with recurring fee revenue and transaction income continuing to grow and provide greater resilience in challenging market conditions." The company also emphasized disciplined expense management, which helped reduce the adjusted EBITDA loss.
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. Galaxy Digital shares fell for the second consecutive day, down 0.84% to $24.84.