Galaxy Digital reported a narrowed loss for the first quarter, driven by a strategic shift in its business mix and improved financial management, despite a downturn in cryptocurrency prices. The company posted a loss of $216 million, or 49 cents per share, beating analyst estimates of 59 cents.
Revenue declined to $10.2 billion from $12.9 billion in the same quarter last year. In a key development, Galaxy Digital 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 focused on artificial intelligence workloads. The company noted that its adjusted gross profit remained relatively stable due to the scaling of recurring fee revenue and transaction income, providing resilience amidst softer market conditions. Disciplined expense management contributed to a reduced adjusted EBITDA loss, highlighting the company's emphasis on operational efficiency in challenging environments.
The Helios facility is expected to reach 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.