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 posted a loss of $216 million, or 49 cents per share, which was less than the 59 cents forecast by analysts. Revenue declined 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 agreement 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. Disciplined expense management also helped narrow the adjusted EBITDA loss, highlighting the company's focus on operational efficiency. 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's shares fell for the second consecutive day, down 0.84% to $24.84.