Galaxy Digital (GLXY) has posted a reduced loss for the first quarter, driven by a change in its business mix and improved financial management, which offset the impact of declining cryptocurrency prices. The company reported a loss of $216 million, or 49 cents per share, which was less than the 59 cents forecast by analysts.
Revenue decreased to $10.2 billion from $12.9 billion in the same quarter last year. Galaxy Digital is increasingly focusing on the rising demand for data centers and has delivered its first data hall at the Helios campus in Texas to CoreWeave (CRWV), marking the beginning of revenue generation under a long-term lease for artificial intelligence workloads.
According to the company, "adjusted gross profit remained relatively stable due to a shift in the business mix, with recurring fee revenue and transaction income continuing to grow and provide greater resilience in challenging market conditions." The company also noted that "disciplined expense management during the quarter helped reduce the adjusted EBITDA loss, highlighting a focus on operating efficiency in more difficult environments." 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. GLXY shares have fallen for the second consecutive day, down 0.84% to $24.84.