Galaxy Digital reported a reduced first-quarter loss, driven by a revised business strategy and improved financial oversight, despite a decline in cryptocurrency values. The company posted a loss of $216 million, or 49 cents per share, surpassing analyst expectations of 59 cents.
Revenue declined to $10.2 billion from $12.9 billion in the previous year. Galaxy Digital is shifting its focus towards the growing demand for data centers and has delivered its inaugural data hall at the Helios campus in Texas to CoreWeave, marking the onset of revenue generation under a long-term lease agreement focused on 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 driving growth and providing increased resilience in challenging market conditions.' The company also emphasized its commitment to disciplined expense management, which contributed to a narrowed adjusted EBITDA loss.
The Helios facility is expected to provide 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 experienced a second consecutive day of decline, falling 0.84% to $24.84.