Galaxy Digital posted a reduced loss in the first quarter, driven by a change in its business mix and improved financial discipline, which offset the impact of declining cryptocurrency prices. The company reported a loss of $216 million, or 49 cents per share, beating analysts' estimates of 59 cents per share. Revenue decreased to $10.2 billion from $12.9 billion in the same quarter last year. Galaxy Digital is increasingly focusing on 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.
According to the company, 'adjusted gross profit remained relatively stable due to the shift in business mix, with recurring fee revenue and transaction income continuing to scale and provide greater resilience in softer market conditions.' The company also highlighted its disciplined expense management during the quarter, which helped narrow the adjusted EBITDA loss and demonstrated a focus on operating efficiency in challenging 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. Galaxy Digital's shares fell for the second consecutive day, down 0.84% to $24.84.