Galaxy Digital posted a reduced loss for the first quarter, driven by a strategic shift in its business operations and improved financial management, despite a downturn in cryptocurrency prices. The company recorded a loss of $216 million, or 49 cents per share, surpassing analyst estimates of 59 cents.
Revenue declined to $10.2 billion from $12.9 billion in the prior year's quarter. Galaxy Digital has been focusing on the increasing demand for data centers and has now delivered its initial 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 stable due to the growth of recurring fee revenue and transaction income, which provided greater resilience during softer market conditions. Disciplined expense management also contributed to narrowing the adjusted EBITDA loss, highlighting the company's emphasis on operational efficiency. 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.
Following the announcement, GLXY shares experienced a second consecutive day of decline, falling 0.84% to $24.84.