Galaxy Digital reported a narrowed 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's loss was $216 million, or 49 cents per share, surpassing analyst estimates of 59 cents. Revenue decreased to $10.2 billion from $12.9 billion in the same quarter last year.
Galaxy Digital is increasingly focusing on meeting 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 for artificial intelligence workloads. The company noted that its adjusted gross profit remained relatively stable due to the scaling of recurring fee revenue and transaction income, providing greater resilience in challenging market conditions.
Disciplined expense management helped reduce the adjusted EBITDA loss, highlighting the company's emphasis on operational efficiency. The Helios facility is expected to deliver 133 megawatts of computing power by the end of the second quarter, with approval secured for an additional 830 megawatts, bringing the total capacity to over 1.6 gigawatts. Following the announcement, GLXY shares experienced a second day of decline, falling 0.84% to $24.84.