Galaxy Digital reported a narrowed loss in the first quarter, driven by a strategic business mix shift and improved financial management, which offset the impact of declining cryptocurrency prices. The company posted a loss of $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.
This month, Galaxy Digital delivered its inaugural data hall at the Helios campus in Texas to CoreWeave, marking the commencement of revenue under a long-term lease agreement focused on artificial intelligence workloads. According to the company, "the stability of adjusted gross profit reflects the evolving business mix, with recurring fee revenue and transaction income continuing to grow, providing increased resilience in challenging market conditions." The company's disciplined expense management during the quarter contributed to a reduced adjusted EBITDA loss, highlighting its focus 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 declined for the second consecutive day, recently trading 0.84% lower at $24.84.