Galaxy Digital (GLXY) has reported a narrowed loss for the first quarter, driven by a strategic shift in its business mix and improved financial management, despite a decline in 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. Galaxy Digital is increasingly focusing on meeting the growing demand for data centers and has successfully delivered its first data hall at the Helios campus in Texas to CoreWeave (CRWV), marking the commencement of revenue generation under a long-term lease agreement tied to artificial intelligence workloads.
According to the company, "adjusted gross profit remained relatively stable due to the growing proportion of recurring fee revenue and transaction income, which provides increased resilience during softer market conditions." The company also highlighted its disciplined approach to expense management, which helped reduce the adjusted EBITDA loss and demonstrated a focus on operational efficiency in challenging environments. The Helios facility is expected to deliver 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 fell for the second consecutive day, down 0.84% at $24.84.