Galaxy Digital reported a narrowed loss in the first quarter, driven by a strategic business mix shift and improved financial management, despite a decline in cryptocurrency prices. The company's loss stood at $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 previous year's quarter. 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 focused on artificial intelligence workloads.
According to the company, 'adjusted gross profit remained relatively stable due to a shift in the business mix, with recurring fee revenue and transaction income driving growth and providing greater 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 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.