Galaxy Digital reported a narrowed loss in 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 per share. Revenue declined to $10.2 billion from $12.9 billion in the prior-year quarter.
Galaxy Digital is shifting its focus towards the growing demand for data centers and has delivered its first data hall at the Helios campus in Texas to CoreWeave, marking the commencement of revenue under a long-term lease agreement tied to artificial intelligence workloads. The company noted that its adjusted gross profit remained relatively stable due to the increasing scale of recurring fee revenue and transaction income, providing greater resilience in challenging market conditions. Disciplined expense management during the quarter also contributed to a reduced adjusted EBITDA loss, highlighting the company's emphasis on operating 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.
Galaxy Digital's shares fell for the second consecutive day, declining 0.84% to $24.84.