Galaxy Digital reported a narrowed loss for the first quarter, driven by a strategic shift in its business mix and enhanced financial management, despite a decline in cryptocurrency prices. The company incurred a loss of $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 same quarter last year.
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 commencement of revenue generation under a long-term lease tied to 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 continuing to grow and provide greater resilience in challenging market conditions." The company added, "disciplined expense management during the quarter contributed to a reduced adjusted EBITDA loss, underscoring the focus on operating efficiency in more demanding environments." The Helios facility is expected to deliver 133 megawatts of computing power by the end of the second quarter, with a total capacity of over 1.6 gigawatts following approval for an additional 830 megawatts of power. Galaxy Digital's shares fell for the second consecutive day, recently trading 0.84% lower at $24.84.