Galaxy Digital shares fell over 5% in pre-market trading following the release of quarterly results showing a narrowed net loss and mixed performance across its operations, including revenue from its data center business for the first time.
The firm reported a $85 million net loss for the quarter, down from $216 million in the first quarter, with diluted and adjusted loss per share falling to $0.09 from $0.49. Digital assets operations saw a 34% quarter-on-quarter increase in adjusted gross profit to $66 million, though trading volume for digital assets declined by 7%.
The data center division generated $20 million in adjusted gross profit and $11 million in adjusted EBITDA, marking its first revenue contribution. Galaxy delivered 200 megawatts of gross power, including 133 megawatts of critical IT capacity, to CoreWeave under a 15-year lease agreement.
The company acquired three new sites in Texas and closed a $3.5 billion private offering of senior secured notes on July 28, raising total debt to over $6 billion. CEO Mike Novogratz said remaining capacity at the Texas site would be leased by the end of summer, though no new tenants were announced.
Despite the narrowed loss, uncertainty remains over future data-center leasing activity, with Galaxy noting discussions are ongoing for another 830 megawatts of approved capacity at Helios. The mixed results have left investors cautious ahead of further developments.
Written by James Tobias
Bitcoin Desk
