Share prices of Galaxy Digital have fallen sharply following the release of its latest financial report, reflecting a mixed performance across key business areas.
The company’s share price experienced a decline exceeding five percent in pre-market trading following the publication of results for the first quarter. Galaxy Digital announced a net loss of $85 million for the period. This figure represents a significant improvement on prior forecasts which anticipated a loss of $0.28 per share.
The diluted and adjusted loss was narrowed to $0.09 per share, demonstrating an improving financial outlook according to company figures. Trading volume saw a decrease of seven percent compared to the previous quarter. This decline highlights ongoing challenges within the broader digital asset market.
A key driver of positive sentiment centred around the digital assets operation, which recorded an adjusted gross profit of $66 million – a 34 percent increase from the preceding quarter. This growth was largely attributed to the Helios campus in West Texas, where the data center business achieved $20 million in adjusted gross profit and $11 million in adjusted EBITDA. The initial phase of the Helios campus completion was reported alongside this strong performance.
CoreWeave benefited substantially from Galaxy Digital’s operations, receiving 200 megawatts of gross power under a fifteen-year lease agreement. The data center business delivered a critical IT capacity of 133 megawatts to CoreWeave as part of this arrangement. This represents the first revenue generated for Galaxy’s data center business.
Galaxy Digital has approved an overall capacity of 830 megawatts at Helios, suggesting potential future growth opportunities. However, the company posted an adjusted EBITDA loss of $900,000 for the quarter, illustrating continued operational pressures. This underscores a need to translate increased profit margins into ultimately positive financial outcomes.
The decreased trading volume requires further investigation and points to wider market volatility affecting the firm’s core activities. Galaxy Digital’s focus on expanding its digital assets operation and developing its data center business is clearly starting to yield results, but challenges remain within the overall trading landscape.
Written by Oliver Grant
Markets Desk
