Key Highlights
- Galaxy Digital recorded a first-quarter net loss of $216 million, translating to $0.49 per share, surpassing analyst projections of $0.59
- Total revenue declined to $10.2 billion compared to $12.9 billion in the same period last year
- The firm completed delivery of its inaugural data hall at the Texas-based Helios facility to CoreWeave (CRWV)
- Regulatory approvals expanded Helios capacity beyond 1.6 gigawatts, more than doubling previous limits
- Early second-quarter projections indicate approximately $90 million in adjusted EBITDA
Galaxy Digital disclosed a first-quarter 2026 net loss of $216 million, though results exceeded analyst expectations as the firm accelerates its pivot toward artificial intelligence infrastructure investments.
Wall Street projected a per-share loss of $0.59. Galaxy delivered $0.49 instead. While far from ideal, the outcome proved less severe than anticipated.
Total revenue contracted to $10.2 billion from $12.9 billion reported during Q1 2025. Overall assets decreased to $10 billion by the end of March, down from $11 billion at the close of 2025. Digital asset holdings experienced a 19% sequential decline, settling at $1.4 billion.
The cryptocurrency sector offered little support. Aggregate crypto market capitalization plummeted approximately 20% throughout the quarter, applying downward pressure on Galaxy’s digital holdings.
Combined cash and stablecoin reserves remained steady at $2.6 billion. Operating expenditures totaled $147 million, representing a 7% reduction from the previous quarter. Additionally, the firm repurchased 3.2 million shares worth $65 million as part of a $200 million buyback program.
Helios Facility Handover
The quarter’s most significant development may extend beyond the financial loss — focusing instead on post-quarter events. Galaxy completed transfer of its first data hall at the West Texas Helios campus to CoreWeave, initiating revenue generation under an extended AI computing lease agreement.
The Helios installation is projected to provide 133 megawatts of computational capacity by the conclusion of Q2. Galaxy also obtained regulatory clearance for an additional 830 megawatts at the location, elevating total authorized capacity beyond 1.6 gigawatts.
This represents substantial expansion. Previous approvals covered roughly 800 megawatts. Doubling this figure positions Helios among premier AI infrastructure facilities.
CEO Mike Novogratz identified the data center expansion and GalaxyOne platform as primary catalysts for future growth.
Second Quarter Outlook
Preliminary second-quarter metrics suggest improvement. Galaxy projects approximately $90 million in adjusted EBITDA, representing a substantial turnaround from Q1’s adjusted EBITDA deficit.
Executives attributed the improvement to strengthening digital asset valuations and heightened market engagement. Bitcoin and broader cryptocurrency markets have regained momentum following first-quarter lows.
Adjusted gross profit remained essentially unchanged in Q1, which management credited to strategic repositioning toward recurring fee structures and transaction-based revenue — segments demonstrating greater resilience during crypto price contractions.
“Disciplined expense management during the quarter helped narrow the adjusted EBITDA loss,” the company said in its statement.
GLXY declined 0.84% to $24.84 on Monday. The equity had dropped 1.76% during premarket hours following the earnings announcement before staging a partial rebound.
Over the trailing six months, GLXY has fallen approximately 37%. Measured across the past year, shares have climbed roughly 90%. With a beta coefficient of 3.64, the stock exhibits pronounced volatility in both directions.
Galaxy’s digital asset operations produced $49 million in adjusted gross profit during Q1, matching Q4 2025 performance despite prevailing market headwinds.
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