Galaxy Digital shares slip 5% after second-quarter results
Galaxy Digital reported a narrowed net loss of $85 million for the second quarter, beating analyst expectations despite a decline in trading volume. The company is expanding its data center business, specifically its Helios campus in Texas, though it has yet to secure new tenants for its remaining capacity.
Why it matters
The results highlight the company's strategic pivot toward data center infrastructure and power leasing as a hedge against volatile crypto trading markets.
Galaxy’s $85 million net loss narrowed from $216 million in the first quarter, while its diluted and adjusted loss narrowed to $0.09 per share from $0.49. Street forecasts had been for a loss of $0.28 per share.
Its digital assets operation generated $66 million in adjusted gross profit, up 34% quarter-on-quarter, despite a 7% decline in trading volume.
Galaxy’s data center business generated revenue for the first time in the quarter as the company completed the initial phase of its Helios campus in West Texas.
The segment generated $20 million in adjusted gross profit and $11 million in adjusted EBITDA, reversing a $900,000 adjusted EBITDA loss in the first quarter. Galaxy delivered 200 megawatts of gross power, representing 133 megawatts of critical IT capacity, to CoreWeave under a 15-year lease.
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