Key Takeaways
- Galaxy Digital recorded a first-quarter net loss of $216 million, translating to $0.49 per share—surpassing analyst projections of $0.59
- Quarterly revenue decreased 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 campus to CoreWeave (CRWV)
- Regulatory approval expanded Helios capacity beyond 1.6 gigawatts, more than doubling previous limits
- Early Q2 metrics suggest approximately $90 million in adjusted EBITDA
Galaxy Digital disclosed a first-quarter 2026 net loss totaling $216 million while exceeding Wall Street projections as the firm intensifies its focus on artificial intelligence infrastructure development.
Financial analysts projected a per-share loss of $0.59. Galaxy delivered a loss of $0.49 per share, representing a challenging period with performance above market expectations.
Quarterly revenue contracted to $10.2 billion from the prior year’s $12.9 billion figure. The company’s total assets declined to $10 billion at quarter-end from $11 billion recorded at the conclusion of 2025. Digital asset holdings experienced a 19% sequential decline, settling at $1.4 billion.
Cryptocurrency market conditions contributed to the challenging quarter. Overall crypto market capitalization contracted approximately 20% throughout the three-month period, applying downward pressure on Galaxy’s digital asset portfolio.
Cash reserves and stablecoin holdings remained stable at $2.6 billion. Operational expenditures totaled $147 million, representing a 7% reduction from the preceding quarter. The firm repurchased 3.2 million shares for $65 million as part of a $200 million buyback program.
Helios Data Center Delivery
The quarter’s most significant development occurred after the reporting period concluded. Galaxy completed transfer of its inaugural data hall at the West Texas Helios campus to CoreWeave, initiating revenue generation through a long-term artificial intelligence workload lease agreement.
The Helios facility targets delivery of 133 megawatts of computing capacity by second-quarter end. Galaxy obtained regulatory clearance for an additional 830 megawatts at the location, elevating total authorized capacity beyond 1.6 gigawatts.
This represents substantial expansion. Prior approvals covered approximately 800 megawatts. The capacity increase positions Helios as a major player in AI infrastructure.
CEO Mike Novogratz identified the data center expansion and GalaxyOne platform development as primary catalysts for future growth.
Q2 Early Signs
Preliminary second-quarter metrics indicate improvement. Galaxy projects approximately $90 million in adjusted EBITDA, marking a substantial turnaround from Q1’s adjusted EBITDA deficit.
Executive leadership attributed the improvement to strengthened digital asset valuations and elevated market activity levels. Bitcoin and broader cryptocurrency markets have regained value following Q1 lows.
Adjusted gross profit remained essentially unchanged in Q1, which management attributed to strategic emphasis on recurring fee structures and transaction-based income streams—revenue sources demonstrating greater resilience during crypto price declines.
“Disciplined expense management during the quarter helped narrow the adjusted EBITDA loss,” the company said in its statement.
GLXY shares declined 0.84% to $24.84 during Monday trading. The equity experienced a 1.76% premarket decline following the earnings announcement before recovering partially during regular hours.
Over a six-month timeframe, GLXY has declined approximately 37%. The one-year performance shows gains of roughly 90%. Trading with a beta of 3.64, the stock exhibits significant volatility in both upward and downward movements.
Galaxy’s digital asset operations produced $49 million in adjusted gross profit during Q1, matching Q4 2025 performance despite adverse market conditions.
