Galaxy Digital shares fell 14% on Wednesday after the crypto and AI infrastructure company reported an $85 million net loss for the second quarter. The stock closed at $19.07, down from $22.14, as declining digital asset prices overshadowed progress at its Texas data center business.
Crypto Weakness Pressures Quarterly Results
Galaxy narrowed its net loss from $216 million in the first quarter, but quarterly revenue declined 15% to $8.7 billion from $10.2 billion. The company reported an adjusted diluted loss of $0.09 per share, with adjusted EBITDA reaching negative $77 million. Total equity stood at $2.7 billion. The Treasury and Corporate segment recorded a $42 million adjusted gross loss during the quarter.
Digital Assets Unit Shows Higher Gross Profit
Galaxy’s Digital Assets division generated $66 million in adjusted gross profit, up 34% from the prior quarter, though trading volumes fell 7% due to reduced market activity. The division posted an adjusted EBITDA loss of $11 million despite the stronger gross profit. Combined, Digital Assets and Data Centers produced $86 million in adjusted gross profit and $1 million in combined adjusted EBITDA. However, investors focused on the net loss and continued exposure to crypto price volatility.
Helios Data Center Begins Revenue Generation
Galaxy’s Data Centers segment reported revenue for the first time after delivering capacity to CoreWeave. The segment generated $20 million in adjusted gross profit and $11 million in adjusted EBITDA. By quarter-end, Galaxy had delivered all 133 megawatts of critical computing load under the first phase of its 15-year CoreWeave lease. The company expects approximately $80 million in quarterly revenue starting in the third quarter.
Galaxy targets a project-level adjusted EBITDA margin above 90% at Helios. The recurring AI infrastructure revenue may help reduce exposure to swings in crypto trading. Construction has started on Helios Phase II, which will add 260 megawatts of critical IT capacity, with initial data hall deliveries expected in the second quarter of 2027.
The company raised $3.5 billion through senior secured notes due in 2031 on July 28, directing proceeds toward Helios I Phase II construction. After the quarter, Galaxy acquired three additional Texas development sites, lifting its potential power pipeline beyond 5.7 gigawatts.
Key Takeaways
Galaxy’s second-quarter results showed a narrower net loss, lower revenue, and continued pressure from digital asset prices. Meanwhile, Helios began producing revenue, completed its first 133-megawatt delivery, and moved into a larger expansion funded by $3.5 billion in new debt.
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