Tag: Galaxy Digital

  • Galaxy Digital Stock Drops 14% on $85M Q2 Loss Despite Helios Data Center Revenue Growth

    Galaxy Digital Stock Drops 14% on $85M Q2 Loss Despite Helios Data Center Revenue Growth

    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.

  • The 10 Largest Crypto Holders in 2026: Institutions and Governments That Dominate

    The 10 Largest Crypto Holders in 2026: Institutions and Governments That Dominate

    As the cryptocurrency market matures, a handful of institutions, corporations, and even governments have amassed significant digital asset holdings. Here are the ten biggest crypto holders projected for 2026, based on current trends and public disclosures.

    • MicroStrategy: Still the world’s largest corporate Bitcoin holder, with a treasury aggressively built through continuous purchases.
    • BlackRock iShares Bitcoin Trust: One of the fastest-growing institutional Bitcoin investment funds, attracting massive capital inflows.
    • Grayscale Investments: Continues to manage billions of dollars in crypto assets across multiple trusts.
    • United States Government: Holds a significant amount of Bitcoin obtained through law enforcement seizures, making it one of the largest anonymous holders.
    • Binance: One of the world’s largest crypto exchanges, with substantial reserves held in its corporate treasury and cold wallets.
    • Tether Holdings: Maintains large Bitcoin reserves as part of its stablecoin backing, ensuring liquidity and stability.
    • Marathon Digital: A major Bitcoin mining company that has steadily expanded its treasury through mining rewards and direct purchases.
    • Galaxy Digital: An institutional crypto investment firm with extensive digital asset holdings across Bitcoin, Ethereum, and other cryptocurrencies.

    These entities represent the growing institutionalization of crypto, influencing market dynamics and liquidity. Their holdings are a key indicator of mainstream adoption and regulatory developments.