Key Takeaways
- Galaxy Digital recorded a Q1 net loss of $216 million, equivalent to $0.49 per share, surpassing analyst projections of $0.59 per share
- Quarterly revenue declined to $10.2 billion compared to $12.9 billion in the same period last year
- The firm successfully transferred its inaugural data hall at Texas-based Helios campus to CoreWeave (CRWV)
- Helios site received regulatory clearance to expand capacity beyond 1.6 gigawatts, more than doubling previous limits
- Early Q2 projections indicate approximately $90 million in adjusted EBITDA
Galaxy Digital disclosed a first-quarter 2026 net loss totaling $216 million, yet the results exceeded Street expectations as the firm accelerates its transition toward artificial intelligence infrastructure investments.
Wall Street consensus had anticipated a per-share loss of $0.59. Galaxy delivered $0.49 per share instead. While unprofitable, the outcome proved less severe than projected.
Quarterly revenue contracted to $10.2 billion from the prior year’s $12.9 billion. The company’s total assets decreased to $10 billion by quarter-end from $11 billion at 2025’s close. Digital asset holdings saw a 19% sequential decline, settling at $1.4 billion.
The cryptocurrency sector’s overall weakness contributed to the decline. Total crypto market capitalization shed approximately 20% throughout the quarter, creating headwinds for Galaxy’s digital currency portfolio.
Cash reserves and stablecoin positions remained steady at $2.6 billion. Operational expenditures totaled $147 million, representing a 7% reduction versus the previous quarter. Galaxy also repurchased 3.2 million shares for $65 million as part of a $200 million buyback program.
CoreWeave Partnership Reaches Major Milestone
The quarter’s most significant development may extend beyond the financial loss. Galaxy completed the handoff of its inaugural data hall at West Texas’s Helios campus to CoreWeave, initiating revenue generation under an extended AI computing lease agreement.
The Helios operation is projected to provide 133 megawatts of computational capacity before Q2 concludes. Galaxy additionally obtained regulatory authorization for an extra 830 megawatts at the location, elevating total approved capacity above 1.6 gigawatts.
This represents substantial growth. Prior approvals covered approximately 800 megawatts. Doubling that threshold positions Helios as a major player in AI infrastructure capacity.
Chief Executive Mike Novogratz identified the data center expansion and GalaxyOne platform as central pillars driving the company’s future growth strategy.
Second Quarter Outlook Improves
Preliminary second-quarter data suggests improvement. Galaxy projects adjusted EBITDA near $90 million, representing meaningful progress from Q1’s adjusted EBITDA deficit.
Executive leadership attributed the upturn to strengthening digital asset valuations and heightened market engagement. Bitcoin and the broader cryptocurrency marketplace have rebounded from first-quarter troughs.
Adjusted gross profit remained essentially unchanged in Q1, which management credited to a strategic emphasis on recurring fee-based revenue streams and transactional income — segments demonstrating greater resilience during crypto price corrections.
“Disciplined expense management during the quarter helped narrow the adjusted EBITDA loss,” the company said in its statement.
GLXY declined 0.84% to close at $24.84 on Monday. The shares had tumbled 1.76% during premarket hours after the earnings announcement before staging a partial recovery.
Over a six-month window, GLXY has retreated approximately 37%. The one-year performance shows gains near 90%. Trading with a beta coefficient of 3.64, the stock exhibits significant volatility in both directions.
Galaxy’s digital asset division produced $49 million in adjusted gross profit during Q1, matching Q4 2025 levels despite challenging market conditions.
