Key facts
- Galaxy Digital reported a second-quarter net loss of $85 million, an improvement from $216 million in the prior quarter.
- The company's adjusted loss per share was $0.09, better than the $0.28 forecast.
- Second-quarter revenue was $8.8 billion, missing the $9 billion estimate.
- The digital assets operation saw adjusted gross profit rise 34% quarter-on-quarter to $66 million.
- The data center business generated $20 million in adjusted gross profit and $11 million in adjusted EBITDA.
- Galaxy Digital completed Phase I of its Helios campus in West Texas, leasing 133 megawatts of IT capacity to CoreWeave.
Galaxy Digital shares declined more than 5% in pre-market trading after the company released its second-quarter financial results, which showed a narrowed net loss but revenue that fell short of analyst expectations. The company reported a net loss of $85 million, an improvement from $216 million in the first quarter. Its adjusted loss per share was $0.09, beating the $0.28 forecast, while revenue came in at $8.8 billion, missing the $9 billion estimate.
The company's digital assets operation reported a 34% quarter-on-quarter increase in adjusted gross profit to $66 million, despite a 7% decline in trading volume. Galaxy's data center business, Helios, generated $20 million in adjusted gross profit and $11 million in adjusted EBITDA, marking a significant turnaround from a loss in the previous quarter. The first phase of the Helios campus in West Texas was completed, with 200 megawatts of gross power delivered, representing 133 megawatts of critical IT capacity leased to CoreWeave under a 15-year agreement.
Despite these operational gains, the results did not include a new data center customer or lease, though Galaxy stated discussions are ongoing for an additional 830 megawatts of approved capacity at Helios. CEO Mike Novogratz had previously expressed expectations for the remaining capacity to be leased by the end of the summer. In a move to fund future construction, Galaxy Digital closed a $3.5 billion private offering of senior secured notes due 2031, pushing its total debt to over $6 billion. The company also announced the acquisition of three new data center sites in Texas.