Key Takeaways
- Galaxy Digital recorded a first-quarter net deficit of $216 million, equating to $0.49 per share, surpassing analyst projections of $0.59
- Top-line revenue declined to $10.2 billion compared to $12.9 billion in the same period last year
- First operational data hall at Texas-based Helios campus was transferred to CoreWeave (CRWV)
- Regulatory green light expanded Helios capacity beyond 1.6 gigawatts, more than doubling previous limits
- Early second-quarter data suggests approximately $90 million in adjusted EBITDA performance
Galaxy Digital disclosed a first-quarter 2026 net deficit of $216 million, yet outperformed analyst projections while accelerating its transition toward AI-focused infrastructure.
Wall Street forecasters anticipated losses of $0.59 per share. Galaxy registered $0.49 instead. While the quarter presented challenges, results exceeded expectations.
Top-line figures decreased to $10.2 billion from the prior year’s $12.9 billion in the first quarter. Total holdings contracted to $10 billion by period end, sliding from $11 billion at 2025’s close. Digital asset positions declined 19% sequentially to $1.4 billion.
Cryptocurrency market headwinds contributed to the pressure. The overall digital asset market capitalization contracted approximately 20% throughout the three-month period, weighing on Galaxy’s portfolio valuations.
Liquid reserves and stablecoin positions remained steady at $2.6 billion. Operational expenditures totaled $147 million, representing a 7% sequential decrease. Additionally, the firm repurchased 3.2 million shares worth $65 million through its $200 million buyback program.
Helios Data Center Delivery
The quarter’s most significant development may extend beyond financial results — Galaxy completed the transfer of its inaugural data hall at the West Texas Helios campus to CoreWeave, initiating cash flow generation under an extended AI computing lease agreement.
The Helios installation is projected to provide 133 megawatts of computational capacity before the second quarter concludes. Galaxy additionally obtained regulatory clearance for an extra 830 megawatts at the location, elevating total authorized capacity above 1.6 gigawatts.
This represents substantial expansion. Previous approvals covered approximately 800 megawatts. Doubling that threshold positions Helios among premier AI infrastructure facilities.
Chief Executive Mike Novogratz identified the data center expansion and GalaxyOne platform as primary catalysts for future expansion.
Q2 Early Signs
Preliminary second-quarter indicators demonstrate improvement. Galaxy projects approximately $90 million in adjusted EBITDA, representing notable enhancement from the first quarter’s adjusted EBITDA deficit.
Executives attributed the turnaround to strengthening digital asset valuations and heightened market engagement. Bitcoin and broader cryptocurrency markets have rebounded from first-quarter troughs.
Adjusted gross profitability remained essentially unchanged in Q1, which management credited to transitioning toward subscription-based fee structures and transactional income — revenue streams 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 $24.84 on Monday. Shares had retreated 1.76% during premarket sessions following the earnings announcement before staging a partial recovery.
Across the preceding six months, GLXY has declined approximately 37%. Year-over-year performance shows roughly 90% appreciation. With a beta coefficient of 3.64, the stock exhibits pronounced volatility in both directions.
Galaxy’s digital asset operations produced $49 million in adjusted gross profit during Q1, matching Q4 2025 levels despite challenging market conditions.
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