TLDR
- Galaxy Digital reported an $85 million net loss in Q2, driven mainly by lower digital asset prices.
- The company’s AI infrastructure segment produced $20 million in adjusted gross profit and $11 million in adjusted EBITDA.
- All 133 megawatts of Phase I capacity under the CoreWeave lease is now fully in service.
- Galaxy expects about $80 million in quarterly leasing revenue starting in Q3, though this is guidance, not a reported result.
- A Galaxy subsidiary raised $3.507 billion in senior secured notes to fund a 260 megawatt Phase II data center expansion.
Galaxy Digital closed the second quarter with an $85 million net loss. The company pointed mainly to falling prices of the digital assets it holds. The loss came even as new revenue from artificial intelligence infrastructure started to flow in.
Diluted earnings per share came in at negative $0.09. Adjusted EPS, a non-GAAP measure, landed at the same negative $0.09. Galaxy also reported $43 million in adjusted gross profit alongside a $77 million adjusted EBITDA loss.
The company’s two main business areas moved in opposite directions this quarter. One side lost money tied to crypto holdings. The other side began generating steady lease income from a new customer outside of crypto markets.
AI Infrastructure Segment Shows Early Gains
Galaxy’s AI infrastructure business generated $20 million in adjusted gross profit for the quarter. It also posted $11 million in adjusted EBITDA. These figures reflect new capacity coming online rather than a full quarter of operations.
The Treasury and Corporate segment told a different story. That unit recorded a $42 million adjusted gross loss and a $78 million adjusted EBITDA loss. Most of that came from unrealized losses on digital assets and other investment positions.
By the end of the quarter, all 133 megawatts of critical IT load under Galaxy’s Phase I lease with CoreWeave were in service. CoreWeave is the tenant for this data center capacity under a 15-year agreement. The lease provides income that comes from outside crypto markets entirely.
Data Center Revenue Guidance for Q3
Galaxy now expects about $80 million in quarterly leasing revenue starting in the third quarter. It also projects a project-level adjusted EBITDA margin above 90 percent for this business. Both figures are guidance and have not yet appeared as actual results.
The $85 million loss and the $80 million revenue figure might look like they cancel out. The accounting does not work that way. The loss sits at Galaxy’s consolidated bottom line for the entire company.
The $80 million describes expected revenue for one segment going forward. Data Centers only contributed $11 million of adjusted EBITDA this quarter while capacity was still ramping up. Q2 results capture the buildup toward full lease economics, not a finished quarter of income.
Galaxy is also expanding past Phase I. A subsidiary called Galaxy Helios Data Centers II completed an offering of senior secured notes worth $3.507 billion. The notes carry a 9.875 percent interest rate and come due in 2031.
Another Galaxy unit, Galaxy Helios II LLC, guarantees the notes. This financing will fund Phase II of the project, adding 260 megawatts of capacity. Project assets and pledged equity in the issuer back the notes as collateral.
Galaxy’s quarterly filing states that the Data Centers segment initially depends heavily on CoreWeave as its main customer. Phase I is already running and producing contracted revenue outside crypto markets. Phase II handovers are expected to begin in 2027, when the project company starts taking on fixed cash costs tied to the new capacity.
