(P1) Galaxy Digital Inc. reported a net loss of $216 million for the first quarter of 2026, as a roughly 20 percent decline in the total cryptocurrency market capitalization weighed on the value of its holdings. The loss translates to $0.49 per share, reflecting the digital asset market's impact on the company's balance sheet.
(P2) "Despite the challenging market environment, our ability to maintain stable trading volumes and generate gross profit in our digital asset segment underscores the strength of our diversified business model," Mike Novogratz, Founder and CEO of Galaxy, said in a statement.
(P3) The firm’s operating businesses showed resilience against the market headwinds. The digital assets segment generated $49 million in adjusted gross profit, nearly flat with the previous quarter, while industry-wide trading volumes fell by more than 25 percent. Asset management saw $69 million in net inflows, ending the quarter with approximately $5.0 billion in assets under management and $3.2 billion in assets under stake.
(P4) The results highlight Galaxy's continued exposure to crypto price swings, but the company is advancing a key diversification strategy through its data center infrastructure. Revenue is set to begin ramping in the second quarter from its Helios campus in Texas, where it delivered the first AI-focused data hall to partner CoreWeave in April, providing a future stream of earnings uncorrelated to digital asset prices.
Operational Resilience
Galaxy's Global Markets business delivered $31 million in adjusted gross profit, up 3 percent quarter-over-quarter, with trading client numbers growing 4 percent to 1,691. This performance came even as the company's average loan book declined 20 percent to $1.4 billion, a move attributed to both digital asset price depreciation and deliberate client deleveraging.
The company ended the quarter with a strong liquidity position, holding $2.8 billion in total equity and approximately $2.6 billion in cash and stablecoins. During the quarter, Galaxy repurchased 3.2 million shares for $65 million.
Data Centers and Future Outlook
The pivot to data center infrastructure for AI and high-performance computing (HPC) is a central part of Galaxy's strategy. The company has completed the first data hall at its Helios campus and remains on schedule to deliver the full 133 megawatts of IT load for Phase I by the end of the second quarter.
Looking ahead, Galaxy provided a cautiously optimistic outlook, citing a rebound in digital asset prices and activity early in the second quarter. Preliminary figures for Q2 through late April estimate approximately $90 million in adjusted EBITDA, suggesting a potential recovery as market conditions improve.
"The lights are on at the Helios campus," said Christopher Ferraro, the company's Data Centers Lead. "We now have a track record of delivering on time and on budget, not a projection. That credibility is opening doors."
This article is for informational purposes only and does not constitute investment advice.
