Key Takeaways
- Galaxy Digital recorded a Q1 net deficit of $216 million, translating to $0.49 per share, surpassing analyst projections of $0.59
- Quarterly revenue declined to $10.2 billion from the previous year’s $12.9 billion
- The firm transferred its inaugural data facility at the Texas-based Helios campus to CoreWeave (CRWV)
- Helios site received approval to expand capacity beyond 1.6 gigawatts, more than doubling previous levels
- Early Q2 projections indicate approximately $90 million in adjusted EBITDA
Galaxy Digital disclosed a first-quarter 2026 net deficit of $216 million, though the results exceeded analyst projections as the firm accelerates its pivot toward artificial intelligence infrastructure.
Wall Street analysts had projected a per-share loss of $0.59. Galaxy’s actual figure came to $0.49. While far from stellar, the outcome proved less severe than anticipated.
Quarterly revenue contracted to $10.2 billion from $12.9 billion recorded in the same period of 2025. The company’s total assets decreased to $10 billion by quarter’s end, down from $11 billion at the close of 2025. Digital asset holdings experienced a 19% quarterly decline, settling at $1.4 billion.
The wider cryptocurrency landscape provided little assistance. Overall crypto market capitalization contracted by approximately 20% throughout the quarter, weighing heavily on Galaxy’s digital currency portfolio.
Cash reserves and stablecoin balances remained stable at $2.6 billion. Operating expenditures totaled $147 million, representing a 7% decrease from the preceding quarter. Additionally, the firm repurchased 3.2 million shares for $65 million as part of a $200 million buyback program.
Helios Data Facility Handover
The quarter’s most significant development may extend beyond the financial loss — it centers on post-quarter events. Galaxy transferred its inaugural data hall at the West Texas Helios campus to CoreWeave, initiating revenue generation through a long-term artificial intelligence workload agreement.
The Helios installation is projected to provide 133 megawatts of computational capacity by the conclusion of Q2. Galaxy also obtained regulatory clearance for an additional 830 megawatts at the location, elevating total projected capacity beyond 1.6 gigawatts.
This represents a substantial expansion. The organization had previously secured authorization for approximately 800 megawatts. Doubling that figure positions Helios among elite AI infrastructure facilities.
CEO Mike Novogratz identified the data center expansion and the GalaxyOne platform as the organization’s primary growth catalysts moving forward.
Second Quarter Preliminary Indicators
Early second-quarter data appears more encouraging. Galaxy is projecting approximately $90 million in adjusted EBITDA, representing a substantial improvement over Q1’s adjusted EBITDA deficit.
Executives attributed the improvement to strengthening digital asset valuations and heightened market participation. Bitcoin and the broader cryptocurrency markets have regained momentum following Q1 declines.
Adjusted gross profit remained essentially unchanged in Q1, which management credited to a strategic emphasis on recurring fee-based revenue and transaction-based income — revenue streams that demonstrate greater resilience during cryptocurrency price downturns.
“Strategic expense control throughout the quarter contributed to reducing the adjusted EBITDA deficit,” the company stated in its official release.
GLXY declined 0.84% to $24.84 on Monday. The equity had dropped 1.76% during premarket hours following the earnings announcement before staging a partial recovery.
Across the preceding six months, GLXY has declined approximately 37%. Over a twelve-month period, it has gained roughly 90%. With a beta coefficient of 3.64, the stock exhibits pronounced volatility in both directions.
Galaxy’s digital asset division produced $49 million in adjusted gross profit during Q1, maintaining the Q4 2025 level despite challenging market conditions.
