Galaxy Digital’s shares fell nearly 13% in early trading Wednesday after the company reported an $85 million second-quarter net loss. The loss was largely attributed to the depreciation of digital asset prices, which weighed heavily on the firm's treasury and corporate segment, resulting in a $42 million adjusted gross loss. This downturn overshadowed a key milestone: Galaxy’s Helios AI data center business generated revenue for the first time.
Operating businesses showed improvement, with adjusted gross profit climbing to $86 million and adjusted EBITDA swinging to a positive $1 million from previous losses. The digital assets segment grew its adjusted gross profit 34% quarter-over-quarter to $66 million. The Helios data center contributed $20 million in adjusted gross profit and $11 million in adjusted EBITDA, following the delivery of 133 MW of IT load to CoreWeave under a 15-year lease. With Phase 1 fully online, Galaxy expects $80 million in quarterly leasing revenue starting Q3, at margins above 90%.
Despite these operational gains, the crypto market slump drove the overall loss. Galaxy’s stock (GLXY) dropped to $19.16, a 13.46% decline. The company closed the quarter with $10.84 billion in total assets, though equity slipped 2% to $2.72 billion. Looking ahead, Galaxy expanded its pipeline by acquiring three Texas data center sites, lifting total potential power capacity above 5.7 gigawatts. It also raised $3.5 billion through secured notes to fund Phase II construction, which is expected to deliver initial halls by Q2 2027.
