Galaxy Digital shares slip 5% after second-quarter results
Reported by CoinDesk · AI-assisted summary by ChikoCorp AI News Desk
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Summary
Galaxy Digital’s shares fell over 5% in premarket trading following its second-quarter results. The company reported a loss of $0.09 per share, narrower than the forecasted $0.28 loss, with revenue of $8.8 billion slightly below estimates of $9 billion. Galaxy’s data center segment generated revenue for the first time, with expectations that Phase I will generate about $80 million per quarter starting in Q3.
Why it matters
The report highlights Galaxy Digital’s gradual recovery with improved losses and revenue generation in its digital assets and data center operations. The data center business becoming profitable and the progress at the Helios campus are notable operational developments that indicate potential growth drivers. The market reaction reflects caution as new data-center customers were not announced despite ongoing leasing discussions.
Key context
Galaxy’s net loss narrowed to $85 million from $216 million in the previous quarter. Its digital assets operation saw a 34% quarterly increase in adjusted gross profit to $66 million despite a 7% drop in trading volume. The data center segment reversed earlier losses with $20 million in adjusted gross profit and $11 million in EBITDA. Galaxy has a 15-year lease delivering 133 megawatts critical IT capacity to CoreWeave and is pursuing tenants for an additional 830 megawatts at the Texas Helios site. The company recently raised $3.5 billion in senior secured notes to fund Helios Phase II, pushing total debt over $6 billion.
Key numbers and entities
Galaxy Digital (GLXY), CEO Mike Novogratz, CoreWeave, Helios data center in West Texas, $0.09 loss per share, $8.8 billion revenue, $85 million net loss, $66 million digital assets adjusted gross profit, $20 million data center adjusted gross profit, $11 million data center adjusted EBITDA, $3.5 billion senior secured notes due 2031, over $6 billion total debt.
What remains unclear
The company did not disclose any new data-center customers or leases despite ongoing talks, leaving uncertainty about future leasing developments for the Helios site. The timing and scale of tenant acquisition for the remaining 830 megawatts of approved capacity remain unconfirmed.