Key Highlights
- GLXY shares dropped 13.46% following an $85 million quarterly deficit.
- The digital asset firm recorded an $85 million net loss amid declining crypto valuations.
- New data center revenue from Helios emerged, though crypto headwinds dominated results.
- Phase I of Helios is projected to deliver approximately $80 million in quarterly leasing income.
- Strategic acquisitions in Texas pushed Galaxy’s data center power capacity pipeline past 5.7 GW.
Shares of Galaxy Digital tumbled 13.46% to close at $19.16 following consecutive morning declines. The firm disclosed an $85 million net deficit for the period as weakening digital currency valuations pressured its treasury holdings. Galaxy operates across digital asset services and data infrastructure, with the latter delivering inaugural revenue contributions this quarter.
Quarterly deficit narrows from prior period
Galaxy disclosed an $85 million second-quarter net deficit, marking an improvement from the $216 million shortfall recorded in the preceding quarter. Adjusted EBITDA came in at negative $77 million, while adjusted gross profit climbed to $43 million. The firm also posted diluted and adjusted earnings per share of negative $0.09.
Overall assets expanded 9% sequentially to reach $10.84 billion as of June 30. Total equity contracted 2% to $2.72 billion over the same timeframe. Holdings in cash and stablecoins decreased 6% to $2.46 billion.
The Digital Assets division delivered $66 million in adjusted gross profit, marking a 34% sequential increase. Global Markets produced $49 million despite trading volumes slipping 7% from the previous quarter. Average lending balances edged higher to $1.44 billion, while active trading counterparties grew 3% to 1,741.
Helios campus delivers initial infrastructure revenue
Galaxy’s Data Centers division produced $20 million in adjusted gross profit throughout the second quarter. The segment also generated $11 million in adjusted EBITDA after posting a modest deficit in the opening quarter. These figures represent the division’s inaugural period with operational revenue streams.
Galaxy provisioned 133 megawatts of mission-critical computing infrastructure to CoreWeave at its Helios facility. The firm completed this initial phase according to schedule under a 15-year lease arrangement. Galaxy anticipates roughly $80 million in quarterly lease payments from this phase starting in the third quarter.
The company also projects project-level adjusted EBITDA margins exceeding 90% from the operational capacity. The Treasury and Corporate segment registered a $42 million adjusted gross deficit. Unrealized losses spanning digital currencies and equity investments fueled that division’s negative $78 million adjusted EBITDA.
Strategic Texas acquisitions broaden data center footprint
Galaxy amplified its Texas data infrastructure pipeline following quarter-end through strategic acquisitions. The firm secured three development locations and elevated its potential power capacity pipeline beyond 5.7 gigawatts. These initiatives address escalating demand for hyperscale computing and premium infrastructure solutions.
At McGregor Industrial Park, Galaxy is developing the Merlin campus spanning 500 acres. Current agreements support 74 megawatts, with potential transmission enhancements enabling expansion to 500 megawatts. Galaxy additionally secured the Caspian and Selene properties, featuring potential capacities of 700 and 900 megawatts respectively.
Galaxy initiated construction on Helios Phase II, targeting an additional 260 megawatts of critical computing infrastructure. The firm anticipates beginning data hall deliveries in the second quarter of 2027. Galaxy also secured $3.5 billion through senior secured notes to finance subsequent construction phases.
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