TLDR
- Galaxy Digital shares dropped 13% after reporting an $85 million second-quarter net loss amid digital asset weakness.
- Digital Assets business generated $66 million adjusted gross profit, marking a 34% quarterly increase despite EBITDA losses.
- Helios data center generated first revenue after delivering 133 megawatts under CoreWeave’s long-term leasing agreement successfully.
- Galaxy expects Helios Phase One to generate approximately $80 million quarterly leasing revenue beginning third quarter 2026.
- Company secured $3.5 billion financing while expanding Texas data center pipeline beyond 5.7 gigawatts total capacity.
Galaxy Digital shares fell more than 13% on Wednesday after the crypto financial services company reported an $85 million second-quarter net loss, even as several operating businesses posted improved quarterly performance.
Galaxy Digital shares declined sharply in Wednesday trading after the company reported a second-quarter net loss of $85 million. The stock traded near $19.15 during the session, down about 13.5%, after touching an intraday low of $18.97.
The quarterly results showed mixed performance across the business. While digital asset price declines weighed on earnings, several operating divisions improved compared with the previous quarter. Bloomberg also reported on the company’s earnings after the quarterly release.
Digital Asset Declines Weigh on Quarterly Results
Galaxy reported a diluted and adjusted loss of $0.09 per share during the second quarter. The company finished the period with $2.7 billion in total equity and $2.5 billion in cash and stablecoins.
The quarterly net loss narrowed from $216 million in the first quarter. Adjusted EBITDA improved to a loss of $77 million compared with a loss of $188 million in the previous quarter. Adjusted gross profit also recovered to $43 million after recording an $88 million loss in the first quarter.
Treasury and Corporate recorded an adjusted gross loss of $42 million alongside an adjusted EBITDA loss of $78 million. The company attributed those results to unrealized losses on digital assets and investment positions during the quarter.
Digital Assets and Data Centers Deliver Better Operating Results
Galaxy’s Digital Assets and Data Centers businesses generated a combined $86 million in adjusted gross profit and $1 million in adjusted EBITDA during the quarter.
The Digital Assets division reported $66 million in adjusted gross profit, representing a 34% increase from the previous quarter. The segment still recorded an adjusted EBITDA loss of $11 million despite stronger operating performance.
The company’s Helios data center business also generated revenue for the first time as Galaxy began delivering contracted capacity to CoreWeave. The Data Centers segment produced $20 million in adjusted gross profit and $11 million in adjusted EBITDA during the quarter.
Galaxy completed delivery of all 133 megawatts of critical IT load covered under the first phase of its 15-year lease agreement with CoreWeave by the end of the quarter.
Helios Expansion Remains a Key Growth Project
With the first phase fully operational, Galaxy expects the Helios facility to generate about $80 million in quarterly leasing revenue starting in the third quarter. The company is targeting a project-level adjusted EBITDA margin above 90%.
Construction has already started on the second phase of the Helios campus. The expansion will add another 260 megawatts of critical IT capacity, with initial data hall deliveries expected to begin during the second quarter of 2027.
Galaxy completed a $3.5 billion private debt offering in July to finance the expansion project. The company also acquired three additional development sites in Texas, increasing its potential power pipeline to more than 5.7 gigawatts.
Despite improvements across its operating businesses, investors focused on the quarterly net loss and continued exposure to digital asset price movements. The market reaction came even as Galaxy strengthened its data center operations and expanded infrastructure projects designed to provide recurring revenue in future quarters.
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