Galaxy Digital Pivots Toward AI Infrastructure as Q1 Losses Narrow

Galaxy Digital (GLXY) has narrowed its quarterly losses, beating analyst expectations despite a significant decline in overall revenue. The firm reported a first-quarter loss of $216 million, or 49 cents per share, compared to the 59 cents per share anticipated by market analysts. The financial results come amid a strategic transition in the company's business model. While revenue fell to $10.2 billion from $12.9 billion in the same period last year, the company is increasingly diversifying away from pure cryptocurrency price exposure toward recurring fee revenue and infrastructure. A key milestone in this transition is the delivery of the first data hall at the Helios campus in Texas to CoreWeave (CRWV). This facility is dedicated to artificial intelligence workloads and marks the commencement of revenue under a long-term lease agreement. The Helios site is projected to provide 133 megawatts of computing power by the end of the second quarter. Furthermore, Galaxy Digital has secured approval for an additional 830 megawatts, pushing the total potential capacity of the site to over 1.6 gigawatts. Despite the narrowed loss and infrastructure progress, GLXY shares saw a slight decline, trading recently at $24.84, down 0.84%. Management attributed the stability of adjusted gross profit to a more resilient business mix and disciplined expense management during challenging market conditions.