Galaxy Digital Shares Drop 5% Despite Narrowing Losses and Data Center Revenue

Woofun AI reports that Galaxy Digital (GLXY) shares declined by more than 5% in pre-market trading following the release of quarterly results, a market reaction that persisted despite CEO Mike Novogratz highlighting operational improvements.

The financial performance showed a net loss of $85 million, a significant improvement from the $216 million loss recorded in the first quarter. Diluted and adjusted losses per share narrowed to $0.09, beating the Street forecast of $0.28 and improving sharply from the $0.49 loss per share in Q1.

Woofun AI data shows adjusted gross profit from digital assets operations reached $66 million, marking a 34% quarter-on-quarter increase even as trading volume declined by 7%.

Structurally, the data center business generated revenue for the first time after completing the initial phase of the Helios campus in West Texas. This segment produced $20 million in adjusted gross profit and $11 million in adjusted EBITDA, reversing a $900,000 adjusted EBITDA loss from the previous quarter. Galaxy delivered 200 megawatts of gross power, equating to 133 megawatts of critical IT capacity, to CoreWeave under a 15-year lease. Although no new tenants were announced for the remaining 830 megawatts of approved capacity at the 1.6-gigawatt Texas site, CEO Mike Novogratz had previously indicated expectations for leasing completion by the end of the summer. The firm also acquired three new sites in Texas for future data center development.

To fund construction of Helios Phase II, Galaxy Digital closed a $3.5 billion private offering of senior secured notes due 2031 on July 28 through its subsidiary Galaxy Helios Data Centers II LLC. This financing move pushed the company’s total debt load to over $6 billion. This marks a significant escalation in leverage as the firm transitions from development to active operations.