Galaxy Digital (GLXY) shares fell more than 11% on Aug. 5 after the crypto financial services firm reported a second-quarter net loss of $85 million, weighed down by falling digital asset pri
Galaxy Digital (GLXY) shares fell more than 11% on Aug. 5 after the crypto financial services firm reported a second-quarter net loss of $85 million, weighed down by falling digital asset prices despite continued expansion of its artificial intelligence infrastructure business.
The company posted an adjusted EBITDA loss of $77 million for the quarter ended June 30, improving from a $188 million loss in the first quarter, while total assets rose 9% quarter over quarter to $10.8 billion.
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Management said the quarterly loss was "driven primarily by the depreciation of digital asset prices."
Although the bottom line remained in the red, Galaxy's operating businesses improved sequentially.
Galaxy Digital's stock price at the time of writingAdjusted gross profit swung to $43 million from an $88 million loss in Q1, supported by the first revenue contribution from its data center business.
Galaxy shares were trading at $19.50 at the time of writing, down 11.92% on the day.
Galaxy entered Bitcoin mining in 2022 when it acquired Argo Blockchain's Helios mining facility in Texas, describing the site as the foundation of its proprietary mining business.
Since then, the company has repositioned Helios into an AI and high-performance computing campus.
During the second quarter, Galaxy completed the first phase of its 15-year lease with CoreWeave, bringing 133 megawatts of critical IT load into service.
The data center segment generated $20 million in adjusted gross profit and $11 million in adjusted EBITDA — its first revenue-generating quarter. Galaxy said Phase I is expected to produce about $80 million in quarterly leasing revenue beginning in the third quarter.
The company has also expanded beyond Helios, announcing on July 28 the acquisition of three Texas sites that bring its AI power pipeline to more than 5.7 gigawatts, including a 500-acre campus in McGregor.
Despite its AI expansion, Galaxy remains one of the largest publicly traded crypto holders.
The company holds a digital asset treasury worth roughly $1.82 billion, including 25,723 Bitcoin worth about $1.65 billion, 61,137 Ether valued at roughly $114 million, and 775,289 Solana tokens worth about $57 million, making Bitcoin about 91% of its crypto portfolio.
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