Galaxy Digital Shares Decline 5% After Mixed Second-Quarter Results

Galaxy Digital (GLXY) shares fell more than 5% in premarket trading following the release of its second-quarter results, which arrived with both encouraging operational milestones and revenue that fell short of analyst expectations. The pullback reflects the tension between Galaxy's accelerating pivot into AI infrastructure and the near-term uncertainty surrounding its core digital-assets business.

The company reported revenue of $8.8 billion, slightly below Street estimates of approximately $9 billion. On a per-share basis, Galaxy posted a diluted and adjusted loss of $0.09 — notably better than the $0.28 loss analysts had forecast and a significant improvement from the $0.49 per-share loss recorded in the first quarter. Net loss for the period narrowed to $85 million, down from $216 million in the prior quarter.

Digital Assets Business Holds Steady

Galaxy's digital assets division generated $66 million in adjusted gross profit, representing a 34% increase quarter-on-quarter, even as trading volumes declined 7%. The improvement in profitability despite lower volumes suggests stronger margins in the firm's market-making and counterparty activities, though digital-asset trading revenue remains sensitive to crypto market conditions.

Helios Data Center Records First Revenue

A key highlight of the quarter was the initial phase of the company's Helios data center campus in West Texas reaching completion and generating revenue for the first time. The data center segment produced $20 million in adjusted gross profit and $11 million in adjusted EBITDA, a sharp reversal from the $900,000 adjusted EBITDA loss posted in the first quarter. The milestone positions Galaxy among a growing wave of crypto-native firms — including Hut 8 and Core Scientific — repurposing energy infrastructure for AI compute.

Under a 15-year lease agreement, Galaxy delivered 200 megawatts of gross power — equivalent to 133 megawatts of critical IT capacity — to CoreWeave, one of the largest GPU cloud providers serving AI workloads. Phase I of the Helios campus is expected to generate approximately $80 million in quarterly revenue beginning in the third quarter, which would mark a material step-up in the data-center segment's contribution.

No New Lease Announced

Despite the operational progress, the results did not include announcements of any new data-center customers or leases, which may have weighed on investor sentiment. Galaxy stated that it continues to hold discussions with prospective tenants for an additional 830 megawatts of approved capacity at Helios.

CEO Mike Novogratz had indicated earlier this year that he expected the remaining capacity at the 1.6-gigawatt Texas site to be fully leased by the end of the summer. While no new tenants were unveiled this quarter, Galaxy disclosed that it has acquired three additional sites in Texas for future data-center development. The pace of future lease announcements will be a key metric for investors assessing whether Galaxy can convert its pipeline into contracted revenue at terms comparable to the CoreWeave agreement.

Debt Profile Expands with Helios Phase II Funding

On July 28, Galaxy Digital closed a $3.5 billion private offering of senior secured notes due 2031 through its subsidiary Galaxy Helios Data Centers II LLC, with proceeds earmarked for the construction of Helios Phase II. The offering pushed the company's total debt above $6 billion, significantly increasing the company's interest obligations as it scales its infrastructure build-out.

Source: CoinDesk