Galaxy Digital shares tanked 14% on Wednesday. The crypto and AI infrastructure firm reported an $85 million net loss for the second quarter, hammered by falling digital asset prices.
The stock hit $19.07, down sharply from $22.14 at the previous close. Revenue slipped 15% to $8.7 billion from $10.2 billion last quarter, and the company posted a $0.09 loss per share on an adjusted basis.
The culprit was clear. Galaxy's Treasury and Corporate segment took a $42 million adjusted gross loss as crypto valuations tanked during the period. Adjusted EBITDA swung negative at $77 million. Still, the net loss narrowed from the $216 million bloodbath in Q1, a small mercy.
Digital assets did carry more weight. The trading unit lifted adjusted gross profit 34% to $66 million despite volumes dropping 7% as markets cooled. That echoed pressure rippling through recent crypto earnings reports across the sector.
What's actually moving the needle for Galaxy now is data centers. The company finished phase one power delivery at its Helios campus in Texas, pushing 133 MW of computing capacity to CoreWeave under a 15-year contract worth roughly $80 million in quarterly revenue starting Q3, with margins above 90%. After the quarter wrapped, Galaxy snapped up three more Texas sites, expanding its power pipeline beyond 5.7 GW.
The data center segment generated $20 million in adjusted gross profit and $11 million in adjusted EBITDA in Q2 alone. To bankroll phase two, the firm raised $3.5 billion in senior secured notes on July 28, due in 2031.
Wall Street is watching closely. Whether Galaxy's AI revenue surge can offset the whipsaw of crypto volatility will determine how investors price the stock going forward.
This article is informational and does not constitute financial advice. Always conduct your own research before making investment decisions.
