Galaxy Digital took an $85 million hit in the second quarter, hammered by falling cryptocurrency prices that eroded the value of its digital holdings. The firm's earnings statement showed a loss of $0.09 per share, a direct result of the broader market downturn that rippled through the quarter.
Revenue fell to $8.7 billion from $10.2 billion in Q1, missing Wall Street's $12.7 billion forecast. Investors reacted swiftly, sending Galaxy's stock down 6.2% in premarket trading to $20.70, building on a roughly 10% monthly decline.
Market Collapse Weighed Heavy
The crypto market itself contracted sharply during the period. According to CoinMarketCap data, total market capitalization dropped nearly 15% between April 1 and June 30, sliding from $2.35 trillion to approximately $2 trillion. For asset-heavy firms like Galaxy Digital, that contraction directly translated into balance sheet pain.
Yet beneath the headline loss, Galaxy's operational engine showed resilience. The digital assets unit generated $66 million in adjusted gross profit, up 34% sequentially, with adjusted EBITDA reaching $11 million. The company noted these metrics suggest it's gradually reducing its dependence on raw price volatility and holding its ground through tough conditions.
Galaxy's artificial intelligence data center division added another revenue stream, posting $20 million in adjusted gross profit as the firm expanded its infrastructure footprint. The push into AI represents a strategic hedge against pure crypto exposure, diversifying earnings sources beyond digital asset holdings.
This article is for informational purposes only and should not be construed as investment advice. Cryptocurrency markets remain highly volatile and speculative.
