Galaxy Digital (GLXY) stock crashed 13.46% to $19.16 after posting an $85 million second-quarter net loss. The hit came despite the company's data center business finally generating revenue for the first time.
Lower crypto prices hammered the company's digital asset holdings and treasury positions. Galaxy reported adjusted EBITDA of negative $77 million, though that represented progress from the prior quarter's $216 million loss. Total assets climbed 9% to $10.84 billion, yet cash and stablecoin holdings fell 6% to $2.46 billion.
Data centers start paying
Galaxy's Helios data center campus delivered 133 megawatts of computing capacity to CoreWeave under a 15-year lease. The infrastructure segment generated $20 million in adjusted gross profit and $11 million in adjusted EBITDA, marking the first profitable quarter for the business. Galaxy expects the completed phase to produce roughly $80 million in quarterly leasing revenue starting in Q3, with adjusted EBITDA margins exceeding 90%.
The company's digital assets division grew faster. It pulled in $66 million in adjusted gross profit, up 34% from Q1. Global Markets contributed $49 million despite trading volumes dropping 7% sequentially. Average loan balances inched higher to $1.44 billion while counterparties increased 3% to 1,741.
Texas expansion pushed Galaxy's potential data center power pipeline above 5.7 GW. Yet treasury and corporate operations posted a $42 million adjusted gross loss, with unrealized losses on digital assets and investments driving negative $78 million adjusted EBITDA.
This article is for informational purposes only and does not constitute financial advice. Cryptocurrency and stock investments carry significant risk.
