What to know:
- Galaxy Digital reported an $85 million Q2 loss as the crypto market decline reduced the value of its digital asset holdings.
- Revenue fell to $8.7 billion from $10.2 billion in Q1, missing Wall Street expectations, while shares dropped 6.2% in premarket trading.
- The company posted 34% quarter-over-quarter growth in adjusted gross profit from its digital assets business despite weaker crypto prices.
Galaxy Digital announced a loss of $85 million during the second quarter of 2026 following a decline in the price of cryptocurrencies, leading to a drop in the value of its digital assets. The firm has released its financial statements for the quarter, which revealed that while it had seen growth elsewhere, it suffered from a decline in the crypto market sector.
The firm reported a loss of $0.09 per share that, as per its estimates, was mostly attributable to the decline in digital asset prices over the quarter.
Additionally, revenues also declined over the quarter. Galaxy produced revenues worth $8.7 billion in the second quarter compared to $10.2 billion produced in the first quarter of 2026. This figure also lagged behind Wall Street estimates of $12.7 billion, as estimated by Yahoo Finance.
Galaxy Digital’s shares fell 6.2% in the premarket to $20.70 after the earnings announcement. The shares have fallen by almost 10% in the last month.
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Crypto Market Drop Hurt Galaxy Digital Results
These weak financial results followed the drop in value of the overall crypto market during the quarter. Based on the information from CoinMarketCap, the total crypto market capitalization decreased by almost 15%, dropping from $2.35 trillion on April 1 to roughly $2 trillion on June 30.
The lower value of the market made the companies that held many digital assets, such as Galaxy Digital, less valuable.
Galaxy Digital Reports Growth in Operating Performance
Despite the loss, Galaxy pointed out that the operating business had seen some progress.
The corporation stated that the digital assets business unit earned an adjusted gross profit of $66 million, and the adjusted EBITDA was $11 million for the quarter. The adjusted gross profit went up by 34% from the last quarter.
EBITDA is a financial metric that emphasizes a company’s operational performance by ignoring factors such as interest costs, taxes, depreciation, amortization, and other one-offs.
These figures indicate that Galaxy is gradually decreasing its reliance on volatility in the price of cryptocurrencies, and it continues to operate despite challenging market conditions.
AI Data Center Business Adds New Revenue
Galaxy Digital continued to expand its artificial intelligence infrastructure business, too.
The firm earned an adjusted gross profit of $20 million from its AI data centers business as the company ramped up its CoreWeave capacity.
Galaxy anticipates that through its partnership with CoreWeave that will last for 15 years, it will generate roughly $1 billion annually in revenues. It has been pouring funds into the sector after raising $1.4 billion in August 2024 for the expansion of its Helios AI data center in Texas.
It appears that despite fluctuations in Galaxy’s crypto-related activities, the growth in the AI infrastructure segment becomes more evident.
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