What to know:
- Galaxy Digital posts $216M Q1 loss as crypto price drop offsets revenue growth.
- Loss narrows from the prior quarter as the firm expands diversified revenue streams.
- Helios Data Center ramps up with CoreWeave deal, targeting over $1B annual revenue.
Galaxy Digital suffered a net loss of $216 million in Q1 2026, as a general decline in the prices of digital assets affected its performance. The decline offset growth in fee-based and infrastructure revenue across its business segments during the quarter.
As per the report, the diluted earnings per share of the company stood at $0.49. It said that declining prices of tokens and unrealized losses on positions to be held on the balance sheets exceeded operating earnings of trading, managing assets, and principal investments.
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Galaxy Digital Loss Narrows as Revenue Base Expands
The management reported that the loss had reduced relative to the previous quarter. It further stated that the company is becoming less sensitive to crypto price fluctuations by diversifying its revenue base across its operating segments.
The company referenced its Digital Assets division, which comprised trading, lending, asset management, and staking. This division produced hundreds of millions of dollars of adjusted gross profit during 2025 even though net income was negative throughout the year.
Galaxy Digital registered a net loss of $241 million in 2025. It also reported adjusted EBITDA of $216 million, its stock increased over 11% following the annual report, showing the interest of the investors in terms of operating performance.
The first quarter is characterized by a change in structure when the data center division earned revenue. This is an early commercialization of the Helios AI campus in West Texas.
The management previously indicated that the revenue of data centers will start in the first half of 2026. Q1 results denote that the company has begun to fulfill that timeline according to the reported performance.
Helios Capacity and Funding Drive Infrastructure Push
Helios has acquired over 1.6 gigawatts of permitted capacity. It also has a long-term contract with CoreWeave that is set to yield more than a billion in revenue per year on a large scale.
Galaxy Digital has just shut a $1.4 billion project funding facility. The grant helps it to initially retrofit and expand its Helios site as part of its infrastructure development.
CEO Mike Novogratz claimed the transition forms a more stable earning base. He said that the strategy lowers the dependence on the prices of Bitcoin and altcoins, but the short-term outcomes remain dependent on the market situation.
In the Q1 report, there is a discrepancy between the reported losses and the new revenue streams. Shareholders are keen on how fast Helios and other initiatives can grow to counter crypto market-linked deteriorations in future outcomes.
Also Read: Saipan Bitcoin Fraud Case Highlights Crypto Crime Risks as Losses Surge
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