Galaxy Digital, the crypto financial services and infrastructure firm led by Mike Novogratz, posted a $216 million net loss for the first quarter of 2026, down from a $482 million loss in the prior quarter.
Adjusted EBITDA was negative $188 million, and diluted earnings were negative $0.49 per share.
Total equity was $2.8 billion, up 46% year-over-year. The company held $2.6 billion in cash and stablecoins, nearly unchanged from the previous quarter.
Losses were mainly driven by unrealized markdowns on digital assets and investment positions in the Treasury and Corporate segment which were pressured by weaker crypto market conditions.
The total crypto market cap fell roughly 20% during the quarter. Bitcoin dropped nearly 24%, its steepest quarterly decline since 2018, ending March at around $66,600.
Helios data center progress
Galaxy turned on its first data hall at the Helios campus in West Texas, delivering it to CoreWeave, the AI compute provider, under a Phase I lease agreement.
“The lights are on at Helios,” Novogratz posted on X. “Our AI data center business is officially generating cash flow.”
The remaining 133 megawatts of critical IT capacity under Phase I are on track for delivery by the end of Q2 2026, with a 260-megawatt Phase II build already underway for early 2027 delivery.
During the quarter, ERCOT, the Texas grid operator, approved an additional 830 megawatts of power for Helios, doubling its total approved capacity to more than 1.6 gigawatts.
The full CoreWeave lease spans 526 megawatts of critical IT load across three phases, with a 15-year base term.
Galaxy projects that the arrangement alone will generate over $1 billion in average annual revenue with anticipated EBITDA margins of around 90%.
Digital assets segment
The digital assets segment’s adjusted gross profit was $49 million, just below the prior quarter’s $51 million. That held up because of a shift toward recurring fee revenue and transaction income.
Trading counterparties grew 4% to 1,691, and Galaxy’s own trading volumes held flat even as industry-wide volumes dropped sharply, according to data from The Block.
The lending book shrank 20% to an average of $1.4 billion as clients deleveraged.
Asset management
The asset management division oversaw roughly $5 billion in assets under management and $3.2 billion in assets under stake by the end of Q1 2026.
Assets under stake fell 35% quarter-over-quarter, but that was almost entirely because token prices fell, not because clients withdrew. Net inflows were $69 million during the quarter.
BlackRock chose Galaxy as an approved validator for its iShares Staked Ethereum Trust ETF, BlackRock’s first rewards-generating crypto product. Galaxy also announced a new fintech-focused hedge fund targeting the intersection of traditional finance and blockchain infrastructure, with a May 1 launch date.
Corporate treasury and capital allocation
The corporate treasury segment logged a $140 million adjusted gross loss and $167 million in negative EBITDA, driven by unrealized markdowns on digital asset positions and venture investments.
Galaxy’s equity allocation is split roughly three ways: 33% digital assets, 28% data centers, 39% treasury and corporate.
Share buybacks and corporate structure
The company bought back 3.2 million shares for $65 million during the quarter, more than offsetting dilution from employee stock grants. It completed its voluntary delisting from the Toronto Stock Exchange, consolidating entirely on Nasdaq, a move that simplifies its corporate structure following the May 2025 reorganization that converted the old partnership into a standard corporate entity.
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