Crypto markdowns drove Galaxy's $85M Q2 loss. CoreWeave-leased data centers target $80M in quarterly revenue from Q3; Phase II funding is set at 9.875%.
Galaxy Digital (GLXY) closed the second quarter with an $85 million net loss, a shortfall Galaxy blamed on falling prices of the digital assets it holds. The loss came in the same quarter its artificial intelligence data center business began producing income of its own from CoreWeave-leased capacity.
Diluted earnings per share were negative $0.09. Adjusted EPS, on a non-GAAP basis, landed at the same negative $0.09. Galaxy reported $43 million in adjusted gross profit and a $77 million adjusted EBITDA loss for the period.
Galaxy runs trading and asset management alongside the data center landlord business, and the quarter split along those lines. The data center segment posted $20 million in adjusted gross profit and $11 million in adjusted EBITDA, figures that reflect new capacity coming online rather than a full quarter of operations, Galaxy said. Treasury and Corporate recorded a $42 million adjusted gross loss and a $78 million adjusted EBITDA loss, driven mostly by unrealized losses on digital assets and other investment positions. The $20 million data center figure is nearly half of the group's $43 million adjusted gross profit.
Galaxy holds a large inventory of digital assets and marks those positions to market each quarter; the loss is the direct result of price moves tracked across crypto market analysis. The data center revenue, by contrast, does not depend on token prices at all.
By the end of June, all 133 megawatts of critical IT load under Galaxy's Phase I lease with CoreWeave were in service. Critical IT load measures the computing capacity a facility can support. CoreWeave rents that capacity under a 15-year agreement, a contract that produces income entirely outside crypto markets. Galaxy now expects about $80 million in quarterly leasing revenue from the business starting in the third quarter, and projects a project-level adjusted EBITDA margin above 90 percent. At that margin, most of the revenue converts to project-level EBITDA. Annualized, the $80 million figure comes to roughly $240 million. Both remain guidance.
The $85 million loss and the $80 million revenue expectation do not offset each other. Galaxy's consolidated bottom line absorbs the entire shortfall. The revenue number describes a single segment. Phase I capacity only reached full service at the end of June, so the second quarter captured the build-up toward full lease economics. The third quarter is the first full billing period.
A second phase now has its financing. Galaxy Helios Data Centers II, a subsidiary, completed a $3.507 billion offering of senior secured notes at 9.875%, due in 2031. Galaxy Helios II LLC guarantees the notes, and project assets plus pledged equity in the issuer back them as collateral. The proceeds pay for Phase II, which adds 260 megawatts of capacity.
The filing flags heavy initial dependence on CoreWeave as the segment's main customer. Phase I is running and producing contracted revenue outside crypto markets. Galaxy expects Phase II handovers to begin in 2027, when the project company starts taking on fixed cash costs tied to the new capacity.
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