Galaxy Digital lost $85M in Q2; Phase I CoreWeave lease operational, set to generate ~$80M quarterly revenue from Q3. Phase II financed with $3.5B notes.
Galaxy Digital closed the second quarter with an $85 million net loss, the company said in its SEC filing. The loss came as digital asset prices declined, dragging on the firm's Treasury and Corporate segment. Diluted earnings per share landed at negative $0.09 on both a GAAP and adjusted basis.
Phase I of the CoreWeave AI infrastructure lease was fully in service by the end of the quarter. That 133-megawatt, 15-year contract began contributing revenue during the ramp. Galaxy now expects roughly $80 million in quarterly leasing revenue from Phase I starting in the third quarter, with a project-level adjusted EBITDA margin above 90%, excluding overhead.
The segment results highlight the split. The Data Centers unit, which houses the CoreWeave lease, generated $20 million of adjusted gross profit and $11 million of adjusted EBITDA during the ramp. Treasury and Corporate recorded a $42 million adjusted gross loss and a $78 million adjusted EBITDA loss, driven largely by unrealized losses on digital assets and investment positions.
Phase II of the expansion carries its own financing. Galaxy Helios Data Centers II LLC, a project subsidiary, completed a $3.507 billion offering of 9.875% senior secured notes due 2031. Another project unit, Galaxy Helios II LLC, guarantees the notes. The financing documents keep the credit support at the project level, secured by project assets and pledged equity.
CoreWeave remains the critical counterparty. Galaxy's quarterly filing states that the Data Centers segment initially depends heavily on the AI infrastructure customer. Phase I is now generating contracted revenue outside crypto markets. Whether that revenue stream becomes the steady income Galaxy projects depends on CoreWeave's performance and Galaxy's execution on Phase II construction.
The Q3 figures remain guidance. The company will report actual results later in the quarter.
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