Galaxy Digital's $85M Q2 loss halved from Q1 as Helios data center turned profitable with $20M gross profit. The CoreWeave lease drives revenue, yet tenant concentration and buildout costs pose risks.
Galaxy Digital posted an $85 million net loss for the second quarter, less than half the $216 million it lost in the first quarter. The improvement came from the Data Centers segment, which turned its first quarterly profit.
The segment generated $20 million in adjusted gross profit, up from $3 million in the prior quarter. The gain traces directly to the Helios campus in West Texas. Galaxy completed Phase I on schedule, delivering 133 megawatts of critical IT load to CoreWeave, the AI cloud computing provider. The deal is structured as a 15-year lease. Starting in Q3, Galaxy projects quarterly leasing revenue of roughly $80 million from that arrangement. CoreWeave's broader commitments across the Helios campus are expected to eventually generate more than $1 billion in annual revenue, the company said.
The data center segment also posted $11 million in adjusted EBITDA for the quarter, flipping from a money-losing operation into a contributor. After the quarter closed, Galaxy acquired a 500-acre site in McGregor, Texas, expandable to 500 MW of capacity. That acquisition pushed the total Texas power pipeline beyond 5.7 gigawatts.
Galaxy's core digital asset business generated $66 million in adjusted gross profit, a 34% increase from the prior quarter, despite lower trading volumes and weaker digital asset prices. The average loan book hovered around $1.44 billion. Overall adjusted gross profit for the company came in at $43 million. Adjusted EBITDA was negative $77 million. Diluted adjusted earnings per share landed at negative $0.09, an improvement from the Q1 loss. As of June 30, the company held $2.459 billion in cash and stablecoins, with total equity at $2.72 billion.
CEO Mike Novogratz's firm has been repositioning from a pure crypto merchant bank into a hybrid of digital asset manager and power infrastructure company serving the AI compute boom. The 15-year CoreWeave lease provides revenue visibility that crypto trading cannot offer. The near-term data center revenue is concentrated on that single tenant. CoreWeave, which recently went public, carries significant debt and operates in a competitive market for GPU cloud services.
Converting 5.7 GW of potential capacity into revenue-generating data centers requires billions in capital expenditure, regulatory approvals, and tenant commitments. The McGregor acquisition shows momentum. The buildout will take years. Galaxy Digital's total power pipeline stands at more than 5.7 GW after the McGregor acquisition.
If the projected $80 million in quarterly leasing revenue from Helios Phase I materializes in Q3, Galaxy could see a dramatic improvement in its overall financial picture. The narrowing losses, from $216 million to $85 million in a single quarter, suggest the bleeding is slowing.
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