Galaxy Digital fell 13% after Q2 net loss of $85M missed revenue estimates. Helios data center posted first revenue; Galaxy sees $80M quarterly leasing from phase one CoreWeave lease starting Q3.
Galaxy Digital shares fell more than 13% Wednesday after the company reported an $85 million net loss for the second quarter, well short of analyst expectations on the top line. The stock traded near $19.15, down roughly 13.5% from Tuesday's close, after touching $18.97 in early trading.
The crypto investment bank posted a diluted and adjusted loss of $0.09 per share. Total equity stood at $2.7 billion at quarter-end, with $2.5 billion in cash and stablecoins, according to the company's earnings report. The net loss narrowed sharply from the first quarter's $216 million loss. Adjusted EBITDA improved to a loss of $77 million from a loss of $188 million, and adjusted gross profit swung to positive $43 million from a loss of $88 million.
Galaxy's Digital Assets and Data Centers segments combined for $86 million in adjusted gross profit and $1 million in adjusted EBITDA. The Digital Assets unit alone generated $66 million in adjusted gross profit, up 34% from the prior quarter, though it recorded an adjusted EBITDA loss of $11 million. Treasury and Corporate posted an adjusted gross loss of $42 million and an adjusted EBITDA loss of $78 million, driven primarily by unrealized losses on digital asset and investment positions.
The Helios data center business generated revenue for the first time during the quarter as Galaxy gradually delivered capacity to CoreWeave. The Data Centers segment reported $20 million in adjusted gross profit and $11 million in adjusted EBITDA. By quarter-end Galaxy had delivered all 133 megawatts of critical IT load covered by the first phase of its 15-year CoreWeave lease. With full capacity now operational, Galaxy expects the first phase to produce roughly $80 million in quarterly leasing revenue starting in the third quarter. The company said it targets a project-level adjusted EBITDA margin above 90%.
Galaxy has started construction on Helios phase two, which will add 260 megawatts of critical IT capacity. Initial data hall deliveries are scheduled for the second quarter of 2027. The company completed a $3.5 billion private debt offering in July to finance the expansion. Galaxy also acquired three additional development sites in Texas, bringing its total potential power pipeline to more than 5.7 gigawatts.
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