Galaxy Digital missed Q2 revenue estimates at $8.711B, down 15% from Q1. Net loss narrowed to $85M. Data center leasing from the Helios-CoreWeave partnership starts Q3.
Mike Novogratz's firm reported second-quarter revenue of $8.711 billion, missing the $10.213 billion it posted in Q1. Shares fell roughly 7% in pre-market trading.
The 15% sequential decline hit revenue, but the damage sat unevenly across Galaxy's business lines. Net loss narrowed to $85 million, roughly $0.09 per share, from $216 million in the first quarter.
Adjusted gross profit from the digital assets segment climbed 34% quarter-over-quarter to $66 million.
Total equity stood at $2.7 billion as of June 30. Cash and stablecoins on hand totaled $2.46 billion.
The data centers segment generated an adjusted gross profit of $20 million and adjusted EBITDA of $11 million during the quarter. Galaxy's Helios campus completed its first full quarter of revenue generation through a partnership with CoreWeave, the GPU cloud computing company. Phase I of the data center operation is expected to generate roughly $80 million in quarterly leasing revenue starting in Q3, the company said.
Galaxy announced three new Texas site acquisitions after the quarter ended, pushing its total power pipeline beyond 5.7 GW. To fund that expansion, the firm closed a $3.5 billion senior secured notes offering on July 28.
The Q3 report will test whether Phase I delivers that projected $80 million in leasing revenue, which would shift the composition of Galaxy's income stream toward infrastructure. The $3.5 billion debt raise gives the firm capital to build out its power pipeline, but senior secured notes also carry fixed obligations.
Galaxy still isn't profitable. Until it is, every revenue miss will draw a sharper market reaction.
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