Galaxy Digital (TSE:GLXY) executives struck an optimistic tone on the company’s dual focus on digital assets and data centers, even as first-quarter results were weighed down by a broad decline in crypto prices. Management highlighted operational resilience in its trading business, ongoing cost discipline, and a key milestone at its Helios data center campus in Texas as the first data hall was delivered to tenant CoreWeave.
Q1 results impacted by mark-to-market losses
Galaxy reported a GAAP net loss of $216 million, or $0.49 per share, and adjusted EBITDA of negative $188 million for the first quarter of 2026. Management said the results were driven primarily by unrealized mark-to-market losses on balance sheet digital asset holdings, with the treasury and corporate segment posting an adjusted gross loss of $140 million.
Founder and CEO Mike Novogratz acknowledged the headline performance was not where the company wants it to be, noting crypto prices were down about 25% on average during the quarter. Still, he said he “feel[s] pretty good about the business right now,” pointing to progress across both operating segments.
Digital asset businesses hold steady despite weaker markets
On the operating side, Galaxy’s digital asset segment generated $49 million of adjusted gross profit, roughly in line with the fourth quarter, despite what management described as a “challenging quarter” in which the total crypto market cap fell about 20%.
The company said it also tightened expenses in the segment, narrowing its adjusted EBITDA loss by roughly a third from Q4. Management framed the quarter as evidence that the business mix is beginning to shift toward more durable revenue streams, with “recurring fee revenue and transaction income” continuing to scale.
- Global markets: Adjusted gross profit of $31 million, up 3% quarter-over-quarter. Management said Galaxy’s trading volumes were flat even as industry-wide activity declined more than 25%, and noted a growing client mix from traditional asset managers and hedge funds.
- Lending: Average loan book down about 20% sequentially, reflecting crypto price depreciation, “modest client deleveraging,” and the roll-off of two larger loans. President and CIO Christopher Ferraro said the firm prioritizes avoiding losses and is comfortable allowing natural deleveraging in weaker markets, adding that the company has since added new clients and originated new loans while diversifying counterparties.
- Asset management: Adjusted gross profit of $18 million, with about $8 billion in assets on platform at quarter-end. The firm reported $69 million of net inflows in Q1 and said it secured a $75 million investment mandate after quarter-end.
Management also announced plans to launch a new fintech hedge fund on May 1 focused on the “convergence of traditional financial services, blockchain infrastructure, and emerging technologies.”
In a brief update on GalaxyOne, Ferraro said crypto trading has been the platform’s largest use case so far. He added that the company recently launched Solana staking at 0% commission and expects to open the platform to business accounts in the coming months.
Early Q2 improvement and balance sheet actions
Management said early second-quarter activity improved alongside digital asset prices. The company provided a preliminary update that Q2-to-date adjusted EBITDA was estimated at approximately $90 million through last Friday.
On the balance sheet, Galaxy ended the quarter with approximately $10 billion in total assets, down from $11 billion at year-end due to digital asset price declines. Total equity capital was $2.8 billion, with about 60% allocated to operating businesses. The company held $1.4 billion of net digital assets and investments in Treasury and Corporate, down 19% quarter-over-quarter, and reported $2.6 billion in cash and stablecoin balances, roughly flat versus year-end.
Galaxy repurchased 3.2 million Class A shares for $65 million under its $200 million authorization, which management said more than offset dilution from 2025 equity-based compensation and brought quarter-end basic shares outstanding to about 390 million. The company also referenced the potential repayment of $445 million of exchangeable notes maturing in December.
Helios data centers reach “lights are on” milestone
Ferraro said “the lights are on at the Helios campus,” and confirmed the company has delivered the first data hall to CoreWeave, calling it the most significant milestone since the lease was signed. He described the transition from a former bitcoin mining facility to a “live operational AI data center” with power distribution, cooling, and network connectivity, and said the delivery provides a track record of executing “on time and on budget.”
The company said it remains on track to deliver substantially all of the 133 MW of critical IT capacity for Phase 1 by the end of Q2. Ferraro also relayed that CoreWeave has indicated it expects a “$multi-trillion investment-grade public company” to be the end user for GPUs at the Phase 1 facility once clusters are operational.
Phase 2, which includes 260 MW of incremental critical IT capacity, is under greenfield construction, with data hall deliveries expected to start in the first half of 2027. On financing, Ferraro said demand has been strong and the company aims to maintain flexibility without over-leveraging, expecting to share more “in the near term.” In the Q&A, he said the high-yield bond market has taken market share from traditional bank syndicates and that spreads have tightened across the board.
Leasing efforts for 830 MW and ERCOT regulatory updates
Management said it is in active discussions with a “select group” of potential customers regarding the 830 MW of approved power at Helios, emphasizing a deliberate approach given the scale of multi-year, multi-billion-dollar leasing arrangements. Novogratz said his expectation is that the tenanting process for the 830 MW could be a “second half of the year process” as buyers focus near-term on 2026 and 2027 power needs.
Ferraro also said the company has begun procuring long-lead electrical infrastructure for the 830 MW development, including placing deposits and issuing purchase orders for main power transformers and circuit breakers.
On ERCOT, Ferraro discussed draft rule PGRR145, which would establish a baseload category for projects with a 2028 energization date not subject to re-study in Batch 0 if certain conditions are met. He said Galaxy’s interconnect studies were completed on Jan. 15 and its service agreement is executed, while noting the rule remains in draft and could change. In response to analysts, he said the 830 MW is “very clear” to be part of baseload capacity for Batch 0, while timing questions remain around an additional 1.8 GW progressing through ERCOT studies, with more process clarity expected around June.
Ferraro said the company continues to evaluate a pipeline of U.S. opportunities beyond Helios and expects to discuss a “multi-campus portfolio” within the year. When asked about potentially splitting the data center business, Ferraro said there was “no update,” and Novogratz added the topic may become more of a debate toward year-end as Phase 1 cash flows and Phase 2 progresses.
About Galaxy Digital (TSE:GLXY)
Galaxy Digital is a is a diversified financial services and investment management company dedicated to the digital assets and blockchain technology industry. The company operates through five business lines: Trading, Principal investing, Asset management, mining and Investment Banking.
