Galaxy Digital Drops After Earnings – Here Is Why AI Infrastructure Could Reshape Its Future

• Galaxy Digital shares fell nearly 13% after the company reported an $85 million second-quarter net loss.
• The loss was largely driven by declining digital asset prices, despite improvements across Galaxy’s operating businesses.
• Management highlighted its Helios AI data center as a major growth driver after the business generated revenue for the first time.

Galaxy Digital shares tumbled nearly 13% in early trading Wednesday after the company reported a second-quarter net loss, as weakness in cryptocurrency markets overshadowed continued progress in its expanding artificial intelligence infrastructure business.

The digital asset financial services and data center company posted a net loss of $85 million, primarily reflecting unrealized declines in the value of its cryptocurrency holdings and investment portfolio.

While the headline results disappointed investors, executives emphasized that Galaxy’s core operating businesses continued to strengthen despite the challenging market environment.

Crypto Weakness Weighed on Results

Galaxy’s treasury and corporate division reported a $42 million adjusted gross loss, driven mainly by unrealized losses on digital assets and investment positions.

Adjusted EBITDA improved significantly, however, narrowing to a $77 million loss from $188 million in the previous quarter.

Meanwhile, Galaxy’s digital assets business performed well, with adjusted gross profit increasing 34% quarter over quarter to $66 million.

Management said the results demonstrate the company is becoming less reliant on cryptocurrency price movements as its business diversifies.

AI Data Center Business Begins Generating Revenue

One of the biggest milestones during the quarter came from Galaxy’s Helios AI infrastructure project.

The data center generated $20 million in adjusted gross profit and $11 million in adjusted EBITDA during its first revenue-producing quarter following the phased delivery of 133 megawatts of IT capacity under a long-term lease with CoreWeave.

With the first phase now fully operational, Galaxy expects Helios to produce approximately $80 million in quarterly leasing revenue beginning in the third quarter.

Chief Executive Officer Mike Novogratz described the project as a significant turning point, saying the campus is now producing positive cash flow.

Expansion Continues Beyond Crypto

Galaxy also continued expanding its AI infrastructure footprint after the quarter ended.

The company acquired three additional development sites in Texas, increasing its potential power capacity to more than 5.7 gigawatts.

To support future growth, Galaxy also completed a $3.5 billion private debt financing, which will help fund construction of the second phase of the Helios campus.

What Investors Are Watching

Although cryptocurrency market weakness continues to pressure earnings, Galaxy is increasingly positioning itself as both a digital asset financial services firm and a large-scale AI infrastructure operator.

Investors will likely focus on whether recurring revenue from Helios and future data center developments can offset volatility tied to crypto markets, potentially making Galaxy’s earnings more stable over time.

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