Galaxy Digital stock drops 14% after an $85 million Q2 net loss, even as its AI data center business posts its first profitable quarter.
Galaxy Digital (GLXY) shares fell 14% Wednesday, closing at $19.07, down from $22.14, after the crypto and AI infrastructure firm reported a second-quarter net loss of $85 million. Falling digital asset prices drove the loss, and a 15% revenue decline overshadowed steady progress in the company’s artificial intelligence data center business.
Crypto Downturn Drags Down Results
Galaxy’s net loss narrowed from $216 million in the first quarter, but revenue fell to $8.7 billion from $10.2 billion the prior quarter, a 15% drop. Adjusted diluted loss per share reached $0.09. The company attributed much of the weakness to declining digital asset prices during the period, which hit its Treasury and Corporate segment hardest, producing an adjusted gross loss of $42 million. Adjusted EBITDA came in at negative $77 million, while total equity stood at $2.7 billion at quarter’s end.
Galaxy Digital (GLXY) Stock Performance. Source: Google Finance
Not every part of the business struggled. The digital assets unit posted adjusted gross profit of $66 million, up 34% from the prior quarter, even as trading volumes slipped 7% amid cooler market activity. The mixed results track with pressure seen across recent crypto earnings reports industry-wide, as digital asset firms navigate a choppier trading environment.
AI Data Center Business Turns Profitable
Galaxy’s AI infrastructure buildout delivered the quarter’s clearest bright spot. The company completed the first phase of power delivery at its Helios campus in Texas, supplying 133 megawatts of critical computing load to CoreWeave under a 15-year lease. Management expects that agreement alone to generate approximately $80 million in quarterly revenue at margins above 90%, starting in the third quarter, according to the company’s second-quarter results.
- Data Centers generated $20 million in adjusted gross profit and $11 million in adjusted EBITDA in Q2, marking the segment’s first quarter of revenue-generating operations
- Galaxy acquired three additional Texas sites after quarter-end, expanding its power pipeline beyond 5.7 gigawatts
- The company raised $3.5 billion in senior secured notes due 2031 on July 28 to fund Helios I, Phase II construction
What It Means for Galaxy’s Valuation
The quarter illustrates the tension at the center of Galaxy’s business model: a volatile crypto trading arm paired with a capital-intensive AI infrastructure buildout that is only beginning to generate returns. With the CoreWeave lease set to contribute high-margin revenue starting next quarter, and additional Texas capacity now under Galaxy’s control, the AI segment’s trajectory looks more stable than crypto trading in the near term. How investors weigh that balance, steady AI infrastructure income against unpredictable digital asset swings, will likely shape how Wall Street values crypto-adjacent stocks like Galaxy going forward.