Galaxy Digital (GLXY) managed to shrink its first-quarter loss as a strategic shift in business operations and stringent financial management compensated for the drop in cryptocurrency prices. The company reported a loss of $216 million, or 49 cents per share, which was better than the anticipated 59 cents per share by analysts. Revenue declined from $12.9 billion in the previous year to $10.2 billion.
In response to increasing demand for data centers, Galaxy Digital delivered its initial data hall at Helios campus in Texas to CoreWeave (CRWV) this month. This marks the inception of revenue under a long-term lease focused on artificial intelligence workloads.
“The company’s adjusted gross profit remained stable, driven by a shift towards recurring fee revenue and transaction income that scale effectively and bolster resilience amid softer market conditions,” stated Galaxy Digital in a release. “Strict expense management during the quarter aided in reducing the adjusted EBITDA loss, highlighting an emphasis on operational efficiency amid tougher markets.”
By the end of Q2, the Helios facility is projected to supply 133 megawatts of computing power. Furthermore, approval has been secured for an additional 830 megawatts at the site, elevating total capacity beyond 1.6 gigawatts.
Despite these developments, GLXY shares experienced a downturn, falling by 0.84% to $24.84.