Key Takeaways:
Galaxy Digital posted a $216M Q1 loss as the crypto market fell approximately 20% by March 31. Galaxy Digital assets fell 12% to approximately $10B, showing crypto sector volatility impact. Galaxy Digital bets on Helios, adding 830MW; Coreweave deal to drive Q2 revenue. Mike Novogratz’s Galaxy Holds $2.6B Cash as $216M Loss Tests Market StrategyGalaxy Digital Holdings posted a sharp quarterly loss of $216 million as falling digital asset prices weighed on its investment portfolio, underscoring the sector’s continued sensitivity to market swings even as the firm expands into infrastructure.
The firm’s core digital assets business showed resilience. Adjusted gross profit in the segment reached $49 million, only slightly below the previous quarter, supported by steady fee income and transaction revenue. Trading volumes held flat even as broader market activity declined, while the average loan book shrank 20% to $1.4 billion amid client deleveraging.
Pressure was most evident in Galaxy’s Treasury and corporate unit, which recorded a $140 million adjusted gross loss driven by unrealized losses on digital assets and investments.
At the same time, Galaxy is pressing ahead with a strategic pivot toward data infrastructure. In April, shortly after quarter-end, the company delivered its first data hall at the Helios campus to Coreweave, marking the start of revenue generation for the project.
The Helios site has also secured regulatory approval for an additional 830 megawatts of power capacity, bringing total approved capacity to more than 1.6 gigawatts. The expansion reflects strong demand for high-performance computing infrastructure, particularly tied to artificial intelligence (AI) workloads.
