Galaxy Digital loses 14% of market capitalization: the crypto market pressures financial results
Galaxy Digital (GLXY) shares plunged 14% after the release of its second-quarter financial report. The key factor was losses in the cryptocurrency segment, which offset positive momentum in AI infrastructure.
The market reaction was immediate: quotes fell from $22.14 to $19.07 within a day. The company's revenue declined by 15% to $8.7 billion, compared to $10.2 billion in the previous quarter. However, a significant portion of turnover went toward covering transaction costs, leaving a net loss of $85 million.
A comparison with the previous quarter shows easing pressure: in the first quarter, losses reached $216 million. The diluted loss per share was $0.09. Nevertheless, adjusted gross profit for the group turned positive — $43 million versus a loss of $88 million in the first quarter. The treasury and corporate management segment looks particularly concerning, bringing an adjusted gross loss of $42 million.
The adjusted EBITDA across the entire company remained negative — minus $77 million. Shareholders' equity at the end of the quarter reached $2.7 billion. Notably, the digital assets division showed resilience: its adjusted gross profit grew by 34% quarter over quarter, reaching $66 million. Galaxy's trading volume declined by 7%, while the industry as a whole saw a decline exceeding double digits.
AI infrastructure becomes a growth point
Beyond trading, Galaxy is actively expanding its own data center network for artificial intelligence. The company completed the first phase of connecting capacity in Texas at the Helios campus. Approximately 133 MW of critical computing load has already been transferred to CoreWeave under a 15-year lease agreement.
According to the company's estimates, starting from the third quarter, this contract will bring Galaxy about $80 million in leasing revenue with an adjusted EBITDA margin above 90%. Already after the reporting period, Galaxy acquired three more sites in Texas, and the total capacity portfolio exceeded 5.7 GW.
To finance the next phase, the organization placed senior secured bonds worth $3.5 billion with maturity in 2031. The funds will be directed toward continuing construction of Helios I, Phase II.
My view: The decline in Galaxy Digital shares is a classic story of how cryptocurrency market volatility overshadows success in business diversification. However, long-term contracts in AI infrastructure with margins above 90% are a solid foundation. If the crypto segment stabilizes, the company's shares have every chance of recovery, but investors should prepare for high volatility in the coming quarters.