Galaxy Digital (GLXY) Reports $216M Q1 Loss Amid Crypto Slump
Galaxy Digital (NASDAQ: GLXY), the crypto-focused financial services firm led by Mike Novogratz, reported a $216 million net loss for Q1 2026. The loss came as digital asset prices slumped, dragging valuations lower. Despite the challenging market, Galaxy reaffirmed its plans to diversify revenue streams through its Helios data center campus, signaling a strategic shift beyond crypto markets.
Crypto Decline Weighs on Earnings
The first quarter was marked by a roughly 20% drop in total crypto market capitalization, which Galaxy attributed as a primary driver behind its $216 million loss. Adjusted EBITDA in the firm’s Treasury and corporate segment recorded a steep $167 million loss amid market volatility. Meanwhile, digital assets contributed $49 million in adjusted gross profit, underscoring some resilience despite soft market conditions.
Galaxy’s earnings of -$0.49 per share came ahead of analyst expectations of -$0.59, according to MarketBeat. However, gross revenue remained flat at $10.2 billion compared to the prior quarter, and below the $12.9 billion figure from Q1 2025. The announcement sent Galaxy’s stock down 5% during pre-market trading on April 28, adding to pressure on the company.
Helios Data Center to Drive Growth
A major highlight for Galaxy was progress at its Helios campus in Texas, a large-scale data center project acquired in 2022. The company delivered its first data hall to CoreWeave and secured approval to double power capacity at the facility to over 1.6 gigawatts. Galaxy expects Helios to begin generating revenue in Q2 2026, with Phase I slated to deliver 133 megawatts of IT load by the end of the quarter.
Helios is part of Galaxy’s broader strategy to expand into high-performance computing and AI-linked data center operations. With digital assets making up just 33% of reported equity as of March 31, 2026, the company is clearly diversifying its business mix. Data centers now account for 28% of equity, reflecting Galaxy’s bet on long-term growth beyond crypto markets.
What’s Next for Galaxy Digital?
Galaxy concluded the quarter with $2.8 billion in total equity, a 46% year-over-year increase, and reported $2.61 billion in cash and stablecoin reserves. The firm also repurchased $65 million of its Class A stock, signaling confidence in its long-term strategy. However, the near-term outlook remains tied to Helios and the broader crypto recovery. With digital asset prices down 3.88% in the past 24 hours to $25.02, market headwinds persist.
Investors will be closely watching Helios’ Q2 contribution to revenue, as well as any signs of stabilization in crypto markets. As Galaxy transitions toward a hybrid model of crypto and data center operations, its ability to execute on this strategy will be key to restoring investor confidence.