Galaxy Digital reported a Q1 2026 net loss of $216 million as a quarter‑long slump in digital asset prices dented results — but the firm also hit a milestone: its data‑center revenue has begun to flow.
Key figures
- Q1 net loss: $216 million
- Diluted EPS: $(0.49)
- Digital asset prices: roughly 20% decline during the quarter
- 2025 net loss: $241 million; adjusted EBITDA: $216 million
What happened
Galaxy said that a roughly 20% drop in token prices and unrealized markdowns on balance‑sheet positions more than offset gains from trading, asset management, staking and lending. Management noted the Q1 loss narrowed versus the prior quarter and emphasized that the company’s operating businesses are “resilient” and becoming less correlated with crypto price swings. “We are executing on a strategy that diversifies our revenue base,” the shareholder letter said.
Operational bright spots
Despite the headline loss, Galaxy’s Digital Assets segment — covering trading, lending, asset management and staking — produced “hundreds of millions” in adjusted gross profit across 2025 even though the full year finished in the red. Investors showed tolerance for non‑cash marks last year: after Galaxy reported a $241 million loss for 2025 but $216 million in adjusted EBITDA, the stock rose more than 11%.
The Q1 report also marks a structural pivot for Galaxy: its Data Centers division booked revenue for the first time, reflecting early commercialization of the Helios AI campus in West Texas. Management had previously guided that data‑center revenue would begin in the first half of 2026, and Q1 results indicate that timeline is being met.
Helios and the AI play
Galaxy bills Helios as a “multi‑hundred‑billion‑dollar digital infrastructure opportunity.” The campus has secured more than 1.6 gigawatts of approved capacity and a long‑term deal with AI cloud provider CoreWeave that Galaxy says could deliver over $1 billion in annual revenue at full ramp. To fund Helios’ initial retrofit and expansion, Galaxy closed a $1.4 billion project financing facility — a move that positions the company increasingly as a hybrid between a digital‑assets bank and an AI infrastructure operator.
Why it matters
CEO Mike Novogratz argues the Helios pivot will create a more durable earnings engine that’s less tightly coupled to bitcoin and altcoin swings. But Q1 highlights the core investor question for GLXY: can Helios and related infrastructure projects scale quickly enough to offset volatile crypto market drawdowns and move the company beyond boom‑and‑bust earnings cycles?
Bottom line
Galaxy’s Q1 illustrates the transition pains of a crypto firm diversifying into AI infrastructure. The first revenue from data centers is a crucial proof point, but the pace of Helios’ ramp and the broader crypto market trajectory will determine whether that new revenue stream can shield Galaxy from future token selloffs.
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