- Galaxy posted a $216M loss as crypto prices fell about 20%, hitting valuations.
- Strong liquidity with $2.8B equity and buybacks signaled a long-term confidence outlook.
- Helios data center shift to revenue, and 1.6GW capacity marks a key growth phase ahead.
Galaxy Digital reported a $216 million net loss for the first quarter of 2026 as weaker cryptocurrency prices weighed on investment positions and reduced balance sheet values. The company linked the loss to a broad digital asset market decline of roughly 20% during the quarter, which also pushed total assets down to about $10 billion.
However, management pointed to resilient operating segments, continued capital strength, and the start of revenue generation at its Helios data center as signs that the business is entering a new phase.
Despite the quarterly loss, Galaxy ended March with $2.8 billion in equity and $2.6 billion in cash and stablecoins. Those reserves helped support share repurchases, ongoing infrastructure expansion, and strategic growth initiatives. Moreover, the company repurchased 3.2 million shares for $65 million, signaling confidence in long-term value even during a volatile period.
Digital Assets Business Shows Stability
Galaxy’s trading and asset management businesses remained relatively steady despite weaker market conditions. Digital assets generated $49 million in adjusted gross profit, while trading volumes held firm even as broader industry activity declined. That performance suggested the firm preserved market share while peers faced softer conditions.
Additionally, Galaxy’s average loan book declined 20% to $1.4 billion as clients reduced leverage. However, the number of trading counterparties increased, pointing to broader client engagement. Asset management also delivered $69 million in net inflows, even as falling token prices reduced assets under management to roughly $5 billion.
Significantly, Galaxy continued expanding beyond traditional crypto services. The firm said BlackRock selected Galaxy as an approved validator for the iShares Staked Ethereum Trust ETF after the quarter ended.
That move may strengthen Galaxy’s position in institutional staking services. Moreover, a fintech-focused hedge fund is expected to launch in early May, adding another growth channel.
Helios Data Center Becomes a New Revenue Driver
Investors also focused on Galaxy’s Helios data center in Texas, where the first data hall was delivered to CoreWeave in April. That milestone shifted the project from construction into revenue-generating operations. Consequently, Galaxy expects data center revenue to begin ramping in the second quarter.
The company also secured approval for an additional 830 megawatts of power capacity, lifting total approved capacity at Helios to more than 1.6 gigawatts. Management continues advancing Phase II development while pursuing tenants for additional capacity. Galaxy estimates the CoreWeave lease could generate more than $1 billion in average annual revenue over time.
Balance Sheet Pressures Meet Long-Term Expansion
Treasury and corporate operations remained the largest drag on results due to unrealized losses tied to digital assets and investments. Net digital assets and investments fell 19% from the previous quarter. However, adjusted EBITDA losses improved sharply compared with the prior quarter, reflecting tighter cost controls.
Related: Ripple’s Corporate Treasury Will Boost Companies’ Bottom Lines—Analyst
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