Galaxy Digital, a prominent financial services and investment management firm focused on digital assets, reported a second quarter loss of $85 million for 2026 amid a sharp decline in crypto asset prices and broader market downturns.
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AAPLRevenue Misses Expectations, Shares React
The company’s financial statements showed a loss of $0.09 per share for Q2. Analysts linked the quarterly deficit primarily to falling digital asset values, which weighed heavily on Galaxy Digital’s balance sheet.
Total revenue for the period fell to $8.7 billion, down from $10.2 billion in the first quarter of 2026. The figure also missed Wall Street projections of $12.7 billion published by Yahoo Finance.
Following the earnings report, Galaxy Digital’s shares dropped 6.2% in premarket trading to $20.70. Over the past month, the company’s stock has declined by nearly 10%.
These financial results coincided with a significant decrease in the overall cryptocurrency market. Data from CoinMarketCap showed that the total crypto market capitalization slid almost 15%, falling from $2.35 trillion on April 1 to about $2 trillion on June 30.
The sharp market contraction left firms with substantial digital asset holdings, including Galaxy Digital, reflecting a reduced enterprise value.
| Metric | Q1 2026 | Q2 2026 | Wall Street Estimate |
|---|---|---|---|
| Revenue | $10.2 billion | $8.7 billion | $12.7 billion |
| Crypto Market Cap | $2.35 trillion | $2 trillion | – |
Operating Gains and Business Diversification
Despite reporting an overall net loss, Galaxy Digital highlighted improvements within its operating business. The company stated that its digital assets unit generated an adjusted gross profit of $66 million and an adjusted EBITDA of $11 million for the quarter. Compared to the prior quarter, adjusted gross profit increased 34%.
Mini dictionary: EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is a measure used to assess a company’s core operating performance by excluding the effects of capital structure, tax rates, and non-cash accounting items. It provides insight into profitability from regular business activities.
Management suggested that these metrics signal a gradual reduction in Galaxy Digital’s dependence on crypto price swings as the firm continues to strengthen its business despite market headwinds.
Galaxy Digital noted that its digital assets business achieved a 34% increase in adjusted gross profit compared to the previous quarter, while adjusted EBITDA reached $11 million, showing stability in operational performance.
AI Infrastructure Expansion and Strategic Partnerships
The firm also expanded its artificial intelligence infrastructure segment, which saw an adjusted gross profit of $20 million during the quarter as Galaxy scaled up its CoreWeave data center capacity.
Galaxy Digital expects its 15-year partnership with CoreWeave, a cloud infrastructure provider specializing in GPU accelerated compute resources, to generate about $1 billion in annual revenue. In August 2024, Galaxy raised $1.4 billion to fund an expansion of its Helios AI data center in Texas, furthering these ambitions.
Mini dictionary: CoreWeave is a US-based cloud computing provider focused on specialized and scalable infrastructure solutions for artificial intelligence workloads, offering GPU-powered resources that support companies in machine learning, virtualization, and graphics processing.
Galaxy Digital anticipates that, through its partnership with CoreWeave, its AI infrastructure initiative could drive $1 billion in annual revenues over the next 15 years.
The recent performance underscores how growth in Galaxy’s AI and infrastructure business is helping to offset volatility in its core crypto segment.
