Galaxy Digital, a New York-based financial services firm operating in the cryptocurrency market, has released its first quarter results for 2024. The company posted a net loss of $216 million for the period, while its per-share loss came in below analyst expectations. This reduction in loss is attributed to changes in the company’s business model and tighter expense controls.
Revenue drops, loss narrows
The firm’s total revenue slid to $10.2 billion, down from $12.9 billion recorded in the same period last year. Nevertheless, the per-share loss of 49 cents was better than the analyst consensus, which had predicted a 59-cent loss. Galaxy Digital’s ongoing shift towards the rapidly expanding data center sector has prompted key operational changes.
Data center investments drive new growth
Earlier this month, Galaxy Digital completed the handover of its first data hall at the Helios campus in Texas to the cloud computing company CoreWeave. This marks the beginning of a long-term lease focused on artificial intelligence applications. The strategy of building and managing data center capacity for AI purposes is bringing greater diversity to Galaxy Digital’s financial outcomes.
At the Helios facility, existing computing power is expected to reach 133 megawatts by the end of the second quarter. In addition, the company has secured approval for an extra 830 megawatts of capacity at the same site, raising the total potential to over 1.6 gigawatts. With these new investments, Galaxy Digital is aiming for significant growth in the data center segment.
Market climate and financial management
The company noted that recurring fee income and transaction revenue have started to boost operational resilience. More disciplined spending has increased operating efficiency, contributing to a lower adjusted EBITDA loss.
It was reported that adjusted gross profit remained generally steady, and tighter cost controls led to a narrower operating loss.
After the financial report was published, shares of Galaxy Digital, traded under the symbol GLXY, continued to fall for a second consecutive day, decreasing by 0.84% to $24.84. Despite the company’s new business focus and AI-driven data center agreements, price stagnation in crypto assets continues to influence its market valuation.
