Galaxy Digital's stock dropped over 5% after its Q2 results showed improved losses and revenue but lacked new customer announcements.
Galaxy Digital's shares fell more than 5% in pre-market trading following the release of its quarterly financial results.
Projected Q3 Revenue Boost from Helios Campus
For the second quarter, the company reported a net loss of $85 million, a substantial decrease from the $216 million loss recorded in the prior quarter. The adjusted loss per share improved to $0.09, beating analyst forecasts of $0.28.
Galaxy's digital asset segment posted an adjusted gross profit of $66 million, reflecting a 34% increase over the previous quarter, despite a 7% drop in trading volume.
The firm has begun generating revenue from its data center operations, with Helios’ Phase I contributing $20 million to adjusted gross profit and $11 million in adjusted EBITDA, reversing an earlier loss of $900,000 in the first quarter. The data center provided 200 megawatts of gross power to CoreWeave, equating to 133 megawatts of essential IT capacity.
However, the absence of new customers or leases in the results may have dampened investor expectations. Galaxy is currently negotiating with potential clients for an additional 830 megawatts of approved capacity from the Helios facility.
CEO Mike Novogratz previously expressed optimism about leasing the remaining capacity of the 1.6-gigawatt facility by the end of summer. Despite no new leases being announced, the company has acquired three more sites in Texas for future data centers.
In a significant financial move, Galaxy Digital completed a $3.5 billion private offering of senior secured notes due in 2031 through its subsidiary to fund the Helios Phase II construction, raising its total debt to over $6 billion.
