Galaxy Digital (GLXY) experienced a decline of over 5% in pre-market trading after unveiling its quarterly financial results.
Helios' Phase I is projected to yield approximately $80 million quarterly starting in Q3.
The company reported a net loss of $85 million, a significant improvement from a $216 million loss in the previous quarter. The diluted and adjusted loss per share decreased to $0.09 from $0.49, surpassing analysts' expectations of a $0.28 loss per share.
Revenue from Galaxy's digital assets segment reached $66 million in adjusted gross profit, reflecting a 34% increase compared to the prior quarter, even though trading volume fell by 7%.
For the first time, Galaxy’s data center business generated revenue, thanks to the completion of Phase I of the Helios campus located in West Texas. This sector achieved $20 million in adjusted gross profit and $11 million in adjusted EBITDA, a turnaround from an adjusted EBITDA loss of $900,000 in the first quarter. The company provided 200 megawatts of gross power, which translates to 133 megawatts of essential IT capacity, to CoreWeave under a long-term lease.
Despite these achievements, the results did not include any new data center customers or leases, which may have led to some disappointment. Galaxy mentioned it is still in talks with potential clients for an additional 830 megawatts of approved capacity at Helios.
CEO Mike Novogratz had earlier indicated that he anticipated leasing the remaining capacity of the 1.6-gigawatt facility in Texas by the summer's end. Although no new tenants were announced, Galaxy has secured three additional sites in Texas for future data centers.
On July 28, Galaxy Digital closed a $3.5 billion private offering of senior secured notes due in 2031 through its subsidiary, Galaxy Helios Data Centers II LLC, to finance the construction of Helios Phase II, pushing its total debt beyond $6 billion.