Galaxy Digital (GLXY) Stock Plummets 13% Despite Strong Data Center Progress

Key Takeaways

• GLXY shares tumbled 13.46% following the disclosure of an $85 million quarterly deficit.
• The firm disclosed an $85 million net deficit driven by declining cryptocurrency valuations.
• The Helios facility generated inaugural data center income, though digital asset losses dominated results.
• Management projects Helios Phase I will deliver roughly $80 million in quarterly lease income.
• New Texas acquisitions pushed the company’s total data center power capacity pipeline beyond 5.7 GW.

Galaxy Digital shares experienced a steep 13.46% decline to $19.16 following consecutive morning selloffs. The firm disclosed an $85 million net deficit attributed to weakened cryptocurrency valuations impacting its balance sheet holdings. Operating as a hybrid entity, Galaxy merges cryptocurrency financial services with high-performance computing infrastructure, with the latter introducing a fresh income stream this reporting period.

Galaxy Digital, GLXY

Quarterly deficit shows improvement over prior period

Galaxy disclosed an $85 million second-quarter net deficit, representing significant improvement from the $216 million loss posted in the preceding quarter. The company’s adjusted EBITDA registered negative $77 million, while adjusted gross profit climbed to $43 million. Per-share metrics reflected diluted and adjusted losses of negative $0.09.

The balance sheet showed total assets climbing 9% sequentially to reach $10.84 billion as of the June 30 reporting date. Total shareholder equity contracted 2% to $2.72 billion across the identical timeframe. Combined cash and stablecoin reserves decreased 6% to settle at $2.46 billion.

The Digital Assets division produced $66 million in adjusted gross profit, marking a 34% sequential expansion. Global Markets delivered $49 million as transaction volumes contracted 7% versus the prior quarter. Average lending balances edged upward to $1.44 billion, while the trading counterparty count increased 3% to reach 1,741.

Helios facility launches commercial operations

Galaxy’s Data Centers division produced $20 million in adjusted gross profit throughout the second quarter. This business unit additionally generated $11 million in adjusted EBITDA following a modest deficit in the opening quarter. These figures represented the division’s initial period with active commercial operations.

The company provisioned 133 megawatts of critical computing infrastructure to CoreWeave at its Helios facility. Phase one reached completion according to the original timeline under a 15-year tenant agreement. Management anticipates approximately $80 million in quarterly lease receipts from this capacity commencing in the upcoming quarter.

Projections indicate project-level adjusted EBITDA margins exceeding 90% from the operational capacity. The Treasury and Corporate segment registered a $42 million adjusted gross deficit. Mark-to-market losses spanning cryptocurrency holdings and equity positions contributed to that division’s negative $78 million adjusted EBITDA.

Texas portfolio expansion accelerates infrastructure buildout

Galaxy broadened its Texas data center development portfolio following the quarter’s conclusion. The organization secured three additional development parcels and elevated its aggregate power capacity pipeline above 5.7 gigawatts. These initiatives address surging demand for hyperscale computing and advanced infrastructure solutions.

At the McGregor Industrial Park location, Galaxy is planning the Merlin campus spanning 500 acres. Initial arrangements accommodate 74 megawatts, though subsequent transmission infrastructure enhancements could expand capacity to 500 megawatts. The company additionally obtained the Caspian and Selene properties, featuring potential capacities of 700 and 900 megawatts respectively.

Construction commenced on Helios Phase II, targeting an additional 260 megawatts of critical computing infrastructure. Initial data hall completions are anticipated during the second quarter of 2027. The firm secured $3.5 billion through secured debt instruments to finance the subsequent construction phase.

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