Crypto Investment Firm Sees Significant Reduction in Quarterly Deficit Amid Challenging Industry Conditions

Table of Contents Galaxy Digital Inc. reported a $216 million net loss for the first quarter of 2026, narrowing from $482 million in the prior quarter. The company posted negative adjusted EBITDA of $188 million and diluted earnings of negative $0.49 per share. However, total equity rose 46% year over year to $2.8 billion, while cash and stablecoins stood at $2.6 billion. Galaxy Digital reduced its quarterly net loss to $216 million from $482 million in the previous quarter. Still, weaker crypto prices drove unrealized markdowns across digital assets and investment positions. The corporate treasury and investment segment recorded a $140 million adjusted gross loss and negative EBITDA of $167 million. The lights are on at Helios. First data hall delivered to @CoreWeave. Our AI data center business is officially generating cash flow. This validates what we've known internally for a while. We have a strong team that can execute at a high level, even as many other data centers… https://t.co/q22A0bxB4t — Mike Novogratz (@novogratz) April 28, 2026 Meanwhile, the total crypto market capitalization fell about 20% during the quarter. Bitcoin declined nearly 24%, marking its steepest quarterly drop since 2018 and closing March near $66,600. As a result, asset values across trading and treasury portfolios faced pressure. Despite losses, total equity increased to $2.8 billion, reflecting a 46% annual gain. The company maintained $2.6 billion in cash and stablecoins, nearly unchanged from the prior quarter. Equity allocation remained split between 33% digital assets, 28% data centers, and 39% treasury holdings. The lending book averaged $1.4 billion, shrinking 20% as clients reduced leverage. However, trading counterparties grew 4% to 1,691 during the period. Galaxy’s trading volumes held steady even as industry-wide activity declined sharply. Galaxy activated its first data hall at the Helios campus in West Texas and delivered it to CoreWeave under Phase I. Mike Novogratz stated on X, “The lights are on at Helios.” He added, “Our AI data center business is officially generating cash flow.” The remaining 133 megawatts under Phase I remain on track for delivery by the end of Q2 2026. At the same time, the company has started a 260-megawatt Phase II build for early 2027 completion. ERCOT approved another 830 megawatts of power, doubling total approved capacity to over 1.6 gigawatts. The full CoreWeave lease covers 526 megawatts across three phases with a 15-year base term. Galaxy projects that this agreement will generate over $1 billion in average annual revenue. The company expects EBITDA margins near 90% from the data center arrangement. In asset management, Galaxy oversaw about $5 billion in assets under management by quarter end. Assets under stake totaled $3.2 billion but fell 35% due to lower token prices. Net inflows reached $69 million during the quarter. Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.