Galaxy Digital (GLXY) shares fell more than 11% on Aug. 5 after the crypto financial services firm reported a second-quarter net loss of $85 million, weighed down by falling digital asset prices despite continued expansion of its artificial intelligence infrastructure business.
The company posted an adjusted EBITDA loss of $77 million for the quarter ended June 30, improving from a $188 million loss in the first quarter, while total assets rose 9% quarter over quarter to $10.8 billion
Management said the quarterly loss was “driven primarily by the depreciation of digital asset prices.” Although the bottom line remained in the red, Galaxy’s operating businesses improved sequentially. Adjusted gross profit swung to $43 million from an $88 million loss in Q1, supported by the first revenue contribution from its data center business. Galaxy shares were trading at $19.50 at the time of writing, down 11.92% on the day.
Bitcoin miner turned AI infrastructure company still reports a loss Galaxy entered Bitcoin mining in 2022 when it acquired Argo Blockchain’s Helios mining facility in Texas, describing the site as the foundation of its proprietary mining business. Since then, the company has repositioned Helios into an AI and high-performance computing campus. Most Popular on TheStreet Roundtable: During the second quarter, Galaxy completed the first phase of its 15-year lease with CoreWeave, bringing 133 megawatts of critical IT load into service.