Galaxy Digital reported an $85 million net loss for the second quarter, driven primarily by lower digital-asset prices. The company's diluted and adjusted earnings per share both came in at negative $0.09, while adjusted gross profit was $43 million and adjusted EBITDA fell to a loss of $77 million.
Why the loss hit
The crypto market's pullback weighed heavily on Galaxy's trading and investment activities. The Treasury and Corporate segment absorbed the biggest blow, posting a $42 million adjusted gross loss and a $78 million adjusted EBITDA loss. That segment covers the firm's digital-asset holdings and corporate operations, so falling prices translated directly into red ink.
AI infrastructure shows promise
Not everything went south. Galaxy's AI infrastructure segment generated $20 million in adjusted gross profit and $11 million in adjusted EBITDA during the quarter. All 133 megawatts of Phase I capacity under the CoreWeave lease were in service by quarter-end, a key milestone for the unit.
The company now expects roughly $80 million in quarterly leasing revenue from that data center business, with a project-level adjusted EBITDA margin above 90% starting in Q3. That margin figure is guidance and excludes overhead costs, so the actual company-wide number will likely be lower.
Phase II expansion and financing
Galaxy is already moving on Phase II, a 260-megawatt expansion. To fund it, the company raised $3.507 billion through an offering of 9.875% senior secured notes due 2031. The notes were issued by Galaxy Helios Data Centers II LLC and guaranteed by Galaxy Helios II LLC, both subsidiaries of the firm.
Handovers for Phase II are expected to begin in 2027. That timeline gives Galaxy a couple of years to build out the capacity and line up additional customers.
Reliance on CoreWeave
For now, the data center business leans heavily on CoreWeave as its sole tenant for Phase I. That concentration is a risk, but the lease structure and the projected margins suggest Galaxy sees it as a stable revenue stream. The company's next quarterly report will show whether the Q3 guidance holds up as crypto prices continue to swing.
