Galaxy Digital (GLXY) shares closed down 14% on Wednesday, falling to $19.07 after the crypto financial services firm reported a second-quarter net loss of $85 million. Revenue dropped 15% to $8.7 billion from $10.2 billion in the prior quarter, and the company posted an adjusted diluted loss of $0.09 per share. The stock's slide erased gains from earlier in the week as investors weighed a mixed earnings report against signs of progress in Galaxy's infrastructure buildout.
Q2 earnings miss the mark
The net loss of $85 million was an improvement from the $216 million loss in Q1, but the revenue decline and a $42 million adjusted gross loss in the Treasury and Corporate segment weighed on sentiment. Adjusted EBITDA came in at negative $77 million. Total equity stood at $2.7 billion at quarter-end, down from $3.1 billion in the prior period. Trading volumes slipped 7% as market activity cooled across the crypto sector, though the company did not specify exact volume figures.
Digital assets unit shows strength
Not everything was red. Galaxy's Digital Assets unit posted an adjusted gross profit of $66 million, up 34% from the first quarter. The gain came despite the broader market slowdown, suggesting the firm's trading and investment strategies are holding up better than some peers. The Data Centers segment also contributed, generating $20 million of adjusted gross profit and $11 million of adjusted EBITDA in Q2 2024.
Helios campus powers up
Galaxy completed the first phase of power delivery at its Helios campus in Texas, supplying 133 megawatts of critical computing load to CoreWeave under a 15-year lease. The deal is expected to generate roughly $80 million in quarterly revenue starting in Q3, with margins above 90%. After the quarter ended, Galaxy bought three more Texas sites, pushing its total power pipeline beyond 5.7 gigawatts. The company raised $3.5 billion in senior secured notes due 2031 on July 28 to fund construction of Helios I Phase II.
Investors will be watching for the first revenue contributions from the Helios lease in the third-quarter report. The $3.5 billion note sale gives Galaxy a war chest for further expansion, but the company still needs to show it can turn its core trading and treasury operations around. With the stock down sharply and the crypto market still volatile, the next few months will test whether the infrastructure bet can offset weakness elsewhere.
