Galaxy Digital Holdings recorded a sharp net loss of $216 million for the first quarter of 2026, as a roughly 20% decline in global crypto market capitalization weighed heavily on its investment portfolio. While the loss narrowed compared to a $482 million deficit in the prior quarter, the firm's sensitivity to market swings remained evident.
Crypto Downturn Hits Portfolio
Total assets fell 12% quarter-over-quarter to just under $10 billion, and equity dropped to $2.8 billion. Adjusted EBITDA stood at negative $188 million, while adjusted gross loss totaled $88 million. Despite the pressure, Galaxy maintained a strong liquidity position with $2.6 billion in cash and stablecoins.
The core digital assets business showed relative resilience: adjusted gross profit in the segment reached $49 million, only slightly below the previous quarter, supported by steady fee income and transaction revenue. Trading volumes held flat even as broader market activity declined, while the average loan book shrank 20% to $1.4 billion amid client deleveraging. The most significant hit came from the Treasury and corporate unit, which recorded a $140 million adjusted gross loss driven by unrealized losses on digital assets and investments.
Helios Data Center Bet
Galaxy is aggressively pivoting toward infrastructure to generate more stable, long-term revenue. In April, shortly after quarter-end, the company delivered its first data hall at the Helios campus to Coreweave, marking the start of revenue generation for the project. The Helios site has also secured regulatory approval for an additional 830 megawatts of power capacity, bringing total approved capacity to more than 1.6 gigawatts. The expansion reflects surging demand for high-performance computing infrastructure, particularly for artificial intelligence (AI) workloads.
The move is part of a broader $15 billion AI data center expansion plan outlined in Galaxy's first annual report as a Nasdaq-listed company on April 8. CEO Mike Novogratz has emphasized that Helios will become a key driver of earnings growth in the coming quarters.
Asset Management and Capital Actions
Asset management remained a mixed picture. Assets under management stood at roughly $5 billion, down from the prior quarter due to market depreciation, but the business attracted $69 million in net inflows. Galaxy also disclosed new partnerships, including a role supporting staking infrastructure for a Blackrock Ethereum exchange-traded product, signaling growing recognition from traditional finance giants.
During the quarter, Galaxy repurchased $65 million worth of shares and completed its delisting from the Toronto Stock Exchange, consolidating all trading on Nasdaq to improve liquidity and shareholder value.
Overall, Galaxy Digital is navigating volatile crypto markets by betting on more stable, infrastructure-based revenue. Whether this shift can fully offset continued price-driven earnings swings remains an open question, but the firm's strong cash position and aggressive expansion into AI data centers provide a potential buffer.