Galaxy Digital Holdings posted a sharp quarterly loss of $216 million for the first quarter of 2026, as a roughly 20% decline in total cryptocurrency market capitalization during the period weighed heavily on its investment portfolio. The firm, led by Mike Novogratz, maintained a strong liquidity position with $2.6 billion in cash and stablecoins, while accelerating its pivot toward AI data center infrastructure through the Helios project.
Financial Highlights: Narrowing Loss but Persistent Pressure
For the three months ended March 31, 2026, Galaxy Digital reported a net loss of $216 million, compared with a $482 million loss in the prior quarter. The improvement was largely relative, as the prior quarter's loss was even larger. Adjusted EBITDA came in at negative $188 million, while adjusted gross loss totaled $88 million. Total assets fell 12% quarter-over-quarter to just under $10 billion, and equity declined to $2.8 billion.
The firm's core digital assets business showed 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. However, pressure was most evident in Galaxy's Treasury and corporate unit, which recorded a $140 million adjusted gross loss driven by unrealized losses on digital assets and investments.
Asset management remained a mixed picture. Assets under management stood at roughly $5 billion, down from the previous quarter due to market depreciation, though 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.
Strategic Pivot: Helios Data Center as a New Revenue Engine
Despite the challenging market environment, Galaxy is pressing ahead with a strategic pivot toward data infrastructure. 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 strong demand for high-performance computing infrastructure, particularly tied to artificial intelligence (AI) workloads.
Galaxy Digital filed its first annual report as a Nasdaq-listed company on April 8, 2026, with CEO Mike Novogratz outlining a $15 billion AI data center expansion target. The Helios project is the cornerstone of this ambition, aiming to capitalize on the convergence of crypto mining expertise and AI infrastructure needs.
Capital Management: Buybacks and Nasdaq Listing
During the quarter, Galaxy repurchased $65 million worth of shares and completed its delisting from the Toronto Stock Exchange, consolidating trading on Nasdaq. This move is intended to enhance liquidity and investor visibility, aligning the company with major US-listed peers.
The results highlight a company navigating volatile crypto markets while betting on more stable, long-term revenue streams from data center operations. Whether this pivot can offset continued price-driven earnings swings remains an open question, but with $2.6 billion in cash reserves and a fully approved 1.6GW data center campus, Galaxy Digital is positioning itself for both resilience and growth in the evolving digital asset landscape.