Galaxy Digital Holdings delivered a mixed bag for the first quarter of 2026: a net loss of $216 million amid a broad crypto market decline, yet the firm holds a robust $2.6 billion in cash and stablecoins and is aggressively pivoting toward high-performance computing data centers to establish more predictable revenue streams.
Market Downturn Hits Portfolio, Core Business Shows Resilience
For the three months ended March 31, a roughly 20% drop in total crypto market capitalization weighed heavily on Galaxy’s investment portfolio, resulting in a net loss of $216 million. While substantial, this narrowed from the $482 million loss reported in the prior quarter. Adjusted EBITDA came in at negative $188 million, and adjusted gross loss totaled $88 million. Total assets fell 12% quarter-over-quarter to just under $10 billion, while equity declined to $2.8 billion. Despite the losses, the company maintained a strong liquidity position with $2.6 billion in cash and stablecoins, providing a buffer for its strategic shift.
Galaxy’s core digital assets business demonstrated relative resilience: adjusted gross profit in the segment reached $49 million, only slightly down from the previous quarter, supported by steady fee income and transaction revenue. Trading volumes remained flat even as broader market activity declined. However, the average loan book shrank 20% to $1.4 billion amid client deleveraging.
Treasury Unit Under Pressure, Data Center Emerges as Growth Engine
The most significant pressure came from Galaxy’s Treasury and corporate unit, which recorded an adjusted gross loss of $140 million, driven by unrealized losses on digital assets and investments. To reduce reliance on volatile market-driven income, the firm is accelerating its pivot toward data center infrastructure. In early April, just after quarter-end, Galaxy delivered its first data hall at the Helios campus to Coreweave, marking the start of revenue generation for the project. Additionally, Helios has secured regulatory approval for an additional 830 megawatts of power capacity, bringing total approved capacity to over 1.6 gigawatts, targeting the surging demand for high-performance computing tied to artificial intelligence (AI) workloads.
Asset Management Steady, Capital Management Continues
The asset management business presented a mixed picture. Assets under management fell to approximately $5 billion due to market depreciation, but the segment still attracted $69 million in net inflows. Galaxy also disclosed new partnerships, including a role supporting staking infrastructure for a BlackRock Ethereum exchange-traded product. During the quarter, the company repurchased $65 million worth of shares and completed its delisting from the Toronto Stock Exchange, consolidating all trading on Nasdaq.
Overall, Galaxy Digital is navigating a highly volatile crypto environment while seeking more stable, long-term revenue sources. Whether the Helios data center can become a reliable profit engine that offsets price-driven earnings swings remains an open question.