Key Takeaways
- • Galaxy Digital posted a GAAP net loss of $216 million in Q1 2026 (−$0.49 per share), driven by a 20–25% decline in digital asset prices, yet stock rose 3.69% in pre-market trading on operational improvements and data center milestones.
- • Revenue declined to $10.04 billion from $12.98 billion year-over-year, but the Digital Assets segment maintained $49 million in adjusted gross profit despite a 25% industry-wide trading volume decline, demonstrating underlying business resilience.
- • Galaxy delivered its first data hall to CoreWeave at the Helios campus in April and remains on schedule to deliver all 133 megawatts of Phase 1 capacity by end of Q2 2026, with management guiding Q2 adjusted EBITDA at approximately $90 million driven by data center revenue ramp.
- • The company secured approval for an additional 830 megawatts of power capacity at Helios, doubling total approved capacity to over 1.6 gigawatts, while Asset Management & Infrastructure Solutions recorded $69 million in net inflows and $5.0 billion in assets under management.
- • Galaxy maintains $2.6 billion in cash and stablecoin reserves against $2.8 billion in total equity; the company completed its Toronto Stock Exchange delisting and was selected by BlackRock as the staking validator for its iShares Staked Ethereum Trust ETF.
Summary
Galaxy Digital Holdings reported a first-quarter 2026 net loss of $216 million as digital asset price declines weighed heavily on its balance sheet. The company posted a loss of −$0.49 per share on a GAAP basis, with management attributing the loss primarily to a 20–25% decline in crypto prices during the quarter. Revenue fell to $10.04 billion from $12.98 billion in the prior-year period. Despite the headline loss, equity markets responded positively, with shares rising 3.69% in pre-market trading, signaling investor confidence in underlying operational progress and near-term growth drivers unrelated to crypto price volatility.
The positive market reaction centered on Galaxy's data center infrastructure business, which is entering a revenue-generating phase. The company delivered its first data hall to CoreWeave at its Helios campus in April 2026, marking the transition from construction to operational production. Galaxy remains on budget and on schedule to deliver substantially all 133 megawatts of critical IT load under Phase 1 of the lease agreement by end of Q2 2026. Management guided Q2 adjusted EBITDA at approximately $90 million, reflecting improved market conditions and early-stage data center revenue contributions. Additionally, ERCOT approved an additional 830 megawatts of power capacity at Helios, doubling total approved capacity to over 1.6 gigawatts and positioning the company to scale operations significantly through 2026 and beyond.
Operating segments showed resilience despite adverse market conditions. The Digital Assets segment generated $49 million in adjusted gross profit and −$19 million in adjusted EBITDA, remaining broadly stable despite industry-wide trading volumes falling over 25%. Asset Management & Infrastructure Solutions produced $18 million in adjusted gross profit while recording $69 million in net inflows during the quarter. Galaxy ended Q1 with approximately $5.0 billion in assets under management and $3.2 billion in assets under stake. The company maintained a strong balance sheet with $2.6 billion in cash and stablecoin holdings and total equity of $2.8 billion as of March 31, 2026.
Strategic developments further underscored Galaxy's positioning in emerging digital finance infrastructure. BlackRock selected Galaxy as the staking validator for its iShares Staked Ethereum Trust ETF post-quarter, expanding the company's role in institutional crypto adoption. Galaxy completed its delisting from the Toronto Stock Exchange, now trading solely on Nasdaq. The company also repurchased 3.2 million shares for $65 million during the quarter, indicating management confidence in valuation. Analyst price targets range from $26.00 to $60.00, with an average of $44.07, representing upside of approximately 136% from recent trading levels, though such valuations remain dependent on successful data center tenant acquisition and Phase 2 financing execution.
The positive market reaction centered on Galaxy's data center infrastructure business, which is entering a revenue-generating phase. The company delivered its first data hall to CoreWeave at its Helios campus in April 2026, marking the transition from construction to operational production. Galaxy remains on budget and on schedule to deliver substantially all 133 megawatts of critical IT load under Phase 1 of the lease agreement by end of Q2 2026. Management guided Q2 adjusted EBITDA at approximately $90 million, reflecting improved market conditions and early-stage data center revenue contributions. Additionally, ERCOT approved an additional 830 megawatts of power capacity at Helios, doubling total approved capacity to over 1.6 gigawatts and positioning the company to scale operations significantly through 2026 and beyond.
Operating segments showed resilience despite adverse market conditions. The Digital Assets segment generated $49 million in adjusted gross profit and −$19 million in adjusted EBITDA, remaining broadly stable despite industry-wide trading volumes falling over 25%. Asset Management & Infrastructure Solutions produced $18 million in adjusted gross profit while recording $69 million in net inflows during the quarter. Galaxy ended Q1 with approximately $5.0 billion in assets under management and $3.2 billion in assets under stake. The company maintained a strong balance sheet with $2.6 billion in cash and stablecoin holdings and total equity of $2.8 billion as of March 31, 2026.
Strategic developments further underscored Galaxy's positioning in emerging digital finance infrastructure. BlackRock selected Galaxy as the staking validator for its iShares Staked Ethereum Trust ETF post-quarter, expanding the company's role in institutional crypto adoption. Galaxy completed its delisting from the Toronto Stock Exchange, now trading solely on Nasdaq. The company also repurchased 3.2 million shares for $65 million during the quarter, indicating management confidence in valuation. Analyst price targets range from $26.00 to $60.00, with an average of $44.07, representing upside of approximately 136% from recent trading levels, though such valuations remain dependent on successful data center tenant acquisition and Phase 2 financing execution.
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