Galaxy Digital's data-center business turns profitable as shares slide after Q2 loss
Galaxy reported an $85 million quarterly loss while its Helios campus delivered its first revenue and moved into positive adjusted EBITDA after the CoreWeave lease began.
Galaxy Digital's shares fell more than 5% before the market opened after the company reported an $85 million net loss for the second quarter, compared with a $216 million loss in the first quarter. The adjusted loss was nine cents a share, ahead of the 28-cent loss analysts had expected, but the headline loss kept attention on the costs of Galaxy's expansion beyond trading.
The company said its digital-asset operation generated $66 million of adjusted gross profit, a 34% increase from the previous quarter even as trading volume fell 7%. The results were released alongside Galaxy's quarterly investor update.
Helios reaches the operating stage
The more consequential change came from Helios, Galaxy's Texas data-center campus. The segment generated $20 million of adjusted gross profit and $11 million of adjusted EBITDA, compared with an adjusted EBITDA loss of about $900,000 in the first quarter. Galaxy delivered 200 megawatts of gross power, or 133 megawatts of critical IT capacity, to CoreWeave under a 15-year lease.
That lease gives Galaxy a contracted customer and a visible path from power development to recurring infrastructure revenue. It also makes the business more capital intensive: Galaxy completed a $3.5 billion private offering of senior secured notes due in 2031 on July 28 to finance Helios Phase II, taking total debt above $6 billion.
The next capacity test
Galaxy said it is discussing another 830 megawatts of approved capacity with prospective customers and acquired three additional Texas sites during the quarter. No new data-center lease was announced with the results. That leaves Helios's next phase dependent on converting development capacity into signed contracts, while the company carries the financing costs of building ahead of demand.
For investors, the quarter separates two stories that used to move together. Trading remains a source of profit but can fluctuate with market activity; Helios offers longer contracts but requires heavy upfront spending and leverage. The share reaction suggests the market is still deciding how much value to assign to the second business before its expansion is fully contracted.
