Galaxy Digital, the crypto financial services firm headed by Mike Novogratz, reported a $216 million net loss for the first quarter of 2026. This marks a significant decrease from the previous quarter's $482 million loss.
Total equity stood at $2.8 billion, showing a 46% year-over-year increase. The company maintained $2.6 billion in cash and stablecoins, largely unchanged from the prior quarter.
The losses were primarily attributed to unrealized markdowns on digital assets and investment positions, influenced by a challenging crypto market where the total market capitalization fell approximately 20% in the quarter. Bitcoin itself experienced its steepest quarterly decline since 2018, dropping nearly 24%.
Galaxy successfully activated its first data hall at the Helios campus in West Texas, delivering it to AI compute provider CoreWeave under a Phase I lease. "The lights are on at Helios," Novogratz stated, confirming the AI data center business is now generating cash flow. The remaining capacity under Phase I is slated for delivery by the end of Q2 2026, with Phase II construction underway for early 2027.
The company secured approval for an additional 830 megawatts of power for Helios, doubling its total approved capacity to over 1.6 gigawatts. The full CoreWeave lease, spanning 526 megawatts, is projected to generate over $1 billion in average annual revenue with anticipated EBITDA margins around 90%.
The digital assets segment reported $49 million in adjusted gross profit, supported by recurring fee revenue and transaction income. Despite industry-wide volume drops, Galaxy’s trading volumes remained stable, and trading counterparties increased by 4%.
The asset management division oversaw approximately $5 billion in assets under management and $3.2 billion in assets under stake. BlackRock selected Galaxy as a validator for its iShares Staked Ethereum Trust ETF, and Galaxy announced a new fintech-focused hedge fund targeting blockchain infrastructure.
Galaxy Digital’s equity allocation is diversified across digital assets (33%), data centers (28%), and treasury/corporate (39%). The company repurchased 3.2 million shares for $65 million during the quarter and completed its voluntary delisting from the Toronto Stock Exchange, consolidating operations entirely on Nasdaq.