Galaxy Digital incurs Q1 loss of $295 million, announces Nasdaq listing for May 16th.
Article Rewrite
In an intriguing turn, Galaxy Digital, a prominent name in the digital asset sphere, reported a whopping net loss of $295 million in the first quarter of 2025. Digital asset depreciation and a $57 million charge from winding down Helios's data center mining activities were cited as the reasons for the substantial loss. On a brighter note, the company successfully reorganized and domesticated to the United States, paving the way for a Nasdaq listing on May 16.
The Q1 loss translated to $0.86 per diluted share. As of March 31, Galaxy's equity capital stood at a respectable $1.9 billion, with cash and net stablecoins amounting to $1.1 billion. Despite the loss, the firm projected an operating income of $160-$170 million for Q2, and a boost in equity capital to $2.2 billion as of May 12.
Meanwhile, stocks took a dip after Monday's rally, as the Consumer Price Index (CPI) slowed, and the S&P 500 outlook improved.
Driving Canadian Expansion: Robinhood Acquires WonderFi
In a strategic move, Robinhood acquired WonderFi to propel its Canadian market expansion. Simultaneously, AI infrastructure firm CoreWeave increased its capacity at Galaxy's Helios data center campus, making it a hive of activity.
The expansion, referred to as Phase II of an existing partnership, adds 260 megawatts (MW) of critical IT load, facilitating AI and high-performance computing (HPC) workloads. The original 15-year hosting agreement with Galaxy Digital, announced during the Q4 2024 earnings call, represents a potential game-changer for the company.
Initially, 200 MW of the Helios mining facility in West Texas was repurposed to support 133 MW of critical IT load for CoreWeave's graphic processing units (GPUs). Expected to generate $4.5 billion in revenue during its term, the deal represents approximately 70% of Galaxy's total 2024 revenue, with an annual revenue of $2.26 million per MW at around 90% EBITDA margins.
Deliveries under the new agreement are slated to commence in 2027, with a combined total of approximately 393 MW once an earlier 133 MW lease agreement, signed in March, is included.
The Future Awaits
Galaxy Digital's new agreement with CoreWeave positions the company to gain a strong foothold in the AI data center market. The partnership is expected to provide substantial growth opportunities in the long run, potentially yielding attractive returns for investors. Phase I, which includes 133 MW of capacity, is anticipated to go live by mid-2026, with Phase II set for launch in 2027. Galaxy anticipates generating data center leasing revenue starting from the first half of 2026.
- The acquisition of WonderFi by Robinhood is aimed at furthering Robinhood's expansion in the Canadian market.
- CoreWeave, an AI infrastructure firm, has increased its capacity at Galaxy Digital's Helios data center campus, making it a hub of activity.
- The additional 260 MW of critical IT load from the expansion with CoreWeave will facilitate AI and high-performance computing workloads.
- The new agreement between Galaxy Digital and CoreWeave positions Galaxy to solidify its presence in the AI data center market, potentially offering significant growth opportunities and returns for investors.
