#What was Galaxy Digital's financial performance in Q1 2026?
Galaxy Digital revealed a net loss of $216 million for the first quarter of 2026. This loss, while significant, showed improvement from the previous quarter’s loss of $482 million. The adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) also reflected a challenging market, standing at negative $188 million, translating to a diluted loss of $0.49 per share.
Despite these losses, total equity rose to $2.8 billion, marking a notable increase of 46% year-over-year. The firm maintained strong liquidity with $2.6 billion held in cash and stablecoins, a figure that remained nearly constant from the last quarter. This financial performance was influenced by unrealized markdowns on digital assets amid a declining crypto market.
During the quarter, the overall crypto market capitalization suffered a downturn of about 20%. Bitcoin experienced a steep decline of nearly 24%, marking its sharpest quarterly drop since 2018, ending March at approximately $66,600.
#How is Galaxy Digital progressing with its Helios data center?
Galaxy Digital made significant strides with its Helios data center located in West Texas. The initial data hall is operational and has been handed over to CoreWeave, an AI compute provider, signaling the commencement of revenue generation for this segment. The entire installation is poised for completion, with plans to deliver 133 megawatts of critical IT capacity by the end of the second quarter of 2026. Additionally, a larger 260-megawatt Phase II development is underway, scheduled for completion in early 2027.
In a recent approval, ERCOT, the Texas grid operator, authorized an extra 830 megawatts of power for Helios. This approval doubles the total capacity to over 1.6 gigawatts. The total lease with CoreWeave encompasses 526 megawatts across three phases with a base term of 15 years, projected to deliver over $1 billion in average annual revenue with anticipated EBITDA margins around 90%.
#What is happening in Galaxy Digital's digital asset segment?
In the digital assets segment, Galaxy reported an adjusted gross profit of $49 million, slightly trailing the previous quarter’s $51 million. This steady performance is attributed to a strategic pivot towards recurring fee revenue and transaction income, demonstrating resilience in a challenging environment. The company saw an increase in trading counterparties by 4%, totaling 1,691.
While Galaxy's trading volumes remained stable, industry-wide trading activity saw a marked drop. The lending book, however, decreased by 20% to an average of $1.4 billion as clients opted to reduce leverage.
#How did Galaxy Digital's asset management division perform?
Galaxy Digital’s asset management division managed approximately $5 billion in assets under management by the end of Q1 2026. Assets under stake witnessed a significant decline of 35% from the previous quarter, primarily due to falling token prices rather than client withdrawals. Noteworthy is the net inflow of $69 million recorded during this period.
In a strategic move, BlackRock has chosen Galaxy as an approved validator for its first rewards-generating crypto product— the iShares Staked Ethereum Trust ETF. Additionally, Galaxy announced the formation of a new fintech-focused hedge fund aimed at bridging traditional finance and blockchain infrastructure with an expected launch on May 1.
#What challenges and changes did Galaxy Digital face in corporate treasury?
The corporate treasury segment reported an adjusted gross loss of $140 million and a negative EBITDA of $167 million. These losses emerged from unrealized markdowns on digital asset holdings and venture investments. The allocation strategy sees Galaxy distributing its equity across digital assets (33%), data centers (28%), and treasury and corporate activities (39%).
#How effective was the share buyback and corporate restructuring?
During the first quarter, Galaxy Digital repurchased 3.2 million shares for $65 million, effectively countering dilution caused by employee stock grants. The firm has also completed its voluntary delisting from the Toronto Stock Exchange, now fully operational on Nasdaq. This move simplifies the company’s corporate structure, coming after a May 2025 reorganization that transitioned from a partnership model to a standard corporate entity.