Galaxy Digital Swings to Q2 Loss as Crypto Downturn Hits Investments, Data Center Revenue Begins
GLXY sits 19% above its 52-week low of $16.43.
Summary
Galaxy Digital posted an $85.3M Q2 loss as crypto price declines hammered its investment portfolio, but the company generated its first data center leasing revenue and secured $3.5B in post-quarter debt financing to expand its AI/HPC infrastructure.
Key Events · Earnings and Guidance · GLXY
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Q2 Net Loss of $85.3M
Reversed a $30.7M profit in Q2 2025, driven by a $309.9M swing in investment gains to a $114.5M loss and a 42% increase in digital asset impairment to $181.3M.
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First Data Center Revenue
Recorded $18.9M in data center leasing revenue from the CoreWeave Phase I lease, marking the start of a new recurring revenue stream from the AI/HPC segment.
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Adjusted EBITDA Turns Negative
Adjusted EBITDA was $(77.3)M compared to $211.1M a year ago, reflecting the impact of lower digital asset prices and higher operating costs.
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Balance Sheet Deterioration
Cash and cash equivalents fell to $895.7M from $1.25B at year-end; total equity declined to $2.72B from $3.03B, driven by the net loss and share repurchases.
Analysis · GLXY · Crypto Assets
Galaxy Digital reported a net loss of $85.3 million for Q2 2026, reversing a $30.7 million profit a year ago. The swing was driven by a $309.9 million swing in investment gains to a $114.5 million loss, reflecting the sharp decline in digital asset prices — bitcoin fell 14% and ether 25% during the quarter. Impairment of digital assets surged 42% to $181.3 million. On the positive side, the company recorded its first data center leasing revenue of $18.9 million from the CoreWeave Phase I lease, marking the start of a new recurring revenue stream. Adjusted EBITDA turned negative at $(77.3) million versus $211.1 million a year ago. The balance sheet weakened, with cash down to $895.7 million and total equity declining to $2.72 billion. Subsequent to quarter-end, the company completed a $3.507 billion debt offering to fund further data center construction and repurchased $25.4 million of stock, signaling confidence in the long-term strategy despite near-term headwinds.
At the time of this filing, GLXY was trading at $19.54 on NASDAQ in the Crypto Assets sector, with a market capitalization of approximately $7.6B. The 52-week trading range was $16.43 to $45.92. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.