Mike Novogratz's Galaxy Digital Reports $216M First-Quarter Loss Amid 20% Crypto Market Decline
Galaxy Digital, led by Mike Novogratz, reported a first-quarter loss of $216 million as declining cryptocurrency valuations impacted asset holdings, with Helios data center operations set to begin generating revenue.
The digital asset firm founded by Mike Novogratz, Galaxy Digital, announced a $216 million loss for the first quarter of 2026, continuing its trend of negative results from the previous year.
In its Tuesday earnings report, Galaxy Digital (GLXY) disclosed first-quarter results showing a per-share loss of $0.49 on a diluted basis, an improvement from the $0.86 loss recorded during the same quarter in 2025. According to analysts at MarketBeat, the results exceeded projections, which had anticipated a per-share loss of $0.59.
The company's gross revenue totaled $10.2 billion for the quarter that concluded on March 31, matching the $10.2 billion reported in the fourth quarter of 2025 but falling short of the $12.9 billion generated during the corresponding period in the previous year.
Looking at the complete fiscal year 2025, Galaxy disclosed a net loss totaling $241 million alongside gross revenue reaching $61.4 billion.
The company anticipates expansion in its data center operations beginning in the second quarter of 2026, coinciding with the start of revenue recognition from its Helios facility, a substantial data center development located in Texas.
The first-quarter results highlighted Galaxy's ongoing transformation from an enterprise primarily influenced by cryptocurrency market fluctuations to an organization that will progressively rely on Helios and artificial intelligence-focused data center revenues as its primary growth engine.
Declining cryptocurrency valuations impacted quarterly performance
According to Galaxy, the primary driver behind the quarterly loss was deteriorating digital asset valuations, which diminished the worth of both its cryptocurrency holdings and various investment stakes.
The firm noted that total cryptocurrency market capitalization declined by approximately 20% throughout the quarter, leading to reduced asset valuations across its portfolio.
The Digital Assets division produced $49 million in adjusted gross profit, whereas the most significant losses originated from Galaxy's Treasury and corporate division, which recorded a $167 million adjusted EBITDA loss as a result of market turbulence.
Despite the pullback in digital asset prices and activity, adjusted gross profit remained broadly stable, reflecting a shift in the business mix as recurring fee revenue and transaction income continue to scale and provide greater resilience in softer market conditions.
Galaxy Digital
Data center operations positioned as future growth catalyst
Galaxy anticipates that its data center division will begin adding to earnings during the second quarter of 2026 following the commencement of revenue recognition from its Texas-based Helios facility.
Following the acquisition of the property in December 2022, Galaxy has been actively developing and transforming the Helios location in Texas into an extensive data center campus designed to support high-performance computing operations and artificial intelligence applications.
According to Galaxy's announcement, the company successfully completed and delivered its first data hall to CoreWeave, maintaining both budgetary targets and timeline commitments to deliver nearly the entire 133 megawatts of critical IT capacity outlined in the Phase I lease arrangement by the conclusion of the second quarter of 2026.
As of the quarter ending March 31, 2026, Galaxy's equity capital stood at $2.8 billion, representing a 46% increase compared to the same period one year prior. The firm indicated that its equity holdings were distributed among digital assets representing 33%, data center investments comprising 28%, and treasury along with corporate holdings accounting for 39%.