Galaxy Digital Reports Q1 2026 Earnings: $216 Million Loss Amid Digital Asset Price Declines

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Chief Executive Officer — Michael Novogratz

President and Chief Investment Officer — Christopher Ferraro

Chief Financial Officer — Anthony Paquette

GAAP Net Loss -- $216 million loss reported, equal to a loss of $0.49 per share, driven primarily by unrealized mark-to-market declines on balance sheet digital asset holdings.

Firm-wide Adjusted EBITDA -- Negative $188 million, with the adjusted EBITDA loss narrowed by roughly one-third sequentially from Q4 2025 through lower expenses.

Digital Asset Segment Adjusted Gross Profit -- $49 million, holding flat compared to the previous quarter despite a 20% decline in digital asset market prices.

Global Markets Adjusted Gross Profit -- $31 million, reflecting a 3% increase quarter over quarter, while industry-wide digital asset trading volumes fell more than 25%.

Asset Management Adjusted Gross Profit -- $18 million, with $8 billion in assets on platform at quarter end and net inflows totaling $69 million.

Treasury & Corporate Segment Adjusted Gross Loss -- $140 million, primarily from market declines, with net digital assets and investments down 19% quarter over quarter to $1.4 billion.

Operating Expenses -- Approximately $147 million, down 7% sequentially, attributed to lower professional fees and compensation costs.

Total Assets -- $10 billion at period end, down from $11 billion at year-end due to the pullback in digital asset prices.

Total Equity Capital -- $2.8 billion, with about 60% allocated to operating businesses; management expects this allocation to increase as data center expansion continues.

Share Repurchases -- 3.2 million Class A shares repurchased for $65 million, reducing share count to approximately 390 million and offsetting dilution from equity-based compensation in 2025.

Cash and Stablecoin Balances -- $2.6 billion, roughly unchanged from year-end, with capital planning supporting $445 million in exchangeable notes maturing December 2026.

Asset Management Mandate -- Secured a new $75 million investment from a single client subsequent to quarter end, cited as one of the largest inflows in the firm’s history.

Helios Campus Progress -- First data hall delivered to CoreWeave, marking the start of long-term (15-year) contracted cash flows, with Phase 1 on track for 133 megawatts delivered by end of Q2.

Phase 2 Data Center Update -- Construction advancing on 260 megawatts of additional capacity, with data hall deliveries set to begin in the first half of 2027.

Available Capacity -- 830 megawatts of additional approved capacity in ERCOT, with active customer discussions and early-stage equipment procurement underway.

Future Pipeline -- 1.8 gigawatts of additional U.S. power capacity under study within ERCOT for potential multicampus data center expansion.

Q2 Preliminary Adjusted EBITDA -- Estimated at $90 million through last Friday, pointing to a stronger financial start in the new quarter.

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Paquette noted that reported results were "driven primarily by unrealized mark-to-market losses on our balance sheet, Digital Assets holdings," as the crypto market cap declined roughly 20% quarter over quarter.

Paquette stated, "During Q1, we repurchased 3.2 million shares of our Class A common stock for $65 million under our previously announced $200 million share repurchase authorization. This amount more than offset dilution from equity-based compensation awarded in 2025 and brought our quarter end share count to approximately 390 million basic shares outstanding," but net digital assets and investments dropped 19% sequentially due to market depreciation.

Ferraro said, "when prices are down and clients themselves are derisking, it's probably also smart to follow that trend," referencing declines in lending and client deleveraging.

Novogratz cautioned, "the headline numbers weren't what I want," and stopped short of declaring the business less cyclical, saying a trend would need to continue for multiple quarters before confidence is warranted.

Galaxy Digital (NASDAQ:GLXY) reported a quarter marked by significant digital asset price declines, resulting in a $216 million GAAP net loss and asset base contraction, but showcased resiliency in operating segments and strategic momentum in data center and asset management businesses. The company’s data center business reached a milestone with the delivery of its first data hall at Helios to CoreWeave, initiating 15-year contracted, uncorrelated cash flows and establishing a track record for on-budget, on-time execution, while the buildout for Phase 2 and additional customer agreements for 830 megawatts of capacity progressed as planned. Asset management posted net inflows and announced a major post-quarter client win, while the digital asset segment maintained flat adjusted gross profit despite a challenging sector-wide trading environment. Management highlighted a robust institutional pipeline for digital infrastructure, an expected rise in revenue diversification, and preliminary Q2 results indicating a turnaround in adjusted EBITDA performance.

Management forecasted incremental capital allocation to operating businesses as Helios expands and more institutional partnerships materialize.

Product diversification is advancing, with GalaxyOne now offering Solana staking and targeting business accounts to broaden its retail and enterprise base.

Paquette described the new data center contracts as "90% average lease level EBITDA margins entirely uncorrelated to Digital Asset prices," emphasizing revenue smoothing and diversification.

Ferraro confirmed all necessary regulatory approvals for the initial 830 megawatts in ERCOT, with the potential for further expansion pending evolving batch process rules anticipated mid-year.

ERCOT : The Electric Reliability Council of Texas, managing electric grid and market operations for Texas, critical for data center power procurement and expansion.

Helios : Galaxy Digital’s flagship data center campus in Texas, transitioning from bitcoin mining to AI and hyperscale data hosting services.

CoreWeave : Data center anchor tenant and digital infrastructure provider; noted as a key customer for Phase 1 Helios capacity.

GalaxyOne : The firm’s unified platform for digital asset trading, yield, asset management, and staking, currently expanding its feature set and target audience.

PGRR145 : A draft ERCOT rule establishing a new baseline regulatory category for large-scale power projects, directly impacting data center expansion approvals.

Michael Novogratz: Yes. Good morning, everyone. Listen, first quarter crypto prices down on average of 25%, you can see our headline number, certainly, isn't what we'd like to be delivering quarter after quarter. All that said, I feel pretty good about the business right now. And so you come into this earnings call, and I thought, well, let's break it, down data centers and then crypto and give you just how I'm seeing it from the CEO perspective, right? Every Monday morning, I look at my to-do list in the Data Center business, and it has 4 buckets, right? Are we delivering on time and on cost? That's not an easy feat. But so far, our team is doing an awesome job.

We delivered our first data halls. We're on schedule. More than half of the data centers around the country can't say that. And so we feel pretty good about the team down in Texas and the hard work they're doing. And so that's in check, right? The second is we've got to finance Phase II and then Phase III. The financing markets are open. I was hoping we would have the definitive deal details today, trust me, that will come in a very short order, we will have Phase II financed. Our partner, CoreWeave, we've their credit spreads have come in, the financing markets are pretty robust right now. And we're looking at a few different options.

Part 3 is we have this 830 megawatts that we were granted recently tenant for that