Summary
- Galaxy Digital said it posted a $216 million net loss in the first quarter and a loss of $0.49 per share.
- The company said markdowns from a drop in cryptocurrency prices during the quarter drove the loss, though revenue of about $10 billion topped market expectations of $8.8 billion.
- Of its total equity capital of $2.8 billion, the company said it invested about 28%% in the data-center business, while its shares fell about 4%% in premarket trading.
Forecast Trend Report by Period
Galaxy Digital, the digital-asset financial services firm, posted a first-quarter loss as declining cryptocurrency prices triggered valuation markdowns.
Bloomberg reported on April 28 that Galaxy Digital recorded a net loss of $216 million in the first quarter. Loss per share was $0.49.
The company attributed the loss primarily to markdowns linked to falling digital-asset prices during the quarter. Revenue was about $10 billion, exceeding market expectations of $8.8 billion.
Galaxy Digital operates businesses spanning trading, lending, market making, venture investing and mining. It has also been expanding into artificial intelligence infrastructure, including converting part of its mining facilities into high-performance computing data centers.
The company has already secured customers for its AI infrastructure business and expects to begin recognizing related adjusted gross profit this quarter. Of its total equity capital of $2.8 billion, about 28% has been invested in the data-center business.
Galaxy Digital shares listed in New York fell about 4% in premarket trading. Investors are also watching whether the company can reshape its earnings base through diversification as the crypto market remains under pressure.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
