Galaxy Digital Posts $85M Loss as Crypto Volatility Hits Hard

Galaxy Digital just reported an $85 million net loss for the second quarter, mainly because falling digital asset prices hurt its treasury holdings. Diluted earnings per share dropped to negative nine cents. Even with these crypto market struggles, the company is pushing forward with a massive pivot toward artificial intelligence data centers.

To balance out its crypto losses, Galaxy completed its Phase I capacity lease with CoreWeave. This data center setup generated $20 million in adjusted gross profit during the quarter. The company now expects about $80 million in quarterly leasing revenue starting in the third quarter, which should help soften the blow from future crypto price swings.

At the same time, Galaxy is taking on big financial commitments for the future. A project subsidiary recently completed a $3.5 billion senior notes offering to fund a large Phase II expansion. Traders will want to watch how well this AI infrastructure strategy performs and whether steady lease income can truly balance out crypto market volatility in the months ahead.