Galaxy Digital Stock Drops 14% on Q2 Loss

Galaxy Digital shares closed down 14% on Wednesday after the firm reported a second quarter net loss of $85 million. The stock fell to $19.07 from a previous close of $22.14. Revenue also dropped 15% to $8.7 billion compared to the previous quarter. The company stated that falling digital asset prices during the period directly hurt its financial results.

Despite the losses in trading and treasury segments, the firm made progress in its artificial intelligence data center business. The company completed the first phase of power delivery at its Helios campus in Texas. This project supplies 133 megawatts of computing load under a long term lease. Management expects this data center division to generate strong quarterly revenue moving forward.

To fund future expansion, the firm recently raised billions in senior secured notes for construction projects. Traders are watching to see if artificial intelligence revenue can offset the normal volatility of crypto markets. How this balance plays out will likely determine stock valuations for crypto infrastructure companies in the coming quarters.