Crypto merchant bank Galaxy Digital warned of persistent headwinds as it reported a $216 million net loss for the first quarter, or $0.49 per share, driven by a roughly 20% decline in the total crypto market value during the period. The firm ended the quarter with $2.8 billion in total equity and $2.6 billion in cash and stablecoins, while total assets dropped to $9.99 billion from $11.35 billion in Q4 2025. Net crypto assets and investments plummeted 19% to $1.36 billion, as Galaxy also posted an adjusted gross loss of $88 million and adjusted EBITDA of negative $188 million, underscoring the severity of the market correction.

Galaxy absorbs the crypto slump through its trading, treasury, and revenue

Galaxy’s net loss was smaller than the $482 million loss recorded in Q4 2025, and even though the company’s adjusted EBITDA also improved from negative $518 million in Q4, it still remained a loss.

The Digital Assets business, which is basically the core crypto side of Galaxy, brought in $49 million in adjusted gross profit. That was down from $51 million in Q4, a 4% decline.

Adjusted EBITDA for that unit came in at negative $19 million, compared with negative $29 million in the previous quarter. Galaxy said fee revenue and transaction income helped the unit hold up while crypto prices and market activity weakened.

Galaxy’s Treasury & Corporate reported an adjusted gross loss of $140 million and adjusted EBITDA of negative $167 million due to unrealized losses from crypto and investment positions.

In Q4, the same unit had a much larger adjusted gross loss at $454 million and adjusted EBITDA of negative $488 million, so things actually got a little better this time around, just not good.

GAAP stayed huge because of the way the business records revenue and transaction costs. Galaxy reported $10.21 billion in gross revenues and gains from operations, nearly the same as $10.22 billion in Q4. Gross transaction expenses fell to $10.02 billion from $10.31 billion, a 3% decrease. Across the full company, adjusted gross profit improved from negative $398 million in Q4 to negative $88 million in Q1.

Galaxy starts Helios revenue as CoreWeave takes the first data hall

Galaxy also gave a major update on Helios, its data center campus, which handed the first data hall to CoreWeave (Nasdaq: CRWV) under the Phase I lease agreement, with revenue recognition beginning in April 2026.

Galaxy expects the data center business to start adding more adjusted gross profit and adjusted EBITDA in Q2, after it posted $3.1 million in adjusted gross profit this quarter, down from the $4.6 million in Q4, with adjusted EBITDA coming in at negative $0.9 million.

Helios also got more power capacity approved. ERCOT cleared another 830 megawatts for the campus, bringing total approved capacity to more than 1.6 gigawatts.

Galaxy is also working through tenant talks for the extra capacity, with Phase II already in progress, with civil and structural work underway for a 260 megawatt expansion. The first Phase II data hall deliveries are expected in the first half of 2027.

Asset Management & Infrastructure Solutions generated $18 million in adjusted gross profit. Galaxy ended Q1 with around $5.0 billion in assets under management and $3.2 billion in assets under stake.

Asset Management brought in $69 million of net inflows during the quarter, even as crypto prices fell. After quarter end, BlackRock (NYSE: BLK) selected Galaxy as an approved validator for staking tied to the iShares Staked Ethereum Trust ETF, its first crypto ETP with rewards.

Galaxy also announced a new fintech hedge fund built around traditional finance, blockchain infrastructure, and new technology, with launch expected on May 1st.

During Q1, Galaxy bought back 3.2 million Class A shares for $65 million, covering more than the dilution tied to 2025 employee stock awards. The company also completed its voluntary exit from the Toronto Stock Exchange, leaving Nasdaq as its only public market.

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