$85M Net Loss for Galaxy Digital Amid Q2 Crypto Market Slump

Galaxy Digital reported an $85 million net loss for Q2 of this year due to the decline in cryptocurrency valuations. The company cited a depreciation of digital asset prices as the reason for the loss, which resulted in a $0.09 per share loss. Revenue at $8.7 billion was down 15% from $10.2 billion in Q1, missing analysts' consensus estimate of $12.7 billion.

Despite the slump, Galaxy's digital assets generated adjusted gross profit of $66 million and adjusted EBITDA of $11 million, a 34% quarter-over-quarter increase in adjusted gross profit. The company attributed this to the 'resilience of our business model' and noted that its earnings are becoming less dependent on digital asset prices.

The company also reported generating adjusted gross profit of $20 million from AI data centers during Q2, as it ramped up capacity delivery to CoreWeave. Galaxy expects $1 billion in annual revenue from its 15-year partnership with CoreWeave.