Galaxy Digital Plunges 11% on Disappointing Q2 Earnings

Galaxy Digital's stock price plummeted by over 11% on August 5 after the crypto financial services firm reported a second-quarter net loss of $85 million. The company attributed the quarterly loss to the depreciation of digital asset prices, despite its continued expansion into artificial intelligence infrastructure and data centers.

The company posted an adjusted EBITDA loss of $77 million for the quarter ended June 30, which is an improvement from a $188 million loss in the first quarter. Galaxy's total assets rose by 9% quarter over quarter to $10.8 billion.

Galaxy's operating businesses saw improvements sequentially, with adjusted gross profit swinging to $43 million from an $88 million loss in Q1. This was supported by the first revenue contribution from its data center business.