Galaxy Digital Posts $85M Q2 Loss Amid Data Center Gains

Galaxy Digital, led by Mike Novogratz, posted an $85 million Q2 net loss, swinging from a $31 million profit in the same period last year. The decline was attributed to the company's Treasury & Corporate segment, which incurred an adjusted EBITDA loss of $78 million primarily due to unrealized losses on digital assets and investments.

The data center business, however, showed resilience, generating its first profit with an adjusted gross profit of $20 million and adjusted EBITDA of $11 million. This was driven by the delivery of a 133-megawatt core IT load at its Helios campus in West Texas under a 15-year lease to CoreWeave.

Galaxy Digital's operating crypto business also showed improvement, with Digital Assets reporting an adjusted gross profit of $66 million, up 34% sequentially. Trading volumes fell 7% quarter-over-quarter, but the company noted that its earnings are becoming less dependent on digital asset prices.