Galaxy Digital Stock Tanks 14% on $85M Net Loss Amid Crypto Downturn

Galaxy Digital's stock price plummeted by 14% in a day after the company released its quarterly earnings report, revealing a net loss of $85 million. The decline was largely due to the 15% drop in revenue, which outweighed the progress made in AI data center development.

The company's valuation is split between its volatile crypto business and long-term data center project, making it challenging for investors to assess. Galaxy Digital works with digital assets, investments, and corporate governance, as well as developing infrastructure for artificial intelligence.

Despite the decline in revenue, the company's trading volumes fell by 7%, which is less severe compared to the industry average. The AI data center segment reported operating income for the first time, generating $20 million in adjusted gross profit and $11 million in adjusted EBITDA.