Galaxy Digital Stock Tanks on $85M Net Deficit Amid Crypto Slump

Galaxy Digital's shares plummeted 13.46% to $19.16 after the company reported an $85 million net deficit for the second quarter, driven by declining cryptocurrency valuations.

The deficit was a significant improvement over the prior period, but still weighed on the stock. The company's adjusted EBITDA registered negative $77 million, while its adjusted gross profit climbed to $43 million.

Galaxy's Digital Assets division produced $66 million in adjusted gross profit, a 34% sequential expansion, while Global Markets delivered $49 million as transaction volumes contracted 7% versus the prior quarter.

The company's Helios facility generated inaugural data center income, producing $20 million in adjusted gross profit and $11 million in adjusted EBITDA. Management projects that Helios Phase I will deliver roughly $80 million in quarterly lease income.