Galaxy Digital posted a net loss of $216 million in Q1 as the crypto market fell 20%.

Galaxy Digital, the crypto financial services and infrastructure firm led by Mike Novogratz, posted a net loss of $216 million in the first quarter of 2026, down from a $482 million loss in the previous quarter.

Adjusted EBITDA was negative $188 million, and diluted earnings per share were negative $0.49.

Total equity was $2.8 billion, up 46% year over year. The company held $2.6 billion in cash and stable coin compared to the previous quarter.

Losses were primarily driven by weak crypto market conditions on digital assets and investment positions in the treasury and corporate segment.

The overall crypto market value fell by 20% during the quarter. Bitcoin fell nearly 24%, its biggest quarterly decline since 2018, to end March at around $66,600.

Helios data center process

Galaxy has turned on its first data center at its Helios campus in West Texas, delivering it to CoreWeave, an AI compute provider, under a Phase 1 lease.

“The lights are on by Helios,” Novogratz posted on X. “Our AI data center business is officially generating cash flow.”

The remaining 133 MW of critical IT capacity is under construction in early 2027 with Phase II construction of 260 MW on track for delivery by the end of Q2 2026.

During the quarter, Texas grid operator ERCOT approved an additional 830 megawatts of power for Helios, more than doubling its total authorized capacity to 1.6 gigawatts.

The entire CoreWeave lease covers 526 megawatts of critical IT load over three phases, with a base period of 15 years.

The Galaxy Projects event alone will generate more than $1 billion in average annual revenue and an expected EBITDA margin of around 90%.

Digital assets section

The Digital Assets segment's adjusted gross profit was $49 million, down from $51 million in the prior quarter. That continued to be due to a shift to recurring payment revenue and transaction revenue.

Trade equivalents rose 4% to 1,691, and Galaxy's own trade volumes fell sharply, as did its industry-wide volumes, according to data from The Block.

The lender's book reduced 20 percent to an average of $1.4 billion when representing clients.

Property management

The asset management division managed approximately $5 billion in assets and $3.2 billion in assets at the end of Q1 2026.

Assets on the stock are down 35% quarter-over-quarter, but that's almost entirely because the token price has fallen, not because customers have left. Net income for the quarter was $69 million.

BlackRock selects Galaxy as an approved verifier for the iShares Staked Ethereum Trust ETF, BlackRock's first rewards-generating crypto product. Galaxy also announced a new fintech-oriented hedge fund, with a date of May, which is targeted at the intersection of traditional finance and blockchain infrastructure.

Corporate treasury and capital allocation

The corporate treasury division posted an adjusted comprehensive loss of $140 million and negative EBITDA of $167 million, driven by unrealized markdowns on digital asset positions and venture investments.

Galaxy's equity allocation is roughly split three ways: 33% digital assets, 28% data centers, 39% treasury and corporate.

Share purchases and corporate structure

The company repurchased 3.2 million shares during the quarter for $65 million, more than compensation for employee stock grants. It completed its voluntary delisting from the Toronto Stock Exchange, fully consolidated on Nasdaq, a move that simplified its corporate structure following a May 2025 reorganization that transformed the former partnership into a formal corporate entity.