Despite a first-quarter loss, Galaxy Digital is betting big on AI infrastructure and a U.S. Nasdaq listing as it completes its corporate transformation.
Galaxy Digital Holdings Ltd. reported a net loss of $295 million for the first quarter of 2025, driven primarily by the depreciation of digital assets and a $57 million write-down related to the winding down of mining operations at its Helios data center. The Q1 loss equates to $0.86 per diluted share.
Despite the setback, Galaxy appears optimistic about its trajectory, citing positive operating momentum and a completed corporate reorganization. On May 13, the company finalized its domestication and restructuring into a U.S. entity, setting the stage for a much-anticipated Nasdaq listing on May 16.
Financial Position and Q2 Outlook
As of March 31, Galaxy Digital reported $1.9 billion in equity capital, with $1.1 billion in cash and net stablecoins. Encouragingly, the firm estimates that its operating income for Q2 will range between $160 million and $170 million, with equity capital rising to $2.2 billion as of May 12.
CoreWeave Expansion Marks Strategic Shift
A key catalyst for Galaxy’s long-term transformation is its partnership with AI infrastructure leader CoreWeave. In a major infrastructure update, CoreWeave exercised an option to expand capacity at Galaxy’s Helios data center campus in West Texas.
The expansion, dubbed Phase II, will add an additional 260 megawatts (MW) of critical IT load, targeted at powering AI and high-performance computing (HPC) workloads. This builds upon a previous agreement signed in March 2025, bringing CoreWeave’s total committed capacity at Helios to 393 MW.
The deal is part of a 15-year hosting agreement with CoreWeave, announced during Galaxy’s Q4 2024 earnings. It involves repurposing 200 MW of its former mining facility to support 133 MW of GPU-focused compute power, expected to deliver $4.5 billion in revenue over its term, averaging $300 million per year or 70% of Galaxy’s 2024 revenues.
Favorable Terms and High Margins
What makes this deal particularly significant is its financial impact. The terms have been described as “very favorable,” generating $2.26 million in annual revenue per MW with EBITDA margins approaching 90%. First deliveries under the agreement are expected in 2027, positioning Galaxy as a major player in the emerging AI infrastructure market.
While Galaxy Digital’s Q1 loss reflects the ongoing volatility of the digital asset market, the company’s strategic shift toward AI infrastructure and its upcoming Nasdaq debut underscore a long-term growth narrative. With robust Q2 projections, a multi-billion-dollar partnership with CoreWeave, and increasing institutional visibility, Galaxy is reshaping itself from a crypto-native firm into a diversified digital infrastructure powerhouse.
