Galaxy Digital (GLXY) shares closed down 14% on Wednesday after the crypto and AI infrastructure firm reported a second-quarter net loss of $85 million, driven by falling digital asset prices.

The stock fell to $19.07, down from a previous close of $22.14, as revenue dropped 15%, offsetting progress in the company’s artificial intelligence (AI) data center business.

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Crypto Losses Weigh on Galaxy Digital’s Results

According to the earnings report, net loss narrowed from $216 million in the first quarter. Revenue fell 15% to $8.7 billion from $10.2 billion in the prior quarter. Adjusted diluted loss reached $0.09 per share.

The company pointed to the depreciation of digital asset prices during the period. Its Treasury and Corporate segment posted an adjusted gross loss of $42 million.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) reached a negative $77 million. Total equity stood at $2.7 billion at quarter’s end.

The digital assets unit held up better, lifting adjusted gross profit 34% from the prior quarter to $66 million. However, trading volumes slipped 7% as market activity cooled. The results echo pressure seen across recent crypto earnings reports.

AI Buildout Gains Momentum

Beyond trading, Galaxy is leaning into AI data center expansion. It completed the first phase of power delivery at its Helios campus in Texas, supplying 133 MW of critical computing load to CoreWeave under a 15-year lease.

The company expects that lease to generate roughly $80 million in quarterly revenue at margins above 90% starting in the third quarter. After the quarter ended, Galaxy bought three more Texas sites, pushing its power pipeline beyond 5.7 GW.

“Q2 marked the segment’s first quarter of revenue-generating operations….Data Centers generated $20 million of adjusted gross profit and $11 million of adjusted EBITDA in Q2 2026,” the firm reported.

To fund the next stage, the firm raised $3.5 billion in senior secured notes due 2031 on July 28. The proceeds will go back into the construction of Helios I, Phase II.

Whether that AI revenue can offset the volatility of crypto trading will shape how Wall Street values crypto stocks like Galaxy in the quarters ahead.

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Source: BeInCrypto