Galaxy Digital Reports $216M Q1 Loss, Invests $20M in Blockchain Startup
Galaxy Digital posted a $216 million Q1 loss on $10 billion revenue, down 22%, while trading volumes stalled and its loan book contracted 20% to $1.4 billion. The company shifted 28% of its $2.8 billion equity capital into AI data centers and led a $20 million financing of Fence.
1. Q1 Financial Results
Galaxy Digital posted a net loss of $216 million, or 49 cents per share, in the first quarter with revenue of $10 billion falling 22% year-over-year. Trading volumes remained flat, recurring fee revenue improved, and the loan book shrank 20% to $1.4 billion as digital asset prices depreciated.
2. Bitcoin Recovery Outlook
CEO Michael Novogratz highlighted that Bitcoin’s path back to $100,000 hinges on central bank easing that may not materialize soon, given ongoing geopolitical tensions and potential inflation pressures. Bitcoin’s market weighting of about 60% underscores its influence on Galaxy’s balance sheet.
3. Strategic Shift and Investments
Galaxy has redirected 28% of its $2.8 billion equity capital into converting crypto mining operations into AI data centers, signing clients like CoreWeave. The firm also led a $20 million funding round for blockchain startup Fence to automate structured credit processes and enhance back-end finance workflows.