Galaxy Digital lost $85M on crypto as its projected $80M in AI revenue must offset $3.5B AI investment

Galaxy Digital closed Q2 with an $85 million net loss even as completed Phase I capacity began contributing under its CoreWeave lease. Q3 brings the first full quarter at the guided run rate, a cleaner test of whether contracted data center income can soften Galaxy's crypto-driven earnings swings.

Galaxy Digital's SEC-filed results tied the loss primarily to lower digital-asset prices. Diluted earnings per share were negative $0.09. Adjusted EPS, a non-GAAP measure, landed at the same negative $0.09. Galaxy posted $43 million of adjusted gross profit and a $77 million adjusted EBITDA loss, both non-GAAP measures.

The segment results pulled in opposite directions. The AI infrastructure pivot generated $20 million of adjusted gross profit and $11 million of adjusted EBITDA as capacity ramped. Treasury and Corporate recorded a $42 million adjusted gross loss and a $78 million adjusted EBITDA loss, mainly from unrealized losses on digital assets and investment positions.

All 133 MW of critical IT load under the 15-year CoreWeave Phase I lease was in service by quarter-end. Galaxy Digital now expects about $80 million of quarterly leasing revenue and a project-level adjusted EBITDA margin above 90% beginning in Q3. The Q3 figures remain guidance, and the project margin excludes overhead.

On paper, an $85 million loss and about $80 million in expected quarterly lease revenue almost rhyme. The accounting tells a different story. The loss sits at Galaxy's consolidated GAAP bottom line. The $80 million describes expected top-line revenue. Data Centers contributed $11 million of adjusted EBITDA during the ramp, so Q2 captures the build toward full lease economics.

The 260 MW Phase II expansion carries its own financing weight. A Helios project subsidiary, Galaxy Helios Data Centers II LLC, completed a $3.507 billion offering of 9.875% senior secured notes due 2031. Another project unit, Galaxy Helios II LLC, guarantees the notes.

Project assets and pledged equity in the issuer secure the notes. The financing documents name Helios project entities as issuer and guarantor, keeping the disclosed credit support at project level. From here, construction progress and tenant performance will be the main pressure points.

CoreWeave remains the hinge for that revenue. Galaxy Digital's quarterly filing says the Data Centers segment initially depends heavily on the AI infrastructure customer. Phase I is operating and generating contracted revenue from outside crypto markets. Whether it becomes the steady stream Galaxy expects now rests on CoreWeave's performance and Galaxy's Phase II execution.

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