Galaxy Digital closed the second quarter with an $85 million net loss and a diluted adjusted loss of $0.09 per share, and the market read it as a crypto beta problem rather than an operating one. Revenue fell 15% to $8.7 billion from $10.2 billion in the first quarter, tracking a crypto market capitalization that slid from $2.35 trillion on April 1 to $2 trillion by June 30. Underneath the headline number, the segment split tells a different story: digital assets and data centers both printed positive adjusted gross profit, while the treasury book absorbed the damage. The Helios campus billed its first revenue in the quarter and is guided to roughly $80 million per quarter from the third. Shares dropped 6.2% in premarket trade to $20.70, extending a decline of nearly 10% over the past month. What follows is the mechanics of that split, the case for a rerating on infrastructure earnings, and the reason the treasury line still caps it.
The Read
- Net loss of $85 million driven by digital asset price depreciation, not by the operating businesses
- Helios delivered $20 million of adjusted gross profit in its first revenue quarter, with ~$80 million per quarter guided from Q3
- Treasury and corporate posted a $42 million adjusted gross loss, which is what turned a positive segment quarter into a headline loss
The Loss Came Out of the Treasury Book, Not the Operating Lines
Galaxy Digital reported $43 million in total adjusted gross profit for the quarter, which is the number that matters more than the net loss line. Digital assets contributed $66 million, up 34% quarter on quarter. Data centers added $20 million. Treasury and corporate took the other side with a $42 million adjusted gross loss, driven by unrealized marks on digital assets and investment holdings.
Adjusted EBITDA landed at negative $77 million, and the composition is the tell. Data centers were positive at $11 million, digital assets sat at negative $11 million, and treasury and corporate carried negative $78 million on its own. Strip the treasury line and the quarter reads as roughly breakeven at the EBITDA level, which is the bull argument in one sentence and the bear argument in the next.
Management put the emphasis on business model resilience and on earnings becoming less dependent on the direction of digital asset prices. The full segment detail is laid out in the company’s second quarter results release. Investors have heard versions of that framing before from crypto-adjacent balance sheets, including when JPMorgan flagged the risk in MicroStrategy’s bitcoin sales plan.
Helios Billed 133 Megawatts and Booked Its First $20M
The Helios campus delivered 200 MW of gross power in Phase I, of which 133 MW of critical IT load went to CoreWeave under a long-term lease. That is the first quarter in which the site billed anything at all, and it produced $20 million of adjusted gross profit and $11 million of adjusted EBITDA straight away.
Phase II construction has started on 260 MW of capacity, with data hall deliveries expected in the second quarter of 2027. Galaxy Digital closed a $3.5 billion senior secured notes offering on July 28 to fund it. That financing sits outside the quarter being reported, which means the leverage it adds shows up in the next set of numbers rather than these.
The pipeline behind it is now above 5.7 gigawatts, expanded through the Merlin site at 74 MW initially, Caspian at 700 MW and Selene at 900 MW. Helios itself has 1.6 GW approved with a further 2 GW under study. Bulls see contracted megawatts; bears see a construction program whose returns are underwritten by one tenant’s demand curve.
Data center capex punishing an otherwise decent print is not new territory for this market. It is the same reflex that hit the tape when Tesla dropped 14% on a $25B capex guide, and the same lens applied across the sector when big tech earnings landed with AI spending in focus.
$80M a Quarter From Q3 Would Reset the Earnings Base
The bull case runs through one guided figure. Galaxy Digital expects Helios to generate roughly $80 million in quarterly leasing revenue beginning in Q3 2026, at an anticipated project-level adjusted EBITDA margin above 90%. Annualize that and the campus alone carries more than $300 million of high-margin revenue that does not move with the price of bitcoin.
Set against a quarter where the entire company produced $43 million of adjusted gross profit, an $80 million quarterly line from a single asset changes the shape of the P&L rather than adding to it. The CoreWeave arrangement is a 15-year agreement expected to deliver around $1 billion in annual revenue, which is the contractual anchor the equity story now leans on.
The balance sheet gives that thesis room to breathe: $2.7 billion of total equity, $2.5 billion in cash and stablecoins, and $10.8 billion of total assets. A multi-year agreement with BNY on digital asset infrastructure and staking for institutional clients adds a second, lower-beta revenue path. If the market starts valuing the data center line on infrastructure multiples instead of crypto multiples, the rerating does not need a bitcoin rally to happen.
Assets Under Management Fell 12% While the Marks Did the Damage
The bear case starts with the line that actually produced the loss. Treasury and corporate delivered negative $78 million of adjusted EBITDA on unrealized marks, and nothing in the Helios ramp changes the mechanics of that exposure. A second quarter of falling crypto prices reproduces the same result regardless of how many megawatts come online.
The asset management franchise shrank alongside it. Combined AUM and assets under stake fell 12% quarter on quarter to $7.1 billion, split between $1.8 billion in ETFs, $2.6 billion in alternatives and $2.8 billion under stake. That decline is a fee-revenue problem that compounds if crypto drawdowns persist, and it is not offset by lease income.
Then there is the funding structure. The $3.5 billion of senior secured notes finances Phase II ahead of any Phase II revenue, so the company carries interest cost against deliveries that only start in the second quarter of 2027. Between now and then, the data center story is one tenant, one campus and a construction schedule.
The asymmetry to price is therefore narrower than the headline suggests. A stock down 6.2% to $20.70 and nearly 10% over a month is not trading on the infrastructure multiple yet, and it will not until a full quarter of Helios billing is on the tape without a treasury writedown behind it. That correlation is what dragged the whole cohort when Coinbase led a crypto stock crash with MSTR down 9%.
More to come.
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