Mike Novogratz’s digital asset financial services firm, Galaxy Digital, reported a net loss of $216 million for the first quarter of 2026 on April 28, 2026. This financial result represents an improvement compared to the $0.86 loss per share recorded in Q1 2025, with the current quarter showing a loss of $0.49 per diluted share. According to MarketBeat data, these earnings exceeded analyst expectations, which had forecasted a more significant loss of $0.59 per share for the period ending March 31.
Gross revenue for the first quarter of 2026 stood at $10.2 billion. This figure is consistent with the $10.2 billion reported in the fourth quarter of 2025 but marks a decrease from the $12.9 billion generated during the same period in the previous year. The company stated that the quarterly loss was primarily driven by weaker digital asset prices, which negatively impacted the valuation of its investment positions and treasury holdings.
The first quarter of 2026 saw a significant pullback in the broader cryptocurrency market, with total market capitalization falling by approximately 20%. This volatility heavily impacted Galaxy’s Treasury and Corporate segment, which reported an adjusted EBITDA loss of $167 million. In contrast, the Digital Assets segment managed to generate $49 million in adjusted gross profit, reflecting what the company describes as a stabilization of recurring fee revenue despite the softer market environment.
These results follow a challenging 2025 fiscal year. Galaxy previously reported a net loss of $241 million for the full year 2025, with gross revenue totaling $61.4 billion. The volatility observed in early 2026 continues a trend seen in the fourth quarter of 2025, when the firm recorded a $482 million loss due to declining crypto holdings. To manage shareholder value during these periods, the Galaxy Digital board previously approved a buyback of up to 200 million Class A shares.
Operational pivot to AI and data centers
Galaxy Digital is currently undergoing a transition from a strictly market-driven business model to one focused on infrastructure and high-performance computing. The center of this strategy is the Helios data center campus in Texas. The company confirmed in its latest SEC filing that it expects to begin recognizing revenue from this facility in the second quarter of 2026.
As of April 2026, Galaxy has delivered the first data hall to its partner, CoreWeave. The company remains on schedule to deliver substantially all 133 megawatts of critical IT load under the Phase I lease agreement by the end of June 2026. This infrastructure is specifically designed to handle AI workloads and high-performance computing, providing the firm with a source of revenue that is less sensitive to the fluctuations of the cryptocurrency market.
The company’s equity capital reached $2.8 billion as of March 31, 2026, representing a 46% increase year-over-year. Galaxy detailed the distribution of this capital as follows:
33% in digital assets.
28% in data centers and infrastructure.
39% in treasury and corporate holdings.
Liquidity and future outlook
The increase in equity capital highlights the firm’s success in diversifying its balance sheet. While digital assets remain a core part of the business, the growing weight of data centers (28%) indicates a clear shift toward physical infrastructure. This pivot is supported by previous liquidity moves, such as the sale of $9 billion in Bitcoin in July 2025, which the company clarified was driven by estate planning rather than market or technical concerns.
Looking forward, Galaxy’s financial performance for the remainder of 2026 will likely depend on the successful operational ramp-up of the Helios site. The transition to providing infrastructure for AI and high-performance computing is intended to provide a more resilient financial base. While the $216 million loss in Q1 reflects the ongoing challenges of the crypto asset market, the company’s focus is now on the second quarter, when the first revenue streams from its large-scale data center projects are expected to materialize.
This article is for informational purposes and does not constitute financial advice.
