Galaxy Digital posts $216 million net loss in Q1 as crypto market falls 20%

Galaxy Digital, a crypto financial services firm, reported a net loss of $216 million for the first quarter of 2026, a significant increase from the previous quarter's $482 million loss. This was primarily driven by unrealized markdowns on digital assets and investment positions, exacerbated by a 20% drop in the overall crypto market cap, including a nearly 24% decline in Bitcoin. Despite the losses, the company's total equity grew 46% year-over-year to $2.8 billion, with $2.6 billion held in cash and stablecoins. The Helios data center project is now generating cash flow, with its first data hall operational and leased to CoreWeave, and further phases of expansion are underway. The digital assets segment showed resilience with adjusted gross profit of $49 million, supported by recurring fee revenue. The asset management division managed approximately $5 billion in AUM, with a slight decrease attributed to token price declines rather than client withdrawals. Galaxy also secured a validator role for BlackRock's Ethereum ETF and launched a new fintech-focused hedge fund. The corporate treasury segment incurred significant losses due to asset markdowns. The company also completed its delisting from the Toronto Stock Exchange, consolidating on Nasdaq, and continued with share buybacks.

(Source：Crypto Briefing)