Galaxy Digital Loses $295 Million in Quarter as Nasdaq Listing Prepares
Date: 2025-05-14 Author: Oliver Abernathy Categories: BUSINESS
Galaxy Digital has completed a major milestone in its transformation, completing its redomiciliation from the Cayman Islands to Delaware, a necessary step ahead of its upcoming Nasdaq listing scheduled for May 16, 2025. The company's first-quarter financial results were down, with a net loss of $295 million, compared to a profit of $118 million in the previous period.
The decision to move was made at a shareholders' meeting on May 9, where participants approved the company's redomiciliation. The US Securities and Exchange Commission (SEC) had already given its consent to the move in April. Final approval is pending from the Toronto Stock Exchange, where Galaxy is still listed.
One of the key consequences of the relocation was the adoption of US accounting standards, which also affected the reporting figures. The loss is mainly due to the revaluation of digital assets, as well as the cessation of mining activities at the Helios facility, which resulted in a loss of revenue of $57 million.
However, the company is showing signs of recovery: as of May 12, Galaxy estimated its operating profit for the second quarter to be in the range of $160-170 million. Equity amounted to $2.2 billion, and the company's total market capitalization reaches $9.66 billion.
In addition, Galaxy is actively developing a partnership with CoreWeave, a company in the field of AI computing. In the first quarter, CoreWeave exercised an option to use additional capacity in the Helios data center with a volume of 260 MW under a long-term 15-year contract.
Galaxy plans to begin hosting CoreWeave in the first half of 2026, starting with the 133 MW already deployed in the first phase of the partnership. By 2027, once the contracted 393 MW is fully deployed, revenue for the first 12 months is expected to be around $700 million.
Recall that in late 2022, Galaxy acquired the Helios facility from Argo Blockchain, which was then in financial trouble. The deal was worth $65 million.
