Galaxy Digital (TSE:GLXY) reported a second-quarter net loss as lower digital-asset prices weighed on its treasury and corporate segment, while the company highlighted growth in its digital-assets operations and the start of cash generation from its Helios data center campus.

Founder and CEO Mike Novogratz called the quarter “transformational,” describing Galaxy’s strategy as building infrastructure for both on-chain finance and artificial-intelligence computing. The company delivered the first phase of its Helios data center to CoreWeave on schedule and within budget, expanded its Texas development pipeline and completed a $3.5 billion high-yield financing for the next Helios phase.

Galaxy reported a GAAP net loss of $85 million, or $0.09 per share, and firm-wide adjusted EBITDA of negative $77 million for the second quarter. CFO Tony Paquette said the results were primarily driven by declining digital-asset prices, which produced a $42 million adjusted gross loss in the treasury and corporate segment.

Combined operating businesses generated $86 million in adjusted gross profit and $1 million in adjusted EBITDA, both substantially higher than in the first quarter. Firm-wide operating expenses, excluding certain transaction costs, digital-asset impairments and data-center pass-through expenses, totaled $172 million, up $25 million sequentially. Paquette attributed the increase primarily to interest and depreciation expenses that began to be recognized alongside Helios revenue.

• Total assets were $10.8 billion, up 9% from the prior quarter.
• Total equity was $2.7 billion, essentially unchanged sequentially.
• Galaxy allocated 72% of its equity capital to its two operating businesses.
• Cash and stablecoins totaled $2.5 billion, down 6% from the first quarter as cash was deployed largely toward the Helios build-out.
• Net digital assets and investments were approximately $1.2 billion, down 15% because of lower crypto prices and a modest reduction in net digital-asset exposure.

Despite a double-digit decline in crypto prices and weaker industry trading volumes and on-chain activity, Galaxy’s digital-assets segment produced $66 million in adjusted gross profit, up $17 million, or 34%, from the first quarter.

Global Markets adjusted gross profit rose to $49 million even as trading volumes declined 7% sequentially. Paquette cited electronic-trading strength and disciplined risk management. Galaxy also said its average lending book increased modestly, supported by loan originations late in the quarter.

The company launched an over-the-counter prediction-markets offering for institutional clients and introduced the Galaxy On-Chain Financing Rate, or GOFR, a managed lending product designed to provide access to on-chain credit markets through Galaxy as a single counterparty. The GOFR product had generated nearly $300 million in loan originations, according to Paquette.

Galaxy also introduced Galaxy Curator, an institutional vault-curation offering built on Morpho and integrated with Fireblocks. The platform provides Fireblocks’ more than 2,400 institutional clients access to curated on-chain yield strategies.

In asset management and infrastructure solutions, Galaxy generated $17 million of adjusted gross profit and ended the quarter with about $7 billion of combined assets under management and assets under stake. That balance fell 12% from the first quarter, primarily reflecting lower crypto prices and modest net outflows.

The company launched the Galaxy Fintech Fund with more than $100 million in assets at launch. The long-short equity hedge fund focuses on the digital-asset transformation of financial services. Galaxy also launched SWEEP, a tokenized private-equity fund developed with State Street Investment Management that offers 24/7 liquidity and can serve as eligible margin collateral on Galaxy’s platform.

Galaxy signed a multiyear agreement with Bank of New York to help advance digital-asset infrastructure for institutional markets, including staking support on BNY’s digital-asset custody platform. Paquette said Galaxy has forward-deployed engineers working with the bank. The company also said Morgan Stanley Wealth Management selected Galaxy to help power staking for two new digital-asset exchange-traded products.

Galaxy’s data center segment reported $20 million in adjusted gross profit and $11 million in adjusted EBITDA during the quarter, reflecting phased delivery of data halls to CoreWeave. Phase I included the first 133 megawatts of critical IT capacity and was fully delivered before the end of the quarter.

Paquette said Phase I is expected to generate approximately $80 million in leasing revenue in the third quarter, its first full quarter of operations, with a project-level adjusted EBITDA margin above 90%.

Data center capital expenditures reached $448 million in the second quarter, compared with $354 million in the first quarter. Galaxy recognized a clean-electricity investment tax credit of roughly $65 million, with about half flowing through its profit and loss statement as a $32 million tax benefit because of its Up-C structure.

On July 28, Galaxy completed a private offering of $3.5 billion in five-year senior secured notes. Paquette said the financing, together with previously contributed equity, fully funds Helios Phase II, which is expected to add 260 megawatts of critical IT capacity beginning in 2027.

President and CIO Chris Ferraro said construction on Phase II remains on schedule. Earthwork is complete and structural foundation work is underway. The phase consists of eight data halls, with seven expected online by the end of 2027 and the final hall expected in early 2028. Phase III, which would add 133 megawatts of critical IT load, is expected to come online throughout 2028.

Galaxy added three Texas sites over the prior two months: Merlin, Caspian and Selene. Together with Helios, the company said its potential power capacity now exceeds 5.7 gigawatts.

Merlin is planned as an AI and high-performance computing campus in McGregor, Texas. Galaxy expects an initial 74-megawatt phase to begin energization in 2028, subject to interconnection and utility supply agreements. The company sees a path for the campus to grow to 500 megawatts over time.

Caspian has potential gross power capacity of 700 megawatts and is eligible for ERCOT’s Batch Zero base-load classification, according to Ferraro. Selene has potential gross capacity of 900 megawatts and is eligible to be classified as Batch Zero study load. Galaxy also submitted documentation and posted $50 million of financial security for Helios Three, a planned one-gigawatt expansion.

Ferraro said Texas Governor Greg Abbott’s directive for an audit of data-center projects seeking grid interconnection could delay expected Batch Zero classification communications. He said Galaxy would comply with additional requirements and believes its projects are well positioned because the company has completed required studies, posted financial security and made infrastructure commitments.

Novogratz said Galaxy sees its data-center and digital-assets operations as distinct businesses connected by broader shifts toward AI and digital financial infrastructure. While he said there is no immediate direct convergence between the two businesses, he said the growing cash flow expected from data centers could give Galaxy more flexibility as the crypto industry evolves.

Galaxy Digital is a is a diversified financial services and investment management company dedicated to the digital assets and blockchain technology industry. The company operates through five business lines: Trading, Principal investing, Asset management, mining and Investment Banking.