Galaxy Digital's Shocking Q1 Loss: A $295 Million Blow

Holy smokes! Galaxy Digital just dropped a bombshell: a whopping $295 million net loss for the first quarter of 2025. That's right, folks, the crypto world is reeling from this financial gut punch.

What's behind this staggering loss? Brace yourselves—it's a double whammy. First, there's the brutal digital asset depreciation that's been hammering the market. Then, there's a hefty $57 million charge from shutting down Helios's data center mining ops. Ouch! But wait, there's a silver lining: Galaxy completed its reorganization and move to the US on May 13, just in time for a Nasdaq listing on May 16. Talk about a rollercoaster ride!

Now, let's break down the numbers: this Q1 loss translates to a hefty $0.86 per diluted share. As of March 31, Galaxy's equity capital was holding steady at $1.9 billion, with cash and net stablecoins totaling a cool $1.1 billion.

Hold onto your hats, though, because despite this Q1 loss, Galaxy is bouncing back with a vengeance. They're estimating operating income of $160–$170 million so far in Q2, and their equity capital has surged to $2.2 billion as of May 12. This company is not going down without a fight!

CoreWeave's Game-Changing Expansion

In a move that's got everyone talking, AI infrastructure powerhouse CoreWeave just cranked up the volume at Galaxy's Helios data center campus. That's right, they're expanding big time!

Get this: Phase II of their partnership is adding a mind-blowing 260 megawatts of critical IT load for AI and high-performance computing workloads. We're talking serious firepower here!

Remember Galaxy's 15-year AI hosting deal with CoreWeave? It was all the buzz during their Q4 2024 earnings call, and for good reason. This deal is set to transform the company by repurposing 200 MW of its Helios mining facility in West Texas to support 133 MW of critical IT load for CoreWeave's GPUs. And get this: it's expected to rake in a staggering $4.5 billion in revenue over its term, averaging around $300 million annually. That's a whopping 70% of Galaxy's total 2024 revenues!

The terms of this deal? They're not just good, they're "very favorable" compared to other high-performance computing deals. We're talking estimated annual revenue of $2.26 million per MW at around 90% EBITDA margins. Cha-ching!

Mark your calendars, because deliveries under this new agreement are set to kick off in 2027. And when you combine it with an earlier 133 MW lease agreement from March, CoreWeave's total committed capacity at Helios will hit an incredible 393 MW. This is the stuff of legends, folks!