SKN | Galaxy Digital Posts $85 Million Q2 Loss as Crypto Market Weakness Weighs on Results

Key Points:

• Galaxy Digital reported an $85 million net loss for the second quarter of 2026 as declining cryptocurrency prices weighed on earnings.
• Quarterly revenue fell 15% to $8.7 billion, below analysts’ expectations of $12.7 billion.
• Despite weaker market conditions, Galaxy’s digital asset business generated $66 million in adjusted gross profit, while its AI data center operations contributed $20 million.

Galaxy Reports Second-Quarter Loss

Galaxy Digital reported a net loss of $85 million for the second quarter of 2026, reflecting the impact of weaker cryptocurrency prices during the period.

The company posted a loss of $0.09 per share, attributing the decline primarily to lower valuations across digital assets as the broader crypto market weakened.

Following the earnings release, Galaxy shares fell 6.2% in premarket trading to $20.70, extending a decline of nearly 10% over the previous month.

Revenue Falls Short of Expectations

Galaxy generated $8.7 billion in revenue during the quarter, down from $10.2 billion in the first quarter of 2026, representing a 15% quarter-over-quarter decline.

The result also fell below Wall Street expectations, with analysts surveyed by Yahoo Finance forecasting approximately $12.7 billion in quarterly revenue.

The weaker performance coincided with a broad decline across cryptocurrency markets.

According to CoinMarketCap data, the total cryptocurrency market capitalization dropped nearly 15% during the quarter, falling from approximately $2.35 trillion on April 1 to around $2 trillion by June 30.

Digital Asset Business Remains Profitable

Despite reporting an overall net loss, Galaxy’s core digital asset operations continued to produce positive operating results.

The company generated $66 million in adjusted gross profit from its digital asset business during the quarter, alongside $11 million in adjusted EBITDA.

Adjusted gross profit increased 34% compared with the previous quarter, suggesting continued operational strength despite weaker cryptocurrency prices.

Galaxy said the results demonstrate that its business model is becoming less dependent on short-term fluctuations in digital asset valuations.

AI Infrastructure Becomes Growing Revenue Driver

Galaxy’s artificial intelligence infrastructure business continued expanding during the quarter.

The company reported $20 million in adjusted gross profit from its AI data center operations as it increased capacity deliveries to cloud computing provider CoreWeave.

Galaxy expects its long-term partnership with CoreWeave to generate approximately $1 billion in annual revenue over the course of the 15-year agreement.

The company has been investing heavily in AI infrastructure since securing $1.4 billion in financing to expand its Helios AI data center in Texas during 2024.

Diversification Strategy Continues

Galaxy has increasingly positioned artificial intelligence infrastructure alongside digital assets as a second major growth business.

By expanding into AI data centers, the company aims to reduce its dependence on cryptocurrency market cycles while benefiting from growing demand for high-performance computing infrastructure.

Management said the latest results demonstrate the resilience of its diversified operating model, with both digital assets and AI contributing to earnings despite challenging market conditions.

Outlook

Galaxy Digital’s second-quarter results highlight the continued volatility of cryptocurrency markets while demonstrating the company’s broader diversification strategy. Although weaker digital asset prices weighed on overall earnings, continued profitability in its digital asset operations and growing contributions from AI infrastructure suggest Galaxy is building multiple long-term revenue streams. As institutional demand for both blockchain services and AI computing continues to expand, the company is positioning itself to benefit from growth across both sectors.