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Galaxy Digital reports second-quarter revenue miss, shares fall roughly 7%
Mike Novogratz's firm saw revenues drop 15% quarter-over-quarter, but a narrowing net loss and a massive pivot toward data centers tell a more nuanced story.
Galaxy Digital posted Q2 2026 revenues of $8.711 billion, a 15% decline from the $10.213 billion it reported in the first quarter. Shares responded the way shares tend to respond to revenue misses: they dropped approximately 7.23% in pre-market trading.
The numbers behind the miss
The sequential decline hit hard, but the damage wasn’t uniform across Galaxy’s business lines. The company’s net loss actually improved meaningfully, shrinking to $85 million (roughly $0.09 per share) from $216 million in Q1 2026.
The digital assets segment showed some life. Adjusted gross profit from that business climbed 34% quarter-over-quarter to $66 million.
Total equity stood at $2.7 billion as of June 30, 2026. Cash and stablecoins on hand totaled $2.46 billion.
The data center play is getting real
The company’s data centers segment generated an adjusted gross profit of $20 million and adjusted EBITDA of $11 million during the quarter.
Galaxy’s Helios campus completed its first full quarter of revenue generation. The facility has begun producing revenue through a partnership with CoreWeave, the GPU cloud computing company. Phase I of the data center operation is expected to generate approximately $80 million in quarterly leasing revenue starting in Q3 2026.
The company also announced three new Texas site acquisitions after the quarter ended, pushing its total power pipeline beyond 5.7 GW.
To fund that expansion, Galaxy closed a $3.5 billion senior secured notes offering on July 28, 2026.
What investors should watch next
The Q3 earnings report will be the real test. If Phase I of the data center begins delivering that projected $80 million in quarterly leasing revenue, it would meaningfully change the composition of Galaxy’s income stream.
The $3.5 billion debt raise gives Galaxy the firepower to build out its infrastructure ambitions aggressively. But senior secured notes also mean senior secured obligations.
Going from $216 million in red ink to $85 million in a single quarter shows operational discipline. But Galaxy still isn’t profitable, and until it is, every revenue miss will be amplified in the market’s reaction.