Galaxy Digital posted a $216 million net loss in the first quarter of 2026, driven largely by declining crypto prices that weighed on its balance sheet.
CEO Mike Novogratz appeared unfazed, attributing the losses to an industry that is in a transition phase.
"For digital assets, this is a transition year — globally, we’re moving from a speculative asset class, the 'crypto casino,' some would call it, to a technology that will be embedded across industries worldwide," he said on the company’s earnings call.
The crypto market cap slid roughly 21% last quarter, contributing to unrealized losses across Galaxy's treasury and investments.
Despite this market-wide decline, Galaxy (GLXY) reported flat trading volumes, something Novogratz said marked "the first time we’ve really started to see a decoupling of our business from the price.”
Shares of GLXY were trading around $25.30 on Tuesday, a margional 1% gain on the day according to The Block's crypto stock data.
Galaxy Digital (GLXY) stock price chart. Source: The Block/TradingView
Data center outlook
Novogratz harped on Galaxy’s growing data center business as being key to offsetting crypto market volatility, saying he remains "bullish on both our data centers and digital assets platforms."
The firm recently delivered its first data hall at its Helios campus in West Texas under its lease agreement with CoreWeave, which is expected to generate more than $1 billion in annual revenue across the full buildout.
Galaxy Helios expectations. Source: Galaxy Q1 2026 earnings report
Executives see the milestone as a turning point for the business, calling it "the single most important de-risking event this business has experienced."
Galaxy expects revenue from its data center segment, which it sees as insulated from crypto price swings, to begin ramping in the second quarter.
Rewiring capital markets
Meanwhile, Galaxy’s Digital Assets segment generated $49 million in adjusted gross profit during the bearish quarter, just barely falling short of the $51 million seen the quarter prior.
"If I could see that four quarters in a row, I'd have a big grin on my face," Novogratz said.
Galaxy also flagged growing institutional demand for blockchain infrastructure, including custody, trading, and tokenization, noting that "the entirety of the capital markets … ultimately needs to be rewired."
Executives said that over time, the firm’s performance should be less and less tied to crypto price swings and more dependent on usage of its platform.
