Via jrmcm.com
The firm's Helios campus in West Texas delivered its first profitable quarter for data centers while digital asset depreciation dragged overall results.
Galaxy Digital just reported an $85 million net loss for Q2 2026. That sounds bad until you realize the company lost $216 million the quarter before.
But here’s the thing worth paying attention to: the company’s Data Centers segment turned a $20 million adjusted gross profit for the first time, up from a mere $3 million in Q1. That’s a 560% jump quarter-over-quarter, and it signals that Galaxy’s expensive pivot toward AI infrastructure is starting to generate real revenue.
The Helios effect #
The profitability breakthrough traces directly to one place: the Helios campus in West Texas. Galaxy completed Phase I of the facility on schedule, delivering a full 133 MW of critical IT load to CoreWeave, the AI cloud computing provider that has become one of the hottest names in GPU infrastructure.
The deal is structured as a 15-year lease. Starting in Q3 2026, Galaxy projects quarterly leasing revenue of roughly $80 million from the arrangement. CoreWeave’s broader commitments across the Helios campus are expected to eventually generate more than $1 billion in annual revenue.
The data center segment also posted $11 million in adjusted EBITDA for the quarter, flipping from what had previously been a money-losing operation into a contributor.
Galaxy isn’t stopping at Helios. After the quarter closed, the company acquired a 500-acre site in McGregor, Texas, expandable to 500 MW of capacity. That acquisition pushed Galaxy’s total Texas power pipeline beyond 5.7 GW.
The digital asset side held up better than expected #
Galaxy’s core digital asset business generated $66 million in adjusted gross profit, a 34% increase from the prior quarter, despite facing lower trading volumes and weaker digital asset prices. The company’s average loan book size hovered around $1.44 billion.
Overall adjusted gross profit for the company came in at $43 million. Adjusted EBITDA was negative $77 million. The diluted and adjusted earnings per share landed at negative $0.09, a significant improvement from the Q1 loss. Galaxy’s balance sheet remains in solid shape: as of June 30, the company held $2.459 billion in cash and stablecoins, with total equity sitting at $2.72 billion.
The strategic pivot in context #
Galaxy Digital, which trades on the Nasdaq under the ticker GLXY, has been steadily repositioning itself over the past year. CEO Mike Novogratz’s firm was once purely a crypto merchant bank. Now it increasingly looks like a hybrid: part digital asset manager, part power infrastructure company serving the AI compute boom.
The 15-year CoreWeave lease provides a level of revenue visibility that crypto trading simply cannot offer. The company also secured substantial financing after the quarter ended, which will likely fund the McGregor expansion and other pipeline projects as Galaxy races to bring its 5.7 GW-plus of power capacity online.
What this means for investors #
The narrowing losses, from $216 million to $85 million in a single quarter, suggest the bleeding is slowing. If the projected $80 million in quarterly leasing revenue from Helios Phase I materializes in Q3, Galaxy could see a dramatic improvement in its overall financial picture.
The risk here is concentration. CoreWeave is the anchor tenant, and Galaxy’s near-term data center revenue hinges heavily on that single relationship. CoreWeave has been growing rapidly and recently went public, but it also carries significant debt and operates in a competitive market for GPU cloud services.
Converting 5.7 GW of potential capacity into revenue-generating data centers requires billions in capital expenditure, regulatory approvals, grid connections, and tenant commitments. The McGregor acquisition shows momentum, but this is a multi-year buildout with plenty of execution risk.
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