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Galaxy Digital Narrows Loss as Helios Data Center Begins Lease Revenue

Helios Phase I started commercial leasing to CoreWeave and is expected to generate roughly $80 million in quarterly revenue, giving Galaxy early cash flow under a long-term contract.

Overview

  • On Aug. 5 Galaxy reported a second-quarter net loss of $85 million with diluted and adjusted earnings per share of negative $0.09, an improvement from the prior quarter.
  • Galaxy’s Data Centers unit recorded $20 million in adjusted gross profit and $11 million in adjusted EBITDA as Phase I of the Helios campus delivered 133 megawatts of critical IT capacity to CoreWeave under a 15-year lease.
  • Management projects Phase I will produce about $80 million in quarterly lease revenue beginning in Q3, while construction on Helios Phase II has started and initial Phase II deliveries are planned for 2027.
  • To fund the buildout Galaxy closed a roughly $3.5 billion private offering of senior secured notes in late July, a move that pushed total debt above $6 billion and prompted investor concern that helped drive shares down as much as about 13% intraday.
  • Galaxy’s digital-assets trading arm improved operating results with $66 million in adjusted gross profit, but the company still faces concentration risk from relying on CoreWeave, execution and grid-connection challenges for future phases, and the need to sign more tenants to convert its Texas pipeline of more than 5.7 GW into revenue.