Overview
- In its Aug. 5 earnings report Galaxy posted a $85 million net loss on $8.8 billion of revenue and its shares fell about 5% in premarket trading.
- Galaxy completed Helios Phase I and delivered 200 MW of gross power (133 MW critical IT) to CoreWeave under a 15-year lease that the company expects to produce roughly $80 million of quarterly lease revenue starting in Q3.
- The Helios business produced data-center revenue for the first time in Q2 and returned to profitability with $20 million of adjusted gross profit and $11 million of adjusted EBITDA for the quarter.
- To fund expansion Galaxy closed a $3.5 billion private offering of senior secured notes through a Helios subsidiary on July 28 and acquired a 500-acre McGregor, Texas site, pushing its Texas power pipeline above 5.7 GW while raising consolidated debt to over $6 billion.
- Near-term risks include heavy revenue concentration with CoreWeave, sizable construction and grid upgrades needed to convert pipeline capacity to tenants, and higher interest and leverage pressure despite the potential for steadier lease income.