8-K: Galaxy Digital Reports Q2 2026 Results, Faces Net Loss

Galaxy Digital Inc. announced its second quarter 2026 financial results, reporting a net loss of $85 million and adjusted EBITDA of $(77) million, primarily due to digital asset price depreciation, while expanding its data center footprint.

Summary

• Galaxy Digital Inc. reported a net loss of $85 million for the second quarter of 2026, with diluted and adjusted EPS of $(0.09).
• Adjusted gross profit was $43 million, and adjusted EBITDA was $(77) million for the quarter.
• Total equity stood at $2.7 billion, with cash and stablecoin holdings at $2.5 billion as of June 30, 2026.
• The company expanded its data center footprint by acquiring three new sites in Texas, increasing its total power pipeline to over 5.7 GW.
• Phase I of the Helios data center campus delivered 133 MW of critical IT load to CoreWeave on schedule, with expected quarterly leasing revenue of approximately $80 million and an EBITDA margin over 90% starting Q3 2026.
• Galaxy completed a private offering of $3.5 billion of senior secured notes due 2031 to fund construction of Helios I, Phase II.

Sentiment

Score: 3

Explanation: StockSavvy.ai views this as a negative score due to the significant net loss and adjusted EBITDA loss, despite progress in the data center segment. The company is heavily reliant on external financing and faces ongoing digital asset price volatility.

Positives

• Phase I of the Helios data center campus was delivered on schedule, with rent commencement scaling with delivered capacity.
• The Data Centers segment generated $20 million of adjusted gross profit and $11 million of adjusted EBITDA in Q2 2026, marking its first quarter of revenue-generating operations.
• Galaxy expects Phase I of the Helios data center to generate approximately $80 million in quarterly leasing revenue and over 90% project-level Adjusted EBITDA margin starting in Q3 2026.
• The company secured a development agreement for 500 acres in McGregor, Texas, for its Merlin campus, with an initial agreement for 74 MW and potential expansion to 500 MW.
• Two additional Texas sites, Caspian and Selene, were acquired for development with potential capacities of 700 MW and 900 MW, respectively.
• Galaxy entered a multi-year agreement with BNY to advance its digital asset infrastructure, including support for staking on BNY's Digital Asset Custody platform.
• Total equity remained substantial at $2.7 billion, and cash and stablecoin holdings were $2.5 billion as of June 30, 2026.

Negatives

• The company reported a net loss of $85 million for Q2 2026, a significant improvement from $(216) million in Q1 2026 but still a loss.
• Adjusted EBITDA was $(77) million, an improvement from $(188) million in Q1 2026, but still a substantial loss.
• Total equity decreased by 2% from the prior quarter, from $2.779 billion to $2.720 billion.
• Cash and stablecoin holdings decreased by 6% from the prior quarter, from $2.605 billion to $2.459 billion.
• Net digital assets and investments decreased by 15% from the prior quarter, from $1.362 billion to $1.160 billion.
• Treasury & Corporate segment reported an adjusted gross loss of $(42) million and adjusted EBITDA of $(78) million.

Risks

• Inability to maintain Nasdaq's listing standards.
• Costs related to AI/HPC plans, transactions, operations, and strategy, including potential impairment charges and negative Adjusted EBITDA.
• Changes in applicable laws or regulations impacting the cryptocurrency and AI/HPC industries.
• Adverse effects from other economic, business, and/or competitive factors.
• Declines in the prices of digital assets or in transaction volumes, and exposure to market risk on digital asset and investment positions.
• The risk that the business will not grow in line with expectations.
• Potential disruption or change in power dynamics impacting results or current/future load capacity.
• Delay or failure to consummate business mandates or achieve pipeline goals.

Future Outlook

Galaxy expects Phase I of the Helios data center to generate approximately $80 million in quarterly leasing revenue and an expected quarterly project-level Adjusted EBITDA margin of over 90% beginning in the third quarter of 2026. The company is advancing discussions for additional capacity at Helios and has 2 GW of additional power under study. The company also continues to build out a multi-gigawatt power pipeline across Texas, totaling over 5.7 GW of potential capacity.

Management Comments

• Digital Assets and Data Centers operating businesses generated $86 million of adjusted gross profit and $1 million of adjusted EBITDA, up $34 million and $21 million QoQ, respectively.
• Despite the pullback in digital asset prices and activity during the quarter, adjusted gross profit increased by 34% QoQ, reflecting the resilience of our business model and further demonstrating that our earnings are becoming less dependent on the direction of digital asset prices.
• With the full 133 MW now delivered, due to contracted payments, Galaxy expects Phase I to generate quarterly leasing revenue of approximately $80 million, and expected quarterly project-level Adjusted EBITDA margin of over 90% beginning in the third quarter of 2026.

Industry Context

StockSavvy.ai notes that Galaxy Digital's results reflect the ongoing bifurcation in the digital asset and technology infrastructure sectors. While digital asset markets experienced depreciation, impacting the company's financial results, the demand for AI and HPC data center infrastructure is rapidly growing, as evidenced by Galaxy's significant expansion and pre-leasing activities in this segment.

Comparison to Industry Standards

• The company's Q2 2026 net loss of $85 million and adjusted EBITDA of $(77) million are significant negative results compared to industry peers focused on profitability in digital asset trading. However, the data center segment's projected 90%+ EBITDA margin for Phase I of Helios is a strong indicator of competitive performance in that specific market.
• The expansion of data center capacity to over 5.7 GW positions Galaxy Digital among major infrastructure developers, competing with companies like Equinix, Digital Realty, and CyrusOne, which are also heavily investing in AI-driven data center growth.
• The $3.5 billion senior secured notes offering indicates a capital-intensive growth strategy, common in the data center sector, but the scale of this raise is substantial and will be closely watched for its impact on leverage.

Related Party Transactions

• Accounts receivable includes $4.8 million due from related parties as of June 30, 2026.
• Other non-current liabilities includes $71.5 million due to related parties as of June 30, 2026.

Stakeholder Impact

• Shareholders may be concerned by the continued net loss and adjusted EBITDA loss, despite progress in the data center segment, potentially impacting stock valuation.
• Creditors will monitor the company's ability to service its debt, including the recently issued $3.5 billion in senior secured notes.
• Employees may face uncertainty due to ongoing financial losses, although expansion in the data center segment could lead to job creation.
• Customers, particularly CoreWeave, benefit from the on-schedule delivery of data center capacity, ensuring their AI/HPC infrastructure needs are met.

Next Steps

• Continue construction of Helios I, Phase II, funded by the recent note offering.
• Advance discussions with prospective tenants for the remaining 830 MW of approved capacity at Helios.
• Progress through ERCOT's interconnection process for Helios III and Helios IV, representing potential total capacity of 3.6 GW.
• Develop the Merlin, Caspian, and Selene data center campuses in Texas.
• Continue to advance BNY's digital asset platform infrastructure as a design partner.

Key Dates

Recommendation

Galaxy Digital's Q2 2026 results show a continued net loss and adjusted EBITDA loss, primarily driven by digital asset market depreciation. While the significant expansion and progress in the data center segment, including the successful delivery of Phase I of the Helios campus and a substantial capital raise, are positive indicators for future revenue, the overall financial performance remains weak. The company's reliance on capital markets for funding and the inherent volatility of digital assets present ongoing risks. Therefore, a 'hold' recommendation is appropriate, balancing the long-term potential of the data center business against current financial challenges and market risks.

Keywords

data center, AI infrastructure, HPC infrastructure, digital assets, Helios campus, CoreWeave, Texas data centers, Galaxy Digital