Galaxy Digital recently reported a net loss of $85 million for the second quarter of 2026. The report immediately hit GLXY shares, which fell 6.2% in pre-market trading to $20.70. This price drop adds pressure to the stock, which has already corrected by nearly 10% over the past month. Loss per share is now recorded at $0.09, reflecting a challenging quarter amid a shrinking crypto market.
This loss figure aligns with macro trends. Throughout the second quarter, the global crypto market capitalization shrank by approximately 15%. The market valuation, which stood at $2.35 trillion on April 1, fell to $2 trillion by June 30. This condition pressured the company’s core revenues, although Galaxy claims its business model is becoming increasingly independent of the direction of digital asset prices.
That claim is supported by the performance of one of its divisions. Amid a 7% drop in trading volume, the digital assets division actually posted an adjusted gross profit of $66 million - up 34% from the previous quarter. However, operating expenses kept the adjusted EBITDA at negative $11 million.
Why Texas is the Main Bet
CEO Mike Novogratz’s attention now seems focused on physical infrastructure. Galaxy’s Helios data center in West Texas finally began contributing revenue for the first time in the second quarter. Future projections indicate that Helios Phase I is expected to generate approximately $80 million in revenue per quarter starting in the third quarter.
The facility is not yet operating at full capacity. Galaxy is still negotiating with potential tenants to fill the remaining 830 megawatts of vacant capacity. Novogratz previously set a target for the entire 1.6-gigawatt capacity in Texas to be fully leased by the end of the summer.
Galaxy continues to expand its physical footprint by acquiring three new locations in Texas for additional data center construction. This expansion requires significant capital, which is being funded through debt. On July 28, Galaxy subsidiary Helios Data Centers II LLC closed a private offering of $3.5 billion in secured senior notes due in 2031. This fresh injection of capital brings Galaxy’s total debt to over $6 billion - a costly infrastructure bet amid a market that is still searching for direction.
Coldcard Exploit Adds to the Burden
Beyond market issues and data centers, a security incident has complicated the company’s financial position. Galaxy has identified at least 15 attackers behind the recent Coldcard exploit. Losses from the attack are estimated at $100 million, and analyses suggest the loss figure could still rise to $130 million.
The financial loss from this hack places additional pressure on the company’s balance sheet, which is already carrying the burden of debt and operational losses. While the business model is starting to show independence from crypto price fluctuations, security vulnerabilities have instead become a costly weak point.
For shareholders, the combination of quarterly losses, a pile of new debt, and the security breach is a real test of the company’s resilience. Expanding through Texas data centers indeed promises new revenue streams, but Galaxy must first ensure they have a strong operational foundation to withstand today’s array of burdens. Reported by Cointelegraph.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
