Galaxy Digital Posts $295M Loss, 38% Revenue Gain Amid Crypto Stagnation

Galaxy Digital Holdings reported a net loss of $295 million for the first quarter of 2025, with losses per share amounting to $0.86. This financial performance came during a period of stagnation in the cryptocurrency market. Despite the loss, the company managed to generate $12.9 billion in revenue, marking a nearly 40% increase from the previous quarter.

The company's financial report was released ahead of its planned listing on the Nasdaq, scheduled for May 16, 2025. This listing is part of a broader reorganization approved by the U.S. Securities and Exchange Commission last month. The company's shares are currently trading on the Toronto Stock Exchange at $27.32 CAD, reflecting a 3% decrease in the past day but a 117% increase over the past year.

Galaxy Digital's financial struggles are attributed to the broader market conditions, where digital asset investors have shifted their focus to safer assets like gold amid growing geopolitical uncertainties. This shift has led to a decline in crypto prices and stocks, which hovered around $80,000 in March. The market downturn was exacerbated by significant losses in meme coins linked to high-profile individuals, causing investors to retreat from the market.

Despite the challenging market conditions, Galaxy Digital has been actively expanding its partnerships. The company is pushing to enhance its collaboration with CoreWeave, a cloud-computing startup, by providing greater IT support for CoreWeave's artificial intelligence and high-performance computing operations at its Helios data center campus. This strategic move is expected to receive a boost from shareholders' decision to redomicile Galaxy in the U.S., where regulatory support for emerging technology firms is strong.

Galaxy Digital's financial report highlights the company's resilience in the face of market volatility. While the net loss of $295 million is significant, the 38% increase in revenue from the previous quarter indicates the company's ability to generate substantial income despite adverse market conditions. The company's equity capital stands at $1.9 billion, with $1.07 billion in cash and net stablecoins as of March 31, 2025. This financial position suggests that Galaxy Digital has the resources to navigate the current market challenges and continue its growth trajectory.