Galaxy Digital Q1 Net Loss $216M Beats Estimates

Galaxy Digital Holdings Ltd. reported a first-quarter net loss of $216 million, or 49 cents per share, on Tuesday, better than analyst expectations of a 59- to 93-cent loss per share and an improvement from a $295 million deficit a year earlier and $482 million in the prior quarter.

The New York-based cryptocurrency financial services firm attributed the second straight quarterly loss primarily to a roughly 20 percent decline in digital asset prices during the period ended March 31. Total assets fell 12 percent quarter-over-quarter to $9.99 billion, driven by a $316 million drop in digital assets and related investments. Despite the pressures, the company maintained a strong balance sheet with $2.8 billion in equity and $2.6 billion in cash and stablecoins.

Galaxy's digital asset segment, which includes trading, lending and staking, generated $49 million in adjusted gross profit, nearly flat from $51 million in the previous quarter. The firm credited stability to a shift toward recurring fee revenue and transaction income, with trading volumes holding steady even as industry-wide activity declined. Counterparties grew 4 percent to 1,691. Asset management oversaw about $5 billion...