Galaxy Digital, the crypto financial services and infrastructure firm led by Mike Novogratz, reported a net loss of $216 million for Q1 2026, narrowing from a $482 million loss in the prior quarter. Adjusted EBITDA came in at -$188 million, while diluted earnings were -$0.49 per share. Total equity rose 46% year over year to $2.8 billion. Cash and stablecoins totaled $2.6 billion, little changed from the previous quarter. The quarter's loss was driven primarily by unrealized markdowns on digital assets and investment positions in the Treasury and Corporate segment, as weaker crypto conditions weighed on valuations. Total crypto market capitalization fell about 20% during the period. Bitcoin dropped nearly 24%—its steepest quarterly decline since 2018—and ended March around $66,600. Helios data center buildout Galaxy energized its first data hall at the Helios campus in West Texas and delivered it to CoreWeave under a Phase I lease. Novogratz wrote on X: "The lights are on at Helios." He added that the AI data center business is now generating cash flow. The remaining 133 megawatts of critical IT capacity under Phase I is expected to be delivered by the end of Q2 2026. A 260-megawatt Phase II build is already underway, targeting early 2027 delivery. During the quarter, ERCOT approved an additional 830 megawatts of power for Helios, taking total approved capacity to more than 1.6 gigawatts. The full CoreWeave lease covers 526 megawatts of critical IT load across three phases with a 15-year base term. Galaxy estimates the arrangement alone will generate more than $1 billion in average annual revenue, with anticipated EBITDA margins of roughly 90%. Digital assets Adjusted gross profit in the digital assets segment was $49 million, slightly below the prior quarter's $51 million. Galaxy attributed the resilience to a greater mix of recurring fee revenue and transaction income. Trading counterparties rose 4% to 1,691. Galaxy's own trading volumes were flat even as industrywide volumes fell sharply, according to The Block. The lending book declined 20% to an average of $1.4 billion as clients reduced leverage. Asset management The asset management business ended Q1 2026 with about $5 billion in assets under management and $3.2 billion in assets under stake. Assets under stake fell 35% quarter over quarter, which the company said was almost entirely due to token price declines rather than client withdrawals. Net inflows were $69 million. BlackRock selected Galaxy as an approved validator for the iShares Staked Ethereum Trust ETF, BlackRock's first rewards-generating crypto product. Galaxy also announced a new fintech-focused hedge fund aimed at the intersection of traditional finance and blockchain infrastructure, set to launch May 1. Corporate treasury and capital allocation The corporate treasury segment posted an adjusted gross loss of $140 million and EBITDA of -$167 million, reflecting unrealized markdowns on digital asset holdings and venture investments. Galaxy said its equity allocation is roughly split among digital assets (33%), data centers (28%), and treasury and corporate (39%). Buybacks and listing changes Galaxy repurchased 3.2 million shares for $65 million during the quarter, more than offsetting dilution from employee stock grants. The company also completed a voluntary delisting from the Toronto Stock Exchange and is now fully consolidated on Nasdaq. Management said the move streamlines the corporate structure following the May 2025 reorganization that converted the prior partnership into a standard corporate entity.