Galaxy Posts $85M Q2 Loss as AI Power Pipeline Tops 5.7 GW

Galaxy’s $85M loss tracks digital-asset markdowns

Galaxy said its quarterly net loss was mainly the result of depreciation in digital-asset prices. That accounting pressure came despite a sequential increase in group adjusted gross profit and a rise in total assets to $10.84 billion from $9.99 billion at the end of the first quarter.

Digital Assets, which includes Galaxy’s trading, lending and principal-investment activities, generated $66 million of adjusted gross profit, up 34% from the prior quarter. The segment still posted an $11 million adjusted EBITDA loss. Its Global Markets business generated $49 million of adjusted gross profit, while its loan book ended the quarter at $1.44 billion.

The firm reported $1.16 billion of net digital assets and investments, down from $1.36 billion at the end of March. That mix explains why the headline loss is not simply a verdict on its operating businesses: realized and unrealized moves in crypto markets can quickly change reported earnings even when trading, lending or infrastructure activity advances.

For readers following miners’ move toward computing infrastructure, the split is familiar. Hut 8’s recent loss alongside its AI-data-center deals likewise showed how capital-intensive expansion can sit beside volatile crypto-linked results. Galaxy’s difference is its substantial financial-services platform and the 15-year Helios lease it has signed with CoreWeave.

The wider sentiment backdrop remained cautious. Alternative.me’s Crypto Fear and Greed Index registered 26, or Fear, on Aug. 5. That index is not a measure of Galaxy’s operating performance, but it reflects the risk-sensitive setting in which digital-asset valuations and financing plans are being judged.

Helios starts revenue as Galaxy adds 5.7 GW pipeline

Galaxy said it delivered 133 megawatts of critical IT capacity, representing 200 MW of gross power, to CoreWeave in the second quarter under their Helios lease. The company expects that first phase to contribute about $80 million of quarterly leasing revenue and more than 90% project-level EBITDA beginning in the third quarter.

That forecast is a company expectation, not reported third-quarter revenue. Its timing depends on the completed capacity remaining online and billable. Galaxy also expects a 260 MW Phase II expansion at Helios to be delivered in the second quarter of 2027 and said it issued $3.5 billion of senior notes in July to fund that work.

The company then added three Texas locations to a stated potential data-center power pipeline of more than 5.7 GW. Its investor presentation identifies Merlin, Caspian and Selene as prospective sites, with initial and ultimate capacity figures that depend on development, interconnection and Electric Reliability Council of Texas processes.

Potential power is not the same as commissioned computing capacity. Galaxy said Helios has 1.6 GW of approved power, including 830 MW of approved but unused capacity and another 2 GW under study. The new Texas figures expand the addressable project list, but they do not represent signed customer leases or near-term revenue.

The distinction is increasingly important as crypto companies seek to reuse sites built around cheap power. Bitcoin miners face a large funding gap in the AI pivot, and AMD’s Core Scientific agreement has underscored why contracted capacity, financing and delivery schedules matter more than a headline power total.

Galaxy’s next test is turning contracted AI capacity into cash flow

The near-term measure will be whether Helios Phase I produces the expected leasing contribution in the third quarter while the company controls construction and financing costs on Phase II. The data-center unit’s $11 million of adjusted EBITDA in its first revenue quarter offers an early operating marker, but not a full-year run rate.

Investors will also be watching the balance between the two sides of Galaxy’s business. Digital-asset price movements can still affect results before fees and infrastructure income do, while the data-center plans require long lead times and regulatory, grid and construction execution. The company did not disclose customer commitments for the new Texas sites in its release.

Galaxy’s second-quarter filing therefore offers a concrete checkpoint rather than a completed transformation. It has a paying customer at Helios and a larger prospective power map, but it also reported a loss tied to the asset class that financed and defined much of its original business. The next earnings report should show whether the lease revenue begins to make that infrastructure strategy visible in consolidated results.