Nate Wolf

Shares of Galaxy Digital were falling Tuesday after the crypto-investment and data-center company reported weaker-than-expected quarterly earnings and revenue.

The company posted earnings per share of 8 cents for the second quarter, short of Wall Street's consensus call for 18 cents, according to FactSet. Revenue totaled $9.1 billion, well below analysts' estimate of $13.9 billion.

Galaxy stock was sinking 1.6% to $28.42 in premarket trading Tuesday.

Trading volume declined across the crypto industry in the spring, which contributed to the lackluster quarter. Galaxy's digital-asset trading volumes declined 22% from the first quarter, primarily due to reduced spot-trading activity. And digital-asset sales -- by far Galaxy's greatest revenue source -- dropped to $8.6 billion in the second quarter from $12.8 billion in the first quarter, and $8.8 billion a year ago.

The earnings print contained some positive non-crypto news for investors, though.

CoreWeave has now committed to using all the electrical power approved at Galaxy's Helios data-center campus in West Texas, where construction is progressing on schedule, the company announced. Galaxy also said it has agreed to acquire an additional 160 acres of land a 1 gigawatt load interconnection request adjacent to the campus. The company expects to begin generating revenue from its data-center business in the first half of 2026.

"We think shares should trade higher this morning given the CoreWeave news and expanded Helios potential capacity," wrote Piper Sandler analyst Patrick Moley in a research note Tuesday.

Piper Sandler rates Galaxy stock at Overweight with a $36 price target.

Write to Nate Wolf at nate.wolf@barrons.com

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August 05, 2025 08:53 ET (12:53 GMT)

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