Galaxy Digital Posts $216M Q1 2026 Loss as Hyperliquid Cushions Crypto Slump

Galaxy Digital closed the first quarter of 2026 with a net loss of $216 million, or $0.49 per share. Analysts had expected a larger deficit. The company recorded its second consecutive quarterly loss as a weaker crypto market continued to weigh on its balance sheet. CEO Mike Novogratz said Hyperliquid exposure helped cushion the outcome.

Second Consecutive Quarterly Loss

Galaxy Digital is one of the largest institutional players in the crypto space, offering digital asset trading, asset management, and investment banking services. In Q1 2025, the company posted a $295 million loss. This quarter, that figure narrowed to $216 million, beating the MarketBeat analyst consensus of $0.59 per share. The actual loss came in at $0.49 per share.

Shares trade around $25, up 12% since January. A month ago they hit an 11-month low of $16.43. After the earnings release, the stock moved little as investors largely shrugged off the results.

Crypto Market Fell 20%

Galaxy attributed losses to a roughly 20% drop in total crypto market capitalization over the quarter. Bitcoin hit a record high at the end of 2025 and pulled back sharply. The company held a large share of assets in digital instruments, and the portfolio repricing hit the income statement directly. The Digital Assets segment generated $49 million in adjusted gross profit, but that was not enough to offset losses elsewhere.

Total assets fell 12% from the prior quarter to $9.99 billion, down from $11.3 billion in Q4 2025. Digital assets and related investments declined in value by $316 million. The Treasury and corporate segment posted a $167 million adjusted EBITDA loss amid market volatility.

• Q1 2026 gross revenue came in at $10.2 billion, flat relative to Q4 2025
• Q1 2025 gross revenue for comparison was $12.9 billion
• The 2025 annual net loss reached $241 million on $61.4 billion in gross revenue
• Equity capital as of March 31, 2026 stood at $2.8 billion, up 46% from a year earlier

Hyperliquid Cushioned the Blow

Novogratz acknowledged the company's balance sheet took a hit from falling crypto prices. He noted that positions in Hyperliquid partially offset those losses. Hyperliquid is a decentralized derivatives exchange running on its own blockchain, which has grown sharply over the past year. Galaxy did not disclose the exact size of the position or the dollar amount recovered.

The company also reported that adjusted gross profit held broadly stable. Recurring fee revenue and transaction income grew, providing more resilience when spot prices fell. Galaxy sees this as a sign that its business model is gradually becoming less dependent on Bitcoin moving in a single direction.

The Helios Campus and the CoreWeave Deal

Since December 2022, Galaxy has been building the Helios campus in Texas, a major facility for high performance computing and AI workloads. The company delivered the first data hall to CoreWeave and confirmed Phase I remains on budget and on schedule. The full Phase I covers 133 megawatts of critical IT load, all of which is set for delivery by the end of Q2 2026.

Galaxy expects the Helios campus to start generating revenue in Q2 2026. The equity capital breakdown already shows the transition. 33% sits in digital assets, 28% in data centers, 39% in treasury and corporate holdings. If crypto prices do not recover quickly, the data center segment is positioned to become the primary growth driver in the quarters ahead.