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The CFTC is turning to artificial intelligence and a new Innovation Task Force to police explosive crypto and prediction markets as its workforce shrinks and jurisdictional battles over event contracts intensify.<\/p>\n
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Galaxy Digital (Nasdaq: GLXY) swung to a Q1 2026 net loss of $216 million, as a roughly 20% decline in digital asset prices during the quarter<\/a> pulled the crypto\u2011focused financial services firm into the red despite growing fee and infrastructure revenue.<\/p>\n In its earnings release, the company reported diluted earnings per share of $(0.49) and said \u201cthe decline in token prices and unrealized losses on balance sheet positions more than offset operating income\u201d across trading, asset management, and principal investments.<\/a><\/p>\n Management stressed that the loss narrowed compared with the prior quarter and argued that the business mix is becoming less sensitive to crypto price swings. \u201cWhile digital asset volatility continues to impact our reported net income, our core operating businesses remain resilient, and we are executing on a strategy that diversifies our revenue base,\u201d Galaxy said in its shareholder letter.<\/p>\n The firm pointed to its Digital Assets segment \u2014 spanning trading, lending, asset management, and staking \u2014 which generated hundreds of millions of dollars in adjusted gross profit over 2025, even as full\u2011year net income was negative. <\/p>\n The first quarter also marked a structural shift: Galaxy\u2019s Data Centers division booked revenue for the first time, reflecting the initial commercialization of its Helios AI campus in West Texas. Helios, which Galaxy has described as a \u201cmulti\u2011hundred\u2011billion\u2011dollar digital infrastructure opportunity,\u201d has secured more than 1.6 gigawatts of approved capacity and a long\u2011term contract with AI cloud provider CoreWeave that is expected to generate over $1 billion in annual revenue at full ramp. CEO Mike Novogratz has argued that this pivot gives Galaxy a durable earnings engine that is less correlated to bitcoin and altcoin prices, even if quarterly results like Q1\u2019s still reflect the sector\u2019s boom\u2011bust dynamics. <\/p><\/div>\n","protected":false},"excerpt":{"rendered":" The CFTC is turning to artificial intelligence and a new Innovation Task Force to police explosive crypto and prediction markets as its workforce shrinks and jurisdictional battles over event contracts…<\/p>\n","protected":false},"author":1,"featured_media":26944,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-26943","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/26943","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/comments?post=26943"}],"version-history":[{"count":1,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/26943\/revisions"}],"predecessor-version":[{"id":26945,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/26943\/revisions\/26945"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media\/26944"}],"wp:attachment":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media?parent=26943"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/categories?post=26943"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/tags?post=26943"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
Last year Galaxy posted a $241 million net loss for 2025, but adjusted EBITDA of $216 million and a stock price that jumped more than 11% after the annual report underscored that investors were willing to look through non\u2011cash marks.<\/p>\nData Centers start to earn as Helios ramps<\/h2>\n
\u201cWe anticipate revenue from our data center business to commence in the first half of 2026,\u201d management had said on a prior earnings call, a timeline that Q1\u2019s results suggest the company is now meeting.<\/a><\/p>\n
Galaxy recently closed a $1.4 billion project financing facility to fund the site\u2019s initial retrofit and expansion, positioning the firm less as a pure crypto trading proxy and more as a hybrid of digital assets bank and AI infrastructure play.<\/p>\n
For investors, the tension between a $216 million reported loss and the first trickle of data center revenue underlines the central question around GLXY: how quickly Helios and related projects can scale to outweigh crypto market drawdowns in the income statement.<\/p>\n