Galaxy Digital posts $216M Q1 loss; Hyperliquid cushions hit

Galaxy Digital reported a first-quarter net loss of $216 million, or $0.49 per share, for the quarter ended March 31. The loss narrowed from a $295 million deficit a year earlier. The company said weaker crypto prices reduced mark-to-market valuations, while gains from holdings of Hyperliquid’s native token partially offset losses. Analysts had forecast a wider per-share loss of roughly $0.93.

Total assets fell 12% from the prior quarter to $9.99 billion, down from $11.3 billion, driven largely by a $316 million decline in the value of its digital assets and related investments. Digital-asset operations produced a gross profit of $49 million, slightly below $51 million in the prior quarter. The company cited recurring fee revenue and transaction income as contributors to the quarter’s results.

Galaxy disclosed token exposures in its treasury: about $431 million in Bitcoin, $61 million in Ethereum, $42 million in Solana and $134 million in other token exposure, along with $95 million in other investments. The firm said it increased allocation to Hyperliquid’s native token; the token has rallied roughly 56% year-to-date to around $40. Hyperliquid operates as a decentralized exchange and uses a buyback-and-burn mechanism for its token.

Founder and CEO Mike Novogratz attributed the quarterly loss mainly to weaker crypto prices and said the company reduced headcount and adjusted holdings to mitigate the impact. “We’ve been a supporter, mostly because it’s got an economic model, unlike many of the other tokens,” Novogratz said. “I think Hyperliquid is a good way to look at what the future of crypto is going to look like.” He said the balance-sheet losses reflected lower market prices rather than operational failures.

Galaxy’s publicly traded shares changed hands near $25 after the opening bell, following an 11-month low of $16.43 the prior month. The stock is up about 12% year-to-date. The company is based in New York City.

Galaxy continues to expand beyond trading and asset management. The firm launched a retail investment platform, GalaxyOne, in October and has emphasized staking and long-term participation for retail customers. It is also building data-center operations aimed at supporting demand for artificial-intelligence workloads and expects data-center revenue to increase with the scheduled delivery of its first data hall to CoreWeave.

The results were released in the company’s quarterly report for the period ended March 31.