Galaxy Digital announced a net loss of $216 million for the first quarter of 2026, attributing the results to a contraction in the cryptocurrency market.

Q1 2026 Financial Performance

The firm reported a net loss of $216 million for Q1 2026, with diluted and adjusted earnings per share (EPS) at $0.49. This loss was primarily caused by a decline in digital asset prices, with the overall cryptocurrency market capitalization falling approximately 20% during the quarter.

Crypto Asset Holdings

As of Q4 2025, Galaxy Digital held $1.67 billion in crypto assets. By early 2026, this value decreased to $1.36 billion. Bitcoin represented the largest portion of these holdings, valued at $431 million (6,894 BTC) as of March 31.

Solana was the second-largest crypto asset exposure, valued at $61 million, followed by Ethereum at $42 million. Other crypto tokens within the portfolio were worth over $130 million as of March.

AI Infrastructure Drives Stock Increase

Despite the financial losses, Galaxy Digital’s stock (Nasdaq: GLXY) rose 5% on Tuesday. This increase is linked to positive news regarding the company’s AI infrastructure development.

Data Center Progress

Galaxy Digital confirmed its AI infrastructure plans are on track, unlike some other data center projects in the United States. The company reported the delivery of its first data hall to CoreWeave and expects to complete its remaining 133MW AI/IT infrastructure commitment by the end of Q2.

Analyst Outlook

Wall Street analysts maintain a ‘moderate buy’ consensus rating for GLXY, with a price target of $39.4. This suggests a potential 50% upside from the current stock price of $26.3.

Analysts believe the company is increasingly being recognized for its AI capabilities, rather than solely as a crypto-focused firm. The stock did not follow the downward trend of Bitcoin prices, further supporting this view.