Galaxy Digital Holdings reported a loss of 295 million USD in Q1, despite revenue increasing by 38% to 12.9 billion USD, right before the Nasdaq listing on 16/05. Could this be a sign of trouble for the crypto giant? Let's analyze in detail.
Galaxy Digital: Huge Loss Despite Revenue Increase
#GalaxyDigitalHoldings reports a net loss of 295 million USD in Q1 2025, equivalent to a loss of 0.86 USD/share, down from a loss of 388 million USD in the same period last year. However, revenue reached 12.9 billion USD, up 38% from Q4 2024, showing strong growth despite the sluggish crypto market. As of 31/03, the company had 1.9 billion USD in equity and 1.07 billion USD in cash and stablecoins. Galaxy is preparing to list on Nasdaq on 16/05, after receiving SEC approval for restructuring and relocating its headquarters to the US.
Market Context: Crypto Plummets in Q1
Galaxy's disappointing financial results come amid a declining crypto market in Q1 2025, as investors switch to gold and safe assets due to rising geopolitical instability. Bitcoin prices hovered around 80,000 USD in March, down from previous highs, after investors lost billions in meme coins related to figures like U.S. President #DonaldTrump and Argentine President Javier Milei. However, crypto prices have recovered, with Bitcoin now at 104,200 USD, down only 4% from its historical peak.
Expansion Strategy: Partnership with CoreWeave
Amid difficulties, Galaxy is ramping up collaboration with CoreWeave—a cloud computing startup—to provide greater IT capabilities for AI and high-performance computing operations at the Helios data center. This move may be supported by shareholders' decision earlier this month to relocate Galaxy to the US—where regulators are prioritizing support for new tech companies and investors are pouring money into tech stocks.
Market Reaction: Volatile Stocks
Galaxy stocks (GLXY) on the Toronto Stock Exchange are currently trading at 27.32 CAD, down 3% in the last 24 hours but up 117% over the past year, reflecting long-term confidence. The Nasdaq listing on 16/05 is expected to expand capital access opportunities and enhance Galaxy's position in the global market.
Impact on the Crypto Market
This event brings many signals:
Increased Vigilance: Crypto fund inflows reached 3.4 billion USD last week, but investors need to be cautious of price fluctuations.
Driving Recovery: Bitcoin (104,200 USD), Ethereum (2,500 USD), and Solana (146 USD) are rebounding, with a forecast of accumulating 330 billion USD into Bitcoin by 2029.
Institutional Growth: Galaxy's shift to the US and partnership with CoreWeave show the potential of combining crypto with AI technology.
Future Prospects
If Galaxy successfully capitalizes on its Nasdaq listing and partnership with CoreWeave in the next 1-2 years, the company could regain growth momentum, especially as the crypto market is recovering. However, significant losses and price volatility could exert short-term pressure, requiring Galaxy to improve financial efficiency to maintain investor confidence.
Conclusion: Will Galaxy Digital Weather the Financial Storm?
Galaxy Digital lost 295 million USD in Q1 2025 despite revenue of 12.9 billion USD, amid a recovering crypto market with Bitcoin at 104,200 USD. Prior to the Nasdaq listing on 16/05, the company is partnering with CoreWeave and relocating its headquarters to the US, opening up opportunities but also challenges. Investors should closely monitor to assess long-term impacts.
Risk Warning: Crypto investment carries high risks due to price volatility and economic instability. Please consider carefully before participating.