Galaxy Digital posts $216M loss in Q1, but stock surges by 5% – Here’s why!
Wall Street analysts gave a 'moderate buy' rating for the stock and projected a 50% potential gain.
Galaxy Digital, the leading digital assets and AI infrastructure firm, reported a $216 million net loss for Q1 2026. According to its earnings report, the firm linked the loss to broader crypto contraction earlier this year.
Galaxy reported a net loss of $216 million for Q1 2026 and diluted and adjusted EPS of $0.49, driven primarily by the depreciation of digital asset prices, with total crypto market capitalization decreasing by approximately 20% in the quarter.
As of Q4 2025, Galaxy Digital’s exposure to crypto assets was worth $1.67 billion. The value of the investments shrank by about 20% to $1.36 billion in early 2026.
The firm’s largest crypto exposure was Bitcoin (6,894 BTC coins worth $431 million) as of 31 March. At the time of writing though, its BTC holdings’ value had surged to $534 million, thanks to a relief rebound in Q2.
Solana [SOL] is Galaxy’s second-largest crypto asset exposure, worth $61 million, followed by ETH at $42 million. The rest of the other crypto tokens were worth over $130 million as of March.
The remaining share of crypto ventures was either in liquid investments or VC stakes. However, it was not all bad news for the firm.
Analysts foresees 50% upside potential for GLXY stock
Galaxy confirmed that its AI infrastructure plans remain on track, defying the broader trend of delays or cancelled data centers across the U.S. In fact, it reported the delivery of the first data hall to CoreWeave and all the remaining 133MW of its AI/IT infrastructure commitment by the end of Q2.
This positive AI update likely made traders turn bullish as the firm’s stock (Nasdaq: GLXY) posted 5% gains on Tuesday. Although it has a strong correlation to crypto performance, GLXY didn’t follow suit when BTC fell on the charts.
In a way, Galaxy is now more than just a crypto-focused firm as it scales its AI infrastructure.
Likewise, Wall Street analysts’ consensus rating right now is a ‘moderate buy’ with a price target of $39.4 – Implying a 50% upside potential from the press time level of $26.3.
Final Summary
- Galaxy Digital reported a $216M Q1 million loss in Q1 with crypto investments declining from $1.6B to $1.3B.
- Despite the headwinds, its stock (GLXY) surged by 5% as investors became bullish on its AI infrastructure expansion.
