Shares of Galaxy Digital faced a significant decline on Tuesday following the release of disappointing quarterly earnings and revenue figures. The crypto-investment and data-center company reported earnings per share of $0.8 for the second quarter, falling short of Wall Street\u2019s consensus estimate of $0.18.<\/p>\n
Revenue for the period totaled $9.1 billion, markedly below analysts\u2019 expectations of $13.9 billion. Consequently, Galaxy\u2019s stock, GLXY, plummeted by 10%, settling at $27.68.<\/p>\n
According to Barron\u2019s, the downturn can be attributed <\/a>to a broader trend affecting the cryptocurrency sector, where trading volumes have waned significantly since spring, pushing digital assets like Bitcoin to retrace 7% below its record price peak.\u00a0<\/p>\n Galaxy reported a 22% decrease in digital-asset trading volumes from the first quarter, primarily driven by reduced spot-trading activity. The firm\u2019s crypto sales, which represent its largest revenue stream, fell to $8.6 billion in the second quarter, down from $12.8 billion in the first quarter and $8.8 billion a year prior.<\/p>\n Despite the disappointing earnings report, there was some positive news on the horizon. Galaxy announced that CoreWeave <\/a>has committed to utilizing all the electrical power approved at its Helios data-center campus in West Texas, where construction is reportedly proceeding on schedule.\u00a0<\/p>\n Additionally, Galaxy has agreed to acquire an extra 160 acres of land and a 1 gigawatt load interconnection request adjacent to the campus.\u00a0<\/p>\n CEO Mike Novogratz expressed optimism about the Helios project, stating, \u201cHelios will be a top five data center in the world if we get that fully built out.\u201d The company anticipates generating revenue from its data-center operations in the first half of 2026.<\/p>\n In light of the CoreWeave announcement and the expanded capacity potential at Helios, Piper Sandler analyst Patrick Moley noted that shares <\/a>might be undervalued, suggesting they should trade higher. The firm has rated Galaxy stock as Overweight, with a price target of $36.<\/p>\n In related news, Coinbase Global also experienced a slight dip in its stock, which fell by 1% on Tuesday following the announcement <\/a>of a $2 billion offering of convertible senior notes aimed at qualified institutional buyers.\u00a0<\/p>\n This offering includes $1 billion in notes maturing in 2029 and another $1 billion due in 2032. Additionally, initial purchasers will have the option to acquire up to $150 million more of each series.<\/p>\n These notes will be senior, unsecured obligations with interest payable semi-annually, and they can be converted into cash, Class A common stock, or a combination of both at Coinbase\u2019s discretion.\u00a0<\/p>\nCoinbase Unveils $2 Billion Senior Notes Offering<\/h2>\n