Galaxy Q2 lost 85 million dollars, and AI revenue could hardly cover the 3.5 billion investment

According to Woofun AI, Galaxy Digital (GLXY.US) recorded a net loss of 85 million US dollars in the second quarter. Although the CoreWeave (CRWV.US) leasing project has started, facing $3.5 billion in AI investment expenses, the current imbalance of income and expenditure is highlighted.

Under the 15-year CoreWeave (CRWV.US) phase 1 lease agreement, the entire 133 MW IT load was in operation by the end of the quarter. Galaxy Digital (GLXY.US) expects quarterly lease revenue to reach approximately $80 million from the third quarter, and the adjusted project-level EBITDA margin will exceed 90%.

According to data compiled by Woofun AI, this profit margin does not deduct management expenses and falls under the performance guidelines.

What needs to be analyzed is that $85 million is a net loss under GAAP standards after consolidation, while $80 million is expected revenue. The two are of a different nature. Early in the construction of the project, the data center contributed $11 million in adjusted EBITDA, reflecting the progress towards full rental income. Entities related to the Helios project act as issuers and guarantors. Their assets and pledged shares guarantee the bonds, and credit support is only reflected at the project level.

The third quarter will be the first full quarter to operate according to established performance guidelines, helping to assess whether contract data center revenue can mitigate financial instability caused by fluctuations in the cryptocurrency business. Key drivers of subsequent performance will depend on project construction progress and tenant operating performance.