Galaxy Digital shares declined 7.1% in pre-open trading following the release of second-quarter 2026 results that showed a net loss of $85 million and adjusted earnings per share of -$0.09, missing investor expectations. The company said the quarter was heavily affected by digital asset writedowns totaling $181 million, tied to declines in crypto prices during the period.
Total revenue for the quarter fell roughly 15% from the prior quarter to $8.56 billion. Despite the revenue drop, the quarter did include a notable operational milestone: Galaxy’s data center business recorded its first revenue contribution after delivering 133 megawatts of critical IT load to CoreWeave at the Helios campus.
Market sentiment toward Galaxy was further weakened by a separate industry security crisis in which the company’s research team has been centrally involved. The issue concerns a vulnerability tied to a Coldcard hardware wallet that has been connected to confirmed losses exceeding $100 million across three large-scale attacks, in addition to 14 smaller incidents. Those smaller incidents account for a total of 1,596 bitcoins stolen from 7,300 addresses, according to the company’s reporting.
Analyst moves ahead of the earnings announcement also played a role in investor reaction. Rosenblatt reduced its price target on Galaxy from $39 to $35 earlier in the week while maintaining a Buy rating, citing continued weakness in crypto asset prices and trading volumes. By contrast, Benchmark kept a Buy rating and a $57 price target, highlighting the CoreWeave data center revenue as a meaningful new source of earnings for Galaxy.
The selloff appears to be largely idiosyncratic to Galaxy rather than a reflection of broader market pressure. The S&P 500 rose 0.5%, the Dow Jones Industrial Average also added 0.5%, and the Nasdaq gained 0.2% on the same trading day, indicating that the company-specific developments were the primary drivers of GLXY’s share decline. Still, crypto-adjacent peers experienced some pressure amid the Coldcard security situation and the continuing narrative of weak digital asset prices weighing on the sector.
After the pre-market move, Galaxy’s stock traded at $20.56, positioned well above its 52-week low of $16.43 but substantially below the 52-week high of $45.92. Taken together, the quarterly earnings miss rooted in substantial digital asset impairments, the high-profile security incidents linked to the Coldcard vulnerability, and an analyst price-target reduction earlier in the week combined to create a cluster of negative catalysts that prompted the sharp pre-open decline in GLXY shares.
Key facts
- Q2 2026 net loss: $85 million.
- Adjusted EPS: -$0.09.
- Digital asset impairments: $181 million.
- Quarterly revenue: $8.56 billion, down roughly 15% quarter-over-quarter.
- Data center milestone: 133 megawatts delivered to CoreWeave at the Helios campus, marking the first period of data center revenue.
- Coldcard security incidents: confirmed losses of more than $100 million from three large attacks and 14 smaller incidents totaling 1,596 bitcoins stolen from 7,300 addresses.
- Analyst activity: Rosenblatt cut its price target from $39 to $35 but stayed Buy; Benchmark reiterated Buy with a $57 target.
- Pre-open share price after the news: $20.56; 52-week range: $16.43 - $45.92.