Galaxy Digital and TeraWulf, the two biggest Bitcoin miners that pivoted hard into AI infrastructure, both posted Q2 losses on August 5. Yet their new data center divisions are already pulling weight, marking the first real test of whether this bet on AI can offset the volatility of crypto trading.
Galaxy Digital took the harder hit. The firm burned through $85 million in the second quarter, though that's a meaningful improvement from the $216 million loss in Q1. The stock dropped nearly 7% in pre-market trading Wednesday, closing at $20.99 as investors absorbed the news. Diluted adjusted earnings landed at negative $0.09 per share.
Where the money's actually coming from
The data center unit saved Galaxy from a worse quarter. Adjusted gross profit hit $20 million, up $3 million from Q1, with adjusted EBITDA coming in at $11 million. That's real cash flow from hardware and power contracts, not paper gains. The firm blamed its digital asset portfolio for dragging results, a familiar refrain when crypto prices slip, but the infrastructure business is now the stabilizer.
TeraWulf fared better on the surface. The company's contracted buildouts for Anthropic and other AI labs are still ramping, but the momentum in that segment pushed the stock higher in pre-market action. Both firms have major data center projects lined up. Galaxy's partnership with CoreWeave and its Helios buildout haven't hit full stride yet, while TeraWulf's buildouts are still coming online on schedule.
The shift toward infrastructure is real, even if the quarterly numbers don't scream it yet. These aren't crypto traders anymore. They're power-hungry hardware operators competing for a slice of the AI compute arms race, where steady revenue contracts beat the whipsaw of token prices.
This piece is for informational purposes only and should not be construed as financial advice. Past performance and market sentiment are not guarantees of future results.
