Galaxy Digital and TeraWulf posted Q2 2026 losses while data center revenue climbed sharply, signaling margin compression.
Galaxy Digital and TeraWulf, two Bitcoin miners that have pivoted to AI infrastructure, both reported Q2 2026 results on August 5, with mixed performances driven primarily by their nascent data center businesses. Galaxy Digital (NASDAQ: GLXY) posted an $85 million net loss, or $0.09 per share—a significant improvement from its $216 million Q1 loss. TeraWulf (NASDAQ: WULF) reported a quarterly loss of $1.94 per share, wider than the $0.31 loss analysts expected. The market responded differently: Galaxy shares fell to $20.99 pre-market (down approximately 6.55%), while TeraWulf rose 1.64% to $19.19.
Galaxy attributed its underperformance partly to weakness in its digital asset portfolio holdings. However, the Data Centers segment provided substantial offset, delivering adjusted gross profit of $20 million—a $3 million improvement from Q1—and adjusted EBITDA of $11 million. The company had delivered all 133 megawatts of critical IT load under the first phase of its CoreWeave lease at its Helios campus in West Texas, a milestone expected to generate an $80 million quarterly revenue stream beginning in Q3.
TeraWulf's AI pivot proved more immediately profitable. High-performance computing leases accounted for $31.9 million of its $44.8 million quarterly revenue—approximately 71%—more than doubling its Q1 HPC revenue of roughly $34 million. The company reported $3 billion in cash and restricted cash, and its 102 MW of critical IT capacity at Lake Mariner in New York came online in early July, with another 336 MW expected. A credit facility from Google backing tenant Fluidstack's lease obligations also unlocked $600 million in support.
Both companies used the quarter to aggressively expand their pipelines. TeraWulf disclosed a landmark 20-year lease with Anthropic for approximately 401 MW of critical IT capacity at its Justified campus in Hawesville, Kentucky—valued at roughly $19 billion in contracted revenue, or as much as $33 billion if Anthropic exercises two five-year extension options. The company also agreed to sell its 50.1% stake in the Abernathy joint venture for approximately $530 million and won FERC authorization to acquire the Morgantown generating station in Maryland.
Galaxy expanded its power pipeline beyond 5.7 GW after acquiring three Texas development sites following quarter-end. The company closed a $3.5 billion senior secured notes offering on July 28 to fund the next phase of Helios buildout. Galaxy also struck a multi-year agreement with BNY, the custody bank overseeing more than $60 trillion in assets, to support staking on BNY's digital asset platform.
The common thread binding both companies' strategies is electricity. Access to power, transmission, and utility approvals has become the critical constraint on AI data center buildouts. The International Energy Agency projects that data center electricity consumption will nearly double to approximately 945 terawatt-hours by 2030, amplifying the strategic importance of securing power and generation capacity.