Galaxy Digital reported a $216 million net loss in Q1, reflecting the sharp downturn in digital asset prices during the period.
The firm said the broader crypto market fell roughly 20%, weighing heavily on trading and investment performance.
Lower asset valuations reduced gains across its trading, asset management, and principal investments divisions.
Volatility in Bitcoin and other major cryptocurrencies contributed to weaker-than-expected results.
Despite the loss, Galaxy emphasized continued institutional interest in crypto infrastructure and long-term adoption trends.
The company also noted that market conditions were challenging due to macroeconomic uncertainty and tighter liquidity.
Trading revenue declined as risk appetite dropped across both retail and institutional participants.
Executives highlighted ongoing expansion into tokenization and blockchain-related services as a future growth area.
The report underscores how sensitive crypto-focused firms remain to broader market cycles.