GLXY: High-Performance Data Center Monetization Will Drive Next Phase Of Upside

Analysts have nudged their price target for Galaxy Digital higher to approximately $47.82 from about $45.91, citing stronger expected revenue growth, improving profitability, and increasing confidence in the company’s combined AI data center and digital assets franchise.

Analyst Commentary

Bullish analysts frame Galaxy Digital as a differentiated play on the convergence of artificial intelligence infrastructure and digital assets, with recent estimate revisions and price target increases reflecting greater confidence in both earnings power and strategic positioning.

Recent notes highlight that the company is progressing toward monetizing one of the largest single campus high performance computing data centers under development, while also building out a blockchain enabled investment banking franchise that can drive fee based and more recurring revenue streams.

Sector commentary around record sized AI data center transactions reinforces the notion that control of power and access to capacity are becoming key sources of competitive advantage, a backdrop that is seen as supportive for operators like Galaxy Digital with growing power portfolios and colocation opportunities.

Bullish Takeaways

• Bullish analysts view the combination of AI focused data center development and a digital asset financial platform as a compelling, diversified model that can support premium valuation multiples compared with single segment peers.
• Successive price target increases, even after a triple digit year to date stock move, indicate growing conviction that earnings and cash flow can compound faster than previously modeled.
• Record quarterly performance is cited as evidence that Galaxy Digital is evolving beyond a pure high performance compute story, with underappreciated contributions from its core digital assets franchise and investment banking capabilities.
• Industry wide M and A validating the scarcity value of power and AI ready infrastructure supports the view that Galaxy Digital's expansion pipeline and power access can drive further re rating over time.

Bearish Takeaways

• More cautious analysts highlight that the rapid share price appreciation embeds high execution expectations, leaving limited room for missteps in scaling the AI data center or delivering on digital asset growth targets.
• The capital intensity and long lead times associated with building large scale high performance computing facilities introduce project risk that could weigh on returns if demand or pricing moderates.
• Exposure to both AI infrastructure and digital assets increases sensitivity to regulatory, policy, and cyclical shifts across two volatile end markets, which could introduce earnings volatility and multiple compression.
• Some observers question whether the market is fully accounting for competitive pressures from larger data center operators and established financial institutions that may move more aggressively into similar adjacencies.

What's in the News

• State Street Investment Management and Galaxy Asset Management plan to launch SWEEP, a tokenized private liquidity fund using PYUSD stablecoins for 24/7 onchain subscriptions and redemptions. Ondo Finance is expected to seed about $200 million, and Galaxy will provide the tokenization and digital infrastructure (Client Announcements).
• Galaxy Digital became the Development Company for Liquid Collective by acquiring Alluvial Finance, taking full responsibility for the leading enterprise grade liquid staking protocol. The protocol has tripled assets to roughly $1 billion in 2025 and is backed by Galaxy's approximately $6.6 billion in staked assets (Business Expansions).
• Galaxy integrated its staking infrastructure with Coinbase Prime, enabling institutional clients to access Galaxy's validator network directly through Coinbase. This expands a series of custodial integrations that already includes Fireblocks, Zodia Custody, BitGo, and GK8 (Client Announcements).
• Galaxy agreed to issue 9,027,778 Class A common shares at $36 per share in a private placement for gross proceeds of $325 million. Closing is subject to customary conditions and Toronto Stock Exchange approval (Private Placements).
• Galaxy launched GalaxyOne in the United States, a platform that combines high yield cash accounts, crypto trading, and commission free equities brokerage. It offers up to 8.00% APY to accredited investors through an investment note tied to Galaxy's institutional lending business (Product Related Announcements).

Valuation Changes

• Fair Value Estimate has risen slightly, moving from approximately $45.91 to about $47.82 per share. This reflects modestly higher expected earnings power.
• Discount Rate has edged down marginally, from roughly 9.23% to about 9.21%. This indicates a slightly lower assumed risk profile in the valuation model.
• Revenue Growth has increased slightly, with forecast growth moving from about 74.59% to roughly 75.07%. This signals a small uplift in top line expectations.
• Net Profit Margin has improved meaningfully, rising from around 4.36% to approximately 5.29%. This implies better anticipated operating leverage and profitability.
• Future P/E Multiple has fallen significantly, decreasing from roughly 255.4x to about 217.5x. This suggests expectations for faster earnings growth relative to the share price or a modestly less aggressive valuation stance.