Galaxy Digital (GLXY) Is Up 8.9% After Taking Over Liquid Collective Development – Has The Bull Case Changed?

• Galaxy Digital’s recent acquisition of staking software firm Alluvial Finance made it the Development Company for Liquid Collective, giving it full responsibility for building and maintaining one of the leading institutional liquid staking protocols, which has grown assets on platform to about US$1.00 billion since launch.
• This move tightens Galaxy’s grip on institutional onchain infrastructure, complementing its growing AI-optimized data center ambitions and broadening its role across both crypto and compute ecosystems.
• We’ll now examine how taking over development of Liquid Collective could reshape Galaxy Digital’s investment narrative, particularly its institutional infrastructure ambitions.

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Galaxy Digital Investment Narrative Recap

To own Galaxy Digital, you need to believe in a combined crypto, staking, and AI infrastructure story, with data center buildout and institutional adoption as key drivers. The Alluvial acquisition reinforces Galaxy’s institutional onchain positioning, but does not materially change the most immediate risks around capital intensity, financing needs, and execution on its large AI data center commitments.

In that context, Galaxy’s recent US$1.15 billion exchangeable note offering and US$325 million equity raise stand out as especially relevant. Together, they frame how the company is funding both Helios data center expansion and now deeper staking infrastructure, while also heightening investor focus on dilution risk, cost of capital, and whether future cash flows justify the current valuation multiples.

Yet against this growth story, investors should also be aware that Galaxy’s capital intensive buildout could become far more challenging if funding conditions or large counterparties were to...

Read the full narrative on Galaxy Digital (it's free!)

Galaxy Digital's narrative projects $78.4 billion revenue and $281.6 million earnings by 2028.

Uncover how Galaxy Digital's forecasts yield a $45.91 fair value, a 56% upside to its current price.

Exploring Other Perspectives

Ten fair value estimates from the Simply Wall St Community span roughly US$4.71 to US$47.09, underlining how widely individual views can diverge. You will want to weigh that dispersion against Galaxy’s heavy financing needs and execution risks around its AI focused Helios data center buildout, and explore several alternative viewpoints before forming your own view.

Explore 10 other fair value estimates on Galaxy Digital - why the stock might be worth less than half the current price!

Build Your Own Galaxy Digital Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Galaxy Digital research is our analysis highlighting 1 key reward and 6 important warning signs that could impact your investment decision.
• Our free Galaxy Digital research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Galaxy Digital's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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