Galaxy Digital ($GLXY): Crypto Momentum and AI Growth Fuel Optimism

Forrest

Forrest

— 2 min read
Galaxy Digital ($GLXY): Crypto Momentum and AI Growth Fuel Optimism

$GLXY has targets of $73 - $100 on a lower timeframe inverse head and shoulders and targets of $173 - $237 on a high timeframe triangle + inverse head and shoulders.

Keep in mind $GLXY is still pending breakout and could chop for quite some time before breaking out.

Below is a fundamental breakdown of why we think $GLXY is an attractive buy.

GLXY is typically thought of as a crypto company, often running in line with the overall crypto market's performance. Given the current meta of crypto related stocks outperforming crypto itself, this makes it attractive stock to watch for those who have a bullish outlook on crypto.

Beyond that however, GLXY has moved aggressively into the AI space by establishing a strong presence in the AI datacenter industry. This revenue source in the fast-growing AI space provides a hedge against outcomes where crypto underperforms.

Galaxy Digitals business can be broken down into 3 verticals:

  1. Digital Assets: 85–95% of revenue
    • Dominant segment, driven by trading, lending, asset management, and staking.
  1. Data Centers: 0–2% of revenue
    • Focuses on developing and leasing high-performance computing (HPC) and AI infrastructure, primarily at the Helios campus in West Texas. Revenue is expected from long-term leases (e.g., CoreWeave contract).
    • No significant revenue in 2025 due to the transition from mining to AI/HPC leasing, with meaningful contributions expected in 2026.
    • The CoreWeave lease is projected to generate $9 billion over 15 years, with $240 million in the first 12 months starting in 2026, suggesting future significance but minimal current impact.
  • Treasury and Corporate: 2–5%
    • Minor contribution from interest income and venture gains, offset by losses from digital asset depreciation.

The key takeaway here is the GLXY is heavily pivoting into the AI datacenter space which is already bolstering future revenue projections but has the potential to continue to grow in line with AI industry growth.

In summary, if crypto performs well in the coming months and years, the bulk of Galaxy's current business will perform well given the backdrop of rapid global crypto and stablecoin adoption. On top of that, Galaxy is rapidly expanding to benefit from the ongoing AI space-race.

Read more