Galaxy Digital Holdings is undervalued, this analyst says

Galaxy Digital Holdings (Galaxy Digital Holdings Stock Quote, Chart, News, Analysts, Financials TSXV:GLXY) may have posted a wider-than-expected loss in the first quarter of 2025, but ATB Capital Markets says brighter days are ahead, driven by its growing high-performance computing (HPC) business and a long-awaited U.S. stock listing.

In a May 13 update, ATB analyst Martin Toner reiterated his “Outperform” rating and held firm on a 12-month price target of $42.00, pointing to improving fundamentals and major upcoming milestones for the company.

“GLXY has been pursuing a Nasdaq listing for over four years,” Toner said. “As of May 13, the reorganization is complete, and GLXY intends to list on the Nasdaq on May 16, 2026. We see this as a positive catalyst for the stock as it unlocks a new cohort of U.S. investors, enables index and passive ownership, and provides more liquidity.”

The company reported a net loss of $295-million in Q1/25, falling short of expectations due to weaker digital asset prices and a softer performance in its lending operations. But Galaxy is already seeing a rebound, with Q2 operating income tracking between $160–170-million, helped by stronger crypto markets.

Galaxy’s 15-year, $4.5-billion hosting agreement with AI cloud player CoreWeave is a key driver of future growth. The deal underpins the buildout of Galaxy’s Helios data center, with Phase I expected to go live in the first half of 2026 and Phase II in 2027. ATB values the HPC segment alone at $18.02 per share, a major component of the firm’s bullish target.

While near-term earnings remain volatile, Toner sees long-term upside supported by infrastructure expansion, new investor access via Nasdaq, and continued momentum in both the crypto and AI compute markets.

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