Galaxy Digital is undervalued, this analyst says

ATB Capital Markets analyst Martin Toner resumed coverage of Galaxy Digital (Galaxy Digital Holdings Stock Quote, Chart, News, Analysts, Financials TSX:GLXY) on June 12 with an “Outperform” rating and a $40.00 price target, citing major expansion plans in high-performance computing, a recent Nasdaq listing, and strengthening crypto market momentum as key catalysts for growth.

Toner pointed to Galaxy’s buildout of data center capacity at its Helios site, new investor access through its U.S. listing, and rising institutional interest, fueled by Bitcoin’s recent rally and the successful IPO of stablecoin issuer Circle Internet Group, as drivers of upside across the company’s trading, lending, and venture businesses.

Toner said Galaxy is rapidly expanding into high-performance computing and AI infrastructure, with 133MW of capacity already in development at its Helios site through a lease agreement with CoreWeave and broader plans underway.

“GLXY has ERCOT approval for up to 800MW of gross power capacity at Helios today, with 200MW remaining to be contracted beyond the 393MW already secured with CoreWeave,” he said. “An additional 1.7GW is under various stages of study. The first 800MW tranche is expected to be approved in a ‘single-digit number of months.’ The team has evaluated close to 40 potential data center sites, primarily across the U.S., with an average size of ~500MW.”

He also highlighted Galaxy’s recent Nasdaq listing on May 16 as a key milestone that broadens investor access, improves liquidity, and strengthens the company’s capital-raising ability.

“GLXY has now listed on the Nasdaq as of market open on May 16, 2026. GLXY has been pursuing a Nasdaq listing for over four years, which we see as a positive catalyst for the stock as it: i) unlocks a new cohort of US investors, ii) enables index and passive ownership and iii) it would provide more liquidity to the stock,” Toner said.

“On May 29, GLXY announced an upsized common stock offering of 31.6mm shares for proceeds of $501mm minus fees. The upsized offering was composed of 26.4mm shares offered by Galaxy, and 5.2mm shares offered by certain stockholders of GLXY. According to management, the proceeds will be used to finance the equity portion of Helios’ phase 2 expansion (which will be financed with an 80/20 debt to equity ratio).”

Toner said Galaxy’s trading, lending, and staking businesses stand to benefit from a 40% rise in Bitcoin since April, the successful IPO of stablecoin issuer Circle, and growing institutional interest in digital assets.

Circle, which issues the USDC stablecoin, went public on June 5, 2025, at $31 per share. The stock now trades at $111. In 2024, Circle reported $1.68-billion in revenue, up about 16% year over year, and $156-million in net income. It generates revenue from transaction fees, interest on reserves, and platform services, and currently trades at around 15.5 times trailing revenue and 35 times book value.

“We believe growth in the amount of stablecoin outstanding indicates a growing opportunity for Galaxy,” he said. “More institutions using stablecoins, especially traditional institutions and corporations, means more potential clients and counterparties for Galaxy, including the stablecoin issuers themselves. The bigger the stablecoin ecosystem, the more opportunities for Galaxy to help clients trade, hedge, borrow and lend capital. A large and growing amount of stablecoins outstanding is an indication of institutional adoption of crypto in general, and presents an expanding addressable market for the company.”

He said Galaxy has exposure to several stablecoin-related businesses through its venture portfolio, which was valued at $736.1-million in Q1 2025. Circle’s strong valuation could help lift the value of similar private companies, potentially boosting Galaxy’s book value.

“It is difficult to see a material increase in the venture portfolio just from the enthusiasm that the CRCL IPO represents,” he said. “We do not have a breakdown, but stablecoin-related investments could be less than a third of the portfolio. We believe more attention and activity in crypto-related equities and the utility to Galaxy of stablecoins themselves are all positives for Galaxy.”

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