ATB raises price target on Galaxy Digital to $75.00

ATB Capital Markets analyst Martin Toner raised his target price on Galaxy Digital Holdings (Galaxy Digital Holdings Stock Quote, Chart, News, Analysts, Financials TSX:GLXY) to $75.00 from $60.00 while maintaining an “Outperform” rating in an Oct. 24 report, following what he called “record” third-quarter results and growing traction in the firm’s high-performance computing business.

“Before market open on Oct. 21, Galaxy reported record Q3 results which showed strong beats across the board amidst ongoing operational momentum,” Toner said. “While a quarter like Q3 should not be extrapolated or annualized, it is instructive for investors looking for a well-positioned player long term in an emerging financial services space.”

Galaxy reported Q3/25 revenue of US$28.4-billion, well above consensus at US$17.1-billion, up 231% year over year, largely driven by a 140% sequential increase in digital asset trading volumes, including the execution of an 80,000-BTC trade for one client, one of the largest single trades in the company’s history. Net income of US$505.1-million beat consensus of US$127.2-million, while adjusted gross profit rose to US$728.4-million, compared with US$279.7-million expected. Shareholders’ equity came in at US$3.17-billion, above ATB’s estimate of US$2.62-billion.

Toner said that digital asset trading and advisory were key contributors to the upside. The company’s loan book grew 60% quarter over quarter to US$1.77-billion, and net digital asset exposure rose 14% to US$2.14-billion. Adjusted EBITDA jumped to US$629-million, up from US$211-million in Q2.

“Q3 results were positively impacted by Galaxy executing a US$9-billion-plus Bitcoin trade in July,” he said. “This showcases the brand’s trust and execution capabilities.”

He said Galaxy’s Helios data centre in Texas continues to advance, with Phase I revenue recognition expected in the first half of 2026. The company recently closed a US$1.4-billion project financing facility, with US$430-million drawn by quarter-end, and on Oct. 10 announced a US$460-million private investment from a major global asset manager, providing US$325-million in net proceeds. As of Q3, Galaxy held US$1.1-billion in cash, positioning it well to fund its HPC expansion and development initiatives.

Toner raised his HPC valuation per share to US$38.50, up from US$27.00, reflecting a 25% probability of a full 3.5GW buildout. His sum-of-the-parts valuation values Galaxy’s digital asset operations at 18× 2026 adjusted gross profit, with additional value attributed to HPC and balance-sheet assets.

“We are constructive on the company’s HPC progress and timelines,” Toner said. “Galaxy is now well-capitalized to fund its development initiatives, and its execution remains undervalued.”

He raised his 2025 and 2026 net income forecasts by US$236-million and US$53-million, respectively, while maintaining a cautious stance on crypto markets heading into 2026, noting his Q4 revenue projection assumes a US$15-billion sequential drop due to flash-crash volatility.

“Our US$75.00 price target values Galaxy at 7.7× current book value,” Toner concluded. “We continue to view the company as one of the best-positioned diversified digital asset platforms globally.”

-30-