Galaxy Digital: Helios IV Power Approval Unlocks Significant Undervalued Upside, Supporting Overweight/Buy Rating

James Faucette, an analyst from Morgan Stanley, reiterated the Buy rating on Galaxy Digital. The associated price target was raised to $43.00.

James Faucette has given his Buy rating due to a combination of factors tied primarily to the value of Galaxy Digital’s newly approved power capacity and its existing businesses. He highlights that the 830 MW Helios IV approval adds substantial per‑share value based on economics comparable to Galaxy’s CoreWeave hosting contract, and that in more optimistic scenarios the economics could resemble recent high‑performance computing agreements in the market, implying even greater upside. When this new power tranche is combined with the value he ascribes to Galaxy’s digital asset segment, the CoreWeave contract, and net cash, his valuation already exceeds the recent share price, suggesting the market is heavily discounting the likelihood of further power approvals. Faucette argues that the current trading level effectively assigns almost no value to additional power capacity beyond what has just been approved, which he believes is overly conservative.

James Faucette also incorporates a modest reduction in his digital asset estimates to reflect softer crypto markets and a lower valuation multiple in line with declines across comparable companies, but he notes that these adjustments have a relatively limited impact on his overall valuation. Even after these more cautious assumptions, his updated base case valuation range of $38–48 per share, with a $43 price target at the midpoint, stands well above where the stock is currently trading. This discrepancy between intrinsic value and market price, together with the potential for incremental value realization from the remaining 1.9 GW of power under study, underpins his view that Galaxy Digital’s risk‑reward profile remains attractive. As a result, he reiterates his Overweight/Buy rating, seeing meaningful upside if the company continues to secure approvals and executes on its power and digital asset strategies.

In another report released today, Jefferies also maintained a Buy rating on the stock with a $51.00 price target.

Based on the recent corporate insider activity of 34 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of GLXY in relation to earlier this year.