Galaxy Digital: Post-Selloff Valuation Upside and Underappreciated HPC/Data Center Growth Support Buy Rating

In a report released today, Mike Colonnese from H.C. Wainwright reiterated a Buy rating on Galaxy Digital, with a price target of $40.00.

Mike Colonnese has given his Buy rating due to a combination of factors that, in his view, create a compelling entry point in Galaxy Digital’s shares following the post-earnings sell-off. He argues that the stock’s sharp decline after weaker-than-expected 4Q25 results has overshot the fundamental impact of a difficult crypto backdrop, thereby opening an attractive valuation opportunity in a high-conviction crypto and high-performance computing (HPC) name. He also highlights the prospect of near-term regulatory developments in U.S. crypto market structure, which he believes could materially improve sentiment toward digital assets, supported by management’s high confidence that legislation could be advanced in the coming weeks.

Moreover, Colonnese emphasizes the emerging contribution from Galaxy’s data center strategy as a key driver of future value. Phase I of the CoreWeave lease at the Helios site is expected to begin generating substantial, long-duration, high-margin revenues in the near term, with the contracted revenue stream over 15 years materially enhancing the company’s earnings profile. He further notes that recent approval for a large expansion in power capacity at Helios could unlock more than $1 billion in additional annual revenue potential once fully deployed, a benefit he believes is not yet fully reflected in the stock. Ongoing discussions with potential tenants and the possibility of another significant lease agreement this year reinforce his view that Galaxy’s infrastructure platform can deliver meaningful, underappreciated upside, supporting his decision to reiterate a Buy rating.

In another report released today, Rosenblatt Securities also reiterated a Buy rating on the stock with a $39.00 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.