Galaxy Digital (GLXY): A Bull Case Theory

We came across a bullish thesis on Galaxy Digital on wallstreetbets subreddit by CheekEquivalent1277. In this article, we will summarize the bulls’ thesis on GLXY. Galaxy Digital's share was trading at $29.70 as of September 12th. GLXY’s trailing and forward P/E were 36.33 and 185.19 respectively according to Yahoo Finance.

Galaxy Digital Holdings Ltd. (GLXY) stands out as a pioneering player in tokenized equities, holding a first-mover advantage and effectively a monopoly in offering tokenized versions of real shares with full economic and legal rights, including dividends, votes, and SEC compliance. Unlike synthetic or derivative offerings from Kraken, Ondo, or Robinhood, GLXY’s platform appeals particularly to institutional investors restricted from derivative exposure.

The adoption of tokenized equities is poised to accelerate, driven by benefits such as 24/7 trading, instant settlement, fractional ownership, and lower fees, as well as favorable regulatory tailwinds from a crypto-friendly administration. Tokenized equities are projected to reach $190 trillion globally over the next two decades, highlighting substantial long-term growth potential.

GLXY also outperformed the broader crypto market in Q2 despite a 10% decline in its stock following a 22% drop in digital asset trading volume, compared with a 30% industry-wide contraction, demonstrating resilience. The company is further diversifying into AI infrastructure via its partnership with CoreWeave, building the Helios high-performance computing campus in Texas. CoreWeave’s exercise of 800 MW of the campus’s 3,500 MW capacity is expected to generate $1 billion annually, with full-scale potential exceeding $4 billion in ARR, dramatically underscoring the underappreciated growth opportunity relative to GLXY’s $8.6 billion market cap.

Additional tailwinds include declining interest rates, which could lower financing costs for the $1.75 billion Helios project, and the recent tokenization of GLXY’s equity, potentially driving short-term speculative demand from crypto-native investors. Analysts currently rate GLXY a consensus strong buy with a 12-month target implying ~60% upside. While Bitcoin price swings affect near-term volatility, GLXY’s diversified business model, strong leadership, and long-term growth prospects make the stock a compelling investment opportunity.

Previously we covered a bullish thesis on IREN Limited (IREN) by Industrial Tech Stock Analyst and Money Machine Newsletter in February 2025, which highlighted the company’s transition from Bitcoin mining to AI-ready data center infrastructure, renewable energy advantage, and strategic partnerships. The company's stock price has appreciated approximately by 161% since our coverage. The thesis still stands as IREN continues to expand AI infrastructure. CheekEquivalent1277 shares a similar perspective but emphasizes Galaxy Digital’s first-mover advantage in tokenized equities and its Helios AI infrastructure expansion.

Galaxy Digital is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 26 hedge fund portfolios held GLXY at the end of the second quarter which was 0 in the previous quarter. While we acknowledge the potential of GLXY as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.