Galaxy Digital (GLXY): A Bull Case Theory

We came across a bullish thesis on Galaxy Digital on X.com by FloodCapital. In this article, we will summarize the bulls’ thesis on GLXY. Galaxy Digital's share was trading at $25.36 as of December 2nd. GLXY’s trailing and forward P/E were 44.29 and 69.44 respectively according to Yahoo Finance.

Galaxy Digital (GLXY) recently announced an exchangeable senior note offering of up to $1.15 billion, a move viewed as highly strategic and bullish. The financing, combined with the $325 million equity sale to Capital Group, is expected to provide sufficient capital for the buildout of the next 800MW phase at the company’s Helios site. Management’s timing suggests confidence that approvals for the second 800MW tranche are imminent, allowing GLXY to execute both phases concurrently and accelerate growth.

The first 800MW development, in partnership with CoreWeave, carries an estimated $7 billion CapEx, funded with 20% equity and 80% debt, and is projected to generate roughly $900 million in EBITDA by 2028. Applying a 25x multiple, consistent with Goldman Sachs’ valuation approach and in line with top-tier data center operators like DLR and EQIX—implies an enterprise value of $22.5 billion and an equity value of about $15.5 billion, or ~$40 per share. Replicating similar economics on the next 800MW phase could double that equity value, underscoring the potential for significant upside.

The exchangeable structure of the notes offers Galaxy flexibility to repay in cash, shares, or a mix of both, minimizing dilution risk while extending maturity to 2031, by which time the company expects to be generating substantial cash flow. Overall, this capital raise positions GLXY to pull forward major cash flow generation, strengthen its balance sheet, and solidify its leadership in AI-optimized data center infrastructure—a transformative step in its growth trajectory.

Previously we covered a bullish thesis on IREN Limited (IREN) by Industrial Tech Stock Analyst and Money Machine Newsletter in February 2025, which highlighted IREN’s pivot from Bitcoin mining to AI-powered data centers. The company’s stock has appreciated by 216.06% since our coverage as the thesis played out strongly. FloodCapital shares a similar view but emphasizes Galaxy Digital’s financing-driven expansion in AI data infrastructure through Helios.

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.