Galaxy Digital: Dual Crypto Platform And AI Data Center Strategy

Summary Galaxy runs a dual strategy with its digital-asset platform and Helios AI/HPC data-center campus with ￰0￱ positions tokenization as a TradFi-to-crypto ￰1￱ roadmap includes tokenized MMF and tokenized Galaxy ￰2￱ time, Galaxy will also make a retail ￰3￱ offers FDIC-insured cash, equities, and ￰4￱ my view, a key revenue vertical will be Helios ￰5￱ expects over $1 billion in average annual revenue potential. However, given its low profitability, Galaxy seems too expensive to warrant a bullish rating. Thus, I lean neutral at these ￰6￱ Digital ( OTCPK:BRPHF ) ( GLXY ) (GLXY:CA) has a digital-assets franchise and a multi-GW AI/HPC infrastructure ￰7￱ frames tokenization as the practical bridge between traditional finance (TradFi) and ￰8￱ of June 2025, Galaxy reported approximately $9 billion in combined assets on the platform and exposure to Bitcoin ( BTC-USD ) and Ethereum ( ETH-USD ).

They also mentioned other venture stakes and infrastructure bets with their Helios campus for AI-compute ￰9￱ Helios campus has an anchor tenant (CoreWeave) that has committed 526 MW on a 15-year ￰10￱ despite all of its positives, I feel Galaxy’s valuation leaves little upside potential at its current premium ￰11￱ Finance Ambitions Galaxy Digital Holdings ￰12￱ effectively a financial services company focused on digital assets and high-performance computing (HPC) ￰13￱ was incorporated in July 2018 as a Cayman Islands ￰14￱ May 2025, it converted to a Delaware corporation and started listing on Nasdaq as “GLXY.” However, it also trades under an OTC ticker as “BRPHF,” and its principal address is currently listed in New York.) and prime and custody ￰15￱ frames digital assets as an opportunity that’s still in the very early ￰16￱ thesis is that the global crypto market is currently $4 trillion, but over $700 trillion of traditional markets may be tokenized.

And, as you might imagine, even capturing a tiny portion of that new potential market could imply a massive addressable pool of new funds. Moreover, growing adoption is possible because digital assets are a combination of technology and ￰17￱ practice, this can deliver new value verticals with programmable information through crypto, stablecoins, and tokenized US Treasury bills (T-bills). Institutional-grade products like ETFs, derivatives, and securities are already attractive for traditional investors. So, at the crossroads of these two TAMs, Galaxy could potentially capture and deliver significant shareholder value over time.), Celestia ( TIA-USD ), Sui ( SUI-USD ), EigenLayer, Avalanche ( AVAX-USD ), Near ( NEAR-USD ), Akash ( AKT-USD ), and Injective ( INJ-USD ), among others.

Additionally, Galaxy’s infrastructure for digital assets presents staking solutions to secure loans and a staking operating ￰18￱ includes a GK8 , a self-custody platform for institutional cold and hot custody, and multi-party computation ((MPC)). The combined assets on that platform had a total of $9 billion as of June 30, ￰19￱ includes ETFs and exchange-traded products (ETPs) ($3.3 billion), staked assets ($3.1 billion), and what they deem as “alternatives” ($2.4 billion). Overall, Galaxy holds a diversified mix of crypto and investments on its balance ￰20￱ total, they have around $748 million, including spot BTC and wrappers (wBTC, BTC funds, and ETPs), $196 million in spot ETH, and ETH wrappers, $330 million in other token exposure, and $718 million in stakes in private crypto and Web3 companies, funds, and other private-equity holdings.), 800 MW with permissions to build for that load, and up to 3.5 GW evaluated for future ￰21￱ campus is in the ERCOT West power zone that provides faster interconnection timelines and flexible market structures that facilitate power-dense AI builds.) that will live on Ethereum, Solana, and ￰22￱ will compete with on-chain fund shares like BlackRock’s ( BLK ) BUIDL and Franklin Templeton’s BENJI ( BEN ).

Galaxy wants an on-chain MMF that behaves with the speed of a stablecoin, but with the safety profile of T-bill collateral. Then, by October 2025, Galaxy launched GalaxyOne , a US retail platform that moves the company beyond institutional ￰23￱ intends to tap into consumer finance, aiming to be a one-stop shop for cash, crypto, and stocks.). In any event, the 10-Q records around $2.8 billion in digital assets borrowed, $348.2 million in loans payable, $1.9 billion in collateral payable, and $725.6 million in notes ￰24￱ amounts to a substantial amount of financial debt of approximately $5.8 billion. So, I estimate Galaxy’s enterprise value at roughly $18.7 billion if we include its tokens as liquid resources akin to cash.).

And while it’s possible their margins will increase over time on the bulk of their revenues, I don’t think it’s worth being bullish on that at these ￰25￱ all, there are a lot of assumptions baked into its best-case scenario, and Helios will also take a few years to fully play out.) and net CAPEX (-$388.5 million). And annualizing that burn rate, it works out to about $118.4 ￰26￱ would imply a very healthy cash runway of at least 5.8 years if we just consider its actual cash balances of $691.3 million (and exclude liquid token assets). So, I do feel there’s some optionality if management improves its margins and Helios grows as expected over time.

Conclusion: It Will Take Time Overall, Galaxy has a very ambitious vision that plans on capitalizing on the growing adoption of crypto by TradFi. However, for the time being, this remains largely speculative and will take time to fully ￰27￱ stock also trades at a very expensive valuation based on its actual profitability metrics, like ￰28￱ main positive is that I do believe Galaxy has the right management and enough resources to deliver on its vision with Helios. Also, I concede its EBIT margins may improve over time. Yet, on balance, I don’t think there’s enough upside potential at these levels to justify a bullish rating, which is why I lean towards a “Hold” for now.