Galaxy Digital (GLXY): A Bull Case Theory 

We came across a bullish thesis on Galaxy Digital on Daniel Romero’s Substack. In this article, we will summarize the bulls’ thesis on GLXY. Galaxy Digital’s share was trading at $28.19 as of January 14th. GLXY’s trailing and forward P/E were 47.89 and 75.76 respectively according to Yahoo Finance.

Galaxy is emerging as a uniquely positioned platform at the intersection of two powerful secular themes: institutional crypto adoption and AI-driven data center demand. Often described as the Goldman Sachs of crypto, Galaxy offers a full-stack institutional digital asset platform spanning trading, custody, asset management, lending, ETFs, and advisory services, with a blue-chip client base that includes Goldman Sachs, Invesco, SoFi, and leading crypto-native firms.

Its digital asset segment has scaled rapidly, with record trading volumes, a fast-growing loan book, and adjusted EBITDA of roughly $250 million in the most recent quarter, underscoring the profitability of its high-margin, fee-driven model. Galaxy’s moat is reinforced by its reputation, infrastructure, and alignment with long-term industry trends such as tokenization, which expands its total addressable market across institutions and, increasingly, retail through its GalaxyOne platform that integrates cash, equities, and crypto under one ecosystem.

Beyond services, Galaxy holds substantial proprietary investments across major digital assets and a broad venture portfolio spanning crypto infrastructure, payments, tokenized assets, and decentralized compute, creating embedded optionality while remaining cash generative. The most transformative catalyst, however, lies in its data center business.

Galaxy acquired the Helios campus in Texas at a distressed price during the crypto downturn and repositioned it from Bitcoin mining to high-performance computing. A long-term lease with CoreWeave will fully utilize 800 megawatts of capacity, generating over $1 billion in revenue with approximately 90% EBITDA margins once fully operational by 2028. Additional potential approval for 2.7 gigawatts of expansion provides significant upside optionality.

While risks include crypto cyclicality, execution on data center buildouts, and customer concentration, Galaxy’s combined crypto and compute businesses are on track to generate over $2 billion in adjusted EBITDA by 2028. At a roughly $10 billion market cap, the stock offers a compelling risk-reward profile with clear multibagger potential if management executes on its strategy.

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 transition from Bitcoin mining to renewable energy-backed AI data center infrastructure and its asymmetric upside potential. IREN’s stock price has appreciated by approximately 306.45% since our coverage due to accelerating AI infrastructure demand. Daniel Romero shares a similar view but emphasizes Galaxy Digital’s combination of institutional crypto services and hyperscale AI data centers.

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Disclosure: None.