Galaxy Digital (NasdaqGS:GLXY) Tests The Bull Case On Data Center Valuation

Galaxy Digital (GLXY) has been drawing fresh attention after a sharp pullback, with the stock down 35% over the past month and 59% over the past year. That slump now frames every valuation conversation.

Short term momentum has clearly faded for Galaxy Digital, with the share price down 11.56% over one day and 34.63% over 30 days. The 59.29% decline in 1 year total shareholder return sits against a very large 3 year total shareholder return of about 3x that starting level.

Compare Galaxy Digital's drawdown with other digital asset and blockchain focused financials by scanning the hand picked 18 cryptocurrency and blockchain stocks now shaping this corner of the market.

Galaxy Digital has built a broad digital asset platform, but the share price reset over the past year now raises a sharper issue. Is this still a strong franchise that has simply been marked down, or is the markdown justified?

Most Popular Narrative: 60% Undervalued

Galaxy Digital's most followed narrative pegs fair value at about $40 based on a discount rate of 9.14%, compared with the recent close near $16. That gap sets up a valuation story that leans heavily on future AI data center cash flows and digital asset infrastructure revenue.

The maturation of digital asset infrastructure, evidenced by large-scale, long-term data center developments and multi-phase partnerships (e.g., CoreWeave), is poised to generate significant, high-margin cash flows beginning in 2026, enhance earnings visibility, and improve the company's overall capitalization efficiency as these business lines scale.

See why 29 investors see Galaxy Digital as 60% undervalued.

Result: Fair Value of $39.97 (UNDERVALUED)

Still, two pressure points could derail that 60% undervalued narrative for Galaxy Digital if CoreWeave concentration cracks or Texas data center build outs stumble.

Find out about the key risks to this Galaxy Digital narrative.

Next Steps

That mix of optimism and concern around Galaxy Digital only matters if it helps you act with clarity, not hesitation. To see how the current risks and potential rewards balance out, start by weighing the 1 key reward and 3 important warning signs.

Looking for more investment ideas beyond Galaxy Digital?

If you only focus on Galaxy Digital, you risk missing other opportunities that could fit your goals even better, so broaden your shortlist using these targeted ideas.

• Target potential mispricing by scanning companies that screen as high quality and possibly undervalued through the 33 high quality undervalued stocks.
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• Dial back risk by focusing on businesses filtered for resilient finances using the 32 resilient stocks with low risk scores.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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