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    Galaxy Digital (NasdaqGS:GLXY) Faces A Terra Lawsuit Test, Is The Stock Still Undervalued?

    Simply Wall St·09/12/2026 08:17:20
    語音播報

    Galaxy Digital (GLXY) is back in focus after the Ontario Superior Court of Justice granted leave to commence a secondary market misrepresentation claim, certifying a class proceeding tied to its historic Terra blockchain involvement.

    Recent trading has been choppy for Galaxy Digital, with a 1-day share price return of 1.12% to US$24.40 following the lawsuit update. This compares with a 7-day share price return that declined 7.33% and a 90-day share price return that fell 26.86%. Over the same period, the 30-day share price return gained 15.75%, and the 3-year total shareholder return is very large, suggesting longer term holders have still seen substantial gains even though shorter term momentum has faded.

    Spot fresh opportunities around Galaxy Digital by scanning a hand-picked set of crypto exposed businesses in our 21 cryptocurrency and blockchain stocks.

    After a sharp pullback despite a very large 3-year return, Galaxy Digital now carries legal noise and recent volatility. Does that mix still leave more upside than downside when you compare it with the current valuation?

    Most Popular Narrative: 39% Undervalued

    Galaxy Digital's most widely followed narrative pegs fair value at about $40, compared with the latest close at $24.40, putting a big gap between story and screen.

    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.

    Read the complete narrative.

    Curious what has to happen in Texas and across Galaxy Digital's trading, tokenization, and data center plans for that valuation gap to close. The narrative leans heavily on future profitability, higher margins, and a very rich earnings multiple that is usually reserved for market favorites. The question is which combination of revenue growth, margin shift, and capital intensity sits behind that fair value line.

    Result: Fair Value of $39.97 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    Still, the narrative around Galaxy Digital can unravel quickly if CoreWeave stumbles or if tighter financing conditions squeeze returns from its capital heavy Texas build out.

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

    Next Steps

    Mixed signals around Galaxy Digital can make it hard to know which voice to trust, so move quickly, review the data, and weigh both the upside potential and downside risk using the 1 key reward and 3 important warning signs.

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    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.