Is Galaxy Digital (NasdaqGS:GLXY) Undervalued After Its Sky Protocol Deal And Accounting Change?
Galaxy Digital (GLXY) has drawn attention after two September announcements, pairing an upcoming change in its principal accounting officer with a new onchain credit and treasury collaboration involving Sky Protocol and related lending partners.
The recent accounting leadership change and the Sky Protocol partnership land against a mixed backdrop for Galaxy Digital. The 7-day share price return is down 15.09% and the year-to-date share price return is down 6.79%, while the 3-year total shareholder return is very large and points to a very different experience for longer term holders.
Scan how Galaxy Digital fits into a broader onchain finance trend by comparing it with hand picked 19 cryptocurrency and blockchain stocks.
Bulls point to Galaxy Digital’s long onchain track record and Sky Protocol tie up, while bears lean on recent share price and earnings pressure. Which side does the valuation math support next?
Most Popular Narrative: 42% Undervalued
Galaxy Digital last closed at $23.07, while the most followed narrative anchors fair value at about $39.97. This frames a wide gap that bulls and bears are trying to explain.
Advancements in real-world asset tokenization and the convergence of onchain and offchain capital markets are creating new, durable revenue streams (e.g., staking, lending, tokenized asset management), which Galaxy is actively positioning for through innovation and platform development, supporting long-term growth in recurring revenue and operating income.
See why 28 investors see Galaxy Digital as 42% undervalued.
Result: Fair Value of $39.97 (UNDERVALUED)
Still, the bullish Galaxy Digital story could crack if its heavy CoreWeave exposure sours or if crypto trading activity stays weak for an extended stretch.
Find out about the key risks to this Galaxy Digital narrative.
Next Steps
Mixed signals on Galaxy Digital can either paralyze you or push you to test the thesis yourself. Use the detailed breakdown of 1 key reward and 3 important warning signs.
Looking for more investment ideas beyond Galaxy Digital?
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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.
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