Galaxy Digital Holdings (GLXY) AI Stock Analysis

• Market Cap: $5.26B
• Dividend Yield: N/A
• Average Volume (3M): 1.24M
• Price to Earnings (P/E): 15.1
• Beta (1Y): 2.31
• Revenue Growth: N/A
• EPS Growth: -82.47%
• Country: CA
• Employees: 528
• Sector: Financial
• Sector Strength: 79
• Industry: Financial - Capital Markets
• EPS (TTM): 1.00
• Shares Outstanding: 130,402,240
• 10 Day Avg. Volume: 1,572,600
• 30 Day Avg. Volume: 1,239,284
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.07
• Price to Cash Flow (P/CF): -110.40
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$36.73
• Price Target Upside: 155.96% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

Galaxy Digital Holdings presents a mixed outlook. Strong profitability and strategic growth initiatives contrast with financial stability concerns and technical indicators suggesting potential stock price weakness. Legal settlements and anticipated short-term losses add risk, while the company's valuation appears reasonable. Strategic expansions into AI and regulatory developments are promising, but market volatility remains a key challenge.

Positive Factors

Profitability

The company expects to realize adjusted EBITDA margins of 90% or higher on the revenue it generates from the CoreWeave agreement.

Revenue Growth

Galaxy Digital Holdings signed a 15-year lease agreement with CoreWeave to provide 133 MW of data center capacity, expecting to generate ~$4.5bn of revenue over the agreement’s term.

Negative Factors

Financial Performance

Management guided to a pre-tax loss in the quarter of ~$300M at the midpoint.

Legal Issues

GLXY reached an agreement with the New York State Attorney General to make $200m in installment payments through 2028 to settle civil claims related to promoting Terraform Labs' Luna cryptocurrency.

Galaxy Digital Holdings Business Overview & Revenue Model

Company Description

Galaxy Digital Holdings Ltd. is a diversified financial services and investment management company focused on the digital asset, cryptocurrency, and blockchain technology sectors. The company operates through multiple business lines, including trading, asset management, principal investments, and advisory services. Galaxy Digital is known for its expertise in blockchain technology and its active involvement in the development and growth of the digital asset ecosystem.

How the Company Makes Money

Galaxy Digital Holdings generates revenue through several key streams. Its trading division engages in proprietary trading and market making activities in digital assets, earning profits from buying and selling cryptocurrency. The asset management sector manages a portfolio of digital asset investment funds, earning fees based on assets under management and performance. Principal investments involve deploying capital directly into promising blockchain and cryptocurrency ventures, generating returns through strategic exits. Additionally, the advisory services division provides consulting and strategic guidance to businesses within the digital asset space, earning fees for their expertise. Significant partnerships with other financial institutions and technology firms enhance Galaxy Digital's ability to access new opportunities and expand its market presence.

Galaxy Digital Holdings Financial Statement Overview

Summary

Galaxy Digital Holdings shows strong revenue growth and high profitability with a robust balance sheet characterized by substantial equity and zero debt. However, negative cash flows suggest liquidity challenges, and operational efficiency requires improvement, as indicated by the negative EBIT margin.

Income Statement

The company's TTM revenue stands at $280.5 million, indicating a significant increase from previous periods with zero revenue, reflecting strong growth. The net profit margin is exceptionally high at 364%, driven by a notable TTM net income of $1.02 billion. However, EBIT margin is negative at -2.6%, suggesting operational challenges. EBITDA margin is strong at 113.7%, alleviating some concerns about operational profitability.

Balance Sheet

The balance sheet shows a robust equity position with a debt-free structure, as indicated by a debt-to-equity ratio of 0. The equity ratio is healthy at 90.7%, providing stability. Return on equity (ROE) is substantial at 106.4%, driven by high net income, indicating effective use of equity. The overall financial health appears stable and well-capitalized.

Cash Flow

The company reports negative operating cash flow of -$17.8 million in the TTM period, indicating cash constraints. Free cash flow is also negative, suggesting potential liquidity issues. The operating cash flow to net income ratio is negative, highlighting cash conversion challenges. Despite this, financing cash flow is positive, possibly due to external financing activities.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
280.46M	0.00	0.00	0.00	0.00	0.00
	Gross Profit
173.15M	0.00	0.00	0.00	0.00	0.00
	EBIT
-7.17M	493.26M	256.04M	-6.78M	12.42M	137.07M
	EBITDA
319.06M	493.24M	-460.77M	-4.25M	-1.90M	-132.52M
	Net Income Common Stockholders
1.02B	454.76K	-522.68M	402.08M	103.39M	-270.88M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.34M	833.00K	10.05M	26.82M	0.00	0.00
	Total Assets
1.41M	875.24M	394.27M	888.78M	267.77M	81.04M
	Total Debt
0.00	0.00	0.00	0.00	0.00	0.00
	Net Debt
-1.34M	-833.00K	-10.05M	-26.82M	0.00	0.00
	Total Liabilities
20.98K	94.20M	94.97M	102.48M	20.78M	0.00
	Stockholders Equity
1.39M	781.03M	299.31M	786.29M	246.99M	81.04M
Cash Flow		Free Cash Flow
-17.79M	-16.52M	-76.77M	-19.55M	103.39M	-169.00
	Operating Cash Flow
-17.79M	-16.52M	-76.77M	-19.55M	103.39M	-169.00
	Investing Cash Flow
-64.16M	6.86M	107.40M	12.24M	-49.28M	0.00
	Financing Cash Flow
112.09M	439.00K	-47.40M	34.13M	49.28M	0.00

Galaxy Digital Holdings Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 14.35
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GLXY, the sentiment is Negative. The current price of 14.35 is below the 20-day moving average (MA) of 16.42, below the 50-day MA of 20.62, and below the 200-day MA of 20.43, indicating a bearish trend. The MACD of -1.62 indicates Negative momentum. The RSI at 30.82 is Neutral, neither overbought nor oversold. The STOCH value of 7.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:GLXY.

Galaxy Digital Holdings Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	64 Neutral	$13.46B	9.44	9.34%	4.72%	16.14%	-8.80%
GLXY	63 Neutral	$5.26B	15.11	8.74%	―	―	-82.47%
HIVE	52 Neutral	$343.06M	―	-2.15%	―	27.99%	90.99%
HUT	49 Neutral	C$1.85B	3.51	2.56%	―	199.41%	―
DMGI	46 Neutral	$42.68M	―	-15.61%	―	17.68%	-278.21%
CSTR	38 Underperform	C$6.66M	―	-41.72%	―	-19.38%	78.11%
BITF	36 Underperform	$618.42M	―	-11.98%	―	33.77%	61.73%

Galaxy Digital Holdings Corporate Events

Galaxy Digital Moves Forward with U.S. Nasdaq Listing Plans

Galaxy Digital Holdings Ltd. announced that the SEC has approved its registration statement, marking a significant step towards its reorganization and U.S. listing on Nasdaq. This move is expected to enhance Galaxy’s market presence and operational capabilities, with a special shareholder meeting scheduled for May 9, 2025, to approve the reorganization.

Spark’s Take on TSE:GLXY Stock

According to Spark, TipRanks’ AI Analyst, TSE:GLXY is a Neutral.

Galaxy Digital Holdings demonstrates strong profitability and strategic growth initiatives, notably in AI and digital assets. Financial stability issues and recent market challenges present risks, but the company’s optimistic outlook and reasonable valuation support a solid overall score.

To see Spark’s full report on TSE:GLXY stock, click here.

Galaxy Digital Expands UK Operations with FCA License

Galaxy Digital Holdings has secured a license from the UK’s Financial Conduct Authority (FCA) for its UK subsidiary, Galaxy Digital UK Ltd, to execute derivatives trading in London. This significant regulatory approval expands Galaxy’s global trading operations and strengthens its investment banking and asset management services in the UK. The license enhances Galaxy’s ability to meet the growing institutional demand for digital assets, reinforcing its position as a leading player in the digital assets ecosystem. The UK’s regulatory framework for crypto assets is seen as a leader in the global digital asset landscape, attracting innovation and investment to the region.

Galaxy Digital Reports Strong 2024 Financial Results and Strategic Developments

Galaxy Digital Holdings reported a net income of $174 million for Q4 2024 and $365 million for the full year, despite a legal settlement with the New York Attorney General impacting results. The company is progressing with its reorganization to become a Delaware-incorporated entity and plans to list on Nasdaq, subject to regulatory approvals. Additionally, Galaxy entered a significant 15-year lease agreement with CoreWeave to support AI and HPC infrastructure, expected to generate $4.5 billion in revenue. The company also saw substantial growth in its trading and advisory services, driven by increased derivatives activity and institutional demand.

GK8 Enhances Institutional Access to DeFi with Avalanche Integration

GK8 by Galaxy has integrated its unlimited MPC (uMPC) technology with the Avalanche blockchain, enhancing institutional access to DeFi applications. This integration allows institutions to securely engage with DeFi through MetaMask Institutional, leveraging Avalanche’s low transaction fees and rapid finality. The uMPC technology supports all EVM-compatible chains, ensuring secure asset management without compromising transaction speed, thereby fostering greater institutional participation in DeFi.

Galaxy Digital to Announce Q4 and Full Year 2024 Financial Results

Galaxy Digital Holdings Ltd. announced that it will release its fourth quarter and full year 2024 financial results on March 28, 2025, before the Toronto Stock Exchange opens. CEO Michael Novogratz and management will host a conference call to discuss the results and provide updates to shareholders. This announcement is significant as it provides stakeholders with insights into the company’s financial health and strategic direction, potentially impacting investor confidence and market positioning.

GK8 Enhances Institutional DeFi Access with Avalanche Integration

GK8 by Galaxy has integrated its unlimited MPC (uMPC) technology with the Avalanche blockchain, enhancing institutional access to decentralized finance (DeFi) applications. This integration allows users to securely deploy digital assets into various DeFi services via MetaMask Institutional, leveraging Avalanche’s low fees and fast transaction times. The move is expected to bolster institutional trust and participation in DeFi by ensuring secure and efficient interactions with blockchain-based financial services.

Galaxy Digital Partners with BitGo to Enhance Staking Services

Galaxy Digital Holdings Ltd. has partnered with BitGo Trust Company to offer staking services, allowing investors to use staked digital assets as collateral for loans and other financial products. This collaboration enhances capital efficiency for BitGo’s clients, leveraging Galaxy’s blockchain infrastructure and BitGo’s custodial solutions to unlock the potential of digital assets, demonstrating Galaxy’s commitment to innovation and security in digital asset management.

Galaxy Asset Management Reports Decrease in December 2024 AUM

Galaxy Asset Management, a part of Galaxy Digital Holdings, announced a preliminary assets under management (AUM) of $5.7 billion as of December 31, 2024, marking a 6.5% decrease from the prior month due to market depreciation and net outflows from its Passive Funds. The company also stated that AUM figures would now be published quarterly instead of monthly, aligning with Galaxy’s earnings releases, which may impact stakeholders’ access to timely financial data.